More than a third of employees at FDIC report harassment: Watchdog

(Reuters) — More than a third of employees surveyed at the U.S. Federal Deposit Insurance Corp. reported experiencing or witnessing workplace harassment, the agency’s watchdog reported Thursday.

The findings by the FDIC’s Office of Inspector General follow more than a year of turmoil at the top banking regulator that saw its chairman, Martin Gruenberg, offer to resign in the wake of an internal investigation, which uncovered widespread misconduct and toxic behavior.

The OIG’s review of settlements and complaints also supported the view among staff that some top managers had failed to protect or had retaliated against those who complained, the office said.

“These conditions occurred because FDIC leadership does not consistently implement the agency’s policies and stated core values, specifically fairness, accountability and integrity,” the OIG said in a statement.

However, most survey respondents said they felt “safe, valued and respected” and reported positive views about their co-workers and immediate superiors, the office said.

The OIG had also reported in August that the FDIC’s sexual harassment prevention efforts were deficient.

In written comments on the report’s findings submitted prior to release, FDIC Chief Operating Officer Daniel Bendler said the agency accepted all six of the OIG’s recommendations for improving the tone set by FDIC leadership and other matters.

Mr. Bendler also said the FDIC had made progress on a plan of action adopted last year and there was “no higher priority” at the agency than creating a safe working environment.