- Key insight: The FDIC ended an independent monitorship overseeing workplace culture reforms, saying all recommendations from its 2024 workplace investigation have been formally closed.
- Supporting data: The 2024 Cleary Gottlieb review found pervasive harassment, discrimination and other misconduct; an OIG report in March said workplace culture problems continued into 2025.
- Forward look: Outgoing monitor Carrie Cohen said responsibility for sustaining the reforms now rests with the FDIC, led by Trump-appointed Chairman Travis Hill, who has pledged to uphold the agency's workplace reforms.
The Federal Deposit Insurance Corp. on Wednesday announced the departure of an independent monitor tasked with overhauling its workplace culture, after a 2024 outside investigation found numerous instances of sexual harassment and discrimination at the agency spanning several years.
The outgoing monitor, Morrison Foerster lawyer Carrie H. Cohen, said in a statement that the agency now has better systems in place to address and remediate allegations of harassment, but that ultimately, fostering an environment free of sexual misconduct and toxic culture will rest with the agency, led by Chairman Travis Hill, who was appointed by President Donald Trump.
"As a direct result of the Monitorship Team's independent assessment of the FDIC's remediation design and engagement with the agency at all levels, the FDIC now has the remediation elements in place that are critical to lasting culture transformation," Cohen said. "As the monitorship concludes, responsibility for carrying these reforms forward rests with the FDIC. The agency is well positioned to carry out this work with a strong foundation and demonstrated commitment to the work ahead. It has been an honor to serve the FDIC and I am grateful to the Board, agency leadership, and especially the FDIC staff for their engagement throughout the monitorship."
The termination of the monitorship comes after years of finger-pointing by various lawmakers and regulators after the workplace scandal came to light late last year after The Wall Street Journal
The report portrayed an agency with a culture characterized by sexist favoritism and insularity, with reports of discrimination and harassment, particularly from female and minority employees.
Then-FDIC Chairman Martin Gruenberg was found to have yelled at and berated subordinates but the report did not explicitly call for his ouster, as he was not accused of sexual misconduct or harassment. Gruenberg therefore retained his position and participated in
The scandal played a prominent part in Hill's confirmation process, as he was at the FDIC while many of the allegations took place, both on the board as vice chair during the Biden Administration and as a top advisor for Gruenberg's predecessor Jelena McWilliams.
Sen. John Kennedy, R-La., criticized Hill when he was acting chair over what he called a lack of progress on addressing the workplace misconduct scandal, saying he wouldn't vote to confirm Hill until he sees concrete accountability, including a report within 30 days on the agency's progress. Kennedy ultimately voted to advance Hill's nomination after receiving satisfactory progress reports regarding workplace misconduct reforms.
As recently as March 2026, an Office of Inspector General
The agency did make progress addressing the findings in the report,
Wednesday's announcement concluding the monitorship said that all FDIC OIG recommendations stemming from the 2024 audit have been formally closed.
"The conclusion of the independent monitorship is an important milestone in these efforts," Hill said on Wednesday. "Carrie Cohen and her team played a pivotal role in providing oversight and engaging with the workforce as we implemented these reforms. The FDIC remains committed to sustaining this progress and maintaining a workplace where employees are treated with professionalism and respect, where employees are proud to work, and where potential recruits want to work."
