Kennedy releases FDIC report outlining steps to confront workplace misconduct and restore accountability

WASHINGTON - Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, today released a Federal Deposit Insurance Corporation (FDIC) report outlining long-overdue plans to address pervasive workplace misconduct, harassment, and cultural failings within the agency.

The FDIC-an independent agency responsible for safeguarding the stability of America's financial system by insuring deposits, supervising institutions and protecting consumers-has faced credible reports of toxic workplace behavior and systemic management failures.

During an October 30, 2025, Senate Banking Committee nominations hearing, Kennedy made clear that he would withhold his support for Acting FDIC Chair Travis Hill, President Trump's nominee to lead the agency, until the FDIC took concrete action to confront its toxic workplace culture and internal misconduct. Kennedy's firm stance on accountability and transparency prompted the FDIC to produce this report update for him, detailing the steps the agency is now taking to root out harassment, discrimination and systemic management failures.

"Attached is the FDIC report I requested about sexual harassment and workplace misconduct at the agency. I am satisfied with the progress the agency is making. I intend to vote to confirm Mr. Travis Hill as FDIC Chairman. This is no country for creepy old men," said Kennedy.

The FDIC's Report on Cultural Transformation outlines concrete steps the agency is taking to confront its toxic workplace culture, enforce accountability and build a professional environment rooted in respect, integrity and transparency.

"The Cleary Report found that, for far too many employees and for far too long, the FDIC failed to provide a workplace safe from sexual harassment, discrimination and other interpersonal misconduct. For the past two years, it has been a priority of mine to reverse these problems and reestablish a strong workplace culture at the FDIC," said Acting FDIC Chair Travis Hill in the report.

The report confirms that accountability measures are taking hold. Twenty-six employees linked to verified misconduct are no longer with the FDIC, and the agency has undertaken a major workforce realignment that reduced its headcount by more than 1,300 positions. The data suggests that some bad actors likely chose to leave the agency rather than face tougher investigations and consequences under new oversight reforms-an early sign that cultural change is beginning to take root.

Kennedy has been a steadfast advocate for stronger FDIC oversight, demanding greater transparency, accountability and reform within the agency. He has consistently called for decisive action to confront and eliminate the toxic workplace culture, harassment and systemic issues that have persisted for far too long.

• On July 11, 2024, Kennedy questioned FDIC Chair nominee Christy Goldsmith Romero about Cleary Gottlieb Steen and Hamilton LLP's report on the hundreds of claims of harassment at the FDIC.

• On May 20, 2024, in a Senate Floor speech, Kennedy urged then-President Joe Biden to fire then-FDIC Chair Martin Gruenberg. Kennedy argued that Gruenberg's eventual resignation would not protect the employees who have endured persistent harassment at the agency during his tenure.

• On May 16, 2024, in a Senate Banking Committee hearing, Kennedy asked Gruenberg if he would like to apologize to his employees for the well documented harassment and bullying that they endured under his leadership.

Full text of the FDIC's Report on Culture Transformation is here.