President Joe Biden has appointed Jennifer Fain, a former deputy inspector general at the Export-Import Bank, to lead the inspector general’s office at the Federal Deposit Insurance Corporation, the agency announced Monday.
Fain’s appointment comes at a time when the FDIC is undergoing investigation for alleged sexual harassment and misconduct by former employees following a detailed report of the events in The Wall Street Journal in November. The article alleged that FDIC Chair Martin Gruenberg turned a blind eye to the toxic culture and a “boys’ club environment” that alienated women.
In the days after the scandal broke, Gruenberg took responsibility and apologized to staff in a video seen by the Journal.
“I bear responsibility for setting the tone for our culture,” Gruenberg said in the video at the time. “I want to assure you that I’m committed to addressing these issues, including my own shortcomings.”
But his apology did not deter lawmakers from demanding his resignation for enabling a toxic work culture.
Meanwhile, in November, the FDIC’s Office of Inspector General said it planned to conduct a “special inquiry” into how the agency’s leadership handled complaints about sexual and other inappropriate conduct. The OIG said it will also assess the agency’s sexual harassment program, including a review of the steps taken by the FDIC following a 2020 OIG report that highlighted the agency’s lag in handling complaints.
The FDIC board members also established a review committee headed by board members Jonathan McKernan and Michael Hsu to oversee an independent third-party investigation of the agency’s workplace culture. Gruenberg has recused himself from overseeing the review.
Last month, the committee hired law firm Cleary Gottlieb Steen & Hamilton to examine the allegations of sexual harassment and misconduct.
Fain is the fourth presidentially-appointed IG of the FDIC, according to the statement. She has served more than 22 years in the IG community, including as deputy inspector general for the Export-Import Bank of the U.S. within the OIG, the office said. Before that, she was also the acting inspector general for three years, leading a team of auditors, investigators and analysts providing independent oversight of EXIM’s operations. Fain’s experience also includes leadership positions in audit, inspection and evaluation offices at the Federal Housing Finance Agency and the U.S. Department of Housing and Urban Development.
President Biden nominated Fain for IG FDIC in September, and the Senate confirmed her in December.
The FDIC did not respond to comment by press time.
