WASHINGTON–In the wake of President Trump’s executive orders, what lies ahead for the country’s bank examiner and insurer is uncertain, according to a new report from the FDIC’s Office of Inspector General (IG).
The report said the “contours of changes” to the FDIC “remain unclear” as a result of those orders.
“The federal government is undergoing significant restructuring and reform that continues to unfold as we complete our annual assessment of the Top Management and Performance Challenges facing the Federal Deposit Insurance Corporation (FDIC),” the OIG report stated. “The pace of change and fluidity regarding the status and composition of the FDIC makes it difficult to assess the full impact of these changes on the FDIC and its mission.”
Eight Top Challenges
According to the FDIC report, the eight top challenges the agency faces—not in any particular order—include:
- Enhancing governance
- Establishing effective human capital management
- Ensuring readiness to execute resolution and receivership responsibilities
- Identifying and addressing emerging financial sector risks
- Assessing operational resilience in the financial sector
- Improving contract management
- Ensuring IT security and scalability
- Guarding against harmful scams
The report states that it is “critical to ensure that FDIC divisions and offices work together to address all identified Top Challenges.”
Culture of Sexual Harassment Not Addressed
The report does not specifically cite the sexual harassment scandals—the FDIC was called a “sexualized boys club” in one report—that dominated much of the internal atmosphere at the agency in 2023-24, which ultimately led to the resignation of the its then-Chairman Martin Gruenberg. Two of the three appointed seats its board are also currently unfilled.
Instead, it focused on the changes being forced by Trump administration on the federal government.
“Federal agencies and departments are undergoing significant restructuring and reform,” the report states. “The Administration has issued a series of executive orders and other directives with the primary aim to reduce government size and scope in furtherance of workforce optimization. As such, the contours of changes to the FDIC remain unclear.”
Other Findings
The OIG report goes on to state:
- Traditionally, the FDIC’s various functions “tend to work in a siloed, independent fashion rather than as a cohesive enterprise to assess and address risks faced by the FDIC and ensure coordination of activities across FDIC Divisions and Offices.”
- Approximately 453 FDIC employees (approximately 7% of all FDIC employees) accepted the Trump administration’s Deferred Resignation Program (DRP) offer. Additionally, the FDIC dismissed about 162 probationary employees (approximately 2% of all FDIC employees). The agency said there were also 103 separations – including retirements, resignations, and transfers to other agencies – between Jan. 1 and Feb. 18 “that were unrelated to these activities.”
