WASHINGTON– A succession management and worker retention program launched by the FDIC in 2024 has been suspended as a result of the workforce reduction efforts that have been ordered by the Trump Administration, according to the agency’s Inspector General.
“In light of the evolving workforce landscape facing the Federal Government and the FDIC (Federal Deposit Insurance Corp.), as well as the FDIC’s ongoing work to address a recent Office of Inspector General (OIG) recommendation, we believe it is prudent to delay further work at this time,” Acting Assistant Inspector General for Audits Jason M. Yovich wrote in a memo. “The FDIC OIG plans to revisit and report on the FDIC’s efforts in these areas once the FDIC has had the opportunity to more fully implement its Workforce Optimization Initiative.”
According to Yovich, the succession management and worker retention project originally announced on Oct. 10, 2024 was designed to determine to what extent “the FDIC has taken and sustained actions to address the risks related to succession management for key positions and roles and employee retention.”
In April of this year, however, the FDIC announced it’s a “Reduction-in-Force (RIF) and Reorganization Plan” that eventually become its “Workforce Optimization initiative, which is seeking to reduce staff at the FDIC by approximately 1,250 positions.
‘Voluntary Separations’
“To achieve this future organizational structure, the FDIC initiated targeted voluntary separation incentives including the Voluntary Early Retirement Authority (VERA), Voluntary Separation Incentive Program (VSIP), and Deferred Resignation Program (DRP) to certain employees,” the memo reads. “These voluntary separation incentives were available to employees from April 28, 2025 through May 5, 2025. Employees who opted for the VSIP or VERA (without the DRP) would generally depart the FDIC by June 30, 2025.”
While the workforce reductions are underway, Yovich indicated the FDIC plans to continue its efforts related to worker retention and succession management following completion of the RIF.
Work Will Continue
“We believe that the FDIC has an opportunity to leverage our previous recommendation and fully integrate its anticipated agency-wide resource committee into its workforce optimization efforts,” the memo states. “Such integration would align the prioritization of existing resources across the FDIC, facilitate succession management discussions and activities, and enhance workforce optimization strategies throughout the FDIC.”
NCUA Hits Target
As the CU Daily reported earlier here, NCUA is reporting more than enough employees have agreed to voluntarily leave the agency its work to comply with the Trump Administration’s workforce reduction order, and that by Jan. 1, 2026 it will have reduced headcount to approximately 953 employees from its current approximately 1,214.
FHFA Issues Directive on Crypto, Home Loans
Serparately, FHFA Director Bill Pulte has issued a directive to Fannie Mae and Freddie Mac they prepare proposals for “consideration of cryptocurrency as an asset for reserves in their respective single-family mortgage loan risk assessments, without conversion of said cryptocurrencies to U.S. dollars. Each Enterprise is directed to consider only cryptocurrency assets that can be evidenced and stored on a a U.S.-regulated centralized exchange subject to all applicable laws.”
The order also directs Fannie and Freddie to consider additional risk mitigants, including adjustments for market volatility.
Pulte distributed the order via X here.
