FDIC Alert! After a call out in the WSJ for a 'Toxic atmosphere' full of strip clubs, dick pics, & booze, FDIC releases additional statement announcing opening an Independent Review 'Workplace culture'.
As we covered yesterday, earlier this week, the Wall Street Journal called out the FDIC's toxic work environment:
This was also picked up by u/chikaca over at r/Superstonk:
Today Chairman Travis Hill and Director Jonathan McKernan are back with an additional statement:
This has been a difficult week for the FDIC. Restoring faith in the work environment at the FDIC will be challenging. One essential step will be a comprehensive review of the recently reported allegations that is truly and fully independent. This includes, at a minimum, the following:
First, the review must look at all conduct described in the recent news reports, in all parts of the organization, including that of the Chairman and General Counsel, and they need to fully recuse from the process.
Second, the FDIC board, not FDIC management, should determine the scope of the investigation, the appropriate structure for day–to–day direction of the review, and who conducts the inquiry.
News stories like these make it more difficult for the FDIC to do its job and undermine public confidence in the agency.
We will continue to work with our fellow Board members to restore the faith of the public and our employees in the FDIC.
I guess they got the message at how awful this looks to have banks failing worse than 2008-2009 combines in asset failures while they are busy sending dick pics?:
| Year | # of failures | Total assets ($ millions) |
|---|---|---|
| 2001 | 4 | $2,358.6 |
| 2002 | 11 | $2,705.4 |
| 2003 | 3 | $1,045.2 |
| 2004 | 4 | $163.1 |
| 2005 | 0 | $0 |
| 2006 | 0 | $0 |
| 2007 | 3 | $2,602.5 |
| 2008 | 25 | $373,588.8 |
| 2009 | 140 | $170,909.4 |
| 2010 | 157 | $96,514.0 |
| 2011 | 92 | $36,012.2 |
| 2012 | 51 | $12,055.8 |
| 2013 | 24 | $6,101.7 |
| 2014 | 18 | $3,088.4 |
| 2015 | 8 | $6,727.5 |
| 2016 | 5 | $278.8 |
| 2017 | 8 | $6,530.7 |
| 2018 | 0 | $0 |
| 2019 | 4 | $241.1 |
| 2020 | 4 | $458.0 |
| 2021 | 0 | $0 |
| 2022 | 0 | $0 |
| 2023 | 5 (so far) | $548,705.0 |
Source: https://www.fdic.gov/bank/historical/bank/index.html
From yesterday's post:
165 institutions failed between 2008-2009 with total assets of $544,468.2 million. Meanwhile, 'just' 5 failures this year have eclipsed that total ($548,705.0 million)
Again, our regulators at the FDIC (who are supposed to be the Watchmen of this 'sound and resilient' financial system seem way more interested in extracurricular activities (like booze, strip clubs, and dick pics) than doing their jobs.
Vice Chairman Hill and Director McKernan's statement better carry teeth and lead to real action. Otherwise, how is the FDIC any different than the legend of Nero playing his fiddle while Rome burned in the background?
In my opinion, they are not any different and their actions are showing they are NOT serious people when it comes to regulating.
Vice Chairman Hill and Director McKernan better hope this independent review is truly independent and the recommendations acted on otherwise I stand by the above: they are NOT serious people when it comes to regulating.
TLDRS:
- After a call out in the WSJ for a 'Toxic atmosphere' full of strip clubs, dick pics, & booze, FDIC releases an additional statement on 'Workplace culture'.
- All while the 5 banks failures (so far) this year on their watch that DWARF 2008 and 2009 in terms of total assets.
- Vice Chairman Hill and Director McKernan's statement announces an independent review of FDIC workplace culture.
- This better be 'legit' otherwise, how is the FDIC any different than the legend of Nero playing his fiddle while Rome burned in the background?
