WASHINGTON—Senator Joni Ernst (R) from Iowa is pressing the Office of the Inspector General for the FDIC to address allegations of fraud and financial mismanagement at the agency.
In a letter to the OIG, Ernst stated that unnamed whistleblowers have leveled “appalling allegations of gross mismanagement” by senior Federal Deposit Insurance Corporation Office of Inspector General officials, spanning from field offices to headquarters.
“I write to request your help in getting to the bottom of this,” Ernst stated.
Among the whistleblowers are individuals familiar with the FDIC OIG budget, Ernst said.
“They say the FDIC OIG historically spent conservatively, and each year returned unspent funds to the Deposit Insurance Fund (DIF). However, whistleblowers recall senior officials in recent years questioning this practice, allegedly asking, ‘Why are we sending money back? The FDIC OIG should be growing.’”
Ernst added that the allegations illustrate, under then-Deputy Inspector General Tyler Smith’s guidance, the distinction between “growth” and reckless spending has been “blurred.”
“Moreover, a series of wasteful and ill-advised financial decisions allegedly have placed your agency in a dire financial position, leading to decisions that reportedly have hindered its core investigative function,” Ernst said.
Ernst, in concluding her letter, stated, “The FDIC OIG, and your leadership of it, is at a crossroads. I invite you to use this opportunity to work with me to get to the bottom of these allegations and fix your agency.”