FDIC Losing Institutional Memory With Staff Drop, Watchdog Says

Steep staff reductions at the Federal Deposit Insurance Corp. have left the regulator less equipped to supervise banks or respond quickly to failed lenders, the agency’s internal watchdog reported.

The FDIC lost around 20% of its staff over the course of 2025 through voluntary buyouts, retirements, and other departures as part of the Trump administration’s push to shrink the federal workforce, bringing the total number of employees down to just over 5,000 as of Jan. 1, according to a Thursday report from the FDIC’s inspector general.

Another 17% of the FDIC’s remaining staff, or nearly 800 people, are eligible for ...