On February 19, the Office of Inspector General (OIG) for the FDIC responded to a letter from Sen. Elizabeth Warren (D-MA) and others concerning the FDIC’s decision to rescind over 200 jobs for bank examiners. As previously covered by InfoBytes, several senators highlighted the FDIC had been understaffed from 2020 to 2023, with about 40 percent of the large bank examiner positions having been vacant or filled by temporary staff and alleging it to be the cause of delays and quality control issues in bank supervision. The response noted the FDIC had initiated an evaluation in October 2024 to assess risks related to succession management and employee retention, but the executive office froze hiring and extended deferred resignation offers. The OIG emphasized its ongoing adjustments in oversight work to analyze the impact of understaffing as part of the FDIC’s mission. Moreover, the OIG indicated the risks associated with succession management and the need to fill positions with skilled examiners presented a major challenge. The OIG stated it will advise senators of updates on these matters.