The head of the U.S. Federal Deposit Insurance Corporation faced outraged criticism from lawmakers on Tuesday following a media report that cited pervasive allegations of sexual harassment at his agency, Reuters reported. FDIC Chairman Martin Gruenberg, who appeared at a Capitol Hill oversight hearing with other top financial regulators, told the Senate Banking Committee he was personally distraught after the Wall Street Journal's report on Monday and committed to providing a safe working environment for staff. The subject threatened to overshadow testimony on proposed changes to bank capital regulations that have drawn fierce opposition from industry. The FDIC's performance has come under harsh scrutiny following a costly series of large bank failures earlier this year, two of which occurred during the agency's supervision. In a related development, Republican lawmakers on the House of Representatives Financial Services Committee, before which Gruenberg is due to testify on Wednesday, called for an urgent briefing on the matter from an FDIC watchdog agency.
