A watchdog overseeing the U.S. Federal Deposit Insurance Corp. will conduct a "special inquiry" into how the bank regulator's leadership has handled complaints about sexual harassment and other inappropriate conduct, a representative for the watchdog said on Tuesday, Reuters reported. A "new evaluation project" will also review FDIC reform efforts since a 2020 investigation found its handling of sexual harassment complaints was deficient, said Caitlin Savino, spokesperson for the FDIC Office of Inspector General. Previously, FDIC officials said that the agency had satisfied recommendations from that investigation. An agency representative declined to comment. The newest investigation will focus on FDIC leadership, which adds to turmoil surrounding Chair Martin Gruenberg, who this month faced calls for his resignation from Republican lawmakers following a Wall Street Journal report. In a series of reports, the newspaper cited a toxic culture of misogyny and discrimination among the agency's male-dominated staff in alleged incidents stretching back more than a decade.
