US lawmakers pressure FDIC chief over misconduct allegations

WASHINGTON (Reuters) -Lawmakers on Capitol Hill on Friday renewed public calls for an investigation into the allegations of sexual harassment and other workplace misconduct at the U.S. Federal Deposit Insurance Corporation.

The announcements came as FDIC Chair Martin Gruenberg this week faced calls for his resignation following Wall Street Journal reporting according to which the agency had failed to eradicate widespread harassment in its workforce and spotlighting Gruenberg's personal role in cases of alleged harassment and discrimination.

Gruenberg has said in testimony he found the reports deeply troubling and vowed to take corrective action as a top priority.

Friday's announcements suggest lawmakers will continue to pile pressure on Gruenberg over revelations about a key agency in the Biden administration's financial reform agenda.

In a letter, Republican members of the House Financial Services Committee on Friday publicly notified Gruenberg of a probe announced earlier this week.

An FDIC spokesperson told Reuters the agency would be "fully transparent and cooperative" with the committee's investigation.

Meanwhile, Democratic members of the Senate Banking Committee released a letter demanding an investigation by the FDIC's Office of Inspector General (OIG), saying the reports of misconduct were "nothing short of appalling."

An FDIC OIG representative told Reuters on Friday the office had received the Senate Democrats' request and was reviewing it.

"Chairman Gruenberg, the viability of your leadership is in question," wrote House Financial Services Committee Chair Patrick McHenry and senior members Bill Huizenga and Andy Barr, all Republicans. "The Committee will use its full arsenal of oversight and investigative tools, including compulsory mechanisms, to ensure that our banking system remains safe and sound."

(Reporting by Douglas Gillison in WashingtonEditing by Matthew Lewis)