The US Federal Deposit Insurance Corp (FDIC) has announced that a special committee will oversee a review of alleged sexual harassment and toxic workplace culture.

Last week, the Wall Street Journal published a damning report on a culture of sexual harassment and misogyny at the federal agency which led at least 20 women to leave their roles. A follow up report from the outlet alleged that Gruenberg “set a tone that left alleged harassment and discrimination unpunished” at the FDI, and that had earned a reputation for bullying at the agency.

The report cited interviews with 20 former employees of the FDIC who accused it of failing to eradicate the toxic behaviour of its staff.

In a statement, the FDIC board of directors said: "The Board supports taking all actions necessary to identify and address the root cause of the problem and to promote accountability.”

A special committee overseeing the review will be co-chaired by Michael Hsu, the acting Comptroller of the Currency and a Democrat, and Jonathan McKernan, a board member and a Republican.

McKernan had demanded that Gruenberg recuse himself from any review, with Hill on Tuesday confirming that the board had unanimously approved measures to ensure that the review took place independently.

One of those approved measures includes provisions "that restrict the ability of FDIC management and FDIC Board members not on the Special Committee to engage with or influence the review".

Vocal Republicans, who would see party member and FDIC vice chair Travis Hill takeover from Gruenberg should he vacate the position, have called on Gruenberg to resign. Tim Scott, the top Republican on the Banking Committee, said that Gruenberg should “seriously consider” his position last week.

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