A watchdog overseeing the U.S. Federal Deposit Insurance Corporation will conduct a "special inquiry" into to the agency leadership's handling of sexual harassment and other inappropriate conduct, a representative told Reuters on Tuesday.

The FDIC Office of Inspector General also plans to begin a "new evaluation project" to review reforms made since a prior investigation completed in 2020 into sexual misconduct in the FDIC workforce, the OIG's office said.

FDIC Chair Martin Gruenberg this month faced calls for his resignation following Wall Street Journal reporting which said a toxic culture of misogyny and discrimination persisted among the agency's male-dominated staff, causing numerous women to quit.

(Reporting by Douglas Gillison, Editing by Franklin Paul)