WASHINGTON — More than 18 months after the largest bank failure in U.S. history, regulators of the collapsed Washington Mutual Inc. faced a day of reckoning Friday, with a key lawmaker accusing them of gross incompetence.

The bulk of Sen. Carl Levin's ire was directed at the Office of Thrift Supervision and its former director, John Reich, who was grilled for more than an hour about why he allowed risky lending practices to proliferate at Wamu and whether he was too cozy with its executives.

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