Top Iraq cleric says lack of new government 'regrettable failure'

BAGHDAD (Reuters) - The Iraqi parliament's inability to agree on a new government in its first session was a "regrettable failure", Iraq's most powerful Shi'ite cleric, Grand Ayatollah Ali al-Sistani, said in a Friday sermon delivered by his aide.

Sistani intervened a week ago in Iraq's political crisis by urging lawmakers at their opening session to put aside disputes and form a new government to tackle an insurgency spearheaded by an al Qaeda splinter group that could fracture the country.