April 07, 2014

CFPB plans more diversity training

April 8, 2014 – In the wake of accusations of discrimination and retaliation against its women and minority employees, the CFPB has plans to increase diversity training and examine the hiring process, according to Reuters.

The House Financial Services Subcommittee on Oversight and Investigations held a hearing last week on the allegations following reports published in American Banker that cited a pattern of ranking white employees higher than minority employees. The reports also noted accusations of a hostile work environment.

"Women made up 46 percent of the bureau's workforce in 2013 and minorities were 31 percent, according to the report, which is required each year by the Dodd-Frank law," the Reuters report says, pointing to the news service's own look at the agency's annual diversity report to Congress. "Both groups are somewhat underrepresented in senior leadership roles."

Committee Chairman Jeb Hensarling, R-Texas, and Reps. Shelley Moore Capito, R-W.Va., and Patrick McHenry, R-N.C., wrote CFPB Director Richard Cordray earlier this month to request records of employee performance reviews.

In the wake of the accusations, nine Democratic members of the subcommittee have written the inspectors general at CFPB and all other financial regulators about personnel practices and the possibility of unfair or discriminatory practices against minority and women employees. NCUA is among the agencies addressed in the letters.