March 26, 2014

Hearing set on alleged discrimination at CFPB

March 27, 2014 – The House Financial Services Committee Oversight and Investigation Subcommittee will hold a hearing next week on allegations that CFPB employees have faced discrimination and retaliation based on race.

The hearing was prompted by reports published in American Banker that cited a pattern of ranking white employees higher than minority employees, as well as accusations of a hostile work environment. 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. The members include committee Ranking Member Maxine Waters, D-Calif., and Subcommittee Ranking Member Al Green, D-Texas. NCUA is among the agencies addressed in the letters.

The subcommittee hearing on the CFPB will take place on April 2, at 10 a.m.