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House to Probe Consumer Financial Protection Bureau Following Accusations of Racism

CFPB Director Richard Cordray / AP

House Financial Services Committee Chairman Jeb Hensarling (R., Texas) and two other Republican lawmakers are probing the Consumer Financial Protection Bureau, American Banker reports.

The lawmakers seek information regarding how CFPB treats its employees following another American Banker report published last week.

Managers at CFPB frequently ranked white employees better than minorities in performance reviews used to determine raises and bonuses. Whites were twice as likely to receive a top rating than their African American and Hispanic coworkers.

Additionally, morale was low at CFPB, and management has been accused of creating a hostile work environment.

The House now seeks information regarding the accusations.

In a letter sent late Thursday to CFPB Director Richard Cordray, the three lawmakers said the article "raises significant concerns" about the agency’s "internal management practices. Reps. Shelley Moore Capito (R., W.Va.) and Patrick McHenry (R., N.C.) also signed the letter.

The letter asks the CFPB to respond to the number of formal discrimination claims filed by employees, based on the agency’s most recent No Fear Act disclosure, as well as its recent annual employee survey.

The letter requests that the CFPB provide data on the demographic breakdown of employee performance reviews including by office, division, employee count and those that have been raised or lowered as part of the performance review. The lawmakers are also asking for information on the formal and informal Equal Employment Opportunity cases filed by employees as well as grievances filed by members of the union.

Published under: Obama Administration