WASHINGTON —“Since the Consumer Financial Protection Bureau burst onto the financial stage a few years ago, it has made a steady stream of controversial moves.”
“None are more despised by bankers than the agency’s use of statistical differences in the loan terms offered to different ethnic groups to sue creditors for unintentional racial bias.”
“In an ironic twist, it turns out that the CFPB’s own managers have shown distinctly different patterns in how they rate employees of different races, according to confidential agency data obtained byAmerican Banker.”
“Specifically, CFPB managers show a pattern of ranking white employees distinctly better than minorities in performance reviews used to grant raises and issue bonuses. Overall, whites were twice as likely in 2013 to receive the agency’s top grade than were African-American or Hispanic employees, the data shows.”
“What’s more, those disparities are only one of many serious personnel problems plaguing the CFPB. Inside the agency, morale is poor and management has been accused in several cases of favoring Caucasian men and of creating a hostile work environment. That’s according to interviews with a dozen current and former staffers across six departments, all of whom requested anonymity over concerns about retaliation.”
Read full American Banker article here.