The Consumer Financial Protection Bureau (CFPB) continues to face tough questions from lawmakers on both sides of the aisle following reports that agency managers engaged in employee retaliation, as well as racial and gender discrimination.
During an April 8 House Financial Services Committee hearing on the impact of government regulation, Rep. Lacy Clay, D-Mo., asked CFPB General Counsel Meredith Fuchs how the bureau got off to “such a poor start” regarding how it evaluates employees and awards bonuses.
Fuchs responded that the bureau is reviewing data from its employee performance management system with the help of an outside contractor.
“The kind of institution we’re trying to build is one which is fair and transparent for all employees,” Fuchs said. “The performance management system is also something that we’re currently negotiating with the National Treasury Employees Union, so we will have good representation of views during that discussion.”
The CFPB offered additional details in a recent report on the activities of the bureau’s Office of Minority and Women Inclusion (OMWI). In a letter accompanying the April 4 report, CFPB Director Richard Cordray noted that women and minorities comprise approximately 47 percent of the bureau’s executive-level positions. However, he recognized that the bureau has “more work to do to fully realize our goals of diversity, inclusion and fairness.”
CFPB OMWI Director Stuart Ishimaru said the bureau is working to understand and address issues related to the CFPB’s performance management system.
“We have begun to see the impact of these efforts in the increasing emphasis that is being given across the bureau to incorporating diversity in new and existing policies, programs and initiatives,” Ishimaru said. “There is growing recognition of the need to manage diversity effectively to ensure that the workplace is hospitable and inclusive for everyone.”
The CFPB said in its April 4 report that issues related to the bureau’s performance management system are among a series of “growing pains” the agency experienced as it built itself from the ground up. The bureau and a third-party firm will “look at a range of possible root causes” for discrepancies in employee evaluations.
“We are taking concerns about employee ratings seriously,” the report said. “We are fully committed to making sure that our talented and diverse staff are treated fairly and with the respect they deserve, and we hold the bureau to the standards of fairness that we expect of the companies and industries it regulates.”
The report also noted some challenges the bureau faces as it works to build and maintain a strong, diverse workforce. Those challenges include a “continuous influx of new employees” that can “make it difficult to establish an organization’s culture.”
“Additionally, challenges arise when balancing expectations of employees from the private sector with those from the public sector,” the report said. “A dispersed workforce further compounds challenges to create a cohesive work environment.”
During the hearing, Rep. Patrick McHenry, R-N.C., argued that the bureau hasn’t done enough to end employee discrimination and retaliation.
“You did contract with an outside investigator to determine there was retaliation against an employee, but six months later, the bureau has done nothing,” McHenry told Fuchs. “Simply contracting with outside groups does not address the deep problems the CFPB has.”
Rep. Sean Duffy, R-Wis., called for enhanced CFPB accountability. Duffy is the sponsor of House-approved legislation that would significantly alter the bureau’s leadership structure and funding mechanism.
On April 8, Duffy sent a letter calling on President Barack Obama to address the CFPB’s employee issues or ask Cordray to resign.
“I am writing to demand that this government-sanctioned discrimination and retaliation stop and, given the seriousness of these charges, believe this requires your personal attention,” Duffy wrote. He added that the president should provide Congress with a plan to address the CFPB’s issues “up to and including possible removal of director Cordray and replacing him with a professional who will not tolerate or cover up this kind of behavior.”
View the CFPB OMWI report
View Duffy’s letter
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