Oversight

House to resume CFPB investigation on alleged discrimination

cfpbThe House Financial Subcommittee on Oversight and Investigations will continue its examination of allegations of discrimination and retaliation at the CFPB with a second hearing later this week.

The hearing, which will be held at 10 a.m. on Wednesday and will be chaired by Rep. Patrick McHenry (R-N.C.), will include testimony from two CFPB officials and the agency’s union representative, who were subpoenaed by the committee last week after the CFPB and National Treasury Employees Union allegedly refused to allow the witnesses to appear.

“Regrettably, congressional subpoenas were necessary in order for the committee to get the answers it needs in this investigation,” House Financial Services Committee Chairman Jeb Hensarling (R-Texas) said. “In the coming months, the committee expects to hear from all those who can shed light on allegations of discrimination and retaliation. The Bureau must be held accountable for any such reprehensible behavior.”

Reports surfaced in March that some CFPB managers had allegedly engaged in discrimination and retaliatory behavior against agency employees.

CFPB attorney Angela Martin, who has alleged discrimination by agency managers, told the subcommittee in April that “there is a pervasive culture of retaliation and intimidation that silences employees and chills the workforce from exposing wrongdoing.”

Another witness, Misty Raucci, an external investigator hired by the CFPB to examine Martin’s allegations, told the committee that her investigation revealed that the general work environment in the department from which Martin was re-assigned was “one of exclusion, retaliation, discrimination, nepotism, demoralization, devaluation and other offensive working conditions which constitute a toxic workplace for many of its employees.”

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