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GAO to Examine CFPB Culture, Management Practices in Light of Allegations

Washington, Jul 30 -

The Government Accountability Office will look into the CFPB’s organizational culture and management practices in light of allegations that Bureau managers are discriminating against employees based on race and gender and retaliating against employees who complain, Rep. Patrick McHenry (R-NC) announced at a hearing today.

Rep. McHenry, who chairs the Financial Services Subcommittee on Oversight and Investigations, announced that the GAO had agreed to conduct the review during a hearing with CFPB Director Richard Cordray.  The hearing was the Subcommittee’s fourth since the beginning of April about allegations of employment discrimination and retaliation at the CFPB.
 
“Since the Subcommittee opened its investigation into allegations of discrimination and retaliation at the CFPB, no fewer than 32 employees have come forward about their maltreatment.  These 32 brave leaders have come forward to do what is right: to protect their colleagues who suffer, and they have stood up even in the face of retribution from their managers if they are found out,” said Chairman McHenry.  “Shortly, all CFPB employees will have an opportunity to confidentially share all of their concerns with the Government Accountability Office.”
 
The GAO investigation was requested by Chairman McHenry as well as Financial Services Committee Chairman Jeb Hensarling (R-TX) and Financial Institutions and Consumer Credit Subcommittee Chairman Shelley Moore Capito (R-WV).
 
“The problem is a CFPB management culture that condones intimidation, discrimination, and retaliation.  And if the Director has failed to reprimand and remove bad managers, then the problem is also his leadership – or lack thereof,” said Chairman McHenry.
 
To read witness testimony and watch previous Subcommittee hearings looking into these allegations, click here, here and here.

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