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Consumer Financial Protection Bureau managers are far more likely to rate white employees highly than minorities, data obtained by American Banker shows. The figures reflect broad personnel problems inside the agency and are likely to give rise to claims that it's failing to uphold standards it punishes others for violating.
March 6 -
The Consumer Financial Protection Bureau released a report Friday to employees detailing its diversity statistics and the racial disparities in performance evaluations reported two weeks ago by American Banker.
March 21 -
House Financial Services Committee Chairman Jeb Hensarling and two other GOP lawmakers are probing the Consumer Financial Protection Bureau over how it treats its employees.
March 6 -
The Consumer Financial Protection Bureau is planning to eliminate its current employee performance management system after data showed minorities were rated lower than white employees.
March 10
Editor's Note: This post originally appeared in the
The Consumer Financial Protection Bureau has
Well, wouldn'tcha know, it seems the CFPB has a disparate impact problem of its own. As
Jeb Hensarling
It all made for pretty riveting political drama, but I was mainly thinking about the drama to come, as regulators refine a plan to require every bank, of any size and in any geography, to monitor its own performance on matters of diversity.
An interagency rule
If you've been reading this column regularly, then you know that I'd be the
The disparity in employee treatment that has turned up at the CFPB of all places makes me all the more convinced that in 2014, bias in the workplace is more common, and less obvious, than any of us might have realized. Clearly, with more self-assessment we can bring to light - and maybe even resolve - more such instances of workplace disparity.
However, I'm having an extremely hard time getting comfortable with the idea of government forcing private businesses to take up this type of initiative. Challenge? Sure. Suggest? Why not. But regulate? That's a very different story.
Effecting change sometimes means forcing the issue. Perhaps that's what drove Rep. Maxine Waters to push for the
I share the goal of making business more inclusive for women and minorities, and I believe self-assessment is a good way of getting there. But regulating along these lines feels to me like an overreach that will invite all kinds of unwanted tokenism. Perhaps regulators, cognizant of the challenges they themselves have faced in promoting this kind of consciousness-raising, will be sympathetic to the industry as they finalize their proposed rule.
Heather Landy is Editor in Chief of American Banker Magazine.