Consumer Financial Protection Bureau already sinking into scandal

posted at 1:01 pm on June 21, 2014 by Jazz Shaw

It’s great to have Uncle Sam looking out for the little guy, isn’t it? That’s why it was such a super-duper, nifty idea for Washington to summon into being the Consumer Financial Protection Bureau. It was created as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act back in 2010, but was originally the brainstorm of now Senator Elizabeth Warren. (You may recall she was initially slated to head the agency, but that was derailed by Congress.) So now that they are on the job, keeping citizens safe from big banking fat cats and ensuring financial responsibility and ethics, how are they doing?

Well… pretty much on par with what you’d expect out of any massive Washington bureaucracy. Right out of the gate, they inflated the cost of refurbishing their new digs by more than 100%, though they’ve tried to deny it.

Consumer Financial Protection Bureau Director Richard Cordray evidently is feeling unfamiliar heat after resorting to a disreputable form of sophistry as a substitute for honest discussion and debate. During a June 10 hearing of the Senate Banking, Housing and Urban Affairs Committee, for example, Cordray responded to a question from Sen. Mike Johanns, R-Neb., on the ballooning cost of CFPB’s headquarters renovation by saying: “This has been out there and taken as gospel in the public record for some time. It’s a fiction of the Washington Examiner that this project started out at $55 million and now has ballooned to higher proportions. There never was any expectation that this project could be completed for $55 million. That is false.”

Not only was it not false, but the Examiner took the figures directly from the General Services Administration. The cost has now skyrocketed from $55 million to $139M and still climbing. Way to keep an eye on things, guys.

But that’s not all the “good news” from the CFPB. They’ve been criticized from without and within for creating a toxic environment where they’ve been discriminating against minorities, women and seniors.

An internal investigation at the Consumer Financial Protection Bureau last year concluded that an agency supervisor allowed an employee to be harassed by colleagues, a symbol of what the probe said was a “toxic workplace” in one part of the agency.,,

“I found that the general environment in Consumer Response is one of exclusion, retaliation, discrimination, nepotism, demoralization, devaluation, and other offensive working conditions which constitute a toxic workplace for many of its employees,” Investigator Misty Raucci will say in her opening remarks.

This is only one of many, many, many reports on the abuses taking place in the agency, highlighted in particular by one whistle blower from their own ranks. A whistle blower who, by the way, they tried to shut down themselves.

I am the naturalized U.S. citizen that Bureau management referred to as an “f’ing foreigner.”

I feel obligated to protect my fellow colleagues who, in their sincere attempts to support the mission of CFPB, are paralyzed from asserting their rights, and even their opinions. I hope, by telling my story, it will further enlighten the committee about the culture of intimidation and retaliation at the Bureau and how that culture makes it very difficult for employees to raise concerns about mistreatment, mismanagement, and abuse of authority.

In short, favoritism and cronyism runs rampant at the Bureau.

I soon found that voicing a professional dissenting opinion that is in any way at odds with with Bureau management – even in the smallest of ways – will result in retaliation.

Way to look out for the little guy. The CFPB is quickly on it’s way to looking more like The Weed Agency than any sort of super hero protecting the citizen on Main Street.


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OT – what is hot right now – Mississippians will make history on Tuesday. Show the world what you are made of!!!

Schadenfreude on June 21, 2014 at 1:04 PM

creating a toxic environment where they’ve been discriminating against minorities, women and seniors.

Sounds like they hate their mommy, Fauxcahontas.

Flange on June 21, 2014 at 1:05 PM

I’m shocked!

wifarmboy on June 21, 2014 at 1:05 PM

Government bureaucracies exist only to perpetuate and enrich itself.

ConstantineXI on June 21, 2014 at 1:11 PM

So we need a government department to protect us from the people we bail out because they are too big to fail? How very odd!

Cindy Munford on June 21, 2014 at 1:11 PM

So much for the legacy of our first Native American Senator from Massachusetts. Big Squaw not happy.

tpitman on June 21, 2014 at 1:14 PM

The biggest takeaway from the failed Presidency of BHO is the abject and obvious failure of big government. There’s so much of this stuff occurring, at the same time, that I think it cuts through to even the most apathetic of American citizens.

AYNBLAND on June 21, 2014 at 1:16 PM

America

Schadenfreude on June 21, 2014 at 1:17 PM

Cronyism? In this regime?I am so shocked you could knock me over with a 16 ton weight.

rbj on June 21, 2014 at 1:19 PM

Send Money To Chris McDaniel…….i did….

williamg on June 21, 2014 at 1:21 PM

Not only was it not false, but the Examiner took the figures directly from the General Services Administration. The cost has now skyrocketed from $55 million to $139M and still climbing. Way to keep an eye on things, guys.

But that’s not all the “good news” from the CFPB. They’ve been criticized from without and within for creating a toxic environment where they’ve been discriminating against minorities, women and seniors.

The rest of the media?
*crickets*

JugEarsButtHurt on June 21, 2014 at 1:25 PM

Why the F does CFPB need to build either a $55M or $139M new building? Doesn’t the gov’t own about half a jillion empty buildings they could have moved into? At least until Pres. Palin shuts the stupid thing down. Jeez…….

8 weight on June 21, 2014 at 1:28 PM

YAFACTDTPS

Yet Another Federal Agency Created To Destroy The Private System

clippermiami on June 21, 2014 at 1:29 PM

Scandal in the CFPB? Scandals in the IRS,DOJ, etc.WTF is the big deal?FORWARD!!

jeffinsjvca on June 21, 2014 at 1:34 PM

And let’s not forget that they’ve ruled that they have the authority to shut down any business because they feel like it.

Consumer Financial Protection Bureau Grants Itself Authority to Shut Down Any Business at Anytime

This is NOT America anymore.

Skywise on June 21, 2014 at 1:34 PM

Warren: “Ugh.”

justltl on June 21, 2014 at 1:36 PM

The cost has now skyrocketed from $55 million to $139M and still climbing

.

And I bet their computer systems will still suck.

This is only one of many, many, many reports on the abuses taking place in the agency,

Good luck getting any incriminating e-mails out of the agency.
Hard disk crashes are SOP for the Government criminals.

MichaelGabriel on June 21, 2014 at 1:36 PM

Frank-Dodd, the gift that keeps on giving. Too bad Frank and Dodd AREN’T IN A FEDERAL PRISON!

GarandFan on June 21, 2014 at 1:39 PM

The Fed’s war on the wymynz. Part MCDXCIX.

22044 on June 21, 2014 at 1:43 PM

“I found that the general environment in Consumer Response is one of exclusion, retaliation, discrimination, nepotism, demoralization, devaluation, and other offensive working conditions which constitute a toxic workplace for many of its employees,” Investigator Misty Raucci will say in her opening remarks.

All of that is code for “we’re completely staffed by minorities with no whites, and we simply don’t know what to do. The ready-made and customary punching bag, a white person, is not available to us”

BobMbx on June 21, 2014 at 1:52 PM

Consumer Financial Protection Bureau Director Richard Cordray evidently is feeling unfamiliar heat after resorting to a disreputable form of sophistry as a substitute for honest discussion and debate. During a June 10 hearing of the Senate Banking, Housing and Urban Affairs Committee, for example, Cordray responded to a question from Sen. Mike Johanns, R-Neb., on the ballooning cost of CFPB’s headquarters renovation by saying: “This has been out there and taken as gospel in the public record for some time. It’s a fiction of the Washington Examiner that this project started out at $55 million and now has ballooned to higher proportions. There never was any expectation that this project could be completed for $55 million. That is false.”

Well, when Dickie Cordray was Ohio’s State Treasurer in the first year of Ted Strickland’s one term as Governor, he couldn’t keep track of how much money was in the treasury.

A year and a half later, when Strickland put him in as State Attorney General to replace the disgraced (and borderline cuckoo) Mark Dann, his first job was to…investigate the “irregularities” and “misplaced funds” at the State Treasurer’s Office that had occurred when he was Treasurer. He found no evidence that anything was unusual, out of the ordinary, illegal, or even misplaced.

Back then a lot of Buckeyes (including myself) suspected that Cordray was fundamentally dishonest.

With this, I’m tending more to the theory that he either (A) is unfamiliar with math, especially accounting, or (B) he is just fundamentally stupid.

Then again, it could be (C) both, plus (D) crooked into the bargain.

Do I hear an (E) All Of The Above?

clear ether

eon

eon on June 21, 2014 at 2:00 PM

Frank-Dodd, the gift that keeps on giving. Too bad Frank and Dodd AREN’T IN A FEDERAL PRISON!

GarandFan on June 21, 2014 at 1:39 PM

They thought they would surely be indicted when the Republicans held both House and Senate, so they retired. Little did they know the GOP loves bad, over-reaching gov’t every bit as much as they do.

ROCnPhilly on June 21, 2014 at 2:02 PM

I’m shocked I tell ya, just shocked.

southsideironworks on June 21, 2014 at 2:03 PM

The biggest takeaway from the failed Presidency of BHO is the abject and obvious failure of big government. There’s so much of this stuff occurring, at the same time, that I think it cuts through to even the most apathetic of American citizens.

AYNBLAND on June 21, 2014 at 1:16 PM

I wish I shared your optimism.

NY2SC on June 21, 2014 at 2:04 PM

http://www.consumerfinance.gov/the-bureau/

If you link to this page and scroll down, you can see the huge inflated bureaucracy living there.

Fleuries on June 21, 2014 at 2:12 PM

Capsize

Here is to hoping it drowns on its way to starving.

Bmore on June 21, 2014 at 2:12 PM

*clink!*

Bmore on June 21, 2014 at 2:13 PM

exclusion, retaliation, discrimination, nepotism, demoralization, devaluation

They left out embezzlement. Otherwise, it’s the typical government work place, like the two jobs I had.

PattyJ on June 21, 2014 at 2:14 PM

Thanks for the taxpayer funded boondoggle Sen Faux Squaw

Whitey Ford on June 21, 2014 at 2:22 PM

Here is to hoping it drowns on its way to starving.

Bmore on June 21, 2014 at 2:12 PM

*clink!*

Schadenfreude on June 21, 2014 at 2:30 PM

“I found that the general environment in Consumer Response is one of exclusion, retaliation, discrimination, nepotism, demoralization, devaluation, and other offensive working conditions which constitute a toxic workplace for many of its employees,” Investigator Misty Raucci will say in her opening remarks.

I hope, by telling my story, it will further enlighten the committee about the culture of intimidation and retaliation at the Bureau and how that culture makes it very difficult for employees to raise concerns about mistreatment, mismanagement, and abuse of authority.

Yes, Marxist Leninist elitists are like that. Always have been.

KW64 on June 21, 2014 at 2:31 PM

Ed Morrissey ‏@EdMorrissey 24m

(We don’t actually moderate comments, but I just wanted to make @JazzShaw sweat a little.)

Lolz! ; )

Bmore on June 21, 2014 at 2:31 PM

Ed Morrissey ‏@EdMorrissey 24m

(We don’t actually moderate comments (we just respond to HA scumhags, like bluegill), but I just wanted to make @JazzShaw sweat a little.)

Lolz! ; )

Bmore on June 21, 2014 at 2:31 PM

Schadenfreude on June 21, 2014 at 2:33 PM

Schadenfreude on June 21, 2014 at 2:33 PM

Thunder storms flaring up here. Just finishing up outdoors. Came in saw that. Made me laugh. ; )

Bmore on June 21, 2014 at 2:39 PM

Thunder storms flaring up here. Just finishing up outdoors. Came in saw that. Made me laugh. ; )

Bmore on June 21, 2014 at 2:39 PM

You and Miss Lamar take good care and remain safe.

Same goes for all who’re affected by the storms.

Schadenfreude on June 21, 2014 at 2:42 PM

Bmore, at the bottom of the arrogant IRS commissioner thread, left side, there’s a small job waiting for you, for your spare time :)

Schadenfreude on June 21, 2014 at 2:48 PM

You mean the brainchild of the Ivy League Fauxcahontas don’t work?

Inspecteur Renault, please pick up the white courtesy telephone.

formwiz on June 21, 2014 at 2:53 PM

It’s great to have Uncle Sam looking out for the little guy, isn’t it?

Have they got their own SWAT team up and running yet so they can really deal with the little guy?

peacenprosperity on June 21, 2014 at 2:54 PM

Frank-Dodd, the gift that keeps on giving. Too bad Frank and Dodd AREN’T IN A FEDERAL PRISON!

GarandFan on June 21, 2014 at 1:39 PM

They thought they would surely be indicted when the Republicans held both House and Senate, so they retired. Little did they know the GOP loves bad, over-reaching gov’t every bit as much as they do.

ROCnPhilly on June 21, 2014 at 2:02 PM

Even if they were indicted, they would have been indicted in D.C., where juries would never find them guilty. Same thing happened to Bill Clinton and his felony perjury. A D.C. jury would never have found guilty the First Black pResident, after all!

Del Dolemonte on June 21, 2014 at 2:59 PM

Consumer Financial Protection Bureau Grants Itself Authority to Shut Down Any Business at Anytime

Really?
Where does that power come from?

Mimzey on June 21, 2014 at 3:10 PM

Really?
Where does that power come from?

Mimzey on June 21, 2014 at 3:10 PM

The same place the UN gets its authority to claim ownership of the entire planet, and expect rent payments from its tenants.

BobMbx on June 21, 2014 at 3:18 PM

[T]he general environment in Consumer Response is one of exclusion, retaliation, discrimination, nepotism, demoralization, devaluation, and other offensive working conditions…

That this level of corruption has infused the agency within a year of its existence should be an absolute prohibition against ever creating another new agency within the government.

Oh, wait – it’s under the Federal Reserve Bank, not the Executive Branch. Makes you wonder what’s going on in the Fed, then, doesn’t it?

ss396 on June 21, 2014 at 3:19 PM

Wait, you mean to tell me that a newly created government bureaucracy, once it is given access to the taxpayer trough, engorges itself beyond its fiscal mandate and denies having done so?

I am so shocked, I tell you. SHOCKED! /s

xNavigator on June 21, 2014 at 3:39 PM

$137M for their HQ? Gimme a break this pseudo-agency should be about 20 staff members in lease office space that they took as-is. What special work do they do that requires such an elaborate remodel??? (Answer: None)

KS Rex on June 21, 2014 at 3:44 PM

Life is good in the Federal Protection Racket.
Bonuses all around for a job well done!

Kenosha Kid on June 21, 2014 at 3:47 PM

3,000 bureaucrats in the building and 20 inspectors harrassing every financial institution in the country.

RADIOONE on June 21, 2014 at 3:52 PM

What a surprise, another bloated, criminal federal government agency.

Techster64 on June 21, 2014 at 3:57 PM

The thing is unconstitutional as its funding is not dependent upon Congress. It is not surprising that unchecked power (only the president can check and he does not seem interested) would result in abuse of employees.

So Republicans need to grow some and figure out a way to repeal this agency.

J.B. Say on June 21, 2014 at 4:15 PM

Schadenfreude on June 21, 2014 at 2:48 PM

Left you a reply there. ; ) The rain has dropped the temp 20 degrees. Nice. ; )

Bmore on June 21, 2014 at 4:38 PM

Has the CFPB actually, you know, protected a consumer from anything?

natasha333 on June 21, 2014 at 4:39 PM

I am shocked, shocked, I say, to find overspending and corruption in a government agency.

talkingpoints on June 21, 2014 at 4:43 PM

Has the CFPB actually, you know, protected a consumer from anything?

natasha333 on June 21, 2014 at 4:39 PM

Surely you jest.

Has the TSA prevented any terrorist attacks?

talkingpoints on June 21, 2014 at 4:44 PM

Cut their personnel budget and all of their travel budget.

keioki on June 21, 2014 at 5:04 PM

CRASHING THE SYSTEM

Think of the movie “Live Free or Die Hard”. The bad guys in the current situation are the Obama Administration. They are crashing the system. Flooding the zone with a bureaucratic onslaught in numerous areas. Ignoring costs, ignoring laws, ignoring judicial rulings, they are just charging ahead with massive destruction.

When the system is thoroughly broken, who will have to fix it – THE GOVERNMENT. This is Big Brother stuff coming to the USA.

We should all be very afraid and very angry.

pilsener on June 21, 2014 at 5:10 PM

Has the CFPB actually, you know, protected a consumer from anything?

natasha333 on June 21, 2014 at 4:39 PM

Not really. Basically they have proposed stuff, and that is all. One of the things they proposed was passed by the Republican-led House, but apparently is in limbo in the Democrat Senate.

And they have also been tied up for months fighting litigation challenging their constitutionality. One such lawsuit was dismissed, but the other one is ongoing because CFPB is countersuing.

Of course, they may have played a role in protecting consumers against the evil corporate name “Redskins”. But we’ll never know.

Del Dolemonte on June 21, 2014 at 5:15 PM

So what? The GOP with wring their hands and do nothing… the Dems will keep spending on the boondoggle… and by next year bonuses will start flowing to management and their families.

mankai on June 21, 2014 at 5:20 PM

Liz Warren: “HOW?”

TimothyJ on June 21, 2014 at 5:30 PM

pilsener on June 21, 2014 at 5:10 PM

Exactly.
Thats what they are doing….what are the repubs, and more importantly “we the people” doing to push back.?

Mimzey on June 21, 2014 at 5:49 PM

As long as they get spiffy new computers that can store all their emails, it’s ok.

Kissmygrits on June 21, 2014 at 6:36 PM

Aren’t they under the control of the Fed and not the usual bureau overseen by Congress?

Remove all oversight, that’s the ticket!

PattyJ on June 21, 2014 at 6:58 PM

pilsener on June 21, 2014 at 5:10 PM

Yep, Cordray went to the James Madison College portion of MSU where they used to sit around and chat in the snackbar about Cloward Piven Strategies. There was a big, big leftist component to that school. Mary Kay Henry of SEIU was also one of that ilk.

clnurnberg on June 21, 2014 at 7:25 PM

Liz Warren: “HOW?”

TimothyJ on June 21, 2014 at 5:30 PM

CFPB cost too many wampum.

slickwillie2001 on June 21, 2014 at 7:46 PM

The good ol CFPB, lookin out for the folks. And shutting down any business it doesn’t like…

For those who may have missed it:

http://townhall.com/tipsheet/katiepavlich/2014/06/19/consumer-financial-protection-bureau-grants-itself-authority-to-shut-down-any-business-n1853590

oryguncon on June 21, 2014 at 9:40 PM

Democrat Elizabeth Warren, she of the PhD pedigreed community, was denied mgt of a fed bureaucracy? Then replaced w/ another Democrat who can’t manage? Gee, who wudda thunk!

MN J on June 22, 2014 at 1:20 PM