I never thought I’d be cheering for bankers, but I am. This is too brilliant for words!
The Consumer Financial Protection Bureau is not actually out there to protect consumers but to harass banks into increasing the number of debt slaves in America, especially among minorities. How it works is that, because some minorities have a greater tendency to be poor, they also have a greater chance of not qualifying for a loan.
Enter the CFPB. The CFPB thinks that banks, rather than trying to make all the money they can, are deciding to not make money in order to hurt members of minority races because they don’t like them. This is, of course, insane. You can’t just be slightly prejudiced to turn down a viable way to make money because you don’t like the color of a potential borrower’s skin. You would have to be a dedicated Nazi. You would also have to go out of business because all your competitors would get to pick up the people you turned away and loan them money. Money is the same color for every race.
But this is what CFPB believes. And they think that any “loan officer” (a term I despise; loan salesman is what they are) or banks, who have not loaned money to “enough” minorities, should be investigated for racist practices. If you have loaned money to more white applicants than black applicants you are in for a bad experience.
American Banker is a newspaper for the industry, and they just launched a predator drone into the heart of the moralistic, arrogant, self-worshiping garbage that is the CFPB:
Since the Consumer Financial Protection Bureau burst onto the financial stage a few years ago, it has made a steady stream of controversial moves.
None are more despised by bankers than the agency’s use of statistical differences in the loan terms offered to different ethnic groups to sue creditors for unintentional racial bias.
In an ironic twist, it turns out that the CFPB’s own managers have shown distinctly different patterns in how they rate employees of different races, according to confidential agency data obtained by American Banker.
Specifically, CFPB managers show a pattern of ranking white employees distinctly better than minorities in performance reviews used to grant raises and issue bonuses. Overall, whites were twice as likely in 2013 to receive the agency’s top grade than were African-American or Hispanic employees, the data shows.
What’s more, those disparities are only one of many serious personnel problems plaguing the CFPB. Inside the agency, morale is poor and management has been accused in several cases of favoring Caucasian men and of creating a hostile work environment. That’s according to interviews with a dozen current and former staffers across six departments, all of whom requested anonymity over concerns about retaliation.
Employees have filed 115 official grievances with the National Treasury Employees Union (NTEU) since last August, the CFPB says. If unofficial complaints that haven’t yet worked their way through the system are included, the number exceeds 200, according to information obtained by American Banker.
Unlike businesses in what is left of the private sector, government agencies are protected from competition and thus don’t suffer much by engaging in irrational preferences. I have no idea if there is a real racist problem at the CFPB, but if there is, that would be one contributing factor.
So “judge not, lest ye be judged” bureau-bums!
Of course, this use of government intimidation is exactly the sort of stuff that triggered the housing bubble that resulted in the collapse of 2008 (note that I said “triggered,” not “caused”; the cause was the monetary policy of the Federal Reserve). The fact that we are going back to it could be used, by itself, to argue we are governed by people who hate minorities. How much better off were African American homeowners when they ended up owing more on the house than it was worth, and couldn’t pay what was due?