June 25, 2019
Sen. Warren, Reps. Pressley and Porter Raise Concerns Over the Continued Employment of High-Level CFPB Staffer with History of Working for Anti-LGBTQ Hate Group
Employment history of Assistant Director of Bureau's Office of Innovation raises questions about his fitness to work at the agency and properly enforce rules against lending discrimination
Washington, DC - United States Senator
Elizabeth Warren (D-Mass.) and Representatives Ayanna Pressley (D-Mass.)
and Katie Porter (D-Calif.) today sent a letter to Kathleen Kraninger, Director
of the Consumer Financial Protection Bureau (CFPB), urging the CFPB to
reconsider its continued employment of Paul Watkins as the Assistant Director
of the Office of Innovation after a report
this week revealed that Mr. Watkins previously served as a senior counsel for
an anti-LGBTQ hate group, Alliance Defending Freedom (ADF). The ADF has been designated
as a hate group by the Southern Poverty Law Center for its efforts to develop
"legislation and case law that will allow the denial of goods and services
to LGBT people." Given his previous role, the lawmakers expressed concerns
about Mr. Watkins's fitness for his job considering the discretion his position
has to exempt certain companies from complying with anti-discrimination laws.
As the Assistant Director of the Office of Innovation at the CFPB, Mr.
Watkins has authority over anti-discrimination laws like the Equal Credit
Opportunity Act (ECOA), which the CFPB interprets to afford broad protection
against lending discrimination on the basis of gender identity and sexual
orientation. Given Mr. Watkins's previous commitment to an organization with a
mission to discriminate and criminalize LGBTQ communities, the lawmakers are
further concerned over his capacity to unbiasedly perform his responsibilities
at the CFPB.
"Mr. Watkin's role at the CFPB gives him wide discretion to exempt
companies -- or even entire industries -- from anti-discrimination laws and
given his past work at a homophobic hate group, we are deeply concerned that he
will use this power to scrap crucial protections for the LGBTQ consumers,"
wrote the lawmakers. "We therefore ask that you
reconsider his employment and his role at the Bureau."
The lawmakers were also concerned about the impact of Watkins's employment
on the culture of diversity and inclusion at CFPB, which has been hurt by the
leadership's failure to dismiss former Policy Associate Director Eric
Blankenstein for months after reports revealed his history of racist
writings. Senator Warren also recently wrote to the CFPB about potentially discriminatory
financial technology algorithms, which are pertinent to Mr. Watkins's role
as the assistant director of the Office of Innovation, which oversees financial
technology companies.
"Repairing the harm done to the culture of diversity and inclusion by
Blankenstein should be among your top priorities because the CFPB's most
valuable resource is a dedicated civil service workforce," concluded
the lawmakers. "Fraying this culture further by allowing Mr.
Watkins, who has actively worked to undermine the dignity of the consumers that
the CFPB is supposed to serve and some of the dedicated staff you are supposed
to lead, would be a monumental failure of leadership."
In response to their concerns about Mr. Watkins' employment with the CFPB,
the lawmakers requested answers to their questions no later than July 9, 2019.
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