According to experts, the ethics questions raised by House lawmakers about Raj Date, the former No. 2 at the Consumer Financial Protection Bureau who left to form his own firm, appear to be based on "faulty information."
In a letter to the CFPB last week, the House Oversight and Financial Services committees raised concerns regarding Date suggesting he is inappropriately using his knowledge of the bureau's mortgage rules to benefit his own company.
"The charge that Date and others at the firm, Fenway Summer, will lobby the CFPB for clients, is erroneous, based on the services the company says it provides. And many observers view Date's new role as normal and acceptable practice for a former regulator," writes American Banker's Rob Blackwell.
"If he isn't representing clients before the agency or telling companies how to circumvent agency rules, we don't see a big problem here," said Michael Smallberg, an expert on "revolving door" issues at the Project for Government Oversight, a nonpartisan group focused on ethics.
For the full piece see "Why Ethics Charge Against CFPB Vet Raj Date Is Weak" (may require subscription).