EEOC Finds Widespread Racial Discrimination At Freddie Mac
WASHINGTON (AP) -- The Equal Employment Opportunity Commission
has concluded there is widespread discrimination against black
employees by Freddie Mac, a federally chartered mortgage
underwriting company.
Acting on a complaint filed by Tony Morgan, Freddie Mac's former
director of corporate relations, the EEOC issued a finding recently
that said the publicly held company has created a "hostile work
environment" and urged swift corrective action to head off another
lawsuit.
The EEOC filed suit against Freddie Mac last year, but a federal
judge dismissed the suit after finding that the company had taken
sufficient remedial action.
But EEOC lawyers said other employees have come forward since
then with evidence of a pattern of discrimination against black
employees.
Sharon McHale, a Freddie Mac spokeswoman, denied the EEOC
allegations and said the company has taken immediate corrective
action in the few racial incidents that have occurred.
"We have reiterated our zero-tolerance policy," she said. "We
have had a handful of racially sensitive incidents over the past
six or seven years and we have said they won't be tolerated."
The EEOC findings were disclosed in an Aug. 14 letter from EEOC
Director Tulio L. Diaz Jr. The letter was released Wednesday by an
attorney for Morgan.
The EEOC found that racial jokes were and continue to be sent
through the company's e-mail system, racial epithets continue to be
written on walls and black employees who complain of the
discrimination at subject to "hate" messages.
"EEOC examination of evidence reveals the respondent's
disregard for the civil rights of black employees has resulted in a
hostile work environment," the EEOC letter states.
Freddie Mac -- officially the Federal Home Loan Mortgage Corp. --
also was accused of failing to promote black employees as well as
withholding bonuses and promotions.
The alleged pattern of discrimination has resulted in a
workplace where blacks are underrepresented in professional, office
and managerial positions, according to the EEOC.
Freddie Mac, based in suburban McLean, Va., is a
stockholder-owned corporation chartered by Congress to increase the
supply of money that commercial banks and other mortgage lenders
can make available to home buyers.
The company conducts its business primarily by buying mortgages
from lenders, packaging the mortgages into securities guaranteed by
Freddie Mac for sale to investors.
With the finding, the EEOC and Freddie Mac will schedule
conciliation talks.
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