Is Banking About To Get "Woke"?
We've gotten so comfy (so over-comfortable, I'd say), that we -- like my parents and grandparents -- don't worry about banks failing; the latest worry is that their staff is not "diverse" enough.
House Democrats are proposing that all banks and credit unions receive a new "diversity and inclusion" rating in an unprecedented step that would fundamentally alter federal regulators' critical "CAMELS" rating system that currently employs a series of metrics that solely assess the financial health of banking institutions....Specifically, the new category looks at whether depository institutions have policies to "encourage diversity and inclusion" in hiring practices; whether they train employees on diversity and inclusion; and whether they have a "Diversity and Inclusion officer" who reports to the CEO.
...The "Promoting Diversity and Inclusion in Banking Act of 2019" is draft legislation supported by Democrats on the House Subcommittee on Diversity and Inclusion, which was created by House Financial Services Committee chairwoman Maxine Waters Rep. Maxine Waters, D-Calif. Waters has long pushed for government-led diversity efforts, even as Republicans have challenged her knowledge of fundamental economic issues.
"We need to change it and we need to change it right away. The excuse that we can't find any, that's what I'm hearing from some of you, that's not acceptable," Rep. Al Green, D-Texas, said at a Wednesday hearing held by the subcommittee. "When you have power, you have to use it. We have the power. Regulations may be the thing to do. I think the carrot was a good idea, but after having heard some things today, I think we have to move to the stick, that's regulations."
Why in the world would it be government's job to coerce banks into hiring people of a certain color or group over qualified people of whatever color or group?
If you've every had a terrible problem and talked on the phone to some banking pereson who's seriously competent, that is all you care about. They could be Godzilla and a ringer for Hitler all in one and eat live kittens in their spare time.
via ifeminists
Has anyone proposing or supporting that bill ever worked for a bank? When I worked for banks, diversity was stringently enforced in all aspects of the company. Not only was diversity enforced in lending, but in hiring as well.
We had management training programs especially for minorities and women that put trainees in various departments and job roles, letting them have a choice in their post-program jobs. The rest of us got hired by a department and stayed there working out way into management. The trainee we had in Consumer Credit spent her with us leaving early or missing deadlines because, "I have a two-year old." It became our catch-phrase when she left.
This is a solution, and not a very good one, in search of a problem.
Conan the Grammarian at February 17, 2020 4:23 AM
I'm more concerned about Illinois going bankrupt than most banks.
This law looks like an attempt to solicit campaign donations in exchange for targeted exemptions. As Conan points out banks have done pretty much as much as can be done on the demographics front.
Ben at February 17, 2020 6:44 AM
We already have Barney Frank's Community Redevelopment Act (which forces banks to lend to minorities even if disqualified by credit scores, and played a large part in the 2008 bank crisis). And several banks and related services including Chase, Mastercard, and Paypal are already banning people for being conservatives. So I'd say banking has been far too "woke" for some time now.
But even if this law fails, the government isn't about to punish banks for their outrageously "woke" behavior, so we the market need to start doing so.
Let the bullies who still try to play the race card know that their race cards are overdrawn. Forever.
jdgalt at February 17, 2020 9:53 AM
I only worked in investments (and institutional level investment banking mostly). All I saw was very pro minority and women. Especially women. In my group we had a women for 4 months that would leave at 2pm every Thursday to take her kid to soccer practice. That translated to me working about 4 extra hours on Friday or I was "not a team player" -- I was salaried so that meant 4 free hours of work for the company.
My current employer is even worse in this regard though not a bank.
The Former Banker at February 17, 2020 10:19 AM
This link is already sitting under the next blog post, but there's no better way to think about banking during President's Day than to listen to Shlaes talking about Johnson's Great Society.
Crid at February 17, 2020 12:39 PM
Will the "diversity" hiring and training include their outside-the-US offices?
Sounds like another reason for some of the workload (i.e. employees) to be outsourced outside the US.
charles at February 17, 2020 2:02 PM
Well, crime must be solved in Merry Olde *checks notes* Wales.
https://nationalfile.com/uk-teen-fined-under-house-arrest-for-asking-trans-police-officers-gender/
I R A Darth Aggie at February 17, 2020 2:05 PM
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