Wall Street firms pull back DEI programs as criticism mounts: 'Inflection point'
Several major Wall Street firms are reigning back efforts to promote Diversity, Equity, and Inclusion amid heightened criticism.
Several major Wall Street firms are reigning back efforts to promote Diversity, Equity, and Inclusion amid heightened criticism.
According to Bloomberg News, major banks such as Goldman Sachs, Bank of America Corp., Bank of New York Mellon Corp., and JP Morgan are reconsidering diversity efforts and, as a result, have been cutting them.
At Goldman Sachs, a “Possibilities Summit” specifically for Black college students has been opened to White students.
Bank of America, likewise, has opened up programs previously focused on women and minorities to everyone.
[RELATED: University of Florida fires all DEI employees, eliminates department]
Lawyers advising Bank of New York Mellon Corp. are advising executives to get rid of metrics used for workforce diversity.
While executives of major firms and companies claim not much has changed regarding diversity efforts, according to Bloomberg, private conversations suggest otherwise. The shift is being attributed to potential lawsuits.
Bank of New York, according to the report, is reconsidering a previous decision that tied executive compensation to diversity progress and has also removed “specific targets” in DEI initiatives.
JP Morgan, likewise, has opened up its college summer fellowships for Black sophomore students to everyone, “regardless of background.”
Ana Duarte McCarthy, former chief diversity officer at Citigroup, told the outlet that We’re at an interesting inflection point.”
[RELATED: Iowa House passes bill to limit DEI at public universities]
One legal case that’s closely watched on Wall Street is the American Alliance for Equal Rights v. The Fearless Fund.
The Fearless Fund, according to the report, gives money to companies that are led by women of color and are in their early stages. It asked a federal judge to protect its contest that gives $20,000 grants to companies run primarily by Black women.
The American Alliance for Equal Rights claims the contest discriminates based on race.
