Hybrid Hearing - The Legacy of George Floyd: An Examination of Financial Service... (EventID=112867)

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Connect with the House Financial Services Committee Get the latest news: https://financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/HouseFinancialCmte Follow us on Twitter: https://twitter.com/FSCDems ___________________________________ On Tuesday, June 29, 2021, at 3:00 p.m. (ET) Diversity and Inclusion Subcommittee Chairwoman Beatty and Ranking Member Wagner will host a hybrid hearing entitled, “The Legacy of George Floyd: An Examination of Financial Services Industry Commitments to Economic and Racial Justice." - - - - - - - - Witnesses for this one-panel hearing will be: • Fabrice Coles, Vice President of Government Affairs, Bank Policy Institute • Donald Cravins, Jr., Executive Vice President and Chief Operating Officer, National Urban League • Darrick Hamilton, Professor of Economics and Urban Policy, The New School • Jonay Foster Holkins, Senior Director of Policy, Business Roundtable • Hassan Miah, Chief Executive Officer, Paybby Background After the killing of George Floyd and countless other incidents of racism and police brutality that led to the death of George Floyd and 163 other Black men and women from January through August of 2020, organizations across the financial services industry made pledges to invest in people and communities of color. For instance, banks promised to support minority depository institutions and community development financial institutions, especially those that assist Black communities and provide down payment assistance to potential Black homeowners as a step towards closing the racial wealth gap. This hearing will examine the extent to which banks, publicly traded companies, and others in the financial services industry have made good on their promises to Black communities and businesses, as well as steps those institutions have taken towards achieving sustainable racial equity within their organizations. How Corporate America and the Financial Services Industry Responded In the immediate aftermath of the death of George Floyd, business leaders across multiple sectors of the US economy publicly avowed their support and commitment to social justice3 through public statements and donations “to anti-racism campaigns” such as the NAACP’s Legal Defense Fund, Equal Justice Initiative, and Live Free USA, among others. While many of the corporation used “Black Lives Matter” throughout their messaging and campaigns, only a handful of corporations contributed to the Black Lives Matter organization. Additionally, members of Business Roundtable, an association of chief executive officers of America’s largest companies, established an initiative called “Moving the Needle,” which investigated racial disparities in economic opportunities and dedicated time to developing policies and practices that advance racial equity and justice. Pledges to learn and listen were widespread across multiple industries, with some companies even disclosing diversity data, publicly releasing their EEO-1 reports, and promising to do more to foster a more diverse and inclusive work environment. Many companies took stances on social media. For example, initialized by two music industry professionals, “Blackout Tuesday” was a day of action that flooded social media with images of black squares as a form of solidarity and protest against police brutality. Overall, banks and other financial service institutions pledged over $33 billion, with most of it going towards mission-driven lenders, including minority-owned banks. The most significant contributor, JP Morgan Chase, pledged to use $8 billion for originating mortgages for African American and Hispanic households to create generational wealth opportunities. Leaders in the financial world also made statements to standing up for racial equity and justice, agreeing to make amends with the community in the setbacks Black Americans face with economic disparities by dedicating funding to Black-owned businesses and promoting Black homeownership. “These initial investments will address access to jobs and support for small businesses by creating more pathways to employment in communities of color and more support for minority entrepreneurs,” said Brian Moynihan, CEO of Bank of America. In addition, CEOs and other executives formed listening sessions and created forums in their companies that allowed employees to express their sentiments about George Floyd and other related injustices, offering an opportunity for discourse. Progress One Year Out One year after many of these institutional pledges have been made, certain institutions and grassroots racial justice advocates have initiated projects to track investments and efforts to eliminate racial inequality. As many of the corporate pledges are part of multi-year distribution plans, only a small percentage of capital has been disbursed as of this year. According to a study by... Hearing page: https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407754