House Financial Services Committee Passes Financial Services Diversity Initiative

Washington, DC - The House Financial Services today passed H. Con. Res.140, the Financial Services Diversity Initiative.  The bill, sponsored by Rep. Gregory W. Meeks (D-NY), is designed to increase diversity amongst the workforce in the financial services industry and take affirmative steps by employers and educational institutions to help increase diversity within the industry.

"Financial Services Diversity Initiative focuses on the efforts of fundamental fairness and the American principles of inclusion and opportunity for all," said Meeks.  "Last year the Government Accounting Office (GAO) released a Report commissioned by the House Financial Services Committee entitled, 'FINANCIAL SERVICES INDUSTRY:  Overall Trends in Management-Level Diversity and Diversity Initiatives, 1993- 2004,' in June 2006.  That report and my office's own independent research showed that while some improvement took place between 1993 and 2004, representation for minorities in the financial services industry still lagged behind reasonable numbers on all levels and for women in upper management levels exclusively.  The report states, ‘Firm officials said that they still face challenges in recruiting and retaining minority candidates.   Some officials also said that gaining employees “buy-in” to diversity programs was a challenge, particularly among white middle managers who were often responsible for implementing key aspects of such programs.’"  

Specifically, the bill passed in Committee today will:

• Encourage financial institutions to engage in a number of activities to try to promote workforce diversity, including partnering with organizations that focus on developing opportunities for minorities and women, to place talented youth in internships, summer jobs, and full-time positions within the industry and partnering with inner-city high schools and girls' high schools to establish financial literacy programs and provide mentoring.
   
• Encourage financial institutions and federal and state financial institutions' agencies to attract and retain a diverse workforce by recruiting at women's colleges and colleges that serve minority groups; sponsoring and recruiting at job fairs in urban communities; and placing employment ads in media outlets oriented to people of color.  
   
• Require that active measures should be taken by employers and educational institutions to increase the demographic diversity of the financial services industry.  
   

"The Financial Services industry employs seven percent of this country’s workforce.  In New York City financial services is the number one industry.   Based on the recent census data, New York City is considered a majority minority city.   It is compelling that the majority population is extremely and severely underrepresented in the city's major industry,” said Meeks.

"Diversity within the financial services industry is vitally important not only to promoting innovation and creativity in the industry, but to developing a more inclusive workforce for a fair and just economy,” stated Meeks.  “If we are not tapping into the human resource that is predominant in the City, the financial services industry may eventually choose to relocate overseas."

Rep. Barney Frank of Massachusetts, Chairman of the Financial Services Committee emphasized that the passing of H. Con. Res. 140 was not the end of the committee’s involvement in the issue of diversity but only the beginning.