Showing posts with label Diversity in Financial Services: The Impact of Dodd-Frank. Show all posts
Showing posts with label Diversity in Financial Services: The Impact of Dodd-Frank. Show all posts

Thursday, February 16, 2012

Report on Diversity at OMWI Agencies

Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act contains a provision creating an Office of Minority and Women Inclusion (OMWI) at various agencies to monitor the diversity efforts of the agencies, the regulated entities and agency contractors. In a new report on workforce diversity at the 20 federal financial regulatory agencies subject to Dodd/Frank Section 342 (OMWI), a West Coast based NGO, the Greenlining Coalition, notes that "there is considerable variation amongst the financial regulatory agencies in workforce diversity. Our tiered analysis illustrates that some agencies have strong diversity records, while others still have considerable room for improvement."

Greenlining appears to be working from our ratings of OMWI Offices, released in September, 2011. We agree with their assessment and are glad that they have validated the work we did six months ago.....

The Report goes on to note that

"..some agencies have been more successful than others at recruiting and retaining employees from certain racial and ethnic minority groups." Greenlining also identified two trends:

"Lack of racial diversity in executive management and a significant underrepresentation of Latinos, Native Hawaiians/Pacific Islanders, and Native the executive management, mid-level management, and professional categories."

While we appreciate Greenlining's focus on workforce diversity at the covered agencies, we know that the biggest issue remains diversity at financial institutions covered by the OMWI Offices.

Friday, June 24, 2011

Family Properties: Race, Real Estate and the Exploitation of Black Urban America

We attended a conference titled "Diversity in Financial Services: The Impact of Dodd-Frank" held from June 22-24, 2011 at the Westin Arlington Gateway, Arlington, VA.

We opened the conference by speaking on a panel covering Dodd/Frank Section 342. Moderating the panel was Mikail Moore, Chief of Staff, Congresswoman Maxine Waters, US House of Representatives. Other panelists were Darlene R. Slaughter, Vice President, Chief Diversity Officer, Fannie Mae and Leslie R. Crawford, Deputy Director, Federal Deposit Insurance Corporation.

The speaker at General Session IV was Beryl Satter, author of Family Properties: Race, Real Estate, and the Exploitation of Black Urban America. She discussed the current state of the mortgage markets and placed recent history in context. Her book is perhaps the best exploration of race and the urban real estate market.

This is a rare and powerful book which combines socioeconomic trends, the history of the civil rights movement and detailed family history. As noted by Ms. Satter, "In the 1950’s, 85% of properties sold to blacks in Chicago were sold on contract (on exploitative terms). ..speculators were robbing blacks of $1 million dollars per day."

That’s 365 million per year. At 5% interest rate compounded over 60 years (1950 to 2010), this adds up to $135 BILLION dollars in lost wealth in Chicago's Black community. Multiply this by other urban real estate markets around the country, and the total loss adds up to well over $5 TRILLION dollars.

This explains, completely, the wealth gap between blacks and whites.