Diversity and Inclusion: Congressional Democrats Deeply Disappointed with Federal Financial Regulatory Agencies Joint Statement; Statement Said to be Ambiguous, Opaque, and Weak

Two Democratic members of the Committee on Financial Services in the House of Representatives (Committee) issued a press release expressing concerns with a joint statement authored by the federal financial regulatory agencies.

According to the press release, Representative Maxine Waters (D-Calif.), ranking member of the Committee and chief architect of section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), P.L. 111-203, and Representative Joyce Beatty (D-Ohio), who oversees the implementation of section 342 of Dodd-Frank, stated that they were deeply disappointed with the structure and scope of the joint statement.

The reasons for the disappointment, as presented in the press release and based on a 2014 letter from the Congressional Black Caucus to participating federal agencies, are as follows:

  • The failure of the joint standards to bring transparency to the financial services industry, which, the authors stated, has a long history of failing to promote diversity in its workforce.
  • The final statement is said to be ambiguous and “does not establish uniform criteria to assess workforce and supplier diversity practices.
  • The final statement does not require all regulated entities to collect and report data on workforce and supplier diversity practices. (The press release explains that section 342 of Dodd-Frank provided authority for required data collection.)