Transcripts For CSPAN Financial Regulators Testify On Impact

Transcripts For CSPAN Financial Regulators Testify On Impact Of Regulations On Diversity And... 20240712

Testify on the impact of regulations and efforts to create more diversity in the Financial Sector. This hearing is just under three hours. The subcommittee will come to order. Without objection, the chair has authorized to declare a recess of the subcommittee at any time. Without objection, members of the full committee not on this subcommittee are authorized to participate in todays hearing. Members are reminded to keep their video function on at all time, even when they are not recognized by the chair. Members are also reminded that they are responsible for muting and unmuting themselves, and to mute themselves after they finished speaking. Consistent with the regulations of House Resolution 965, staff will only mute members and witnesses as appropriate when not recognized to avoid inadvertent background noise. Members are reminded that all house rules pertaining to order and decorum applies to this remote hearing. This hearing is entitled Holding Financial regulators accountable for diversity and inclusion, respective from the offices of minority and women inclusion. I now recognize myself for four minutes to give an opening statement. Todays hearing focus is Holding Financial regulators accountable for diversity and inclusion, from the perspective of the offices of minority and women inclusion. Our country is facing three pandemics covid19 and the economic pandemic and the fight for social justice pandemic. These challenges have reshaped our work and personal relationships in unprecedented ways. Todays hearing is totally virtual and i appreciate all of our witnesses and members for participating. Im hopeful we will be able to strike a balance between historical context, the demand for greater industry inclusiveness and transparency, as well as highlights accomplishments for performance. 2020 marks the 10th anniversary of the enactment of the dodd frank wall street reform and Consumer Protection act. Through the leadership of our chairwoman, chairwoman Maxine Waters, members of the democratic caucus, and countless diversity and inclusion stakeholders, section 342 of dodd frank was devised to serve as a catalyst to enhance diversity and inclusion performance at a Financial Regulation agency. Prior to the enactment of dodd policymakers and stakeholders lack access to performance data to transparently review diversity practices. 2008he financial crisis of disproportionately impacted low income americans and communities of color. Recognize the Important Role Diverse Communities play in the United States action. Took action to diversify the Financial Service sector to help prevent the abusive and discriminatory practices that helped cause the crisis from happening again. During the 116th congress, i along with my colleagues have reminded all diversity and inclusion is a business imperative. It improves the bottom line and is essential for closing the racial wealth gap. It Breathes New Life into how Financial Institutions and the agencies evaluate, access and expand inclusiveness. Ae recent analysis highlights persistent lack of racial diversity in senior roles at the regulatory agencies. Our work has pointed to systemic racism and the need for us to be intentional in our inclusiveness, contrary to President Trumps comments. Systemic racism is a National Crisis that impedes the full inclusion of Diversity Community and our economy. In june, Jerome Powell acknowledged structural discrimination exists in the United States Economy Today and impedes the economic success of communities of color. Its highlighted that Asset Managers and brokerdealers who contract with the feds in the pandemic relief effort must meet inclusion requirements. Just as we have charged the banks and other Financial Institutions to discuss and share regarding how they have improved the workplace and diversity practices. We are eager to hear from you regarding your agencys performance, transparency and accountability are critical to achieving a sustainable performance. We recognize your limited authority and have informed each theme agencies that it is that this committee will be Holding First in line for accountabilities on diversity and inclusion performance. In closing, we are resolute and determined to see your agencies achieve both the letter and spirit of dodd frank. The success of our economy depends on the full inclusion of all communities. The chair now recognizes the Ranking Member, the gentlewoman from missouri and my friend, congresswoman wagoner, for five minutes. Rep. Wagoner it is good to see you and most of our committee today. I appreciate you holding this hearing. I would like to thank all the witnesses for testifying today. We look forward to hearing from each of you on the work that the offices of minority and women inclusion have been doing to successfully diversify the workforces of our financial regulators. Over the past year, the subcommittee has held more hearings on the benefits of Diverse Workforce. Studies Show Companies with Diverse Workforces prepare better compared to their less diverse competitors. Diverse firms proved to be more innovative. It is in a companys best interest to hire and develop a Diverse Workforce and create an Inclusive Work environment. Federal agencies like the private sector will realize many benefits from a Diverse Workforce. Diversity and inclusion, while related, are separate issues that must be addressed. Although a company or federal agency may be able to increase recruitment, it is equally as important to focus efforts on making sure the environment is included for retention to fully realize the benefits of a Diverse Workforce. Studies continue to show minorities and women leave Financial Firms at a higher rate than their white male counterparts. To improve the rate of retention, companies and federal agencies must adjust their culture and promote the development of diverse talent. This requires a pronounced commitment for leadership and a specific action plan to increase inclusion. In order to be most effective, Company Policy changes should be implemented from the top down and have buyin at all levels of management. When i speak of topdown policy changes being up limited, a prime example is in the testimony. She meets regularly with active brooksoller and others to make sure they fulfill their diversity and inclusion. Its buyin like this at the senior level that makes a big difference. Director meeting regularly with an agency head or a chief diversity officer having constant communication with the ceo, that relationship fosters a strong commitment to successfully recruit, retain and promote minorities and women. The benefits of a Diverse Workforce are wellestablished and the private sector has developed a set of best practices to recruit and retain a Diverse Workforce and prioritize inclusion. Federal agencies would also benefit from implementing the strategies. Some of the best practices we have learned about in hearings this congress, that increased retention rates improved the inclusivity of a workplace includes vitae Financial Literacy training. Transparency regarding salaries and emotion opportunities. Mentoring and sponsorship programs. Employee Resource Groups. Training andias Flexible Work hours for working mothers. Our goal should be to identify the successful strategies for recruiting and retaining minorities and women, and explore how Government Agencies can better implement those strategies within their own structures. I look forward, madame chairwoman, so learning about the work you all have been doing today. I am proud of this committee for examining these important issues. I thank you and i yield back, madam chair. You, veryty thank much. The chair now recognizes the chair of the full committee, the gentlewoman from california, the author of dodd frank 343, congresswoman Maxine Waters. Rep. Waters thank you very much, chair lady. Assembled leaders of the office of minority and women inclusion, known as omwi, from the financial regulatory agencies to discuss their progress and challenges in fulfilling their diversity and inclusion over stagnation. 10 years ago, the dodd frank wall street reform act was authored. Watchdogsampions and of our Financial Services agencies for diversity and inclusion. On the 10th anniversary of dodd frank, protests across the country calling for an end to systemic racism, this hearing is long overdue. I want to thank you for the work you have been doing, giving oversight. You have been taking on this responsibility and i am so appreciative of your for it. The Financial Services regulators play a role in removing racial and gender ensure itnd biases to is inclusive and accessible to all. Chair beatty thank you very much to our chairwoman. Today, we welcome the testimony of nine witnesses divided into two panels. Our first panel of omwi directors will focus on the banking regulatory regulators. Joyce cofield is the executive director for the office of minority and women inclusion of the office of comptroller. Sheila clark is the director of the office of minority women inclusion of the board of governors of the Federal Reserve system. Lacey is the director of office of minority and women inclusion in new york. Earson is the acting director of the office of minority and women inclusion. And monica davy is the director of office of minority and women inclusion of the National Credit union administration. Witnesses are reminded their oral testimony will be limited to five minutes. A chime will go off at the end of your time. And i ask that you respect the members and other witnesses time by wrapping up your oral testimony. Without objection, your witness statement will be made part of the record. Ms. Cofield, who are now recognized for five minutes to give an oral presentation of your testimony. ,s. Cofield chairwoman Ranking Member, and members of the subcommittee, im Joyce Cofield. I serve as the director of the office of minority and women inclusion at the office of the comptroller of the currency. Im pleased to discuss occs commitment to diversity and inclusion within a workplace, our suppliers and Banking System. The occs omwi was established in 2010 pursuant to section 342 of the dodd frank act. I have served as the director since its inception. Acting comptroller brooks, the committee and i share a commitment of promoting diversity and inclusion. I meet regularly with the acting comptroller, as i have with previous comptrollers. The occ is dedicated to maintaining a Diverse Workforce through a strategy that focuses on leadership commitment, Recruitment Strategies that workplace, competency pipelines with retention strategies sensitive to employee differences, and a culture that respects values and seeks diversity. As the subcommittee has exported previous years, successful diversity and inclusion begins at the top. Acting comptroller brooks has vigorously championed his commitment towards improving the impact of occs Diversity Program and has engaged the executive committee on how to improve diversity for hiring and promotion decisions. Additionally, we are excited about a recently launched initiative, project reach, that convenes leaders from banking, civil rights, technology and business organizations to execute projects that will reduce barriers to the full and fair economic participation, and expand access to credit and capital to minorities and underserved communities. Re that occ hires and retains diverse management and staff, omwi provides Detailed Analysis of Workforce Trends twice a year to facilitate integration of diversity and inclusion. These analysis include recruitment and hiring, promotions and separations, and Employee Development and retention information. To expand the diversity of our applicants, the occ went to 200 colleges and universities, including historically black colleges and universities, and institutions with large female student populations. We participate in minority professional organizations that actively support. This summer, we hosted more than 100 minority students from local high schools for six weeks paid virtual leadership internship. Despite limitations from the coronavirus, the occ provided nye interns with mezam positive enriching experiences. The occ provides developmental opportunities. Omqwwi supports these efforts by providing diversity training, including unconscious bias courses, and women in leadership. The agency recently added leadership exploration and Development Program to build leadership competencies for aspiring leaders and managers. There was 53 females, 18 black and 12 hispanic. The occ is also committed to the inclusion of minority and women owned businesses at all level of our Business Activity. Im proud that over the last 10 years, greater than 30 of all occ contracts have gone to minority and women owned businesses. College,losely with omwi provides greater assistance and facilitates matchmaking with potential contractors. Omwi efforts including collecting data from the banks we supervised. In 2015, we joined in the publication of a policy for joint standards. This policy statement provides the framework for banks to complete a selfassessment and increases awareness of the banks commitment to diversity. To encourage banks to submit self assessments, we collaborated with the other agencies. This year, the banks will have until october to return there ir 2020 selfassessment. I thank you for the opportunity to appear before you today. You. Beatty thank you are now recognized for five minutes to give an oral presentation on your testimony. Thank you. Chair beatty, Ranking Member wagner, members of the subcommittee, thank you for the opportunity to testify today on the Important Role of the office of minority and women inclusion of the Federal Reserve board. The board is deeply committed to inclusion and a Diverse Workforce, as well as fostering diversity in our own procurement practices and those the institution regulates. Those perspectives lead to the best decisions and advance the Federal Reserves mission in serving the public. The board established the office of diversity and inclusion to promote Diversity Inclusion throughout the board, the system and within the Financial Services industry. I work closely throughout the board and the system with the other omwi directors at the 12 reserve banks, recognizing the commitment of the board on these important issues is shared by the banks and their leadership. Has equal opportunity compliance programs and includes the office of minority and women inclusion. Omwi pursuant to the dodd frank act, developed initiatives to ensure fair inclusion of minorities, women, and minority owned and women owned businesses, and all activities of the board. As well as developing standards for assessing diversity policies and practices of regulated entities. The boards omwi outline its activities, successes and challenges. I will highlight two areas of this report. The board Shows Progress in increasing the level of diversity in Senior Leadership. In 2019, there were 19 appointments, in which five were minorities and six were women. There are six female directors, which one is africanamerican. Eight Division Directors are male, of which one is hispanic. In addition, there are three africanamericans, one hispanic and three females who serve as deputy directors in their respective divisions. Odis staff engages with the Division Leaders for the boards diversity and inclusion standards. We will continue to address challenges including candidates for major job functions, such as financial analysts and economists, and strengthening the pipeline to senior staff levels. The Federal Reserve system focuses on increasing racial and Ethnic Diversity among reserve bank and branch directors. These boards function more effectively when they are constituting in a matter that encourages a variety of diverse perspectives.

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