Three of the nation’s largest banks are calling on shareholders to reject racial equity resolutions after last year showing solidarity with the Black Lives Matter movement.
Citigroup Inc. C,
Wells Fargo & Co. WFC,
and Bank of America Corp. BAC,
they were one of many large U.S. companies to make public statements of support in response to widespread protests last summer after the police killings of George Floyd and Breonna Taylor. In recent days, everyone has officially opposed calls from shareholder groups to conduct and publish racial equity audits and other changes, saying they are already doing enough to address equity issues.
Shareholders’ proposals urge banks to examine their practices and policies and to identify ways to “avoid adverse impacts on non-white stakeholders and communities of color,” which banks say is not necessary because they juggle with related initiatives and / or have committed money to these issues internally and externally. The proposals are included in statements of representation to shareholders, which allow companies to support or oppose shareholders ’resolutions and explain why before a vote at their annual meetings.
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CtW Investment Group wrote in its proposal to Citi shareholders that the bank “has a conflicting history when it comes to addressing racial injustice in the communities it serves.” The group provides examples, such as that Citi received a fine from the Treasury Department in 2019 for not offering all customers discounts and mortgages; their minimum maintenance fees and their minimum daily balances; and the fact that he only has one black executive in Suite C (CFO Mark Mason).
“While we do not agree with the overall approach of this proposal, we are fully aligned with its stated goal of addressing racial inequality in the financial sector,” Citi said in his power of attorney on Wednesday. .
The bank noted its $ 1 billion commitment to provide greater access to banking and mortgages for communities of color, in addition to investments in black businesses. He also said: “By September 2020, Citi published a 104-page report on the economic cost of black inequality in the United States entitled“ How the Gaps in Racial Inequality Closed ”and said its efforts in these matters they are available to the public.
Citi also recommends that shareholders vote no to a couple of other resolutions related to racial equity, such as adopting a “Rooney Rule” policy to increase the diversity of its board of directors and disclose its activities. of direct and indirect lobbying in a report.
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CtW also mentioned the minimum requirements for deposits and commissions in its Bank of America resolution, adding that the Treasury Department found in 2018 that the bank offered proportionally fewer loans to households to minorities than they usually do. Philadelphia’s white bidders and BofA’s C suite is only 8%. Black.
Bank of America said in its statement released last week that it has pledged $ 1 billion to support minority-owned businesses, employment initiatives in Hispanic and black communities, affordable housing, and donations to black historic colleges and universities. and much more. He also shared his work with “consumer advocates in the design and marketing of our financial services and products” and their efforts to diversify their workplace and leadership.
In its proposal submitted to Wells Fargo, the Union Employees Service (International Employees International Plans Plans Master Trust) mentions the bank record of discriminatory loan practices that have led to various lawsuits and an agreement with the Department of Justice. in 2012, as well as labor discrimination claims resolutions.
Wells Fargo, who published his mandate on Tuesday, said he is conducting a “human rights impact assessment” and will publish a summary of those findings and the actions he plans to take in response. The company also said it is making efforts towards diversity, equity and inclusion in its workplace and among its top ranks.
Dieter Waizenegger, CtW’s executive director, worked with SEIU on shareholder proposals. Although he said he “welcomed” the promises of banks on issues of justice and racial equality, “as investors, we believe that a critical part of this work is an independent assessment of the effectiveness of these promises ”
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Shareholder groups had also noted that the banks’ political and charitable donations have contradicted their stated commitments to justice and equity.
Wells Fargo “has given Senator Tom Cotton, who called for military airstrikes on the Black Lives Matter protests, as well as other members of Congress with a racist background,” the SEIU shareholder resolution says.
CtW said Citi “gave $ 242,000 during the 2020 election cycle to 74 members of Congress who have been rated“ F ”by the NAACP,” and that Bank of America has been involved in issuing bonds part of which was used to pay for police-related settlements ”in Los Angeles.
Both Wells Fargo and Bank of America have given police departments that “they avoid the normal hiring processes to buy equipment for police departments, including the surveillance technology that has been used to target communities of color and to nonviolent protesters, ”shareholders’ resolutions say.
Goldman Sachs Group Inc. GS,
Morgan Stanley MS,
and JP Morgan Chase & Co. JPM,
they face proposals from similar shareholders and have not yet published their representatives. This article will be updated when they do.