[House Hearing, 117 Congress]
[From the U.S. Government Publishing Office]
THE LEGACY OF GEORGE FLOYD:
AN EXAMINATION OF FINANCIAL
SERVICES INDUSTRY COMMITMENTS
TO ECONOMIC AND RACIAL JUSTICE
=======================================================================
HYBRID HEARING
BEFORE THE
SUBCOMMITTEE ON DIVERSITY
AND INCLUSION
OF THE
COMMITTEE ON FINANCIAL SERVICES
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTEENTH CONGRESS
FIRST SESSION
__________
JUNE 29, 2021
__________
Printed for the use of the Committee on Financial Services
Serial No. 117-34
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
______
U.S. GOVERNMENT PUBLISHING OFFICE
45-359 PDF WASHINGTON : 2021
HOUSE COMMITTEE ON FINANCIAL SERVICES
MAXINE WATERS, California, Chairwoman
CAROLYN B. MALONEY, New York PATRICK McHENRY, North Carolina,
NYDIA M. VELAZQUEZ, New York Ranking Member
BRAD SHERMAN, California FRANK D. LUCAS, Oklahoma
GREGORY W. MEEKS, New York BILL POSEY, Florida
DAVID SCOTT, Georgia BLAINE LUETKEMEYER, Missouri
AL GREEN, Texas BILL HUIZENGA, Michigan
EMANUEL CLEAVER, Missouri ANN WAGNER, Missouri
ED PERLMUTTER, Colorado ANDY BARR, Kentucky
JIM A. HIMES, Connecticut ROGER WILLIAMS, Texas
BILL FOSTER, Illinois FRENCH HILL, Arkansas
JOYCE BEATTY, Ohio TOM EMMER, Minnesota
JUAN VARGAS, California LEE M. ZELDIN, New York
JOSH GOTTHEIMER, New Jersey BARRY LOUDERMILK, Georgia
VICENTE GONZALEZ, Texas ALEXANDER X. MOONEY, West Virginia
AL LAWSON, Florida WARREN DAVIDSON, Ohio
MICHAEL SAN NICOLAS, Guam TED BUDD, North Carolina
CINDY AXNE, Iowa DAVID KUSTOFF, Tennessee
SEAN CASTEN, Illinois TREY HOLLINGSWORTH, Indiana
AYANNA PRESSLEY, Massachusetts ANTHONY GONZALEZ, Ohio
RITCHIE TORRES, New York JOHN ROSE, Tennessee
STEPHEN F. LYNCH, Massachusetts BRYAN STEIL, Wisconsin
ALMA ADAMS, North Carolina LANCE GOODEN, Texas
RASHIDA TLAIB, Michigan WILLIAM TIMMONS, South Carolina
MADELEINE DEAN, Pennsylvania VAN TAYLOR, Texas
ALEXANDRIA OCASIO-CORTEZ, New York PETE SESSIONS, Texas
JESUS ``CHUY'' GARCIA, Illinois
SYLVIA GARCIA, Texas
NIKEMA WILLIAMS, Georgia
JAKE AUCHINCLOSS, Massachusetts
Charla Ouertatani, Staff Director
Subcommittee on Diversity and Inclusion
JOYCE BEATTY, Ohio, Chairwoman
AYANNA PRESSLEY, Massachusetts ANN WAGNER, Missouri, Ranking
STEPHEN F. LYNCH, Massachusetts Member
RASHIDA TLAIB, Michigan FRANK D. LUCAS, Oklahoma
MADELEINE DEAN, Pennsylvania TED BUDD, North Carolina
SYLVIA GARCIA, Texas ANTHONY GONZALEZ, Ohio, Vice
NIKEMA WILLIAMS, Georgia Ranking Member
JAKE AUCHINCLOSS, Massachusetts JOHN ROSE, Tennessee
LANCE GOODEN, Texas
WILLIAM TIMMONS, South Carolina
C O N T E N T S
----------
Page
Hearing held on:
June 29, 2021................................................ 1
Appendix:
June 29, 2021................................................ 33
WITNESSES
Tuesday, June 29, 2021
Coles, Fabrice, Vice President, Bank Policy Institute............ 4
Cravins, Donald, Jr., Executive Vice President and Chief
Operating Officer, National Urban League....................... 6
Hamilton, Darrick, Professor, Economics and Urban Policy, The New
School......................................................... 8
Holkins, Jonay Foster, Senior Director, Policy, the Business
Roundtable..................................................... 10
Miah, Hassan, Founder and Chief Executive Officer, Paybby........ 11
APPENDIX
Prepared statements:
Coles, Fabrice............................................... 34
Cravins, Donald, Jr.......................................... 88
Hamilton, Darrick............................................ 96
Holkins, Jonay Foster........................................ 101
Miah, Hassan................................................. 106
Additional Material Submitted for the Record
Beatty, Hon. Joyce:
Written statement of the American Bankers Association........ 109
Written statement of Color of Change......................... 119
Written statement and attachments of the Financial Services
Forum...................................................... 123
Holkins, Jonay Foster:
Written responses to questions for the record submitted by
Chairwoman Waters.............................................. 133
THE LEGACY OF GEORGE FLOYD: AN
EXAMINATION OF FINANCIAL SERVICES
INDUSTRY COMMITMENTS TO ECONOMIC
AND RACIAL JUSTICE
----------
Tuesday, June 29, 2021
U.S. House of Representatives,
Subcommittee on Diversity
and Inclusion,
Committee on Financial Services,
Washington, D.C.
The subcommittee met, pursuant to notice, at 3:08 p.m., in
room 2128, Rayburn House Office Building, Hon. Joyce Beatty
[chairwoman of the subcommittee] presiding.
Members present: Representatives Beatty, Tlaib, Dean,
Garcia of Texas, Williams of Georgia, Auchincloss; Wagner,
Gonzalez of Ohio, Gooden, and Timmons.
Ex officio present: Representative Waters.
Chairwoman. Beatty. The Subcommittee on Diversity and
Inclusion will come to order.
Without objection, the Chair is authorized to declare a
recess of the subcommittee at any time. Also, without
objection, members of the full Financial Services Committee who
are not members of this subcommittee are authorized to
participate in today's hearing.
With the hybrid format of this hearing, we have some
Members and witnesses participating in person and others on the
Webex platform.
I would like to remind all Members participating remotely
to keep themselves muted when they are not being recognized by
the Chair. The staff has been instructed not to mute Members,
except when a Member is not being recognized by the Chair, and
there is inadvertent background noise.
Members are also reminded that they may participate in only
one remote proceeding at a time. If you are participating
remotely today, please keep your camera on. And if you choose
to attend a different remote proceeding, please turn your
camera off.
Today's hearing is entitled, ``The Legacy of George Floyd:
An Examination of Financial Services Industry Commitments to
Economic and Racial Justice.''
I now recognize myself for 4 minutes to give an opening
statement.
Good afternoon. Following the death of George Floyd,
Americans of all races, young and old, from the mailroom to the
C-suites, were united and took to the streets to demand
justice, and an end to the systemic racism that permeates many
of our institutions and corporations.
The voices of the many resonated in boardrooms and C-suites
as corporate leaders used the moment to empathize with the
frustrations of protesters, their employees, and even
stakeholders.
George Floyd's murder was an indisputable example of
systemic racism that shocked the consciousness of the American
public, thus, today's hearing entitled, ``The Legacy of George
Floyd: An Examination of Financial Services Industry
Commitments to Economic and Racial Justice.''
The CEO of JPMorgan Chase, Jamie Dimon, said in the weeks
following George Floyd's death, ``We are watching, and
listening, and we want every single one of you to know we are
committed to fighting against racism and discrimination
wherever and however it exists.''
The CEO of Bank of America, Brian Moynihan, said in his
testimony to the Senate Banking Committee in May of 2021 that
his company hosted thousands of courageous conversations with
their employees and social justice leaders to foster
understanding and a common approach to addressing injustice.
Leading banks and other financial institutions pledged to
serve as allies and apply their power, their influence, and
their resources to support the fight for social justice and to
invest in economic opportunities for Black communities that
have been redlined and shut out.
This hearing comes 13 months after the death of George
Floyd, and recent analysis by Creative Investment Research
shows that U.S. corporations pledged $50 billion, including $33
billion from financial services companies.
While pledges and platitudes that affirm values are
important, we stand at a crossroads that demands tangible and
transparent action.
Today, I stand and urge my colleagues to join me in calling
upon corporations to live up to their commitments, to be
intentional, and to implement sustainable practices that will
permanently address the economic inequities that divide our
nation.
Transparency and accountability--you are going to hear that
a lot today--must be at the heart of your commitments, and I
call upon financial companies to fully embrace the spirit of my
legislation, H.R. 2123, the Diversity and Inclusion Data
Accountability and Transparency Act, and to disclose their
workforce diversity and inclusion performance data to their
Office of Minority and Women Inclusion (OMWI) directors
annually.
I call upon business leaders to join in the fight for
social justice that impacts your workforce, to champion
diversity and inclusion practices, and to develop and leverage
financial products and eliminate racial and gender wealth gaps.
The financial services industry is a cornerstone of the
American economy and workforce. So, we want to hear today that
you are going to be a part of the trajectory of future
investment in the Black and rural communities.
Let us bend the arc of justice by examining and committing
to a fully-inclusive economic future. I look forward to hearing
more from all of you.
The Chair now recognizes the ranking member of the
subcommittee, Ranking Member Ann Wagner, my colleague, and
someone who has been with us from the very beginning of the
Diversity and Inclusion Subcommittee.
I now recognize you for 5 minutes for an opening statement.
Mrs. Wagner. Thank you, Madam Chairwoman, and thank you to
our witnesses for joining us today.
Today, we will be discussing how America's banks are taking
positive steps toward a more inclusive banking system, the
areas where banks can do more to support underserved
communities and unbanked individuals, and how innovation and
Fintechs such as Mr. Miah's firm, Paybby, can be a part of the
solution.
The members on this committee believe that all Americans
should have access to financial institutions, financial firms,
and the financial system to support and build economic
prosperity. They should have the opportunity to save and invest
for their family, for college, and for retirement.
The subcommittee has examined and will continue to examine
the strides that the financial services industry has made
toward promoting diversity and inclusion and expanding banking
services to historically underserved communities.
America's banks and other organizations in the financial
services industry promised to devote resources to advancing
racial equity. Banks pledged billions of dollars to programs
designed to close the wealth gap, drive homeownership, and
bolster Community Development Financial Institutions (CDFIs)
and Minority Depository Institutions (MDIs).
Banks have also been partnering with community
organizations focused on racial inequities, such as the
Neighborhood Assistance Corporation of America (NACA) and the
National Community Reinvestment Coalition (NCRC).
I want to list just a few of the noteworthy commitments
from the financial services industry to increase banking
services and better assist America's underserved communities.
Bank of America committed $1.25 billion over 5 years to
advance racial equality and economic opportunity. As part of
that effort, the bank announced in May 2021 that it would
expand its national affordable homeownership program. The bank
has made more than $350 million in investments, including
equity investments in 40 minority-focused funds and 14 MDIs and
CDFIs.
In 2021, Goldman Sachs announced the One Million Black
Women initiative, a $10-billion investment initiative focused
on investing in Black women to, ``drive investment in housing,
health care, access to capital, education, job creation and
workforce advancement, digital connectivity, and financial
health.''
In 2020, JPMorgan Chase announced a $30-billion-over-5-
years commitment to racial equity. The commitment includes
initiatives for affordable housing, small business expansion,
and neighborhood development.
In addition to these private-sector commitments, Congress
has provided $12 billion to CDFIs and MDIs in the December
Consolidated Appropriations Act for Fiscal Year 2021.
I look forward to continuing to work with America's banks
on these initiatives, and I am encouraged by the progress we
have seen these past few years.
I thank the chairwoman, and I yield back.
Chairwoman Beatty. Thank you so much.
I would now like to welcome all of our witnesses who are
here today in person or remotely: Mr. Fabrice Coles, vice
president of government affairs at the Bank Policy Institute;
Mr. Donald Cravins, the executive vice president and chief
operating officer at the National Urban League; Mr. Darrick
Hamilton, a professor of economics and urban policy with The
New School, formerly from my great State of Ohio, at The Ohio
State University; Ms. Jonay Holkins, senior director of policy
at the Business Roundtable; and Mr. Hassan Miah, the chief
executive officer at Paybby. Welcome.
Witnesses are reminded that your oral testimony will be
limited to 5 minutes. You should be able to see a timer on your
screen or on the desk in front of you that will indicate how
much time you have left. When you have one minute remaining, a
yellow light will appear.
I would ask that you be mindful of the timer, and when the
red light appears, to quickly wrap up your testimony so that we
can be respectful of both the other witnesses' and the
subcommittee members' time. And without objection, your written
statements will be made a part of the record.
Mr. Coles, you are now recognized for 5 minutes to present
your oral testimony.
Mr. Coles is testifying remotely, and appears on the
screen.
STATEMENT OF FABRICE COLES, VICE PRESIDENT, BANK POLICY
INSTITUTE
Mr. Coles. Thank you, Madam Chairwoman.
Chairwoman Beatty, Ranking Member Wagner, and members of
the subcommittee, thanks for having me today. I am honored to
appear before you.
My name is Fabrice Coles. I am a vice president at the Bank
Policy Institute (BPI), a nonpartisan public policy research
and advocacy group.
I appreciate the invitation to discuss the banking
industry's efforts to help reduce racial inequality. Banks must
be a part of the solution if there is to be real improvement in
outcomes for all communities, especially communities of color,
many of whom have been left behind economically.
Today, however, our focus is on banks' efforts to reduce
inequality in Black communities, and how they are leveraging
business models, networks, and resources to better serve them.
I work directly with a group of executives responsible for
this agenda at the banks and can share that this has been a
time of purposeful action. Banks have decided strategies,
agreed upon budgets, allocated resources, and built teams to
execute on this agenda.
Investments have been made. Partnerships have been
cemented. Product innovation is ongoing. Philanthropy is
continuing. More than $50 billion has been committed. More than
a billion dollars of support and investment has already gone
out the door. Progress has been made.
But given the nature and residue of centuries of financial
exclusion, much remains to be done. Racial equity gaps in
income, health, education, housing, and wealth have proven
intractable.
But the events of 2020, the disproportionate impact of the
pandemic on Black communities, and the global response to the
murder of George Floyd, have spurred fresh thinking and action.
Banks' actions to combat racial equity gaps include
investments, partnerships, product innovation, and
philanthropy. BPI member banks know that in order to address
centuries of financial exclusion, they have to invest in people
and organizations that are driving positive economic outcomes.
They are making investments in Community Development
Financial Institutions (CDFIs) and Minority Depository
Institutions (MDIs), supporting the next generation of Black
entrepreneurs, and bolstering neighborhood revitalization
efforts alongside Black-owned investment firms.
They are investing debt and equity capital, but also sweat
equity, working with partners to ensure that these investments
bring shared prosperity.
Lastly, banks are investing in the future of their own
organizations, redoubling their efforts to recruit, retain,
empower, and promote Black talent and working harder to ensure
that the senior levels of their firms reflect America's
diversity.
Banks know that change involves investing time and
resources with others. That is why banks are scaling impact by
partnering with diverse organizations to hasten the delivery of
support to Black communities.
They partner with Federal regulators and State and local
governments to promote new thinking about how to broaden access
to banking services, credit, and jobs. They have worked with
national organizations, providing affordable housing counseling
and home purchase support.
They have joined nonprofits to support policy research,
provide technical assistance, and supply needed resources to
minority-owned institutions. They partner with Historically
Black Colleges and Universities (HBCUs) to invest in the future
of financial services talent, and they have entered into joint
ventures to execute billion-dollar deals with Black-owned
broker-dealers and MDIs.
These partnerships are complemented by a growing product
portfolio. Banks have expanded their offerings of services and
are increasing access to credit products for underserved or
unbanked borrowers.
The pandemic made clear the need for access to transaction
accounts, especially as economic activity migrated online, and
banks are offering more no-fee, low-minimum-balance accounts to
attract customers into the system.
Then, banks are deepening those new relationships by
offering bridge, small-dollar, small business, and special
purpose credit loan options.
Lastly, they are providing various forms of home-buying
support and exploring how artificial intelligence (AI) can be
used to reduce the cost of credit for borrowers who have been
underserved in the past, such as those with low or no credit
scores.
Bank strategies are executed thanks to the combined efforts
of business and product units and affiliated philanthropic
organizations to boost results in speed.
Banks have committed billions of dollars in grants with
fewer strings and with accelerated decision times for
allocating philanthropic capital. This is all taking place
across an expanded list of grantees and partners in areas such
as small business, education, public health, social justice,
and civil rights.
In conclusion, when the world watched as George Floyd was
murdered, we all stopped to consider what could be done to
improve equity in our society.
Banks were a part of that introspection, and in the year
since that horrible tragedy, have rededicated their efforts to
be drivers of brighter days ahead for all American communities.
Accompanying my written testimony is a best-practices
document initially created for the banks in the midst of last
summer's extraordinary public conversation about racial
justice, which has been released today for the first time. It
gives a view into the seriousness of the tactical
considerations underway at banks to support broad-based
economic opportunity.
An honest assessment of the foundation that has been laid
leaves me with a parting thought. Much has been done. Sadly,
much more is left to do. But I can say that I am hopeful.
Thank you, Madam Chairwoman, for having me here today. I
look forward to answering your questions.
[The prepared statement of Mr. Coles can be found on page
34 of the appendix.]
Chairwoman Beatty. Thank you very much.
Mr. Cravins, you are now recognized for 5 minutes to give
an oral presentation of your testimony.
STATEMENT OF DONALD CRAVINS, JR., EXECUTIVE VICE PRESIDENT AND
CHIEF OPERATING OFFICER, NATIONAL URBAN LEAGUE
Mr. Cravins. Good afternoon, Chairwoman Beatty, Ranking
Member Wagner, and members of the subcommittee.
My name is Don Cravins, Jr., and I serve as the executive
vice president and chief operating officer of the National
Urban League. On behalf of the entire Urban League movement,
which consists of 91 affiliates in 36 States and the District
of Columbia, I thank you for convening this hearing.
Chairwoman Beatty, I would be remiss if I did not offer my
condolences to you and your family for your recent loss. I want
you to know you have been in the prayers and the thoughts of
the Urban League the entire time.
Chairwoman Beatty. Thank you.
Mr. Cravins. The National Urban League is an historic civil
rights organization dedicated to economic empowerment, equity,
and social justice.
Founded in 1910 as a result of the great migration of
African Americans to the north, the Urban League collaborates
at the national and the local levels with community leaders,
policymakers, and corporate partners to elevate the standard of
living for African Americans as well as other historically-
underserved groups.
We do that by focusing, really, on four primary areas:
education; health; jobs; and housing. Pertinent to this
subcommittee and the work that you do, the National Urban
League has specific programs designed to foster financial
literacy, homeownership, small-business financing, and home
foreclosure prevention.
These programs and services touch nearly 2 million
Americans each year. It is correct that after the killing of
George Floyd and other incidents of racism, many financial
institutions turned to the National Urban League and others and
our network of affiliates to address issues related to systemic
discrimination and inequities.
For some of these financial institutions, this was a
continuation of the support for the work we have been doing,
and was based upon previous long-standing relationships. For
others, this was the beginning of new partnerships.
And although we are thankful, Madam Chairwoman, for the
commitments, and are hopeful that a real impact will be made
and felt in the communities we serve, what we are most hopeful
about is that these commitments will symbolize the ending of
corporate philanthropic redlining.
The fact remains that there is still real work to be done,
and the resources that have been pledged alone cannot remedy
centuries of inequities and disparities.
Research shows that despite significant economic progress
over the past decades, African Americans experience far worse
economic conditions than White Americans or the American
population as a whole. African Americans experience recession-
like conditions even when the economy is thriving for other
Americans. The unemployment rate for African Americans has been
and continues to be approximately twice the rate of White
Americans.
The typical African-American household earns just 59 cents
for every dollar a White household earns. The median wealth of
African-American families is $17,000, and for White families,
it is $171,000. Only 42 percent of African Americans own their
homes, compared to 73 percent of White families.
African Americans struggle to obtain mortgages, consumer
loans, and even credit cards. More than one in four African
Americans do not have a credit score, and 17 percent do not
have traditional bank accounts. Ranking Member Wagner mentioned
some of these issues.
So, how did America get here? We got here because African
Americans were excluded from the agricultural revolution due to
enslavement, and excluded from the prosperity of the last
century due to disenfranchisement and Jim Crow legal
discrimination.
When you add those discriminatory practices to the mass
incarceration of African Americans that followed, it is very
clear how America has gotten here and why we have this
persistent wealth gap.
So, what does a real commitment to equity look like? Equity
cannot be fully achieved by financial institutions simply
donating money to external partners and relying on us to change
the world, the minds and the hearts of America.
Financial institutions must also look inward and ensure
that their own systems create inclusive places, and places with
which to do business. This is not only the morally-right thing
to do, but it is also good for business.
I am proud to say that some institutions have retained the
National Urban League for internal unconscious bias training or
to provide supplier diversity training.
Our message to our corporate clients is simple: If you want
real change, if you desire a real commitment to equity, then
you must be transparent and be willing to set an example.
Otherwise, you are only partially committed to equity. You are
window dressing.
When it comes to economics in the work of financial
institutions, there is much work to be done, Madam Chairwoman.
The organizations best-suited to assist financial institutions
with addressing these issues have traditionally been
underfunded. But the commitments are a start.
However, none of our organizations can make these changes
alone. It will require government and our financial
institutions and our nonprofit organizations working together.
So, again, thank you for allowing me to be here today,
Madam Chairwoman and subcommittee members, and allowing me to
testify on this very important subject.
[The prepared statement of Mr. Cravins can be found on page
88 of the appendix.]
Chairwoman Beatty. Thank you for your testimony, Mr.
Cravins.
Mr. Hamilton, you are now recognized for 5 minutes to give
an oral presentation of your testimony.
Mr. Hamilton is testifying remotely, so he is on the
screen.
STATEMENT OF DARRICK HAMILTON, PROFESSOR OF ECONOMICS AND URBAN
POLICY, THE NEW SCHOOL
Mr. Hamilton. Thank you, Chairwoman Betty, Ranking Member
Wagner, and other esteemed members of the subcommittee, and I
too want to offer my heartfelt condolences, as well as
gratitude for everything that you do, Madam Chairwoman.
I am Darrick Hamilton, the Henry Cohen Professor of
Economics and Urban Policy, a university professor at The New
School, and the director of the Institute on Race and Political
Economy.
The fact that George Floyd could be killed in broad
daylight by law enforcement for over an 8-minute period with a
knee in his neck while screaming for mercy that he couldn't
breathe has to be the result of a devaluation of his life
because he is Black.
After repeated examples of similar killings, this is vivid,
and should, at least by now, be undisputed. The immoral
devaluation of Black lives has been ingrained in America's
political economy and it is long overdue for a reckoning.
So, as a nation, are we finally ready to reverse our
enduring and immoral blight of racism and redefine economic
good to embrace the principles of morality, humanity, and
sustainability, and to provide a patriotic pathway to promote
our shared prosperity and achieve racial and economic justice?
The government has a fiduciary responsibility to facilitate
inclusion, civic engagement, and social equity for all its
people. All policies and government actions are rooted in
norms, especially those related to production, transaction, and
distribution. Government should promote diversity and inclusion
and belonging in all aspects of civic and political economy
simply because it is just and the right thing to do.
To achieve this, we need a deeper understanding of how
devaluing individuals based on identities like race, gender,
and sexual orientation, how they relate to political notions of
who is deserving and who is undeserving.
This is essential to expand our knowledge beyond
conceptions of individual transactions into workings of larger
political economy structures that affect us all.
Our current economic system is founded upon the values of
self-interested accumulation without bounds, but our economy
should be grounded in different values, values of economic
inclusion, civic engagement, social equity, human dignity,
sustainability, and shared prosperity.
Our enormous and persistent racial wealth gap is an
implicit measure of our racist past, a past rooted in a history
in which White Americans have been privileged by government,
political, and economic interventions that afforded them access
to resources and iterative intergenerational accumulation
associated with those resources.
This is in contrast to a history for Blacks and indigenous
Americans where their personhood and whatever capital they may
have established has always been vulnerable to exploitation and
extrapolation by state-complicit confiscation, destruction,
fraud, terror, theft, and other acts of violence.
Still, much of the framing around the racial wealth gap
focuses on poor financial choices and decisions on the part of,
largely, Black, Latinx, and poor borrowers. That framing is
wrong. The directional emphasis is wrong.
It is more likely that meager economic circumstance, not
poor decision-making or deficient knowledge, constrains choice
itself and leaves poor borrowers with little to no financial
options but to obtain and use predatory and abusive financial
services.
Households with few assets and low incomes are compelled to
turn to high-cost, unconventional, and alternative financial
products. They generally are aware that these products are
predatory but they have no alternatives.
These last-resort debt traps render recipients indentured
borrowers, having to pay higher and higher interest rates and
fees until, ultimately, they default on the original principal.
Racial inequality and despair are not inevitable. Rather,
they are the result of political choices. Likewise, we can make
different political choices.
Congress needs to provide public options, options that
directly compete with and crowd out inferior private options,
private options that do not ensure universal and quality access
to health care, housing, schooling, financial services,
capital, and the free mobility throughout society without the
psychological and physical threat of detention or bodily harm
at the hands of a state-sanctioned terror because someone's
identity is linked to a vulnerable or stigmatized group.
Inequality is not rooted in deficient people but, rather,
deficient resources and power allocations. Let us change this
paradigm. Let us be bold.
Let us advocate for programs and initiatives that truly
empower people with economic security, dignity, and authentic
agency to define and achieve their goals.
Thank you for your time.
[The prepared statement of Mr. Hamilton can be found on
page 96 of the appendix.]
Chairwoman Beatty. Thank you, Mr. Hamilton.
Ms. Holkins, you are now recognized for 5 minutes to give
an oral presentation of your testimony.
STATEMENT OF JONAY FOSTER HOLKINS, SENIOR DIRECTOR, POLICY,
BUSINESS ROUNDTABLE
Ms. Holkins. Good afternoon.
Chairwoman Waters, Chairwoman Beatty, Ranking Member
Wagner, and members of the House Financial Services Committee's
Subcommittee on Diversity and Inclusion, thank you for the
opportunity to testify today and for holding this hearing.
Business Roundtable is an association of over 230 CEOs of
America's leading companies, working to promote a thriving U.S.
economy and to expand opportunity for all Americans.
In my role, I am responsible for overseeing the racial
equity and justice agenda. Just a few months ago, during one of
the greatest tests of our democracy, I was serving as Judiciary
Counsel for Congressman David Cicilline.
Prior to that, I was a senior litigation associate at a
D.C. law firm representing community health centers and other
Federal grantees and safety net providers across the country.
I joined Business Roundtable in April because I believe
that the CEOs' commitments to ensure that the business
community is doing their part to solve the racial wealth gap
are necessary and important.
2020 was a year of reckoning for America. In response to
the murder of George Floyd, Business Roundtable CEOs released a
set of policing reform principles and have continued to press
publicly for bipartisan policing reform legislation.
Our members then turned to an issue central to equity in
our economy: the racial wealth gap. That gap is a product of
hundreds of years of policies and practices that have denied
economic opportunity to Black Americans, despite our many
contributions.
With humility, Business Roundtable engaged in hundreds of
conversations with social justice experts, including fellow
panelist Darrick Hamilton, as well as Marc Morial and Cy
Richardson at the National Urban League. That process was
focused on gathering information with the goal of driving
support towards areas where the research and the data showed it
mattered most.
On October 15, 2020, this process culminated in the special
committee's release of a set of corporate actions and public
policy recommendations focused on six key areas: employment;
finance; education; housing; health; and justice.
As a CEO organization that represents almost all sectors of
the economy, Business Roundtable is uniquely positioned to
bring about real change for communities of color and really
work toward advancing racial equity, and our member companies
are doing just that.
For example, over the past year, PayPal has invested $510
million toward equity and inclusion and social justice causes.
This includes $15 million in PayPal empowerment grants that
were distributed directly to approximately 1,400 Black-owned
businesses, many of which were also operated by Black women.
Prudential made a $10-million contribution to remove barriers
to financial wellness in underserved markets.
Cummins deployed $3 million to CDFIs, the NAACP, and SCORE
to support Black-owned enterprises in Indiana, Minnesota, and
Tennessee. Duke Energy deposited $5 million into Optus Bank, a
Black-owned bank in South Carolina. Bank of America made more
than $350 million in various investments across its primary
focus areas of health, jobs, affordable housing, and small
businesses.
Our member companies are also committed to increasing
diversity and inclusion in the workplaces from the top down.
Business Roundtable announced a multi-year effort to reform
their hiring and talent management practices, and address
inequities in employment practices.
We know that there is a long way to go on this. These are
just a few of the many examples of our member companies that
have made good on their promises.
One year of work cannot undo the centuries of harm done to
Black Americans and other people of color. There is so much
more that needs to be done to address the racial wealth gap and
other inequities faced by communities of color.
We are committed, I am committed to making real progress,
and we welcome the partnership of this committee to advance our
shared goal of securing equity and opportunities for all
Americans.
Thank you for the opportunity to serve as a witness before
the subcommittee. I look forward to your questions.
[The prepared statement of Ms. Holkins can be found on page
101 of the appendix.]
Chairwoman Beatty. Thank you very much, Ms. Holkins.
And now, Mr. Miah, you are recognized for 5 minutes to give
an oral presentation of your testimony.
STATEMENT OF HASSAN MIAH, FOUNDER AND CHIEF EXECUTIVE OFFICER,
PAYBBY
Mr. Miah. Thank you for the invitation. My name is Hassan
Miah, and I am the CEO and founder of Paybby Corp. We are a
financial technology company. We are a Fintech focused on the
empowerment of the Black and Brown communities.
I started the company, and it was founded in August of 2020
in wake of the death of George Floyd, which deeply affected me.
At Paybby, we are the only Black-owned company that offers
an FDIC-insured mobile bank account where it is possible to get
a free bank account in less than 5 minutes. Over the past few
months, we have met with several of the largest banks,
including the largest Black-owned banks in the country. Our
observations include the following.
Major banks have announced large financial commitments to
the Black community, and Black banks have announced investments
from the big banks. This is to be applauded.
However, the scale of the announced commitments appears to
be larger than the actual investments. The evidence is still a
little sparse on whether the announced commitments have
resulted in the incremental support needed for the Black
community.
The biggest concern is the lack of what we call in the
private-sector, key performance indicators (KPIs), that show
accountability of announcement to results.
Also, the approach and types of commitments taken by the
banking industry may not make a material difference unless
expanded.
The financial services industry includes the private equity
and venture capital industries, which account for a large share
of the capital used to finance businesses and support financial
inclusion and economic empowerment in the Black community.
According to recent reports, Black entrepreneurs only
receive about 1 percent of all private equity and venture
capital. This has not changed much. The VC industry has,
however, made several investments in the last year supporting
new Black founder funds, which is great.
However, the scale still appears to be minuscule relative
to the industry, and not of any major material significance.
Private equity and venture capital-backed Fintech is the
fastest growing category of alternative banking and lending in
this country.
Many of these non-minority banks or Fintechs target the
Black community, but their business models are not designed to
support racial equity and often result in more income and
wealth extraction from the community.
For example, just one small example, tax advantage private
equity firms are now making investments and buying residential
houses to be made available to rent. This could potentially
crowd out the supply of housing and reduce opportunity for the
Black community to achieve homeownership, the biggest
contributor to wealth creation.
Private equity receives its largest share of capital from
government and private pension funds, of which the Black
community is a capital supplier. Therefore, the lack of
investment in Black businesses and Black entrepreneurs actually
results in a transfer of wealth from the Black community to
other communities.
The approach taken by banks and corporations to support
Black banks and MDIs can only have a limited impact. Black
MDIs' total aggregated assets are approximately $10 billion,
compared to total U.S. banking assets of $20 trillion.
Given the limited size and smaller geographic focus, they
are simply incapable of addressing the racial equity gaps.
Fintechs, however, are creating the transformation of banking
and financial services, and similar to the other industries,
tech-driven companies are designed to scale and efficiently
build new models to support the market.
Traditional companies and banks generally do not have the
skills to make those kind of changes to a tech-driven economy
and, therefore, also many of these small community banks are
adding Fintechs on top, but none of them are Black-owned banks.
Therefore, they are not part of it.
For the banking industry, the keys to closing the racial
wealth gap and supporting racial equity are greater direct
investment, recirculation of capital, and reduction of
excessive banking costs.
The spending power of the Black community is over $1.3
trillion, and approximately $4 trillion from the Black and
Brown communities. Yet, only 2 percent of that capital is
circulated.
Outside the U.S., where large, formerly-poor nations are
gaining access to banking, new Know Your Customer (KYC) and
alternative credit scoring systems are being developed that are
as reliable as anything in the United States. Yet, this does
not exist here, and the Black and Brown communities continue to
stagnate. Actually, the racial wealth gap is still increasing.
Thank you for inviting me here, and I appreciate your time.
Thank you.
[The prepared statement of Mr. Miah can be found on page
106 of the appendix.]
Chairwoman Beatty. And thank you so much for your
testimony.
I am pleased to announce that we have been joined by the
Chair of the full Financial Services Committee. In addition to
that, she is the leader and actually the founder of the
Diversity and Inclusion Subcommittee under Financial Services.
It gives me great honor to yield the floor to Chairwoman
Maxine Waters.
Chairwoman Waters. Thank you very much, Chairwoman Beatty,
for holding this hearing, and thank you for inviting the
witnesses who have testified here today.
The information that they are sharing with us will be very
helpful in pursuing the kind of justice and equity that your
subcommittee is responsible for making happen and, of course,
our overall Financial Services Committee is pursuing.
I will start with Mr. Cravins and Mr. Hamilton. After the
deaths of George Floyd, Ahmaud Arbery, and Breonna Taylor last
year, our country entered another period of racial reckoning,
and a national focus on the systems of injustice that have
deprived Black Americans of basic human rights and equal
opportunities, including opportunities to build wealth, for
hundreds of years, as the American public turned their eye to
corporate America in the search for commitments to address
racial injustice.
Several financial institutions made promises to lend or
provide billions of dollars toward capital for Minority
Depository Institutions and Community Development Financial
Institutions, direct grants to Black businesses, and charitable
donations to organizations serving communities of color.
Mr. Cravins and Mr. Hamilton, many of these institutions
have been slow to follow through on their commitments. How can
we increase the disclosure that is necessary to help hold
public companies accountable to the promises that they made,
and what are the other ways that Congress can ensure that these
priorities are not simply empty platitudes, and that an
institution's policies are not perpetuating racism and
inequality through its operations, products, and services, and
how can we prevent companies from easily pulling back on their
commitments based on changes within their organizations?
I have heard a lot today that, basically, deals with some
of these questions that I am asking. Let me just say, I know
the work of the Urban League. I have been in the government for
many years, so of course, I have worked closely with the Urban
League, and I understand what your priorities are, what your
mandates are, and what you do.
But we have had a lot of discussion here today,
particularly about major companies in this country, that after
these deaths that I alluded to, made commitments. How do we
hold them to their promises?
Mr. Cravins. Madam Chairwoman, I think today's hearing is a
very good start or a very good continuation. You and Chairwoman
Beatty and the ranking members--because this is not a race
thing; this is an American issue--I think by bringing attention
to this issue, by bringing the companies here, by talking to
the CEOs.
And you raise a great point, Madam Chairwoman. It is not
just the Fortune 100. These commitments were made by companies
of all sizes, and we at the Urban League are very committed.
When companies have called us and said, hey, we want to be
committed, how can we help, we have absolutely given them a
road map. We have tried to help them design programs that would
help them make changes in our communities. As I have said, we
feel we have been underfunded and ignored for decades.
And so, we will continue to work with them, but we are
asking for this committee, and the Members of Congress from
both sides of the aisle, to hold people accountable, to
continue talking about this issue, and to continue having these
hearings.
Chairwoman Beatty, can we have this hearing a year from
now? Can we have another hearing 2 years from now? Can we make
sure, to your point, Chairwoman Waters, that this is just not a
flash in the pan, that this is just not window dressing but
this is, indeed, an end, as I said in my testimony, to
philanthropic redlining?
Chairwoman Waters. Thank you so very much. I am going to
turn to Ms. Holkins. How is the Business Roundtable--well, let
me go to something that I think is a little bit uncomfortable,
but we need to talk about it.
Ms. Holkins and Mr. Coles, my staff analysis indicates that
at Business Roundtable, just 3 out of 25 board members are
Black, and there are zero Black people at the executive vice
president level and above. The Bank Policy Institute has zero
Black people either on its board or within executive vice
president levels and above.
Ms. Holkins and Mr. Coles, how can you lead your members in
racial equity initiatives when you do not have many diverse
perspectives within your own organizations that help drive this
work, and what efforts have been made to ensure that diversity
and inclusion are part of your recruitment and retention
strategies?
This is very difficult, being an African American in a
situation where you have a responsibility to educate and lead
others who are not, who have significant roles in decision-
making. How do you do that?
Ms. Holkins. That is a great question. Yes, you are right,
we only have three members of the board who are Black. But I
think really, the Business Roundtable and our member companies
do take diversity and inclusion seriously.
I know just in my short time at Business Roundtable, that I
feel heard and seen and listened to, and I do feel like my
perspective is valued. I don't know that we would be here today
but for me fighting for this opportunity. I think it is
important that we are held accountable and that there is true
transparency.
Chairwoman Waters. I am way past my time, so I want to
thank Ms. Beatty so very much. But now she has something to
take back, to tell them what we asked and let us get the
response. Thank you very much.
Chairwoman Beatty. Absolutely, and thank you, Madam
Chairwoman.
I now recognize the distinguished ranking member of the
subcommittee, Mrs. Wagner, for 5 minutes for questions.
Mrs. Wagner. Thank you, Madam Chairwoman.
According to survey results from the FDIC's, ``How America
Banks,'' which was conducted in June of 2020, an estimated 5.4
percent of U.S. households are unbanked, meaning that no one in
the household has a checking or savings account at a bank or a
credit union. This percentage represents approximately 7.1
million households.
Mr. Miah, we know that minority communities are unbanked at
a higher rate than their White counterparts. Data shows there
are several correlating factors such as education status and
geography, but a major factor is also household wealth.
Unfortunately, being unbanked is also very expensive because
prepaid cards and check-cashing services also come with high
fees.
How are you, sir, expanding access to affordable financial
services so that expensive services don't further inhibit the
ability to build wealth?
Mr. Miah. Thank you for the question.
Yes, these new Fintechs now have the ability to offer
totally free banking accounts, such as ourselves, mobile
banking accounts where you don't have to have the minimum
deposit requirements of a regular bank.
In fact, we are working with two of the largest Black banks
in America to replace their existing services with our banking
services.
So now, that is possible. I think one thing that has to
happen is there has to be more support for pushing that message
out to the community so they realize that the market now
provides solutions that didn't exist before. That is part of
it.
The other big part, if I may, for a second, is in order to
get a bank account you need to pass something called Know Your
Customer (KYC).
We have found that the Black and Brown, and particularly,
poor people, pass KYC at about one-third less the rate simply
because they don't have any type of credit file. They don't
have the history, and therefore, they don't qualify.
Yet, as I mentioned during my testimony, there are now
alternative ways to qualify those people. And that is what we
are focused on is bringing new technologies and data science to
be able to bring people into the banking system on a free basis
and get them out of these high-cost services.
Mrs. Wagner. Thank you, Mr. Miah.
Mr. Coles, in your testimony you mentioned how banks are
offering more services and expanding credit products for
underserved borrowers. Can you go into a little further detail
on these products and how they could benefit the 7.1 million
unbanked U.S. households?
Mr. Coles. Thank you, Ranking Member Wagner, for the
opportunity. Banks are expanding their offerings of low-fee and
no-fee transaction accounts that are attractive to unbanked and
underbanked consumers.
Some may know these accounts as BankOn accounts. They also
don't have overdraft fees as well, and so they are definitely a
powerful tool to help promote financial inclusion.
This BankOn designation, which would provide incentives for
financial empowerment, helps bring those folks into the banking
system, and then at that point, banks are going to be able to
deepen their relationship with them, offering them more
products.
And this is something that a lot of banks are offering
today. I think it is close to 100 right now with a significant
footprint across the country.
Certainly, there is a long way to go here. But these
investments are being made, Congresswoman, and we expect to see
even more penetration in this regard. Because, frankly, during
the pandemic, we have seen the need.
We have seen the need, and this is something that banks are
really focused on, and you are going to see a lot more of these
BankOn accounts being rolled out in the near term.
But you have a lot of ones in the pipeline and a lot being
offered today in the marketplace. So, we think that is an
attractive option, Congresswoman.
Mrs. Wagner. Thank you. I appreciate it very much.
One of the key reasons many of these households are
unbanked is not having enough money that is required to open a
bank account. However, the FDIC has cited other reasons,
including not trusting banks.
Mr. Coles, how can banks create community partnerships that
build trust with unbanked households and foster those
relationships?
Mr. Coles. This is an important question, Ranking Member
Wagner, so thank you for bringing this up. Communicating with
the customer is key, as in any other business relationship.
More communication is required to ensure that borrowers are
feeling comfortable with the financial institutions with which
they are engaging.
So, more marketing investments, more partnerships, as you
indicated, with community groups that can help get the word out
about the safety and the low-cost attractiveness of these
options, we think is going to really help make a penetration
here.
But again, this is another aspect that needs more
investment and attention and it is receiving that, and I expect
more here, Congresswoman.
Mrs. Wagner. Thank you. I appreciate it. I have more
questions, but I do not have more time. So, Madam Chairwoman, I
yield back at this point. Thank you.
Chairwoman Beatty. Thank you, Ranking Member Wagner, for
your questions.
I now recognize myself for 5 minutes for questions. I am
going to ask some yes-or-no questions, so I can hopefully get
through a lot of questions.
First, Ms. Holkins, 181 CEOs signed on to the Business
Roundtable's, ``Purpose of a Corporation,'' that pledges to
foster diversity and inclusion, dignity, and respect. Doesn't
transparency and accountability around D&I build confidence
that the CEOs and their companies are living up to that pledge,
yes or no?
Ms. Holkins. Yes.
Chairwoman Beatty. A follow-up, Mr. Coles, does the Bank
Policy Institute believe that transparency and accountability,
and diversity and inclusion performance should be mandatory?
Mr. Coles. No.
Chairwoman Beatty. Many of your members have endorsed
mandatory disclosure of diversity data. But can you give us
some insight on why BPI opposes it?
Mr. Coles. I wouldn't say that we oppose it, Congresswoman.
BPI, generally, doesn't support, I think, increased, I would
say, regulatory and reporting requirements.
But there is a lot of transparency taking place with the
EEOC, and also engagements with the Offices of Minority and
Women Inclusion are underway. But we have recommended, and this
was in a report that I submitted, Congresswoman, that more
transparency be a higher priority.
And so, I think this is a journey. I think you are going to
see a lot more of this. You have more institutions, for
example, that since 2019 when the committee began its diversity
and inclusion data collection have really promoted more
transparency, releasing EEO-1s, and providing that
accountability.
It is absolutely important, and that is why we put it in
our best-practices report that we submitted to the committee,
Congresswoman, and I believe that we are going on this journey.
Chairwoman Beatty. Thank you for being transparent.
Mr. Hamilton, investors and stakeholders have increased
demands for companies to conduct independent racial equity
audits to ensure that they do not contribute to systemic racism
and are committed to D&I.
Many of the nation's largest financial institutions are
fighting these efforts. Do you support racial equity audits,
and what do you think they tell us about the culture and
commitment of corporations?
Mr. Hamilton. Absolutely, I support them, and if we value
something, then we should measure it and we should hold
entities accountable, like we do with any aspect of government
that we value.
Chairwoman Beatty. Thank you.
Mr. Cravins, the National Urban League has issued a,
``State of Black America,'' report for some 44 years. Beyond
making financial donations, what must corporate America do to
eliminate systemic barriers that drive racial and gender wealth
gaps?
Mr. Cravins. Madam Chairwoman, I think Mr. Hamilton talked
about it. I think you have to be transparent. I think you have
to be held accountable. I also think you have to look
internally at the men and women who are brought into the
company to work on these issues.
I have had a stint in corporate America as well, and I have
been that African American who has been part of those
discussions. The African American in the room cannot be the
only person calling for diversity, equity, and inclusion. As I
would tell my White brothers and sisters, I need you to chime
in as well. The company needs to hear it from you as well.
The only other advice I would give as well is that the men
and women who are charged as that chief diversity officer,
Madam Chairwoman, have to have a direct line of communication
to the CEO of the company. They have to have a direct line in
order for it to work.
Chairwoman Beatty. Thank you.
Mr. Miah, in your testimony, you highlighted private equity
and venture capital-backed Fintech as the fastest scoring
category in alternative banking and lending in the country.
Yet, less than 1 percent of venture capital investments go to
Black entrepreneurs.
Should Fintech providers be regulated to increase
transparency and accountability for their performance and
practices?
Mr. Miah. I am not sure they need to be regulated, if that
is the solution. But I think there should be more transparency
on what they are doing, and I think the regulators could do
more to push banking regulations that support Fintechs as a way
to increase the participation of the Black community.
Chairwoman Beatty. Okay.
For Mr. Hamilton or you, Mr. Miah and Mr. Cravins or Ms.
Holkins, Fintech is an important tool. But what are the best
strategies to address financial services needs of consumers in
the more than 1,100 banking deserts across the United States?
Mr. Hamilton. Ultimately, we need public options.
Ultimately, we need public banks. We need to set a floor to
ensure that there is quality access available to anyone. If the
private sector wants to exist, they can exist with a bottom
floor provided by government.
Chairwoman Beatty. Okay. Mr. Miah, I have 10 seconds. I
will yield it to you.
Mr. Miah. Sure. I am not sure you need public banks. I
think everyone in America has a phone, and all you really have
to do is get everybody using their phone for all the power it
has, and that is from the poorest to the richest in America.
And you see that happening around the world-- India, Africa,
and everywhere.
Chairwoman Beatty. Thank you. And thank you to all of the
witnesses. My time has expired.
The gentleman from Ohio, Mr. Gonzalez, is now recognized
for 5 minutes.
Mr. Gonzalez of Ohio. Thank you, Madam Chairwoman. And
thank you to our panel for their testimonies and contributions
here.
Mr. Miah, I want to focus my questions on you. I was on
your website, and you have a pretty amazing product, frankly:
an FDIC-insured account within 5 minutes, with no service fees,
no minimum requirements, and no overdraft fees. And it sounds
like, no ATM fees if in network.
How, by virtue of being a Fintech and not having some of
the cost structures of physical banks, are you able to deliver
on that level of service?
Mr. Miah. Being built from the ground up as a software
company, we don't have the legacy problems of a major bank. So,
that is one thing.
The second thing is something that happened after the last
financial collapse of 2009, which was the Durbin amendment.
Small banks can offer Fintechs the ability to collect a 1-
percent merchant fee, which is almost double what Chase and the
bigger banks over $10 billion offer.
So with as little as someone having our debit account and
spending $800 a month, they are a profitable customer, and all
they have to do is use the card. So, that is why it is
possible.
Mr. Gonzalez of Ohio. Thank you for that. And then, one of
the biggest barriers that we know of in terms of getting folks
into the banking sector is a lack of trust. I think Mrs. Wagner
mentioned that.
How does Paybby solve that? How do you enable trust in the
Black and Brown communities?
Mr. Miah. That is a great question. The one area that we
have underinvested in this country is we still use legacy
credit services and even though we are a Fintech, we sit on top
of an FDIC bank. That is the structure of our market. And so,
we have to get our accounts approved by the underlying bank. We
are pushing now for them to look at alternative scoring and KYC
methods, and we are working with some of the best data
scientists in the world, which is a big issue.
And that is where we also need an African-American or a
person-of-color perspective to change it, and then people will
gain trust because they will see they can get an account using
newer methods.
Mr. Gonzalez of Ohio. And what role do you see AI and
machine learning playing in your ability to serve your
customers?
Mr. Miah. That is a huge part of what we are doing, is AI
and machine learning because, again, we model, and looking at
around the world, and many people who do not qualify for KYC,
it is possible to find from their habits that they are very
trustworthy, even though they have never had an account,
because they go to the same check cashing, they go to the same
grocery store.
You know who they are. It is just that their credentials
don't match. But with AI, you can figure out who these people
are and see that there is no fraud or other types of risk.
Mr. Gonzalez of Ohio. So if I heard you correctly, with the
power of AI and machine learning, you can look at alternative
data sources and find ways to pass KYC?
Mr. Miah. Yes, correct. And I would say that is the biggest
hurdle at the moment, the first hurdle, and then that hurdle
extends itself to credit scoring, where there is alternative
credit scoring methodologies that AI is now bringing into the
fold.
And some of the faster, and a couple of the companies that
actually have gone public, that is what they are doing. And
some of the biggest ones, actually, they are using
alternative----they are funding using private equity and off
the balance sheet and AI because the banking regulators have
been a little slow to adopt these methodologies and approvals.
Mr. Gonzalez of Ohio. Yes, I appreciate you sharing that.
In this committee, I think, frankly, that is a big moment,
what you just highlighted, because we know that AI and machine
learning have enormous potential.
We spend a lot of time, I think, rightly talking about
whether these algorithms are going to reinforce biases. But I
think what you are suggesting is, hey, look, we can do this in
a way that is actually going to be inclusive and going to be
additive for our communities.
Mr. Miah. Yes. Actually, AI and machine learning is sort of
like COVID; it is nothing but biology. AI and machine learning
is nothing but math and computers. It is the people who program
it that decide. So if we have the right people programming,
then we can have a balanced perspective.
Mr. Gonzalez of Ohio. Great. And then a final question with
my final 30 seconds. I notice you are going to be offering
cryptocurrency access through the app. What role do you think
cryptocurrencies can play in achieving some of our diversity
initiatives?
Mr. Miah. We already offer automatic savings, and we have
had a lot of demand for cryptocurrency and most banks are now
looking into it, which is an alternative savings method.
Our goal is to offer it, but we are looking at ways to do
it in a way that gives the proper controls and guide rails so
that people use it as a true investment product without the--
Mr. Gonzalez of Ohio. Thank you, sir. I wish you the best
of luck, because I think it is an awesome company, and I am
excited that you are doing it.
I yield back.
Chairwoman Beatty. Thank you, Mr. Gonzalez.
The gentlewoman from Michigan, Ms. Tlaib, is now recognized
for 5 minutes.
Ms. Tlaib. Thank you so much, Madam Chairwoman. I
appreciate it. And thank you all so much for being part of this
panel.
I want you all to know when I asked the CEOs of the six
biggest banks in America if they knew what environmental racism
was, none of them were very familiar with it at all. think the
most that one said was that they were vaguely familiar with it.
Environmental racism isn't an abstract concept. I have seen
it firsthand growing up in southwest Detroit. The Marathon Oil
Refinery in the ZIP Code of 48217, a predominantly Black
neighborhood, has directly contributed to one of the worst air
qualities in the State of Michigan, with high rates of asthma
and cancer.
And when I visit schools, Madam Chairwoman, and I read to a
third-grade class, and they ask me what I do, I always start
off by asking how many in the class have asthma, and a third of
the class will raise their hand. Then, I talk about the fact
that I work really hard to try to get us clean air.
Congresswoman Chisholm, the first African-American woman
ever elected to the United States Congress, used to say that
children can't learn if they are hungry. Well, I also believe
that children can't learn if they can't breathe, especially
breathe clean air.
Mr. Hamilton, how has this kind of environmental racism
contributed to the enormous racial wealth gap in our country?
Mr. Hamilton. I guess it would be part of a whole
infrastructure by which Black people are structured in a way
where they don't have access to the resources that can enrich
their ability to accumulate.
It is not coincidental who has access to good air and good
land. These are products of both political and economic capital
which Black people have not been afforded in United States
history.
Ms. Tlaib. Thank you.
Ms. Holkins, I don't know if you know that even though
Black folks, my Black neighbors, make up less than 15 percent
of Michigan's total population, we saw higher rates of COVID-
related deaths because of preexisting conditions in my
community.
And we know that six members of the Business Roundtable who
testified before our committee in May aren't familiar with the
term, ``environmental racism.''
So, I am a little disappointed and a bit angry and outraged
that the CEOs of some of the largest corporations in the world
aren't thinking about how their actions and the projects they
finance may directly lead to increased pollution in front-line
communities like mine.
So, Ms. Holkins, do you think that the other 202 members of
the Business Roundtable are familiar with the term,
``environmental racism?''
Ms. Holkins. Yes, they are, and the members of the Business
Roundtable really do take seriously the effects of climate
change on underserved populations and, in particular,
communities of color. So, yes, that is something that many of
our members are aware of and, most certainly, is important to
our membership.
Ms. Tlaib. Ms. Holkins, does the Business Roundtable plan
to incorporate environmental impacts and environmental racism,
the actual term, as part of its members' commitments to racial
equity in our country?
Ms. Holkins. I believe that is a very important thing that
must be considered. Currently, that is not within our racial
equity and justice purview. But I am happy to take that back to
my team and figure out how we can take into account
environmental justice issues.
Ms. Tlaib. I truly appreciate that, because I truly believe
it does directly impact economic opportunities like housing and
health care.
My colleagues discussed today the importance of building
trust, and asked, how do we do it? I think it truly starts with
actions rather than fancy press releases and trinkets of what
we call community benefits in the lens of corporations.
Addressing racial equity truly means reversing decades of
environmental racism in our country and halting the damage that
is still ongoing today.
And that is the challenge I leave you, Ms. Holkins, and the
Business Roundtable and its members with today, and I am here
to help and be a partner in that effort.
Thank you and I yield back.
Chairwoman Beatty. Thank you for your questions.
The Chair now recognizes the gentleman from South Carolina,
Mr. Timmons, for 5 minutes.
Mr. Timmons. Thank you, Madam Chairwoman.
Before I served in Congress, I started several successful
small businesses. So I know from experience just how hard it
can be to start a business and, as we all know, it has not
gotten any easier over the last year. Small businesses like
mine have borne the brunt of the economic pain inflicted by the
pandemic.
But even before the pandemic, business formation was lower
than it should have been. From 2007 to 2019, applications to
form businesses that would hire workers dropped by 16 percent
over that 12-year period, and that was during a time of
economic prosperity resulting from the regulatory and tax
reforms that made America more competitive in the global
economy.
So, it is imperative that this Congress pursues an economic
agenda that does not just support small businesses already in
existence but creates an environment ideal for small business
formation.
Throughout our country's history, small business formation
and entrepreneurship has been the key to unlocking the American
dream for millions upon millions of Americans, and we all know
there will not be business formation without capital formation.
Back in May, the Securities and Exchange Commission's Small
Business Capital Formation Advisory Committee made two specific
recommendations to Chair Gensler, not simply to stimulate
capital formation for new small businesses, but also to make it
easier for women and minority-founded enterprises to raise
capital for their endeavors.
The Advisory Committee noted that traditional institutional
investors are known for pattern matching, or making investment
decisions that replicate patterns of what a successful
entrepreneur has looked like in the past.
But unfortunately, this often locks out women and
minorities, who are often different from traditionally
successful entrepreneurs.
The changes recommended by the Advisory Committee were:
number one, increasing the cap on the aggregate amount of
capital contributions and uncalled committed capital from $10
million to $150 million; and number two, increasing the
allowable number of investors or beneficial owners from 250 to
600 for qualifying venture capital funds.
Following their recommendations, I am today introducing the
Improving Capital Allocation for Newcomers Act of 2021 (ICAN
Act), which would codify these recommendations.
We all know capital is the lifeblood of all businesses, but
especially so for small businesses in their formative stages. I
hope that my colleagues on both sides of the aisle here in this
committee will join me in supporting these recommendations,
which will no doubt go a long way toward supporting small
businesses, especially those owned by women and minorities.
Along those lines, Mr. Miah, would you agree that access to
capital for entrepreneurs is often the primary obstacle for
business formation, and do you think that increasing the cap on
capital contributions and the allowable number of investors in
venture capital funds will help assist our minority communities
and women entrepreneurs, who admittedly have a harder time
accessing capital and finding angel investors?
Mr. Miah. Yes, I would say that access to capital may be
the single-biggest problem that they have. Going back to your
trust question, I think many of them do not trust the financial
investors to give them capital, so they often don't apply. We
were involved in Paycheck Protection Program (PPP) loans, and
many of them don't even have the proper type of accounts or the
accounting.
All of these things combined together make it difficult for
them to get access to capital. So, it is giving them greater
access to capital and supplying them with the tools to be able
to qualify, and on-board them to getting the capital so that
they can be on the road to developing their business.
Mr. Timmons. Having experienced firsthand the incredible
number of banks that turned me down for loans, I really think
that anything we can do to help new entrepreneurs succeed is a
worthwhile endeavor.
So, I look forward to working with my colleagues on both
sides of the aisle.
And with that, I yield back. Thank you.
Chairwoman Beatty. Thank you for your questions.
The gentlewoman from Pennsylvania, Ms. Dean, is now
recognized for 5 minutes.
Ms. Dean. Thank you, Madam Chairwoman, and thank you to all
of our witnesses for being here today and sharing your advice
on this important set of topics.
The death of George Floyd, as we all know, sparked a
necessary conversation on the need for meaningful reform that
ensures true equality and justice for all.
But I know we are all frustrated that conversation is
simply not enough. So, thank you to all of you for what you are
doing to push these issues of justice and equality forward.
I want to take a look at the injustices that exist and
continue to affect the economic success of Black Americans.
We all know and recognize by this subcommittee's work that
banks and financial institutions have a role to play. We all
have been a part of passing, for example, the George Floyd
Justice in Policing Act, and we continue to push for that in
terms of justice in our policing.
But on the financial institution side, Mr. Cravins, the
National Urban League's work is well-known and well-renowned.
At the end of your testimony, I was interested in something
that you said, that organizations best suited to assist
financial institutions have traditionally been underfunded.
Could you elaborate on who these organizations are and how
they are funded? And how do they specifically help financial
institutions reach these platforms and recognitions of equity?
Mr. Cravins. Yes, thank you, Congresswoman, for the
question.
I was speaking about organizations like the National Urban
League. We have been saying since 1910 that we live in the
communities that are facing these inequities, these
disparities.
There has been a lot of talk today about trust, that people
have to trust the banks in order to take advantage of all of
these great services that banks may be offering.
The National Urban League, the NAACP, many of the community
organizations, and many local organizations that I couldn't
name today, those are the go-betweens. Those are the
organizations that have been trying to do this work for
decades, for centuries.
And yet, they have been doing it through government grants,
when the government gives those types of grants. They have been
doing it through individual donation. I like to say tthat hey
do it through blood and sweat equity.
And when, unfortunately, something really terrible and
something very unfortunate happens, either nationally or in the
community, sometimes they get it, like we are seeing through
the George Floyd situation, where we are getting an outpouring
of support.
What I am hoping, as I have said, again, is that this is
not the beginning or the flash in a pan of this giving. I think
what the unfortunate murder of George Ford has shown, and as we
all know as leaders, is that we have a long way to go in this
country.
But if we are going to be serious about it, let's really be
serious about it. The Urban League has been calling,
Congressman, for a Main Street Marshall Plan since the 1960s.
We rebuilt Europe after World War Two. We overinvested in
Europe after World War Two. We have never overinvested in our
urban America. We have never overinvested in our own schools
and our own roads.
And as you debate an infrastructure plan, ladies and
gentlemen, I ask you to just simply consider, what would be the
harm in actually giving a group of people who never had boots,
and never had straps, some bootstraps?
I know I have heard several times, African Americans, pull
yourselves up by your bootstraps. They are still waiting for
the boots and the straps in many of these communities, and
these disparities you are pointing out, Congresswoman, are a
result of systemic slavery, Reconstruction, and Jim Crow.
I said this to a very dear White friend of mine the other
day. African Americans have never had the, ``good old days.''
There has never been an age of innocence for African Americans.
What were our, ``good old days?'' Reconstruction?
And so, we are still hoping to form this more perfect union
that our forefathers talked about. We are still hoping that the
good old days are to come.
Those are the types of organizations, Congresswoman, that I
believe have been underfunded, and we are hoping that this is
the beginning, and that this committee will continue this
transparency and this accountability and we can make our
country great for all Americans with this new support.
Ms. Dean. Also connected to your opening statement is the
notion that we all have to be in this together, whether you are
sitting in a C-suite or around any table or you are
participating in a Black Lives Matter march and everything in
between. That is what impressed me.
I represent suburban Philadelphia. So, you can picture
those areas where Black, White, young, old, people of every
color and ethnicity, came together. That is when we know we
will continue to make a difference.
But it is frustrating because George Floyd, of course, was
heinously murdered, but we know in the time since his murder,
hundreds of other men and women have been murdered by police, I
guess not so openly and videotaped. So, it is very frustrating.
Can you maybe be specific on how, in suburban
Philadelphia--I know I have 11 seconds left--the National Urban
League could help us make progress in these areas?
Mr. Cravins. Sure. The National Urban League has 91
affiliates, Congresswoman, and they really do the heavy
lifting. And I have to give credit, our affiliates are separate
affiliates in their communities.
They have their own boards of directors, their own full-
time paid staff, and they really make the difference in the
Urban League movement. They are the ones who do the housing
counseling. We have counseled over 850,000 people on how to
start new businesses.
And so, organizations like the Urban League--obviously, I
am a little biased, but there are others as well in the Latino
community and all of our ethnic communities--are doing the real
work, and how can we help? We can support them, we can bring
attention to them, and we can encourage our financial
institutions to support them.
Ms. Dean. Thank you. And thank you, Madam Chairwoman. I
yield back.
Chairwoman Beatty. Thank you. Ranking Member Wagner, do you
have any more members at this time?
Mrs. Wagner. Not at this time. Please proceed.
Chairwoman Beatty. Okay, thank you.
The gentlewoman from Texas, Ms. Garcia, is now recognized
for 5 minutes. But first, let me say congratulations for being
Vice Chair of this subcommittee.
Ms. Garcia of Texas. Thank you, Madam Chairwoman, and it is
an honor to serve with you. And thank you for putting together
this very important hearing on such an important topic,
particularly, as was said earlier, as we approach certain
anniversaries that are important on this topic.
This racial wealth gap is really not a new thing. It is
long-standing and it is unacceptable, and as the previous
witness just said, there has never been, ``good old days.'' It
has always been a struggle.
So, we must continue to fight hard to level the playing
field and we need to go from the commitments that have been
made to real action in closing that racial wealth gap.
There are also inequities with access to credit, especially
small-business credit. Here in Houston, my district is 77
percent Latino. We are the fastest-growing market in the United
States.
The Department of Labor found that Spanish-speaking
Americans are expected to account for almost 65 percent of
labor force growth through 2029, adding 7 million new workers,
and as consumers, Hispanics are the single-largest and highest-
spending minority in the United States today.
Yet, many institutions, from wealth managers to credit
providers, have not actively sought to reach this growing
market. Minority Depository Institutions and Community
Development Financial Institutions have been engaging with
these markets for a while, but they need our support.
They have received financial support from the big banks
recently, which is great, but we wish they would do more. We
need to make real substantive changes to make sure that we
level that playing field.
My question is both for Mr. Cravins and Mr. Coles. Going
beyond financial support, what must be done to increase the
presence and strength of MDIs and CDFIs?
How can we help this industry grow and reach the markets
that large banks fail to reach among people of color?
Mr. Coles. Thank you, Congresswoman, for that question.
As a former employee of the CDFI Fund, I thank you for your
focus on this. This is terribly important. Large banks have
been supporting CDFIs and MDIs and partnering with them as
well, not only support, but partnering on business activities.
These are critical institutions. They are able to leverage
the capital to better serve these communities. By statute, 60
percent of CDFI's activities have to be in underserved
communities.
As a delivery channel for support and financial inclusion,
there might be no better silver bullet. And so, I was so
pleased to see Congress act, with $12 billion of capital
support for these institutions in the recent appropriations
bill.
I think, as a matter of policy, and BPI members have
supported this, at a minimum, a billion-dollar budget for the
CDFI Fund would be a great start toward including more
resources for technical assistance, more resources for
technology transitions, and better small business development
support.
So, these are critical channels for relief and for economic
growth, and I am so happy to see this sector receiving the
attention that it has since last year.
We certainly need to do more. Over a billion dollars has
been deployed. More is coming, Congresswoman.
Ms. Garcia of Texas. Thank you.
Mr. Cravins?
Mr. Cravins. Congresswoman, I really don't have much to
add. I think Mr. Coles hit the nail right on the head, which is
we need more of those types of institutions.
We would like the government to help make it easier but,
obviously, with the right regulations to ensure that those
institutions are doing the jobs they do. But it goes back to
trust. I think those organizations are community-based
organizations that people will trust.
We have language barriers. We have racial barriers, and I
think those organizations could do a better job of actually
getting to the hard-to-reach people, the persistently
underbanked that we are talking about.
Ms. Garcia of Texas. Right. And for both of you, again, how
can we really move all of these commitments that so many are
making in the industry?
Many have made pledges and make commitments, but
distribution of the funds requires grants. They are multi-year
commitments.
So, what can we do to change it from commitment to real
action and real accountability to ensure that the dollars that
are committed actually will be spent?
Mr. Coles. Yes, ma'am. Thank you for that question.
I would say that by our accounts, almost a billion dollars
is already out the door.
But with $50 billion committed, certainly there is a long
way to go here, and I certainly recognize the need for speed
here and that is critical.
But I think like any other institutions, you resource
something, you budget it, you allocate resources to achieve a
tactical objective, and that is underway. And I think the next
time we meet, you are going to see a lot more here, and all I
can tell you is that I have spoken to a lot of the executives
doing this work at the banks.
Banks are hiring executives to do this work specifically,
and they are engaging different community groups. They are
engaging business partners to do this work.
And so, I understand the need for speed. I can tell you
that these things are happening. I have seen it. I am talking
to the people, and we are going to see a lot more. much sooner
than we expect, Congresswoman.
But I understand the urgency here, and I think you are
going to be pleased with the results over time.
Ms. Garcia of Texas. Right. And Mr.--
Chairwoman Beatty. The gentlelady's time has expired.
Ms. Garcia of Texas. Thank you, Madam Chairwoman. I yield
back.
Chairwoman Beatty. Thank you.
The gentlewoman from Georgia, Ms. Williams, is now
recognized for 5 minutes.
Ms. Williams of Georgia. Thank you, Madam Chairwoman.
We have a lot of work to do when it comes to closing the
racial wealth gap in this country, and in my district, which,
unfortunately, is at the bottom of the list for all cities.
If we want to make significant progress on this issue, it
is going to take both private industry and government making
ambitious commitments.
But even more importantly, it is going to take intentional
implementation of steps to reach these commitments and
consistent measurement and assessment of progress.
Mr. Coles, can you tell me a little bit about how your
members are measuring progress toward the objectives that they
have devised to address the racial wealth gap, and how will
this measurement be used to inform their plans and actions,
going forward?
Mr. Coles. Thank you, Congresswoman. I think the BPI
members are tracking according to a couple of different buckets
the number of CDFIs and MDIs they have invested in, small
businesses that they have engaged, philanthropic commitments
and disbursements that they have made, and I think that these
are areas that are also part of a journey.
I think standardized metrics across the industry are,
certainly, something that people are looking at and I think,
certainly, there is a lot more to do here in terms of tracking
and reporting, which is, again, a part of the reason why in our
best-practices report that we submitted to the committee, we
highlighted that very thing.
So, I think there is a ways to go here, Congresswoman, to
achieve what you are talking about. But it is important. The
industry recognizes the need, and I think you are going to see
a lot more here.
Ms. Williams of Georgia. Just to follow up on that, and a
couple of issues that I think are key to closing the racial
wealth gap and identify how progress is measured, Mr. Coles,
over the next year, what numeric milestones do you believe
would represent sufficient progress towards your members' goals
of helping more homebuyers of color get their first home, and
how will evolving data inform your members' approach to
tackling this issue?
Mr. Coles. Thank you, Congresswoman. I think, as was said
earlier, what gets measured gets done, and I think that when we
see more mortgages created for Black homeowners, more
intentionality towards that, you are going to see that data
improve.
So again, more investments in MDIs and CDFIs, and more
investments directly in organizations promoting homeownership
and providing direct grants for down-payment assistance.
These are things that are going to be helpful, and I think
that when you look at the data, you are going to see a lot more
people in homes a year from today.
Ms. Williams of Georgia. Thank you. As I have explored in
previous hearings, there are many racial disparities in the
unbanked population, and we need to do everything we can to
address the underlying factors that inhibit access to basic
financial services so that people of color can save and invest
for their future.
According to a 2019 FDIC survey, nearly half of the
unbanked households didn't even have enough money to start a
bank account. About one-third of unbanked households cited both
high bank fees and unpredictable bank fees as barriers to
getting banked.
Mr. Coles, you mentioned banks are expanding their
offerings of no-fee, low-minimum-balance accounts. What numeric
impact do you anticipate that this change will have on reducing
the unbanked and underbanked population?
Mr. Coles. Thank you, Congresswoman. I hesitate to make a
prediction about kind of the numeric impact.
But what I can say is that, given the factors that you have
indicated in the FDIC report that were articulated so well, I
think that with the proper amount of marketing about the
existence of these products to customers, I think we can see a
significant dent in the millions who are unbanked and the
underbanked.
And that is in partnership with Federal, State, and local
governments which are also joining the outreach and
communication effort around these particular kinds of accounts
and also, frankly, the marketplace.
The marketplace is demanding that banks do more on this,
and you are seeing investments towards that effect. And we have
seen more banks adding these accounts, in partnership with,
like I said, Federal, State, and local governments, and groups
with which we are working.
So, there is a lot more to be done here, Congresswoman, but
again, we are on the road.
Ms. Williams of Georgia. Mr. Coles, how will your members
use the trends in banking access data that is being collected
to inform their future work in breaking down the barriers to
banking?
Mr. Coles. That data is very helpful to informing decision-
making and, hopefully, for those institutions that may be on
the fence, they will be able to use that data to see that these
products drive customer engagement and support, and also have
meaningful impacts on the communities of which are a part.
So in addition to community impact, there is also going to
be a positive business association with those accounts as well,
and I think the data is going to demonstrate that to business
decision-makers and make it a more attractive product, both to
the customer, but also on the supply side, Congresswoman.
Ms. Williams of Georgia. Thank you, Madam Chairwoman, and
thank you, Mr. Coles, and all of our other panelists today. I
yield back the balance of my time.
Chairwoman Beatty. Thank you.
The Chair now recognizes the gentleman from Massachusetts,
Mr. Auchincloss, for 5 minutes.
Mr. Auchincloss. Thank you, Madam Chairwoman, for holding a
hearing through this lens. In meetings with my constituents, I
have stressed that the Diversity and Inclusion Subcommittee has
pushed financial institutions to take a closer look at
diversity within their company, their customer base, and their
investments.
In 2020, many financial institutions announced substantial
investments in Black communities. Bank of America pledged $1
billion over 4 years, Citibank pledged $1 billion over 3 years,
JPMorgan pledged $30 billion over 5 years, and PayPal pledged
$510 million for small businesses.
These investments are a start to actively engage with
communities that historically were purposefully excluded from
our economy, and in my home State of Massachusetts, housing has
been a principal means by which Black Americans have been
redlined from opportunity.
Owning a home is the single-greatest driver of wealth for
most families across the country. Yet, Black homeownership is
at its lowest level since the 1960s, effectively curbing the
ability to raise generational wealth.
Some of the banks have earmarked their investments
specifically for increasing Black homeownership, and building
on the comments of my colleague from Georgia, Mr. Coles, I
would like to ask you, how should banks measure their success
in this arena, specifically for increasing Black homeownership?
What should they be doing differently to achieve their
homeownership goals if they are not hitting the metrics they
establish?
Mr. Coles. Thank you, Congressman.
I think what you are seeing is a lot of activity already to
support homeownership. There are partnerships with nonprofit
groups to help provide affordable housing counseling, but also
direct financial support to help people get in homes, things
like helping people defray the costs of closing, things like
just general grants to help people provide down payments.
And that data is going to improve with more intentionality.
And I really want to emphasize this point. Banks deploy
capital. Banks lend to borrowers who are looking to get into
homes.
Although a lot of that activity has migrated to the non-
bank sector, what you are seeing is intentional support for
this activity by banks, both on their own and in partnership
with other institutions.
Mr. Auchincloss. Mr. Coles, I appreciate that. But what you
are describing are the means, and what I am pushing for here is
for an outcome as multi-threaded as homeownership, where there
are a lot of things that contribute to homeownership, are there
specific things that these major banks can be looking at to
know that they are moving the needle?
Mr. Coles. Congressman, I am happy to circle back with your
office on metric-specific analysis. I don't have that before me
today.
But I think that generally, again, being intentional,
especially with financial support to help these borrowers
bridge that gap to get themselves into homes, you will see more
progress, sir.
But I would be happy to follow up directly to your
question.
Mr. Auchincloss. I would appreciate your partnership on
that front, as this is a critical issue for our district, and
measuring, I think, is going to be a big part of the solution.
Mr. Cravins, I would like to direct the second line of
questioning to you. I was struck by an expression that you
used, ``a Marshall Plan for Main Street.'' I love that
expression. I may adopt it, with your permission.
I would posit that with the American Rescue Plan funds in
Massachusetts, $5 billion for States and cities with the
upcoming infrastructure bill that we will pass, billions more
for transit for, ``complete streets,'' we have a generational
opportunity for a Marshall Plan for Main Street. In fact, we
are doing it with President Biden and with a Democratic
Congress.
Are there areas that you would encourage States and cities,
in particular, who are going to have a lot of latitude in how
to spend this money at the end of the day, that they should be
directing these investments into to accomplish this Marshall
Plan for Main Street?
Mr. Cravins. Thank you for the question, Congressman.
I will say this about adopting the name. The Congressional
Black Caucus has actually included the, ``Domestic Marshall
Plan,'' as the title piece of their Jobs and Justice Act that
they have introduced over the last two Congresses.
I would simply say that you should sign on as a co-sponsor
if they will let you, and support the bill. But thank you for
that.
What I would suggest, Congressman, are a couple of things.
I think Congress and the President, and the Administration are
absolutely considering some generational changes.
I think, Congressman, schools, access to broadband, access
to technology, would even those things. What I will say for
this hearing and with your limited time, though, is this:
Whatever we do should ensure that African-American and
minority-owned businesses not only benefit from it as
recipients, but they also benefit from it as business people.
We have not spent a whole lot of time on supplier diversity
here today, but one way to really even things up and catch
people up is to let African-American businesses participate and
sell things and buy things and hire people.
And so, what I would suggest to you is that as we continue
to build this infrastructure plan, and what it will be, we are
also making sure that Black businesses and minority-owned
businesses and women-owned businesses will be able to
participate.
Mr. Auchincloss. I appreciate that answer, and I will yield
back my time.
Chairwoman Beatty. Thank you for those questions.
Ranking Member Wagner, we have no more questions. If you
have no more questions--
Mrs. Wagner. We do not. Chairwoman Beatty, thank you for
this hearing today. And I also want to express to you
personally my profound sadness for you and your family for the
loss of your dear husband, Otto, and you know that you are
always in our thoughts and prayers. God bless you. Thank you,
all.
Chairwoman Beatty. Thank you. Thank you so much, Ann, and
thank you to all of the witnesses and all of the Members.
I would like to thank our witnesses for their testimony
today.
The Chair notes that some Members may have additional
questions for these witnesses, which they may wish to submit in
writing. Without objection, the hearing record will remain open
for 5 legislative days for Members to submit written questions
to these witnesses and to place their responses in the record.
Also, without objection, Members will have 5 legislative days
to submit extraneous materials to the Chair for inclusion in
the record.
Also, without objection, I would like to enter statements
into the record from the American Bankers Association, Color of
Change, Financial Services Forum, and Securities Industries and
Financial Markets.
This hearing is now adjourned.
[Whereupon, at 4:41 p.m., the hearing was adjourned.]
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A P P E N D I X
June 29, 2021