[Congressional Record (Bound Edition), Volume 153 (2007), Part 18]
[House]
[Pages 25274-25277]
[From the U.S. Government Publishing Office, www.gpo.gov]




 RECOGNIZING THE LOW PRESENCE OF MINORITIES IN THE FINANCIAL SERVICES 
     INDUSTRY AND MINORITIES AND WOMEN IN UPPER LEVEL POSITIONS OF 
                               MANAGEMENT

  Mr. MEEKS of New York. Mr. Speaker, I move to suspend the rules and 
agree to the concurrent resolution (H. Con. Res. 140) recognizing the 
low presence of minorities in the financial services industry and 
minorities and women in upper level positions of management, and 
expressing the sense of the Congress that active measures should be 
taken to increase the demographic diversity of the financial services 
industry, as amended.
  The Clerk read the title of the concurrent resolution.
  The text of the concurrent resolution is as follows:

                            H. Con. Res. 140

       Whereas the financial services industry is vitally 
     important to the United States economy;
       Whereas in 2005, employment in the financial services 
     industry was about 7 percent of total employment in the 
     United States, with over 10,000,000 employees;
       Whereas since 1995, the average hourly earnings of non-
     supervisory workers in financial activities was above the 
     private industry and increased from approximately $13 in 1997 
     to $18.80 in 2006;
       Whereas minorities and women face various challenges in 
     obtaining and maintaining positions, especially upper-level 
     positions, within the financial services industry;
       Whereas minorities and women often cite the lack of mentors 
     and leadership training as barriers to their advancement;
       Whereas in 2005, about 14.9 percent of the board seats at 
     the Fortune 100 companies were held by minorities, and women 
     comprised about 16.9 percent of Fortune 100 company board 
     seats in 2005;
       Whereas in the financial services industry, the percentage 
     of black employees has slowly decreased from about 10.5 
     percent to 9.8 percent between 2000 to 2005;
       Whereas in 2005, blacks were approximately 9.8 percent of 
     those employed in the financial services industry and about 
     7.4 percent of financial managers;
       Whereas from 2000 to 2005, Hispanics have been an 
     increasing percentage of the United States workforce and the 
     financial services industry;
       Whereas in 2005, Hispanics comprised about 9.7 percent of 
     those employed in the financial services industry, just 6 
     percent of financial managers, and less than 2 percent of the 
     directors of Fortune 1,000 companies;

[[Page 25275]]

       Whereas in 2004, Asians represented about 5.5 percent of 
     the employees in the financial services industry and about 
     6.3 percent of all financial managers;
       Whereas in 2004, the financial services industry ranked 
     third in the percentage of women employed in the workforce 
     behind healthcare and education;
       Whereas approximately half of financial managers are women 
     and the percentage of women financial managers was 
     approximately 51.7 in 2005;
       Whereas in a 2001 survey of 2,200 senior and pipeline level 
     women and men representing approximately 60 securities firms, 
     65 percent of women reported that women have to work harder 
     than men to get the same rewards, and 51 percent of women 
     report that women are paid less than men for doing similar 
     work;
       Whereas a minority of women (32 percent) and men (43 
     percent) believe that promotion decisions are made fairly in 
     their firm;
       Whereas the House-approved Financial Services Regulatory 
     Relief Act of 2005 directed each Federal banking agency to 
     submit biennial reports to Congress on the status of the 
     employment by the agency of women and minorities;
       Whereas the Government Accountability Office found in its 
     report ``Financial Services Industry: Overall Trends in 
     Management-Level Diversity and Diversity Initiatives, 1993-
     2003'', issued in June 2006, that overall diversity at the 
     management level in the financial services industry did not 
     change substantially from 1993 to 2004; and
       Whereas, although the Government Accountability Office 
     acknowledged that financial services firms have initiated 
     programs to increase workforce diversity, the Office found 
     that these initiatives face challenges: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring),

     SECTION 1. SHORT TITLE.

       This resolution may be cited as the ``Financial Services 
     Diversity Initiative''.

     SEC. 2. FINANCIAL SERVICES DIVERSITY INITIATIVE.

       (a) Congressional Recognition.--The Congress--
       (1) recognizes that minorities and women still face unique 
     challenges entering into and obtaining upper level positions 
     within the financial services industry;
       (2) encourages financial institutions to partner with 
     organizations which are focused on developing opportunities 
     for minorities and women to place talented young minorities 
     and women in industry internships, summer employment, and 
     full-time positions;
       (3) encourages financial institutions to partner with 
     inner-city high schools, girls' high schools, and high 
     schools with majority minority populations to establish or 
     enhance financial literacy programs and provide mentoring;
       (4) encourages financial institutions, including Federal 
     and State financial institution regulatory agencies, to build 
     and retain a diverse staff through initiatives, including--
       (A) providing financial support for minorities and women 
     undergraduate and graduate business programs;
       (B) heavily recruiting at historically Black colleges and 
     universities, Hispanic serving institutions, women's 
     colleges, and colleges that typically serve majority minority 
     populations;
       (C) sponsoring and recruiting at job fairs in urban 
     communities; and
       (D) placing job ads in newspapers and magazines oriented 
     toward people of color;
       (5) encourages financial institutions to appoint more 
     minorities and women as board members; and
       (6) encourages financial institutions, and public and 
     private pension funds to seek qualified minority and women 
     owned firms as investment managers, underwriters and other 
     business relationships.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) active measures should be taken by employers and 
     educational institutions to increase the demographic 
     diversity of the financial services industry; and
       (2) diversity within the financial services industry is 
     vitally important not only to promoting innovation and 
     creativity in the industry but to developing a more inclusive 
     workforce for a fair and just economy.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Meeks) and the gentlewoman from Illinois (Mrs. Biggert) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New York.


                             General Leave

  Mr. MEEKS of New York. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on this legislation and to insert extraneous material 
thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. MEEKS of New York. I yield myself such time as I may consume.
  Mr. Speaker, I want to commend the leadership of this House for 
bringing this resolution to the floor. I'm an individual who has great 
concerns about America's ability to maintain its global advantage 
economically in the years to come.
  Globalization is making the world a much smaller place. And although 
globalization has improved economic conditions in many parts of the 
world and has contributed greatly and mightily to the United States' 
prosperity, it also means that competition that was once domestic is 
now international. Young children today don't only have to compete with 
people of their town for work, now they compete with the people from 
their region. Businesses that once faced regional competition now face 
international competition. Not only can you now ship products all over 
the globe, but modern communications now allows you to contract 
professional services from anywhere in the world without needing a 
person and personal meetings. Capital now moves across the planet 
instantaneously at the push of a button.
  What does all this have to do with my resolution, Mr. Speaker, the 
Financial Services Diversity Initiative? It has to do with the fact one 
of America's leading industries where we have the global advantage is, 
in fact, financial services.
  As outlined in the resolution, financial services represents 7 
percent of the total employment in the United States, and the industry 
is a key component of the U.S. trade surplus in services.
  The service sector is the largest and most dynamic force in the U.S. 
economy. Services account for over 80 percent of the United States' GDP 
and employment. Financial services is a key component of our dominance 
in services, along with express delivery, telecommunications, 
information technology, audiovisual, energy, transportation and 
professional services.
  In every single congressional district in the United States, the 
majority of the workforce is employed in the service sector. In no 
district is there fewer than 70 percent of the workforce employed in 
services, and in some districts that figure is as high as 92 percent. 
Moreover, the service sector is projected to account for virtually all 
new job growth in the United States over the next half decade. And 
States like New York, North Carolina, Florida and California that 
already have major financial services, financial services will be a 
major component of that growth.
  Despite current conditions, our long-term dominance in this area is 
not inevitable. As the McKenzie Report indicated, our lead in financial 
services is being challenged all over the globe, particularly by 
London. In that study, the executives surveyed stated that one of the 
key factors in choosing a location from which to operate was an 
available and skilled workforce.
  As a Member from New York, which is America's financial services 
capital, and a member of the Financial Services Committee, I have 
interacted and visited many financial services firms from the various 
sectors of this industry. I've been very supportive of the industry 
because it is of importance to America's competitive advantage and the 
financial health of my dear city, New York. However, the lack of 
diversity in the industry is glaring, particularly where African 
Americans and Latinos are concerned. Although women are more than 50 
percent of the industry, their absence is much greater in the executive 
management and the boardrooms.
  In a 2006 study conducted by the GAO that was requested by the 
Financial Services Committee, firm officials that were surveyed 
acknowledged that despite having problems, they still faced challenges 
in recruiting and retaining minority candidates. According to the 
report, ``Some officials also said that gaining employees' buy-in to 
diversity programs was a challenge, particularly among middle managers 
who were often responsible for implementing key aspects of such 
programs.''
  To bring the issue closer to home, in New York State, the Department 
of Labor statistics shows that financial activities account for 
approximately 460,000 jobs. African Americans and Latinos together make 
up 53 percent of New York City's population. The same source states 
that nearly 40 percent of

[[Page 25276]]

blacks and 35 percent of Latinos are unemployed. This is not to say 
that the financial services industry is responsible for the 
unemployment, but the fact of the matter is that if you are not able to 
place your majority population in the majority industries of your city, 
you're going to have a serious unemployment problem. And let's face it, 
whatever industry you're talking about, your greatest resource is going 
to be human resources.
  In this resolution, I'm not asking for quotas or percentages, I'm 
asking for the government and the industry to take steps that are 
consistent with America's promise of fairness and opportunity toward 
increasing the diversity of the industry on all levels.
  Years ago, this Congress passed the Community Reinvestment Act, and 
banks found out that doing business with a more diverse client base was 
very profitable. I believe the entire industry will find the same is 
true with a more diverse workforce.
  I strongly encourage the Members of this House to pass this 
resolution, which simply says that we want the best opportunities for 
all Americans.
  Let me take a moment to thank Chairman Frank and Ranking Member 
Bachus for working in a bipartisan way in bringing this through the 
committee and to the floor. I also want to thank Jameel Johnson of my 
staff, Erika Jeffers and Jaime Lizarraga of Mr. Frank's staff, who 
happen to be two African Americans, one is a female and one is a 
Latino, showing how diversity works, and we are working together.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. BIGGERT. Mr. Speaker, I rise in support of House Concurrent 
Resolution 140. This resolution recognizes the low presence of 
minorities in the financial services industry and minorities and women 
in upper-level positions of management. It also expresses the sense of 
Congress that active measures should be taken to increase the 
demographic diversity of the financial services industry.
  I would like to thank the gentleman from New York, Congressman Meeks, 
for introducing this resolution and for his leadership in the very 
important issue of diversity in the financial services industry.
  As co-Chair of the Women's Caucus Business Task Force and as one of 
only 13 women in the U.S. Congress, including the House and the Senate, 
who serve on a committee overseeing the financial services sector, I 
would like to focus my remarks today on women in this industry.
  As I have learned from my own experience on the Financial Services 
Committee, women are few and far between in upper-level positions of 
management and in financial services. This resolution acknowledges this 
factor and rightly encourages industry to take action to increase 
diversity.
  Mr. Speaker, women and minorities are still just that, the minority, 
in corporate boardrooms throughout the financial services industry. 
According to a publication called ``Women in Financial Services: The 
Word on the Street'' released by Catalyst in 2001, women cited a number 
of reasons why they might be missing at the table.
  Almost three-quarters of the women surveyed cited a lack of mentors 
as an obstacle barring them from advancing. Well over 50 percent of the 
women cited exclusion from informal networks of communication, lack of 
women role models, failure of senior leadership to assume 
accountability for women's advancement, and several additional factors 
as barriers to success. The same report cites that 65 percent of women 
have to work harder than men to get the same rewards, and that women 
are paid less for doing similar work.
  The Government Accountability Office released the report that Mr. 
Meeks just spoke about revealing that over an 11-year period, the 
commitment to diversity in the financial services industry was strong. 
However, the GAO found that this commitment has yet to translate into 
any real progress for women.
  The GAO report also said, ``Research reports suggest that minority 
and women-owned businesses have difficulty obtaining access to capital 
for several reasons.'' According to another Catalyst study, ``a small 
minority of women, 18 percent, report that opportunities to advance to 
senior leadership in their firm have increased over the past 5 years,'' 
and ``60 percent of women report opportunities to advance to senior 
leadership have improved somewhat or slightly.''
  So, what do we do about the relatively small number of women leaders 
in the financial services industry? I would suggest that step one is to 
recognize the problem, which we are doing with this resolution today, 
and step two is to encourage the financial services industry to take 
action and explore ways to increase the involvement of women and 
minorities in the financial services industry.
  Currently, programs like those sponsored by Girls, Incorporated are 
working to promote economic and financial literacy among young women. I 
would like to commend them for their work, and also commend the efforts 
of all of those involved with Women's Policy Inc., Women Impacting 
Public Policy, the Small Business and Entrepreneurship Council, and 
many others who are promoting women in business.
  In addition, it is my hope that during this Congress we can go beyond 
this resolution. I hope that we can examine ways to propel women in 
business, women in financial services forward and help them secure 
leadership roles in the industry.
  As the new ranking member of the Financial Services Subcommittee on 
Financial Institutions and Consumer Credit, I intend to request that 
our subcommittee hold a hearing to examine the issues of access to 
capital for women business owners, especially those in the financial 
services. I hope that we can hold such a hearing during this Congress.
  It is important that we continue to examine the barriers confronting 
women in business and find ways to help them overcome these barriers. I 
believe that increasing the number of qualified women in leadership 
roles in the financial services industry will both enrich the industry 
and make it more competitive.
  Again, I thank the author of this resolution, Mr. Meeks.
  Mr. Speaker, I yield back the balance of my time.
  Mr. MEEKS of New York. I yield myself such time as I may consume 
simply to thank the gentlelady from Illinois for her support in working 
in a clearly bipartisan manner in this particular matter so that we can 
get our friends in the financial services to offer opportunities to men 
and women who happen to be minorities, and we can move on and share in 
this great population.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today to 
identify the low representation of minorities and women in the 
financial services industry. The Financial Services Diversity 
Initiative calls upon the public and private sector to provide more 
opportunities for minorities and women to succeed in the financial 
services industry.
  The financial service industry has an extraordinary impact on the 
country, including my home district of Dallas, TX. While many 
industries have successfully created a diverse workplace, the financial 
service industry has fallen short, creating an unacceptable disparity 
for minorities and women. As a society, it is our responsibility to 
promote the diversity in the workplace and ensure confidence in any 
individual's ability to succeed at all levels.
  In order to raise awareness and combat these disparities, we must 
furnish all children a first class education. Education is the vital 
threshold in expanding opportunities to qualified candidates, 
regardless of their race or sex. The Financial Services Diversity 
Initiative enforce fairness and accountability to all educational and 
employment sectors.
  Mr. Speaker, as a person of color and a woman, I know first hand the 
importance of equality and diversity. I strongly support the Financial 
Services Diversity Initiatives which offers to eliminate the inequality 
among minorities and women in the financial services industry.
  Mr. MEEKS of New York. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Meeks) that the House suspend the rules 
and agree to the concurrent resolution, H. Con. Res. 140, as amended.
  The question was taken; and (two-thirds being in the affirmative) the

[[Page 25277]]

rules were suspended and the concurrent resolution, as amended, was 
agreed to.
  A motion to reconsider was laid on the table.

                          ____________________