skip to main content

Financial Services Diversity Measure Approved by House

On September 24, the House passed, by voice vote, H. Con. Res. 140, a resolution recognizing the low numbers of minorities and women in the financial services industry and expressing the sense of Congress that the industry should take active measures to increase its demographic diversity.

Sponsored by Rep. Gregory Meeks (D-NY), the resolution contains a number of findings, including:

  • minorities and women face various challenges in obtaining and maintaining positions, especially upper-level positions, within the financial services industry;
  • minorities and women often cite the lack of mentors and leadership training as barriers to their advancement;
  • 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;
  • in 2004, the financial services industry ranked third in the percentage of women employed in the workforce behind health care and education;
  • approximately half of financial managers are women and the percentage of women financial managers was approximately 51.7 in 2005;
  • 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; and
  • a minority of women (32 percent) and men (43 percent) believe that promotion decisions are made fairly in their firm.Rep. Meeks said, “As a member from New York, which is America’s financial services capital, and a member of the Financial Services Committee, I have interacted [with] 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.” He added, “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.”

    Rep. Judy Biggert (R-IL) said, “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…Mr. Speaker, women and minorities are still just that, the minority, in corporate boardrooms throughout the financial services industry.” She added, “The Government Accountability Office [GAO] released [a] report…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…. 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.”

    Rep. Biggert continued, “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.”