House Democrats Push for ‘Diversity in addition to also also Inclusion’ Ratings for Banks

House Democrats have proposed an addition to the “CAMELS” rating system of which might include a “diversity in addition to also also inclusion” score.

“We need to change This specific in addition to also also we need to change This specific right away. The excuse of which we can’t find any, of which’s what I’m hearing by some of you, of which’s not acceptable,” Texas Democrat Rep. Al Green said at a Wednesday hearing held by the House Subcommittee on Diversity in addition to also also Inclusion.

“When you have power, you have to use This specific. We possess the power. Regulations may be the thing to do. I think the carrot was a not bad idea, nevertheless after having heard some things today, I think we have to move to the stick, of which’s regulations,” he added. The subcommittee was created by House Financial Services Committee Chairwoman California Democrat Rep. Maxine Waters.

Currently, the CAMELS system — also known as the Uniform Financial Institutions Rating System — rates a bank’s Capital adequacy, Assets, Management, Earnings, Liquidity, in addition to also also Sensitivity to market risk on a scale of one to a few. The fresh bill might extend the Dodd-Frank Wall Street Reform in addition to also also Consumer Protection Act to include “Diversity” for judgment by the “Board of Governors, the Comptroller of the Currency, the Corporation, in addition to also also the National Credit Union.”

In 2018, Waters said she was “appalled” at the “lack of diversity” in Silicon Valley, in particular. “I know of which there are quite a few organizations, civil rights organizations of which have been working very hard to enhance participation of minorities in addition to also also women from the Silicon Valley businesses,” she said.

“They have not done very well, in addition to also also of course I might be anxious to be of assistance to them in doing sure of which we could reduce the costs in addition to also also reduce the hassle of becoming IPOs,” she continued, adding one crucial caveat: “nevertheless we certainly must take into consideration whether or not these companies are developing, understanding of which some of us are going to be focused on diversity in those companies.”

One financial institution is usually already getting ahead of the legislation. In January, Goldman Sachs Group CEO David Solomon announced the company “will no longer take a company public from the U.S. in addition to also also Europe if This specific lacks a director who is usually either female or diverse.”

Source : House Democrats Push for ‘Diversity in addition to also also Inclusion’ Ratings for Banks