Wells Fargo CEO says there’s ‘a very limited pool of Black talent to recruit from.’ It’s not true. And He’s Asking the Wrong Questions.
We recently learned that Wells Fargo has found itself in hot water, yet again, when CEO Charlie Scharf made comments (first reported by Reuters) in a June memo following National protests regarding the death of George Floyd, calling for greater diversity in corporate offices to address systemic racism.
Scharf stated, “we need more diverse representation on our operating committee…but (he went on to say) “while it might sound like an excuse, the unfortunate reality is that there is a very limited pool of Black talent to recruit from.”
Really, Mr. Scharf? Is there a lack of Black talent to recruit from, or is Wells Fargo systemically creating barriers for Black candidates via racist hiring practices and disenfranchisement?
Scharf has since apologized for his comments, citing ‘unconscious bias’, pledged to double the number of Black leaders (at Wells Fargo) over five years, and tied executive compensation to reaching diversity goals. His apology and proposed course of action is not only lazy, it’s insulting, and does not represent a holistic, meaningful commitment to racial equity, diversity, and inclusion. Also, FIVE YEARS? We don’t have five years — Black people are dying at the hands of police NOW, due, in part, to racial inequity in communities, which Wells Fargo is complicit in perpetuating. Let’s address that.
“Have you heard of residential segregation and systemic divestment in communities of color? Any lack of Black representation in the talent pool can be directly tied to those issues.”
Wells Fargo has played a large role in exploiting communities of color with their predatory and oppressive business practices, and have spent hundreds of millions of dollars to settle lawsuits.
In 2017, Wells Fargo was sued by the city of Philadelphia for discriminatory lending practices. More specifically, the lawsuit alleges that the bank used predatory lending practices that violated the Fair Housing Act of 1968. In effect, they are continuing a long history of redlining in Philly by “steering” Black and Latinx lenders into higher loan rates than their white counterparts. Wells Fargo claimed no wrongdoing, that they stand behind their reputation as being a fair and equitable lender. They then settled outside of court for $10 million to be paid to housing programs in Philadelphia.
“This points to the larger issue around corporate greed, banks who prioritize profit over sustainable communities, and an accelerated housing crisis.”
Corporations have to move beyond the narrative of the talent pipeline and ask questions about why the pipeline may look the way it does. The effects of the housing crisis disproportionately impact Black communities. Why? Because for the average U.S. family, wealth is created through homeownership and education is often financed in equity from those same homes. So, if Scharf is concerned about the pipeline, he should direct his attention towards Wells Fargo’s role in perpetuating the US wealth gap via predatory and discriminatory real estate and lending practices.
The same week that Mr. Scharf apologized for his ‘insensitive’ comments made in response to racial equity, diversity, and inclusion following the murder of George Floyd — we witnessed the Kentucky Grand Jury let Breonna Taylors killers free. The wrongful death suit filed against the officers involved by Breonna Taylor’s mother evidenced that the police may have been used to try and vacate the complex where Taylor’s boyfriend lived to advance a recent housing development initiative.
The series of events leading to the death of Breonna Taylor are a horrific reminder of how violent gentrification can be, and the often fatal outcome it has on Black people. If lenders, such as Wells Fargo refuse to address their long history of redlining, it is likely that we will see more of these tragic incidents. This is why we need corporate executives like Charlie Scharf to take holistic and meaningful action toward racial equity, diversity, and inclusion in their lending, hiring practices and beyond.
I encourage people to contact organizations in your community, like NPH (Non-Profit Housing Association) to learn how you can help address equitable housing issues. NPH members, partners, and supporters stand together to develop and pass critical policies to create change for our communities. www.Nonprofithousing.org
I had the pleasure of moderating the Housing as a Foundation to Racial and Economic Equity and Inclusion Workshop at the 41st annual NPH Affordable Housing Conference on September 25, 2020.
