1 00:00:03,160 --> 00:00:06,160 Speaker 1: Progress toward equity for Black Americans has been shaky, and 2 00:00:06,200 --> 00:00:09,120 Speaker 1: after decades of a widening wealth gap, the pandemic led 3 00:00:09,160 --> 00:00:12,440 Speaker 1: to mass closures of black owned businesses. Black women were 4 00:00:12,480 --> 00:00:16,600 Speaker 1: disproportionately impacted, and the unemployment rate for Black Americans took 5 00:00:16,760 --> 00:00:19,759 Speaker 1: much longer to recover than that of white Americans. And 6 00:00:19,760 --> 00:00:22,440 Speaker 1: in the wake of George Floyd's murder, as the US 7 00:00:22,520 --> 00:00:26,120 Speaker 1: began recognizing June tenth as a federal holiday, the forces 8 00:00:26,160 --> 00:00:30,000 Speaker 1: pushing for equality grew louder. Banks, money managers, and their 9 00:00:30,000 --> 00:00:33,640 Speaker 1: clients throughout Corporate America looked to start playing a greater 10 00:00:33,800 --> 00:00:37,479 Speaker 1: role in closing deep disparities related to race, promising to 11 00:00:37,600 --> 00:00:42,200 Speaker 1: hire more Black Americans, Hey, more equal wages and expand opportunities. 12 00:00:42,440 --> 00:00:45,239 Speaker 1: Now two years later, how have they done Over the 13 00:00:45,280 --> 00:00:48,000 Speaker 1: next hour, We'll try to answer that question in this 14 00:00:48,040 --> 00:00:54,200 Speaker 1: Bloomberg Equality special Achieving Black Equity m Shali Bassk. Progress 15 00:00:54,240 --> 00:00:57,320 Speaker 1: toward the goal of racial equity has been choppy at best. 16 00:00:57,560 --> 00:01:01,080 Speaker 1: Most data disclosed from large firms across Corporate America and 17 00:01:01,120 --> 00:01:05,080 Speaker 1: the Federal Reserve are from until that year. Federal Reserve 18 00:01:05,160 --> 00:01:08,400 Speaker 1: data show the disparity between black and white Americans only 19 00:01:08,520 --> 00:01:11,640 Speaker 1: deepened in terms of household net worth. For John Rogers, 20 00:01:11,680 --> 00:01:14,000 Speaker 1: the founder of Aerial Investments who's on the board of 21 00:01:14,000 --> 00:01:18,360 Speaker 1: major fortune companies, the challenge ahead is important to soak in. 22 00:01:18,520 --> 00:01:21,039 Speaker 1: While things have started to change in corporate America, the 23 00:01:21,080 --> 00:01:24,319 Speaker 1: progress is now widely seen is terribly slow. The data 24 00:01:24,400 --> 00:01:26,920 Speaker 1: is crystal clear things are getting worse. When it comes 25 00:01:26,959 --> 00:01:30,680 Speaker 1: to the black wealth gap. SAR from the Federal Reserve St. 26 00:01:30,720 --> 00:01:34,560 Speaker 1: Louis has data the shows between twenties sixteen, college DK 27 00:01:34,720 --> 00:01:37,319 Speaker 1: black saw the wealth declined ten percent. In college dcated 28 00:01:37,319 --> 00:01:39,840 Speaker 1: white saw the wealth of increase over nine percent. This 29 00:01:39,959 --> 00:01:42,000 Speaker 1: idea that things are getting better, I just think it's 30 00:01:42,000 --> 00:01:43,920 Speaker 1: so important to pound home that it really is not 31 00:01:44,000 --> 00:01:47,240 Speaker 1: getting better. I think that these companies are more committed, 32 00:01:47,319 --> 00:01:49,400 Speaker 1: but we've got to remind them that they've got to 33 00:01:49,440 --> 00:01:52,360 Speaker 1: do more than just the token, small efforts. They've got 34 00:01:52,360 --> 00:01:55,120 Speaker 1: to have more of a systematic understanding of how to 35 00:01:55,160 --> 00:01:59,000 Speaker 1: create true diversity and true wealth minority communities. We get 36 00:01:59,040 --> 00:02:01,400 Speaker 1: a few little bright spot we need to do much more. 37 00:02:01,480 --> 00:02:04,360 Speaker 1: John Rogers points out that from most large firms, their 38 00:02:04,400 --> 00:02:07,760 Speaker 1: staff don't look like the communities they serve. Charles Phillips, 39 00:02:07,840 --> 00:02:11,079 Speaker 1: the co chair of the Black Economic Alliance explains part 40 00:02:11,080 --> 00:02:14,360 Speaker 1: of the problem. Building wealth is something the black community 41 00:02:14,400 --> 00:02:17,240 Speaker 1: has been struggling with for decades, and average household now 42 00:02:17,360 --> 00:02:19,760 Speaker 1: is about ten percent of the white household, so that's 43 00:02:19,760 --> 00:02:22,079 Speaker 1: obviously kind of the definition of the problem. A lot 44 00:02:22,120 --> 00:02:24,320 Speaker 1: of that comes down to home ownership, the fact that 45 00:02:24,440 --> 00:02:27,720 Speaker 1: mortgages weren't as available and comes with as high redlining, 46 00:02:27,960 --> 00:02:30,840 Speaker 1: lots of issues. So the home ownership issue is around 47 00:02:30,880 --> 00:02:34,639 Speaker 1: for black people about seventy one percent for the nation, 48 00:02:34,720 --> 00:02:37,560 Speaker 1: and so closing that gap is at leads one path 49 00:02:37,760 --> 00:02:40,560 Speaker 1: to increasing black wealth, but there are other issues as well. 50 00:02:40,600 --> 00:02:44,040 Speaker 1: Phillips was former president at Oracle who left and ran 51 00:02:44,200 --> 00:02:47,520 Speaker 1: Software Giant in for He's been working with firms across 52 00:02:47,560 --> 00:02:51,360 Speaker 1: Corporate America to hire or promote one million Black Americans 53 00:02:51,440 --> 00:02:54,240 Speaker 1: in the next ten years. Last year, the initiative called 54 00:02:54,320 --> 00:02:58,480 Speaker 1: one ten helps elevate twenty five thousand people, while that 55 00:02:58,560 --> 00:03:01,720 Speaker 1: group has placed thousands more this year and Corporate America 56 00:03:01,800 --> 00:03:05,120 Speaker 1: has wrapped up promises on hiring more less than one 57 00:03:05,320 --> 00:03:08,880 Speaker 1: fifth of fortune five hundred companies have joined the effort. 58 00:03:09,080 --> 00:03:13,680 Speaker 1: The issues are matching the location, the job, skill, the 59 00:03:13,680 --> 00:03:16,600 Speaker 1: type of job that the company needs, with the type 60 00:03:16,600 --> 00:03:19,240 Speaker 1: of people being trained, and that's there's always a disconnect. 61 00:03:19,320 --> 00:03:21,560 Speaker 1: Someone needs to tend people in sales and Detroit. What 62 00:03:21,639 --> 00:03:23,720 Speaker 1: were just trained with someone in I t in Atlanta. 63 00:03:23,919 --> 00:03:27,280 Speaker 1: Getting that matching done correctly in one challenge and two 64 00:03:27,320 --> 00:03:30,000 Speaker 1: would need more people participating. And I think the thirty 65 00:03:30,040 --> 00:03:32,440 Speaker 1: issue is people are used to hiring the way they hire. 66 00:03:32,720 --> 00:03:34,400 Speaker 1: A lot of people who in charge of h R 67 00:03:34,520 --> 00:03:37,320 Speaker 1: They have their ten colleges they recruit from and specific 68 00:03:37,400 --> 00:03:39,680 Speaker 1: ways that they are used to their systems working, and 69 00:03:39,880 --> 00:03:41,720 Speaker 1: sometimes it's hard to get them to change as well. 70 00:03:41,760 --> 00:03:43,880 Speaker 1: So I would say people are more open to it 71 00:03:43,880 --> 00:03:46,000 Speaker 1: than they were more open to hiring for skill the 72 00:03:46,080 --> 00:03:48,880 Speaker 1: versus degrees, which is important, but it's a slow, slow 73 00:03:48,920 --> 00:03:50,640 Speaker 1: burned to you like to get there for them. Charles 74 00:03:50,680 --> 00:03:53,160 Speaker 1: Phillips now runs a company called Reform. He's one of 75 00:03:53,200 --> 00:03:55,960 Speaker 1: many black entrepreneurs who struck out on their own while 76 00:03:56,040 --> 00:03:58,880 Speaker 1: also staying in touch with big business. He currently serves 77 00:03:58,920 --> 00:04:02,320 Speaker 1: on the boards of American Express and Viacom. Zanilia Harris 78 00:04:02,400 --> 00:04:05,400 Speaker 1: has also started her own firm after years at large 79 00:04:05,440 --> 00:04:08,840 Speaker 1: companies like Merrill Lynch and Nasdak. Now she helps women 80 00:04:08,880 --> 00:04:11,960 Speaker 1: across the country build wealth. She says closing the racial 81 00:04:12,000 --> 00:04:15,280 Speaker 1: income gap for black women would be transformative and bring 82 00:04:15,360 --> 00:04:18,280 Speaker 1: real generational change. The women that I work with, they 83 00:04:18,320 --> 00:04:21,320 Speaker 1: want to create wealth for themselves so that they are 84 00:04:21,360 --> 00:04:23,359 Speaker 1: able to live the life that they want, They're able 85 00:04:23,400 --> 00:04:27,320 Speaker 1: to support their family, they are able to leave something 86 00:04:27,400 --> 00:04:32,120 Speaker 1: to that next generation. And I'm also hearing how they 87 00:04:32,120 --> 00:04:36,240 Speaker 1: are still fighting to be seen and heard in organizations 88 00:04:36,240 --> 00:04:38,640 Speaker 1: that they work in. So this is not just a 89 00:04:38,680 --> 00:04:42,360 Speaker 1: black woman thing. The barriers to creating wealth over generations 90 00:04:42,480 --> 00:04:45,400 Speaker 1: is something that can't be overstated. John Rogers says it's 91 00:04:45,440 --> 00:04:49,039 Speaker 1: kept Black Americans back for decades, spanning back to sixteen 92 00:04:49,120 --> 00:04:52,839 Speaker 1: nineteen and the inception of American slavery. Lack of wealth 93 00:04:52,839 --> 00:04:55,480 Speaker 1: that's been created going back in the sixteen nineteen project 94 00:04:55,520 --> 00:04:58,279 Speaker 1: talked about the challenges we faced and faced creating wealth 95 00:04:58,320 --> 00:05:01,719 Speaker 1: in this country through historic domination and segregation and the like. 96 00:05:02,000 --> 00:05:04,359 Speaker 1: It's hard to build businesses if we don't have capital, 97 00:05:04,480 --> 00:05:06,640 Speaker 1: you know, we don't have multigenerational wealth to help with 98 00:05:06,720 --> 00:05:10,200 Speaker 1: start businesses. So that's a big problem because minority owned 99 00:05:10,200 --> 00:05:13,080 Speaker 1: businesses higher minority people and create wealth, minority communities and 100 00:05:13,120 --> 00:05:16,960 Speaker 1: create philanthropy, and minority communities and political empowerment in minority communities. 101 00:05:17,000 --> 00:05:19,040 Speaker 1: So that's kind of a big deal, that lack of 102 00:05:19,160 --> 00:05:21,960 Speaker 1: multigenerational wealth. I think it's something you can't be understated, 103 00:05:22,080 --> 00:05:25,200 Speaker 1: but it has been understated for a long time. Issues 104 00:05:25,279 --> 00:05:27,920 Speaker 1: like this started cropping up more and more after the 105 00:05:27,960 --> 00:05:31,800 Speaker 1: murder of George floyd In and more conversations about race 106 00:05:31,839 --> 00:05:34,719 Speaker 1: started taking place in corporate America. A handful of US 107 00:05:34,800 --> 00:05:38,760 Speaker 1: companies gave staff the option to observe Juneteenth, and the 108 00:05:38,760 --> 00:05:41,440 Speaker 1: following year it was named to federal holiday. More than 109 00:05:41,480 --> 00:05:45,279 Speaker 1: a hundred fifty years after the Emancipation Proclamation was signed, 110 00:05:45,520 --> 00:05:47,719 Speaker 1: This year is the first time the market is closed 111 00:05:47,720 --> 00:05:50,640 Speaker 1: in observance now. Zanalia Harris says there's still more to 112 00:05:50,720 --> 00:05:54,040 Speaker 1: do for corporate America to embrace the changes truly needed 113 00:05:54,120 --> 00:05:57,480 Speaker 1: as racial tensions continue to swell across much of the country. 114 00:05:57,560 --> 00:06:00,320 Speaker 1: Even though it being recognized as a holiday, I don't 115 00:06:00,320 --> 00:06:04,360 Speaker 1: think that involves the underlying issues with where we are 116 00:06:04,560 --> 00:06:08,280 Speaker 1: in America when it comes to race equality. I heard 117 00:06:08,279 --> 00:06:11,960 Speaker 1: a lot of promises, and I was skeptical about whether 118 00:06:12,000 --> 00:06:15,240 Speaker 1: or not those promises will be fulfilled. And then I 119 00:06:15,279 --> 00:06:19,360 Speaker 1: think about my daughter and the future and what I 120 00:06:19,400 --> 00:06:23,960 Speaker 1: am releasing her too, and I'm sad because I never 121 00:06:24,080 --> 00:06:27,919 Speaker 1: thought that we would be here with race relations. I 122 00:06:27,960 --> 00:06:30,680 Speaker 1: have a lot of feelings about all of this, and 123 00:06:31,080 --> 00:06:34,600 Speaker 1: I'm trying to remain positive and hopeful. But as I 124 00:06:34,640 --> 00:06:38,080 Speaker 1: read the news, I become less and less hopeful that 125 00:06:38,200 --> 00:06:41,000 Speaker 1: things will change. And there's new data now to support 126 00:06:41,040 --> 00:06:44,159 Speaker 1: that concern. A paper circulated by the National Bureau of 127 00:06:44,200 --> 00:06:47,640 Speaker 1: Economic Research this month says the gap between black and 128 00:06:47,680 --> 00:06:52,640 Speaker 1: white wealth is on track to widen even further. Coming up, 129 00:06:52,720 --> 00:06:55,120 Speaker 1: how Wall Street is looking to close steep gaps in 130 00:06:55,160 --> 00:06:59,039 Speaker 1: funding for black owned businesses and entrepreneurs. That's straight ahead 131 00:06:59,120 --> 00:07:03,440 Speaker 1: on this Bloomberger Quality Special Achieving Black Equity. I'm Shinali Basik, 132 00:07:03,640 --> 00:07:13,400 Speaker 1: and this is Bloomberg. This is a Bloomberg Equality Special 133 00:07:13,520 --> 00:07:17,960 Speaker 1: Achieving Black Equity. I'm Shinali Basik. Despite fits and starts 134 00:07:17,960 --> 00:07:21,080 Speaker 1: on corporate efforts to close the racial wealth gap, the 135 00:07:21,200 --> 00:07:24,720 Speaker 1: difference in prosperity between black families and white families in 136 00:07:24,760 --> 00:07:28,320 Speaker 1: America is stark. According to data from the Federal Reserve 137 00:07:28,360 --> 00:07:31,200 Speaker 1: Bank of St. Louis, a typical black family had about 138 00:07:31,240 --> 00:07:35,120 Speaker 1: twelve cents on the dollar when compared with their white counterparts. 139 00:07:35,440 --> 00:07:38,080 Speaker 1: That gives a white family more than eight times the 140 00:07:38,120 --> 00:07:40,760 Speaker 1: wealth of a black family, and that gap has been 141 00:07:40,840 --> 00:07:45,720 Speaker 1: unchanged for decades. Equal hiring practices, equal pay, and access 142 00:07:45,760 --> 00:07:48,720 Speaker 1: to capital for housing are all hurdles and building wealth. 143 00:07:48,880 --> 00:07:51,760 Speaker 1: But another is access to capital to start a business. 144 00:07:52,040 --> 00:07:55,440 Speaker 1: According to a study by Accenture, only twenty nine percent 145 00:07:55,520 --> 00:07:58,680 Speaker 1: of loans sought by black small businesses are approved by 146 00:07:58,760 --> 00:08:01,640 Speaker 1: large banks, and that years twice as high for white 147 00:08:01,680 --> 00:08:05,800 Speaker 1: small business owners. Ryan Williams is an entrepreneur. He graduated 148 00:08:05,840 --> 00:08:09,680 Speaker 1: from Harvard, worked at Golden Sacks and private equity giant Blackstone. 149 00:08:09,960 --> 00:08:13,800 Speaker 1: Williams started his real estate investment company in and hit 150 00:08:13,920 --> 00:08:17,520 Speaker 1: many roadblocks along the way. He had loans turned down 151 00:08:17,640 --> 00:08:20,680 Speaker 1: by several banks when starting his firm. That hasn't changed 152 00:08:20,720 --> 00:08:24,160 Speaker 1: that much. So, you know, it's still really difficult here, 153 00:08:24,240 --> 00:08:28,240 Speaker 1: you know, a minority generally, because there's still a pattern 154 00:08:29,080 --> 00:08:32,760 Speaker 1: recognition issue. There's still sort of a cookie cutter mall 155 00:08:32,920 --> 00:08:36,200 Speaker 1: for what you know, a successful manager, special investor looks 156 00:08:36,240 --> 00:08:40,480 Speaker 1: like most of our our large institutional investors universe. And 157 00:08:40,559 --> 00:08:42,600 Speaker 1: so I think that you know, in the margins, there's 158 00:08:43,000 --> 00:08:47,160 Speaker 1: more opportunities and there are more black entrepreneurs getting funded 159 00:08:47,200 --> 00:08:51,360 Speaker 1: black managers getting funded, women lead and owned managers getting funded. 160 00:08:51,559 --> 00:08:54,960 Speaker 1: But it's still very incremental, and I think that's because 161 00:08:55,160 --> 00:08:59,760 Speaker 1: people still are fundamentally focused on the kind of blueprint 162 00:09:00,120 --> 00:09:04,720 Speaker 1: success looking very homogeneous, like frankly white male as the archetype. 163 00:09:04,880 --> 00:09:08,760 Speaker 1: And I don't think that's changed. Is it frustrating? Yeah? 164 00:09:08,840 --> 00:09:12,720 Speaker 1: Oh yeah. Look, I'm I am incredibly privileged in seeing 165 00:09:12,800 --> 00:09:16,679 Speaker 1: those you know, founders and CEOs of Realist to investor 166 00:09:16,760 --> 00:09:20,600 Speaker 1: management platform, especially black founders and CEOs. I know, I'm 167 00:09:20,720 --> 00:09:22,800 Speaker 1: you know, at the one percent of the one person 168 00:09:22,880 --> 00:09:25,240 Speaker 1: in terms of capital I've been able to raise, and 169 00:09:25,520 --> 00:09:27,480 Speaker 1: I take a lot of pride in the returns we've 170 00:09:27,480 --> 00:09:30,920 Speaker 1: been able to deliver to the investors that have entrusted 171 00:09:31,040 --> 00:09:34,360 Speaker 1: their capital with me. But I get turned down probably 172 00:09:34,400 --> 00:09:38,200 Speaker 1: nine five percent at the time. Ultimately, Ryan Williams was 173 00:09:38,280 --> 00:09:40,040 Speaker 1: able to start his firm with the help of a 174 00:09:40,080 --> 00:09:43,080 Speaker 1: black owned bank. While the number of black owned lenders 175 00:09:43,120 --> 00:09:46,360 Speaker 1: has declined drastically over the past few decades, they play 176 00:09:46,400 --> 00:09:49,679 Speaker 1: a huge role in black communities. This year's City Group 177 00:09:49,720 --> 00:09:52,319 Speaker 1: created a new team in order to work more closely 178 00:09:52,320 --> 00:09:55,520 Speaker 1: with minority owned banks and broker dealers. Harold Butler was 179 00:09:55,559 --> 00:09:58,240 Speaker 1: tapped at City Group to lead that effort after years 180 00:09:58,240 --> 00:10:00,440 Speaker 1: of working with the U. S. Treasury depart and while 181 00:10:00,520 --> 00:10:02,200 Speaker 1: at the bank, it was a role in which he 182 00:10:02,280 --> 00:10:05,960 Speaker 1: also helps City work with black owned banks. Fundamentally, it's 183 00:10:06,000 --> 00:10:09,520 Speaker 1: all about access to the capital itself. So being able 184 00:10:09,559 --> 00:10:14,480 Speaker 1: to help banks, for example, create business, to grow their 185 00:10:14,520 --> 00:10:17,840 Speaker 1: business and to have the capital to lend is key. 186 00:10:17,880 --> 00:10:22,200 Speaker 1: But what's different about say a Mechanic and Farmers Bank 187 00:10:22,280 --> 00:10:24,880 Speaker 1: in Durham, North Carolina, in a city, other than the 188 00:10:24,920 --> 00:10:28,640 Speaker 1: fact that they're a small, community based financial institution and 189 00:10:28,720 --> 00:10:31,960 Speaker 1: cities a large global bank. The difference really is in 190 00:10:32,040 --> 00:10:36,400 Speaker 1: the power of the neighborhood. That CEO knows his neighborhood right, 191 00:10:36,480 --> 00:10:40,520 Speaker 1: he knows those budding entrepreneurs, and he's willing as a 192 00:10:40,559 --> 00:10:44,400 Speaker 1: practical matter to take the risk in those firms of 193 00:10:44,520 --> 00:10:47,560 Speaker 1: those budding entrepreneurs and black founders what have you, and 194 00:10:47,600 --> 00:10:51,000 Speaker 1: helped them to see the possibilities of their dreams. While 195 00:10:51,080 --> 00:10:54,360 Speaker 1: black owned banks are important, there's still a huge scarcity 196 00:10:54,400 --> 00:10:58,440 Speaker 1: of funds flowing from the biggest firms to black entrepreneurs. Cadre, 197 00:10:58,679 --> 00:11:01,520 Speaker 1: led by Ryan Williams, stock a partnership with black Rock 198 00:11:01,640 --> 00:11:04,680 Speaker 1: in order to invest in affordable housing. Black Rock is 199 00:11:04,720 --> 00:11:07,640 Speaker 1: the largest money manager in the world. William said he 200 00:11:07,679 --> 00:11:09,680 Speaker 1: would like to see more big firms step up to 201 00:11:09,720 --> 00:11:11,920 Speaker 1: the plate in this way. I think that there have 202 00:11:12,040 --> 00:11:14,600 Speaker 1: to be more of these kinds of partnerships between, you know, 203 00:11:14,679 --> 00:11:19,680 Speaker 1: within the institutional investing ecosystem, where people take the same 204 00:11:19,760 --> 00:11:23,640 Speaker 1: level of creativity and imagination they take to business problems 205 00:11:23,640 --> 00:11:27,160 Speaker 1: and apply it to the underrepresentation problem that we're seeing, 206 00:11:27,400 --> 00:11:30,000 Speaker 1: and that community is encouraging and positive. Is unfortunate that 207 00:11:30,000 --> 00:11:33,400 Speaker 1: Black Rocks probably the exception, not the norm, when you 208 00:11:33,440 --> 00:11:35,959 Speaker 1: look at all the companies that put out statements and 209 00:11:36,320 --> 00:11:38,560 Speaker 1: you know, said we're going to be spending time on 210 00:11:39,240 --> 00:11:42,160 Speaker 1: UH an effort and resources on actually trying to help 211 00:11:42,440 --> 00:11:45,440 Speaker 1: reduce the wealth gap. And similar to Black Rock, Wall 212 00:11:45,440 --> 00:11:48,640 Speaker 1: Street is putting top analysts to work on the numbers 213 00:11:48,679 --> 00:11:51,240 Speaker 1: and how to put more money to work in black communities. 214 00:11:51,559 --> 00:11:54,480 Speaker 1: Goldman Sachs last year created a program to get ten 215 00:11:54,600 --> 00:11:58,040 Speaker 1: billion dollars worth of capital to firms run by black women. 216 00:11:58,320 --> 00:12:01,960 Speaker 1: Megan Hogan heads up Diverse the equity and inclusion efforts 217 00:12:02,080 --> 00:12:04,559 Speaker 1: at the firm. One of the fastest ways to accelerate 218 00:12:04,640 --> 00:12:08,080 Speaker 1: change and effectively address the racial wealth gap in the 219 00:12:08,160 --> 00:12:11,720 Speaker 1: United States is to listen to and invest in black women. 220 00:12:12,040 --> 00:12:14,120 Speaker 1: The research at a high level, you know, found that 221 00:12:14,200 --> 00:12:17,600 Speaker 1: reducing the earnings gap for black women has the potential 222 00:12:17,679 --> 00:12:20,920 Speaker 1: to create up to one point seven million US jobs 223 00:12:21,000 --> 00:12:24,719 Speaker 1: and increase the annual US GDP by anywhere between three 224 00:12:24,800 --> 00:12:28,520 Speaker 1: hundred and four hundred and fifty billion, So huge impact there. 225 00:12:28,840 --> 00:12:31,520 Speaker 1: We're about a year into this. Since launching in March, 226 00:12:33,040 --> 00:12:37,000 Speaker 1: we've made about one billion dollars of investments to our 227 00:12:37,080 --> 00:12:40,160 Speaker 1: seven key pillars. It's part of our long term strategy 228 00:12:40,360 --> 00:12:42,760 Speaker 1: and I would highlight, you know, two recent investments that 229 00:12:42,800 --> 00:12:45,720 Speaker 1: we made are the MAMI and the Care Academy. MAMI 230 00:12:45,880 --> 00:12:49,240 Speaker 1: is expected to impact about twelve thousand Black women across 231 00:12:49,280 --> 00:12:52,760 Speaker 1: the country um and Care Academy is expected to impact 232 00:12:52,840 --> 00:12:56,640 Speaker 1: about fifty thousand Black women. So again, we're very focused 233 00:12:56,679 --> 00:13:00,600 Speaker 1: on quantifying our impact um in our commitment. While Black 234 00:13:00,600 --> 00:13:03,320 Speaker 1: Americans have found it hard to raise capital and rise 235 00:13:03,360 --> 00:13:07,040 Speaker 1: in corporate America, black women have found it particularly hard, 236 00:13:07,160 --> 00:13:10,120 Speaker 1: and the numbers show it. Black founders represented a mere 237 00:13:10,240 --> 00:13:14,600 Speaker 1: one percent of venture capital funding in according to Accenture, 238 00:13:15,040 --> 00:13:18,160 Speaker 1: and Crunch based data show that percentage has barely moved. 239 00:13:18,360 --> 00:13:22,000 Speaker 1: Goldman Sachs calculates that black female founders account for less 240 00:13:22,040 --> 00:13:25,280 Speaker 1: than one third of that ratio. They claim point three 241 00:13:25,360 --> 00:13:28,719 Speaker 1: percent of all venture capital funding, and that funding is 242 00:13:28,840 --> 00:13:31,640 Speaker 1: key for growth when you're talking about a demographic that's 243 00:13:31,679 --> 00:13:35,360 Speaker 1: often marginalized by corporate America. Zanilia Harris is the founder 244 00:13:35,360 --> 00:13:38,920 Speaker 1: of Harris and Harris Wealth Management. I think when Black 245 00:13:38,920 --> 00:13:41,760 Speaker 1: women decide to go out on their own um it's 246 00:13:41,840 --> 00:13:45,160 Speaker 1: because of the fact that they feel that there's not 247 00:13:45,360 --> 00:13:48,600 Speaker 1: opportunity for growth. I had always wanted to be on 248 00:13:48,679 --> 00:13:51,840 Speaker 1: my own because I felt like owning a business would 249 00:13:51,880 --> 00:13:56,319 Speaker 1: be another way to grow wealth in my family, and 250 00:13:56,760 --> 00:14:00,440 Speaker 1: I also wanted to leave a legacy for the children 251 00:14:00,440 --> 00:14:02,920 Speaker 1: that I would have that they could build upon. But 252 00:14:03,080 --> 00:14:06,200 Speaker 1: the more and more I read about the history of 253 00:14:06,600 --> 00:14:11,920 Speaker 1: African American growing wealth in America, I learned that while 254 00:14:12,320 --> 00:14:16,640 Speaker 1: there have always been people African Americans who wanted to 255 00:14:17,559 --> 00:14:20,600 Speaker 1: leave a legacy, whether that's building a business, to move 256 00:14:20,720 --> 00:14:24,080 Speaker 1: up in or get opportunities in corporate Americas, because at 257 00:14:24,080 --> 00:14:27,000 Speaker 1: one point we didn't even have the opportunity, and we 258 00:14:27,000 --> 00:14:31,920 Speaker 1: were relegated to only being able to build in our 259 00:14:31,960 --> 00:14:36,120 Speaker 1: own communities and to service only our own communities, and 260 00:14:36,200 --> 00:14:38,920 Speaker 1: that's why leaders like Goldman's Megan Hogan are looking to 261 00:14:39,000 --> 00:14:42,760 Speaker 1: specific programs to fund startups by black women, and other 262 00:14:42,840 --> 00:14:45,840 Speaker 1: firms are doing the same. One million black women, you know, 263 00:14:45,960 --> 00:14:49,160 Speaker 1: very important to me personally, you know, it was. It 264 00:14:49,200 --> 00:14:51,920 Speaker 1: was a highly emotional day when we announced it to 265 00:14:51,960 --> 00:14:54,520 Speaker 1: the firm and had a firm white town hall to 266 00:14:54,640 --> 00:14:58,080 Speaker 1: talk about the potential impact of the program. UM. I 267 00:14:58,120 --> 00:15:02,120 Speaker 1: was raised by a sen a mom who worked too 268 00:15:02,200 --> 00:15:06,640 Speaker 1: full time jobs to get me through school and through college. UM. 269 00:15:06,880 --> 00:15:09,680 Speaker 1: And I'm not a huge fan of the black woman 270 00:15:09,800 --> 00:15:13,280 Speaker 1: as martyr kind of a troupe, which is black women 271 00:15:13,320 --> 00:15:16,520 Speaker 1: are martyrs. Black women hold us up. I think we 272 00:15:16,640 --> 00:15:19,440 Speaker 1: need to be flipping things on things on its head, 273 00:15:19,480 --> 00:15:22,320 Speaker 1: which is that we're supporting black women in these roles. 274 00:15:22,360 --> 00:15:25,920 Speaker 1: We're making sure that they have the best maternal healthcare, 275 00:15:26,040 --> 00:15:29,840 Speaker 1: they have better child m care programs, you know, for 276 00:15:29,840 --> 00:15:33,160 Speaker 1: for working moms. UM, they're getting the best of the 277 00:15:33,280 --> 00:15:37,360 Speaker 1: education system and workforce advancement. And through our Black Women 278 00:15:37,400 --> 00:15:41,240 Speaker 1: Onyx research, we just found society failing across a number 279 00:15:41,280 --> 00:15:47,400 Speaker 1: of issues coming up. How hiring practices at the largest 280 00:15:47,400 --> 00:15:50,800 Speaker 1: firms can start to move the needle on income and opportunity. 281 00:15:51,080 --> 00:15:54,800 Speaker 1: That's up next on this Bloomberg Equality Special Achieving Black Equity. 282 00:15:55,120 --> 00:16:05,840 Speaker 1: Shinani Bassek, This is Bloomberg. This is a Bloomberger Quality 283 00:16:05,880 --> 00:16:09,960 Speaker 1: Special Achieving Black Equity. M. Shinnali Bask. The difference in 284 00:16:10,000 --> 00:16:13,680 Speaker 1: prosperity between black and white families in America remains stark. 285 00:16:14,120 --> 00:16:17,640 Speaker 1: For Black Americans to build wealth, incomes also need to rise. 286 00:16:17,960 --> 00:16:20,200 Speaker 1: That means corporate America needs to play a part and 287 00:16:20,360 --> 00:16:25,280 Speaker 1: hiring more equitably while also promoting black managers. One area 288 00:16:25,400 --> 00:16:29,880 Speaker 1: where there's some progress is data on hiring practices. Now 289 00:16:29,920 --> 00:16:34,080 Speaker 1: about of the most prominent companies across the country That 290 00:16:34,120 --> 00:16:37,120 Speaker 1: means firms with at least a hundred workers are making 291 00:16:37,160 --> 00:16:41,000 Speaker 1: employment data public. In the immediate aftermath of George Floyd's 292 00:16:41,080 --> 00:16:44,200 Speaker 1: murder two years ago, the percentage of black managers rose 293 00:16:44,280 --> 00:16:48,240 Speaker 1: marginally by a median of zero point four percentage point, 294 00:16:48,600 --> 00:16:52,360 Speaker 1: while the share of black employees overall also rose slightly. 295 00:16:52,680 --> 00:16:56,600 Speaker 1: The disclosures help keep Corporate America accountable. For example, it 296 00:16:56,680 --> 00:17:00,200 Speaker 1: showed that at Walmart, the largest US employer manage been, 297 00:17:00,240 --> 00:17:03,920 Speaker 1: promotions for Black Americans actually slipped in the twelve months 298 00:17:03,920 --> 00:17:07,680 Speaker 1: through January, Yet more workers moved out of hourly jobs 299 00:17:07,680 --> 00:17:11,520 Speaker 1: into management roles, which means the largest challenges are still 300 00:17:11,560 --> 00:17:14,600 Speaker 1: as employees move up the corporate ladder. Over At Apple, 301 00:17:14,880 --> 00:17:19,360 Speaker 1: the largest company by market value, black representation had declined 302 00:17:19,480 --> 00:17:23,720 Speaker 1: between eight and the company says it's committed to doing more, 303 00:17:24,040 --> 00:17:26,760 Speaker 1: but the numbers will tell us if that promise comes true. 304 00:17:27,119 --> 00:17:30,960 Speaker 1: There appears to be friction at every level. Charles Phillips, 305 00:17:31,000 --> 00:17:33,919 Speaker 1: who works with leaders across corporate America to help recruit 306 00:17:33,960 --> 00:17:38,199 Speaker 1: black workers, says only seventy two of Fortune five hundred 307 00:17:38,240 --> 00:17:41,440 Speaker 1: firms have signed on to work with his organization one ten. 308 00:17:41,800 --> 00:17:44,240 Speaker 1: It should be more, and we're still recruiting mode. So 309 00:17:44,480 --> 00:17:46,760 Speaker 1: I have to call feels all the time that to recruit, 310 00:17:47,359 --> 00:17:50,320 Speaker 1: to selldom on this. So the intry reaction is, well, 311 00:17:51,119 --> 00:17:53,040 Speaker 1: I don't think we have the type of jobs that 312 00:17:53,119 --> 00:17:55,240 Speaker 1: you know where we could really hide these folks because 313 00:17:55,400 --> 00:17:58,440 Speaker 1: we need advanced degrees. In some cases that's no longer 314 00:17:58,600 --> 00:18:00,439 Speaker 1: two that you should be had for it was not 315 00:18:00,520 --> 00:18:03,840 Speaker 1: degrees and rethinking those jobs. So we have to convince 316 00:18:03,840 --> 00:18:05,840 Speaker 1: some at least go back and look at the types 317 00:18:05,880 --> 00:18:07,600 Speaker 1: of jobs to do they really need a college degree. 318 00:18:08,119 --> 00:18:11,440 Speaker 1: And then secondly, the same issue of you know, we'll 319 00:18:11,560 --> 00:18:13,720 Speaker 1: have process and in place, h our people in place, 320 00:18:13,800 --> 00:18:17,200 Speaker 1: and they have been filling the docks pretty well, and 321 00:18:17,240 --> 00:18:19,560 Speaker 1: so I just leave it to them. The good news 322 00:18:19,720 --> 00:18:22,400 Speaker 1: is because of the shortage of talent right now, they're 323 00:18:22,400 --> 00:18:24,520 Speaker 1: starting to reconsider that because they need people. So the 324 00:18:24,520 --> 00:18:26,480 Speaker 1: best thing that happened is what we have right now 325 00:18:26,520 --> 00:18:29,480 Speaker 1: where it's the tight job market where people there's not 326 00:18:29,600 --> 00:18:33,719 Speaker 1: enough employees, and so that forces CEO is to consider 327 00:18:33,800 --> 00:18:36,520 Speaker 1: new pools of talent that they really didn't really, you know, 328 00:18:36,560 --> 00:18:39,360 Speaker 1: to pay much attention to before. Charles Phillips says one 329 00:18:39,440 --> 00:18:42,280 Speaker 1: key way that corporations can boost their ranks is through 330 00:18:42,400 --> 00:18:46,480 Speaker 1: hiring from historically black colleges and universities. A range of 331 00:18:46,520 --> 00:18:49,919 Speaker 1: banks and investment managers have started doing that. Goldman Sachs, 332 00:18:50,000 --> 00:18:53,240 Speaker 1: for example, is dedicating twenty five million dollars over five 333 00:18:53,320 --> 00:18:57,760 Speaker 1: years to HBCUs Well. Senior leaders are spending time training students. 334 00:18:58,240 --> 00:19:02,280 Speaker 1: Goldman's Megan Hogan says it's shift from a longstanding tradition 335 00:19:02,480 --> 00:19:05,040 Speaker 1: of hiring from the ivy leagues. When you think about 336 00:19:05,040 --> 00:19:09,840 Speaker 1: a traditional recruitment model, it is using the alumni base 337 00:19:09,920 --> 00:19:12,960 Speaker 1: of your current employees to find talent. So you know, 338 00:19:13,040 --> 00:19:17,040 Speaker 1: for example, you know I went to Yale University. Personally, 339 00:19:17,720 --> 00:19:20,240 Speaker 1: I know the school well. If I was asked to 340 00:19:20,400 --> 00:19:22,800 Speaker 1: help with hiring, I would want to go back to 341 00:19:22,840 --> 00:19:26,080 Speaker 1: my almal mater potentially. UM, that's not a bad thing, 342 00:19:26,320 --> 00:19:28,720 Speaker 1: you know, I think you know has great students. But 343 00:19:28,800 --> 00:19:31,360 Speaker 1: if you're looking at your current employee base and only 344 00:19:31,400 --> 00:19:33,440 Speaker 1: having them go back to the schools in which they went, 345 00:19:33,760 --> 00:19:37,400 Speaker 1: you're just fulfilling a self fulfilling prophecy, which is that 346 00:19:37,480 --> 00:19:40,000 Speaker 1: you're only going to find potentially the same talent if 347 00:19:40,000 --> 00:19:43,520 Speaker 1: those schools and institutions are not diverse in and of themselves. 348 00:19:44,000 --> 00:19:46,199 Speaker 1: And so what I've seen from my colleagues, you know, 349 00:19:46,240 --> 00:19:49,399 Speaker 1: I used used to head diversity recruiting for four years 350 00:19:49,440 --> 00:19:52,920 Speaker 1: before my role is Chief Diversity Officer, And what we 351 00:19:53,040 --> 00:19:56,640 Speaker 1: really focused on was not just thinking about alumni schools, 352 00:19:57,200 --> 00:20:02,240 Speaker 1: but doubling down on hbc US and partnering, starting in 353 00:20:03,560 --> 00:20:07,000 Speaker 1: with the Congressional Black Caucus. UM to also have some 354 00:20:07,359 --> 00:20:11,200 Speaker 1: very candid discussions about how we showed up credibly to 355 00:20:11,359 --> 00:20:13,760 Speaker 1: these h b c u s. Again, it's not enough 356 00:20:13,800 --> 00:20:16,400 Speaker 1: to write the check and show up on campus once 357 00:20:16,400 --> 00:20:19,399 Speaker 1: a year. What's the sustainable engagement. That's going to make 358 00:20:19,440 --> 00:20:24,960 Speaker 1: sure that students, faculty, administration, university presidents really know that 359 00:20:25,000 --> 00:20:29,080 Speaker 1: these companies are interested in long term impact and sustainability 360 00:20:29,119 --> 00:20:32,800 Speaker 1: with their students, with their alumni, with the institutions and 361 00:20:32,840 --> 00:20:36,119 Speaker 1: the curriculum. That is what's truly needed. And so I 362 00:20:36,160 --> 00:20:38,560 Speaker 1: think I've seen a dramatic difference in terms of that 363 00:20:38,640 --> 00:20:42,280 Speaker 1: focus over the last two years that wasn't necessarily there before. 364 00:20:42,600 --> 00:20:46,320 Speaker 1: So Megan Hogan says, diversity tends to be get more diversity. 365 00:20:46,720 --> 00:20:49,240 Speaker 1: John Rodgers of Aerial Investments is on the board of 366 00:20:49,240 --> 00:20:53,399 Speaker 1: companies including Nike and McDonald's. He's seeing some change on 367 00:20:53,520 --> 00:20:57,080 Speaker 1: corporate boards, and he says adding black and diverse directors 368 00:20:57,119 --> 00:20:59,720 Speaker 1: help set the course for companies not to only hire 369 00:20:59,760 --> 00:21:04,000 Speaker 1: diver as managers, but also diverse suppliers. And I see 370 00:21:04,040 --> 00:21:06,560 Speaker 1: that as we talked to companies and we invest in 371 00:21:06,600 --> 00:21:09,720 Speaker 1: I see that on some of the boards. Um, so 372 00:21:09,920 --> 00:21:13,199 Speaker 1: it's it is uh, it is so disappointing that we 373 00:21:13,280 --> 00:21:15,720 Speaker 1: haven't gotten further along. And I think that's why we 374 00:21:15,760 --> 00:21:19,560 Speaker 1: have to try to find ways that if all progressive 375 00:21:19,560 --> 00:21:23,919 Speaker 1: companies ask all their suppliers to have minority executives and 376 00:21:23,920 --> 00:21:26,960 Speaker 1: the leadership roles on the relationships they have. Those companies 377 00:21:27,000 --> 00:21:30,119 Speaker 1: will start to show up with diverse lawyers, diverse accounts, 378 00:21:30,119 --> 00:21:34,920 Speaker 1: diverse financial services executives, diverse technology because their biggest customers demanded, 379 00:21:35,200 --> 00:21:38,240 Speaker 1: those folks will go out and find diverse people. And 380 00:21:38,720 --> 00:21:40,879 Speaker 1: I just think can't over emphasize how that question just 381 00:21:40,920 --> 00:21:44,359 Speaker 1: needs to be addressed systematically. And it's fascinated me that 382 00:21:44,440 --> 00:21:46,280 Speaker 1: four years ago we did it and we got away 383 00:21:46,280 --> 00:21:50,440 Speaker 1: from it. And to address the landscape systematically, John Rogers says, 384 00:21:50,480 --> 00:21:52,960 Speaker 1: we need a wholesale change. I don't think right, we 385 00:21:53,000 --> 00:21:56,040 Speaker 1: have to break up the system and think about it 386 00:21:56,040 --> 00:21:59,240 Speaker 1: in an entirely different way. And it's just unfortunate that 387 00:21:59,280 --> 00:22:02,720 Speaker 1: people just got so comfortable doing things the way that's 388 00:22:02,760 --> 00:22:05,280 Speaker 1: always been done, even though it hasn't been working. And 389 00:22:05,359 --> 00:22:07,359 Speaker 1: so you look in Chicago again, look at the hundred 390 00:22:07,440 --> 00:22:10,840 Speaker 1: largest companies to Chicago, and there's so few minority CEOs 391 00:22:10,840 --> 00:22:12,080 Speaker 1: and the chop when they jump. I think we have 392 00:22:12,119 --> 00:22:15,440 Speaker 1: to out of a hundred. And you look at again 393 00:22:15,480 --> 00:22:18,240 Speaker 1: the major investment banks, the private major private equicky firms, 394 00:22:18,440 --> 00:22:22,280 Speaker 1: major venture capital firms. Very few women in leadership roles. 395 00:22:23,040 --> 00:22:25,159 Speaker 1: And the most important thing here that's the part of 396 00:22:25,160 --> 00:22:26,720 Speaker 1: the economy that I said earlier, where the wealth in 397 00:22:26,880 --> 00:22:29,760 Speaker 1: job to being created. The big banks will have diversity, 398 00:22:30,240 --> 00:22:33,040 Speaker 1: The big insurance companies had diversity. They during the Civil 399 00:22:33,119 --> 00:22:35,280 Speaker 1: rights movement. People pushed them to do the right things. 400 00:22:36,200 --> 00:22:38,920 Speaker 1: But these industries now where all the growth, that's where 401 00:22:38,960 --> 00:22:41,920 Speaker 1: we're most locked out of Silicon Valley again, lots and 402 00:22:41,960 --> 00:22:45,439 Speaker 1: lots of growth, very little diversity. So I tell my 403 00:22:45,480 --> 00:22:47,840 Speaker 1: friends the civil rights movement, you've got to adjust to 404 00:22:47,960 --> 00:22:50,880 Speaker 1: where the economy is going, not to where the economy 405 00:22:50,960 --> 00:22:53,480 Speaker 1: was four two years ago. Coming up the role that 406 00:22:53,600 --> 00:22:57,639 Speaker 1: government plays in expanding opportunities. That's straight ahead on this 407 00:22:57,680 --> 00:23:02,359 Speaker 1: Bloomberg Equality Special Advancing Black Equity. Um Shinali Bask And 408 00:23:02,440 --> 00:23:14,120 Speaker 1: this is Bloomberg. You're listening to a Bloomberger Quality special 409 00:23:14,320 --> 00:23:18,000 Speaker 1: Achieving Black Equity. I'm Shinali Bask. We've been talking about 410 00:23:18,040 --> 00:23:21,639 Speaker 1: how progress towards racial equity has been choppy at best, 411 00:23:22,040 --> 00:23:24,760 Speaker 1: but there's a key reason that changes are still coming, 412 00:23:24,880 --> 00:23:27,960 Speaker 1: and that's because clients and customers of big banks and 413 00:23:28,000 --> 00:23:31,720 Speaker 1: corporations are asking for it. City groups Harold Butler and 414 00:23:31,760 --> 00:23:34,520 Speaker 1: Megan Hogan at Goldman Sachs a part of The Bank's 415 00:23:34,560 --> 00:23:37,959 Speaker 1: efforts are being pushed forward by large corporate clients and 416 00:23:38,040 --> 00:23:40,959 Speaker 1: even many government clients as well. They want to be 417 00:23:41,000 --> 00:23:45,960 Speaker 1: a part of the story on inclusion and being able 418 00:23:46,000 --> 00:23:50,920 Speaker 1: to support communities right, and they recognize and appreciate that, 419 00:23:51,160 --> 00:23:53,240 Speaker 1: you know, the way we do it best is through 420 00:23:53,280 --> 00:23:56,639 Speaker 1: banks right and broker dealers right. And so if you 421 00:23:56,720 --> 00:23:58,880 Speaker 1: just think about it, we could say what we want 422 00:23:58,880 --> 00:24:03,200 Speaker 1: all day long about fin techs and other entities that 423 00:24:03,359 --> 00:24:07,480 Speaker 1: maybe right on the rise or have risen to do 424 00:24:07,600 --> 00:24:12,720 Speaker 1: financial services for people. Banks, Sonali are trusted. We We 425 00:24:12,760 --> 00:24:15,520 Speaker 1: may catch a lot of darts, sure, right, but but 426 00:24:15,600 --> 00:24:20,320 Speaker 1: we're trusted, right. We're trusted entities that you know, people 427 00:24:20,359 --> 00:24:23,040 Speaker 1: recognize and they know we're regulated. Do we always get 428 00:24:23,040 --> 00:24:26,840 Speaker 1: it right? No? But are we doing the right thing? Sure? 429 00:24:27,440 --> 00:24:31,520 Speaker 1: And so um our clients say, well, it's let's look 430 00:24:31,560 --> 00:24:36,000 Speaker 1: to city to help us solve some of these challenges 431 00:24:36,080 --> 00:24:38,760 Speaker 1: that we have around inclusion, because everybody has them. And 432 00:24:38,800 --> 00:24:41,000 Speaker 1: when it comes to the work Goldman Sachs is doing, 433 00:24:41,240 --> 00:24:43,800 Speaker 1: Megan Hogan says, there's a lot of interest from people 434 00:24:43,880 --> 00:24:47,000 Speaker 1: looking to get involved. I would say I'm very encouraged 435 00:24:47,040 --> 00:24:52,840 Speaker 1: and optimistic about the number of people whether it's clients, students, professionals, 436 00:24:52,880 --> 00:24:57,399 Speaker 1: senior leaders, heads of state you know that are reaching out, 437 00:24:57,480 --> 00:25:00,040 Speaker 1: you know, to me and my colleagues on ray in 438 00:25:00,240 --> 00:25:03,640 Speaker 1: their hand, to volunteer, to be an ally to advance 439 00:25:03,760 --> 00:25:08,120 Speaker 1: racial equity, to be thoughtful about actionable steps that they 440 00:25:08,119 --> 00:25:11,240 Speaker 1: can take, you know, to make sure that there's diversity, 441 00:25:11,240 --> 00:25:15,520 Speaker 1: equity and inclusion at their firms, their schools, their societies. 442 00:25:15,640 --> 00:25:18,879 Speaker 1: You know as well. The demand has never been greater. 443 00:25:19,359 --> 00:25:22,320 Speaker 1: Um I can tell you even you know, fifteen years 444 00:25:22,320 --> 00:25:25,040 Speaker 1: ago when I started, you know, in some of this work, 445 00:25:25,880 --> 00:25:29,760 Speaker 1: it was me more pushing into the conversation where you know, 446 00:25:29,840 --> 00:25:32,399 Speaker 1: I had to make myself known what I wanted to 447 00:25:32,440 --> 00:25:35,600 Speaker 1: accomplish in the d I world, especially when it came 448 00:25:35,640 --> 00:25:38,639 Speaker 1: to the pro bonal cases that I worked on. And 449 00:25:38,680 --> 00:25:41,560 Speaker 1: now it's the complete opposite. At the end of the day, 450 00:25:41,760 --> 00:25:44,320 Speaker 1: money flows from the top. Many of the biggest clients 451 00:25:44,320 --> 00:25:48,040 Speaker 1: have big banks and money managers are central government cities, states, 452 00:25:48,040 --> 00:25:52,119 Speaker 1: and pension systems. So what role does the US government play. 453 00:25:52,240 --> 00:25:55,600 Speaker 1: The government can and has been looking to boost equality 454 00:25:55,640 --> 00:25:59,160 Speaker 1: through spending programs and by allocating resources to black money 455 00:25:59,240 --> 00:26:03,400 Speaker 1: managers and black owned businesses, but the scale is still limited. 456 00:26:03,600 --> 00:26:07,679 Speaker 1: Charles Phillips's work with government leaders, including most recently the 457 00:26:07,720 --> 00:26:10,520 Speaker 1: New York City mayor and governor of New York State. 458 00:26:10,840 --> 00:26:13,399 Speaker 1: He notes that as the largest money managers in the 459 00:26:13,440 --> 00:26:17,760 Speaker 1: world still lack diversity, the problem is quite circular. Expanding 460 00:26:17,800 --> 00:26:21,400 Speaker 1: investment could help boost black communities overall. Well. The Settle 461 00:26:21,480 --> 00:26:24,560 Speaker 1: government has some very large pension fund and right now 462 00:26:24,720 --> 00:26:28,960 Speaker 1: that's largely managed by a black lot vanguard and people 463 00:26:29,000 --> 00:26:32,240 Speaker 1: like that. They could act and distribute some of that 464 00:26:32,800 --> 00:26:35,840 Speaker 1: into black asset managers is one thing they could do. 465 00:26:36,800 --> 00:26:40,760 Speaker 1: Um these small business administration is another area that you 466 00:26:40,800 --> 00:26:42,520 Speaker 1: know they've done a good job over the years, but 467 00:26:43,080 --> 00:26:45,800 Speaker 1: they could accelerate that. I think it was reduced under 468 00:26:46,280 --> 00:26:48,680 Speaker 1: the prior administration. They're trying to build it back up now. 469 00:26:48,760 --> 00:26:50,560 Speaker 1: But there's a lot that could do around helping small 470 00:26:50,560 --> 00:26:53,160 Speaker 1: businesses in general. I think they've done a great job 471 00:26:53,240 --> 00:26:56,280 Speaker 1: with the CD of five and that is kind of 472 00:26:56,320 --> 00:26:59,760 Speaker 1: the community banks and lawer income neighborhoods that do the 473 00:26:59,760 --> 00:27:03,680 Speaker 1: real ending. And they've put another tunnel ten pigion behind those, 474 00:27:03,720 --> 00:27:05,119 Speaker 1: I think in the last sale, and they're looking to 475 00:27:05,160 --> 00:27:08,200 Speaker 1: do more. So there are a number of things underway, 476 00:27:08,320 --> 00:27:10,479 Speaker 1: but they're not as a visible and pus they get 477 00:27:10,480 --> 00:27:13,440 Speaker 1: a little bit typnical. When Barack Obama became the first 478 00:27:13,440 --> 00:27:16,639 Speaker 1: black president in two thousand and nine, John Rodgers was 479 00:27:16,680 --> 00:27:19,640 Speaker 1: on the inaugural committee. He says the government is struggling 480 00:27:19,640 --> 00:27:23,160 Speaker 1: to diversify its resources despite years of efforts. I think 481 00:27:23,240 --> 00:27:26,920 Speaker 1: government does a decent job when they have the opportunities 482 00:27:26,960 --> 00:27:30,439 Speaker 1: to buy directly. You know, they have some legal issues 483 00:27:30,440 --> 00:27:32,879 Speaker 1: they have to deal with, and you know court cases 484 00:27:32,920 --> 00:27:35,800 Speaker 1: against affirmative action that sometimes you can make it difficult 485 00:27:35,880 --> 00:27:39,080 Speaker 1: in certain states and certain cities and the federal government. 486 00:27:39,440 --> 00:27:43,480 Speaker 1: So I think within the constraints of the legal system, 487 00:27:43,720 --> 00:27:46,600 Speaker 1: government does a pretty good job. When they could do better. 488 00:27:47,080 --> 00:27:49,840 Speaker 1: Is pushing all the people to do business or get 489 00:27:49,880 --> 00:27:52,639 Speaker 1: resources from government to do the right things. If you 490 00:27:52,680 --> 00:27:56,080 Speaker 1: think about that, all the universities and museums and hospitals, 491 00:27:56,560 --> 00:27:58,920 Speaker 1: they got a lot of money from Washington to get 492 00:27:58,920 --> 00:28:02,240 Speaker 1: through the pandemic. No one's asking those museums, university and 493 00:28:02,280 --> 00:28:05,600 Speaker 1: hospitals about the diversity of their spit and who they're 494 00:28:05,720 --> 00:28:09,120 Speaker 1: using to manage their endowment or to do their advertising 495 00:28:09,200 --> 00:28:11,720 Speaker 1: or to do their technology. They're getting a free ride. 496 00:28:12,280 --> 00:28:15,480 Speaker 1: Same all the big contractors, you know, the big airlines 497 00:28:15,640 --> 00:28:20,560 Speaker 1: Delta an American, or the the big defense contractors like 498 00:28:20,600 --> 00:28:24,520 Speaker 1: General Dynamics and the like. No one's pushing them about 499 00:28:24,560 --> 00:28:26,840 Speaker 1: all how they spend their money three in sixty five 500 00:28:26,920 --> 00:28:28,879 Speaker 1: days the year. And that's where the government can use 501 00:28:28,920 --> 00:28:32,720 Speaker 1: it impact, the influence to force these institutions to be 502 00:28:32,760 --> 00:28:36,120 Speaker 1: transparent with how they spend their dollars and hold them 503 00:28:36,119 --> 00:28:39,040 Speaker 1: accountable on how they spend those dollars. So government can 504 00:28:39,080 --> 00:28:42,000 Speaker 1: have much more impact if they reach into these institutions 505 00:28:42,000 --> 00:28:46,040 Speaker 1: that are gathering government resources all the time. John Rogers 506 00:28:46,080 --> 00:28:49,160 Speaker 1: says black leaders in the government have historically helped push 507 00:28:49,240 --> 00:28:52,920 Speaker 1: some of these efforts along, but black leaders make up 508 00:28:52,960 --> 00:28:55,920 Speaker 1: just a small portion of the government. Under the tenure 509 00:28:55,960 --> 00:28:59,920 Speaker 1: of local black politicians, careers were soaring for black banker 510 00:29:00,160 --> 00:29:02,959 Speaker 1: is like Ray McGuire, who rose to become vice chairman 511 00:29:03,000 --> 00:29:05,880 Speaker 1: at City Group before stepping down in recent years, and 512 00:29:05,920 --> 00:29:09,600 Speaker 1: Bill Lewis, whose career ascended to the highest ranks of 513 00:29:09,640 --> 00:29:13,720 Speaker 1: investment bank Lazard. He recently left to join private investing 514 00:29:13,760 --> 00:29:18,120 Speaker 1: giant Apollo Global Management. Lewis recently led a charge among 515 00:29:18,240 --> 00:29:21,640 Speaker 1: corporate leaders to protect voting rights in Georgia and when 516 00:29:21,640 --> 00:29:24,680 Speaker 1: it comes to leaders in the government. John Rogers says 517 00:29:24,800 --> 00:29:28,800 Speaker 1: black mayors in particular have spurred companies to invest in 518 00:29:28,920 --> 00:29:31,560 Speaker 1: black leaders. It's interesting to me, you know, it's when 519 00:29:31,600 --> 00:29:34,640 Speaker 1: I came home from college roughly forty years ago, Harold 520 00:29:34,640 --> 00:29:37,920 Speaker 1: Washington got elected mayor of Chicago. You had progressive mayors 521 00:29:38,120 --> 00:29:42,240 Speaker 1: throughout the country. Uh. Maynor Jackson Atlanta was my personal hero. 522 00:29:43,120 --> 00:29:47,040 Speaker 1: All those institutions, all the all those mayors, when they 523 00:29:47,080 --> 00:29:50,080 Speaker 1: were running their cities, they insisted all the financial services 524 00:29:50,160 --> 00:29:53,120 Speaker 1: businesses that did business with their city had to have 525 00:29:53,200 --> 00:29:55,680 Speaker 1: diverse talent on the relationship with the city. And all 526 00:29:55,720 --> 00:29:57,200 Speaker 1: of a sudden, if you look at the generation of 527 00:29:57,320 --> 00:29:59,800 Speaker 1: leaders today, the Jim Rentals, the Route Capital, and the 528 00:30:00,280 --> 00:30:03,080 Speaker 1: and the Ray McGuire's at City Bank, and the you 529 00:30:03,160 --> 00:30:06,160 Speaker 1: go Bill Lewis, who've been a Lazard for a long time. 530 00:30:06,200 --> 00:30:09,400 Speaker 1: And you know, yet all these guys got their careers 531 00:30:09,440 --> 00:30:12,880 Speaker 1: going roughly forty years ago when these progressive mayors forced 532 00:30:12,920 --> 00:30:15,640 Speaker 1: the investment banks to have diverse teams on the relationship 533 00:30:15,680 --> 00:30:18,120 Speaker 1: with their cities. And I could go through at least 534 00:30:18,160 --> 00:30:20,920 Speaker 1: a dozen of the leaders. Sometimes there's still a big company. 535 00:30:20,960 --> 00:30:23,680 Speaker 1: Sometimes they started their own firms but they got started 536 00:30:23,720 --> 00:30:28,120 Speaker 1: because important mayors demanded the financial institutions look like America, 537 00:30:28,720 --> 00:30:30,400 Speaker 1: and we got away from that. There are so many 538 00:30:30,400 --> 00:30:33,640 Speaker 1: priorities of political leaders lead with, and that's one that 539 00:30:33,680 --> 00:30:37,640 Speaker 1: they haven't been as a consistent with as it needs 540 00:30:37,640 --> 00:30:40,800 Speaker 1: to be city groups. Harold Butler also says that the government, 541 00:30:40,880 --> 00:30:43,640 Speaker 1: both through federal and state laws, has had a history 542 00:30:43,720 --> 00:30:48,040 Speaker 1: of prohibiting the advancement of black society. Some of that 543 00:30:48,120 --> 00:30:50,880 Speaker 1: was through Jim Crow and another big part of that 544 00:30:51,000 --> 00:30:54,240 Speaker 1: was through redlining. When the US created the Housing Act 545 00:30:54,280 --> 00:30:57,920 Speaker 1: in the nineteen thirties, black neighborhoods were deemed more risky 546 00:30:57,960 --> 00:31:01,000 Speaker 1: to invest in, and banks there for step back from 547 00:31:01,120 --> 00:31:04,160 Speaker 1: lending to them in a big way. That created the 548 00:31:04,240 --> 00:31:06,640 Speaker 1: need for more black owned banks to step up and 549 00:31:06,680 --> 00:31:11,040 Speaker 1: funnel capital into communities. And what made matters worse is 550 00:31:11,080 --> 00:31:16,880 Speaker 1: that black neighborhoods also faced death, loss and damage through violence. 551 00:31:17,720 --> 00:31:22,520 Speaker 1: Harold Butler cited the Tulsa Race Massacre of where a 552 00:31:22,600 --> 00:31:27,000 Speaker 1: district known as Black Wall Street was burned down, hundreds died, 553 00:31:27,520 --> 00:31:30,920 Speaker 1: and many thousands were driven out of their homes. And 554 00:31:31,000 --> 00:31:35,160 Speaker 1: so when you think about, you know, how black communities 555 00:31:35,800 --> 00:31:41,040 Speaker 1: went from a designing the ratification of the Mancipation Proclamation 556 00:31:41,040 --> 00:31:47,000 Speaker 1: in eighteen sixty and what did not occur after that, right, 557 00:31:47,520 --> 00:31:51,520 Speaker 1: and events like Jim Crow that became a byproduct of 558 00:31:51,560 --> 00:31:57,720 Speaker 1: the anger that society that white America had against people 559 00:31:57,720 --> 00:32:03,080 Speaker 1: of color, right, because of the fact that labor wasn't 560 00:32:03,080 --> 00:32:07,000 Speaker 1: free anymore. Right. And so if you just start there, right, 561 00:32:07,040 --> 00:32:10,520 Speaker 1: and you look at what occurred when when a black 562 00:32:10,560 --> 00:32:14,600 Speaker 1: community dared to kind of buck the proverbial trend and 563 00:32:14,640 --> 00:32:18,360 Speaker 1: create wealth and build a sense of community where they 564 00:32:18,360 --> 00:32:23,200 Speaker 1: weren't allowed to participate elsewhere, which is Tulsa, right, what happened? 565 00:32:23,360 --> 00:32:29,040 Speaker 1: They burned it down, right, And you know since since 566 00:32:30,000 --> 00:32:36,800 Speaker 1: since right, and Blacks being able being shut out of 567 00:32:36,920 --> 00:32:41,320 Speaker 1: the economy and being shut out of just being able 568 00:32:41,400 --> 00:32:47,680 Speaker 1: to survive and prosper and generate wealth. This is this 569 00:32:47,760 --> 00:32:51,000 Speaker 1: is where we are today. And this is why the 570 00:32:51,000 --> 00:32:55,360 Speaker 1: the plight, if you will, why why black banks are 571 00:32:55,360 --> 00:32:58,880 Speaker 1: so incredibly important, right, because they were really created and 572 00:32:58,960 --> 00:33:02,719 Speaker 1: came into existence to be the conduit in the vehicle 573 00:33:02,840 --> 00:33:08,000 Speaker 1: to create wealth. Because if you have systematically a system 574 00:33:08,160 --> 00:33:10,880 Speaker 1: that's geared towards you know, whether it be laws, the 575 00:33:10,960 --> 00:33:14,440 Speaker 1: Housing Act and things like that, the redlining effect that 576 00:33:14,520 --> 00:33:16,560 Speaker 1: I know you're very familiar. You all have done great 577 00:33:16,560 --> 00:33:20,200 Speaker 1: content on redlining and communities, and I know a lot 578 00:33:20,240 --> 00:33:22,960 Speaker 1: of people are familiar with that. But when you put 579 00:33:23,000 --> 00:33:28,200 Speaker 1: all that into a bucket, right, it's the combination of 580 00:33:28,520 --> 00:33:35,000 Speaker 1: exploitation and deliberate deliberately not including people of color. So 581 00:33:35,280 --> 00:33:38,240 Speaker 1: banks have played a key role and continue to play 582 00:33:38,320 --> 00:33:43,360 Speaker 1: key role and being able to help entrepreneurs, help people 583 00:33:43,560 --> 00:33:46,440 Speaker 1: get home loans and things like that. But even still, 584 00:33:47,080 --> 00:33:49,520 Speaker 1: they themselves have been locked out of the capital markets 585 00:33:49,520 --> 00:33:51,920 Speaker 1: for a long time. When you think about the impacts 586 00:33:51,920 --> 00:33:55,840 Speaker 1: of redlining today, it's still true that black applicants have 587 00:33:56,000 --> 00:33:59,400 Speaker 1: lower rates of approval from mortgages at all major lenders. 588 00:34:00,000 --> 00:34:04,080 Speaker 1: A Bloomberg analysis found the disparity is greatest at Wells Fargo, 589 00:34:04,120 --> 00:34:07,440 Speaker 1: where a half of black applicants are rejected. That was 590 00:34:07,560 --> 00:34:11,560 Speaker 1: even the case during the mortgage refinancing boom in when 591 00:34:11,560 --> 00:34:16,160 Speaker 1: white homeowners saved an estimated three point eight billion dollars. 592 00:34:16,200 --> 00:34:19,000 Speaker 1: And in response to our reporting on Wells Fargo's treatment 593 00:34:19,000 --> 00:34:22,000 Speaker 1: of black applicants, the bank set it treats all potential 594 00:34:22,040 --> 00:34:25,480 Speaker 1: borrowers the same. It also said it's committed to closing 595 00:34:25,480 --> 00:34:29,280 Speaker 1: the minority home ownership gap. The US Department of Justice 596 00:34:29,480 --> 00:34:32,560 Speaker 1: is still trying to combat redlining, which is now an 597 00:34:32,560 --> 00:34:37,040 Speaker 1: illegal practice. The Consumer Financial Protection Bureau has been eyeing 598 00:34:37,120 --> 00:34:40,719 Speaker 1: banking deserts across the country, areas in which people are 599 00:34:40,800 --> 00:34:44,920 Speaker 1: unable to get loans. Zanilia Harris explains the ripple effect 600 00:34:45,160 --> 00:34:47,520 Speaker 1: that comes from being shut out of the housing market. 601 00:34:47,880 --> 00:34:51,000 Speaker 1: So when I look at all of the laws and 602 00:34:51,080 --> 00:34:54,319 Speaker 1: things that have been passed in America and how when 603 00:34:54,320 --> 00:34:57,279 Speaker 1: they get passed, they were supposed to be an opportunity 604 00:34:57,360 --> 00:35:00,880 Speaker 1: for all, but end up you seeing Carver, Well, yeah, 605 00:35:00,920 --> 00:35:04,120 Speaker 1: it's it's it's for you, It's for It's supposed to 606 00:35:04,160 --> 00:35:07,160 Speaker 1: be for all, but not not for you. And so 607 00:35:07,239 --> 00:35:10,760 Speaker 1: when I look at, you know, this fight for black 608 00:35:10,840 --> 00:35:12,879 Speaker 1: banks to succeed, because you know, there aren't that many 609 00:35:12,920 --> 00:35:17,000 Speaker 1: black banks that are left um in America. So when 610 00:35:17,040 --> 00:35:20,880 Speaker 1: I look at at at the struggles that they had 611 00:35:21,400 --> 00:35:26,400 Speaker 1: to form and then to um be a resource to 612 00:35:26,440 --> 00:35:31,040 Speaker 1: their communities and then strive to then be cut off. 613 00:35:31,080 --> 00:35:35,080 Speaker 1: So therefore, you know, African Americans couldn't get um um 614 00:35:35,160 --> 00:35:38,719 Speaker 1: access to capital in order to purchase property. And you know, 615 00:35:38,800 --> 00:35:41,319 Speaker 1: property is the foundation of a lot of things. So 616 00:35:41,360 --> 00:35:43,880 Speaker 1: if you have property, then you can leverage the property 617 00:35:44,000 --> 00:35:46,880 Speaker 1: to what you have to if you wanted to build up, 618 00:35:46,880 --> 00:35:49,040 Speaker 1: if you wanted to start a business. Because whenever you 619 00:35:49,080 --> 00:35:51,880 Speaker 1: go for a business loan, they're gonna ask you for 620 00:35:52,080 --> 00:35:59,280 Speaker 1: um you need um an asset for them to um 621 00:35:59,440 --> 00:36:02,000 Speaker 1: collateral rise in order for you to get that loan. 622 00:36:02,480 --> 00:36:05,480 Speaker 1: So if you are not able to purchase the property 623 00:36:05,960 --> 00:36:08,719 Speaker 1: then and and it still exists. I mean like, if 624 00:36:08,840 --> 00:36:11,640 Speaker 1: you're going for a loan, a business loan, they ask 625 00:36:11,719 --> 00:36:15,680 Speaker 1: you what your assets are because they need to attach 626 00:36:16,160 --> 00:36:19,120 Speaker 1: they need to have some way to secure that if 627 00:36:19,200 --> 00:36:21,279 Speaker 1: you default on the loan, that they're going to get 628 00:36:21,280 --> 00:36:24,360 Speaker 1: their money back, right, So, if you don't have any assets, 629 00:36:24,360 --> 00:36:27,960 Speaker 1: you're not gonna get a loan. So and for most people, 630 00:36:28,080 --> 00:36:32,200 Speaker 1: their largest asset is their home. The US government is 631 00:36:32,239 --> 00:36:35,759 Speaker 1: also taking some actions to get more capital to black communities. 632 00:36:36,120 --> 00:36:39,520 Speaker 1: For example, Harold Butler's has the Treasury Department is starting 633 00:36:39,560 --> 00:36:41,560 Speaker 1: to advance its work with some of the black own 634 00:36:41,640 --> 00:36:44,960 Speaker 1: banks that he works with. I'll just start by saying, 635 00:36:45,239 --> 00:36:48,920 Speaker 1: give the U. S. Treasury um, you know, some kudos 636 00:36:49,000 --> 00:36:52,399 Speaker 1: here because in the first first time and over two 637 00:36:52,880 --> 00:36:55,719 Speaker 1: thirty three plus years, whatever the amount of years is 638 00:36:55,760 --> 00:36:58,959 Speaker 1: and Treasures existence. They've never worked with a small black 639 00:36:59,000 --> 00:37:03,719 Speaker 1: financial institution. Right, So today there are two banks Industrial 640 00:37:03,760 --> 00:37:07,000 Speaker 1: Bank in Washington, d C. Unity Bank of Texas that 641 00:37:07,080 --> 00:37:12,360 Speaker 1: are engaged in Treasury portfolio business now as a subcontractor. 642 00:37:12,440 --> 00:37:16,200 Speaker 1: That's okay. Treasure still had to approve it, right, But 643 00:37:16,440 --> 00:37:21,359 Speaker 1: it's an important first step because even for the government, right, 644 00:37:21,480 --> 00:37:25,480 Speaker 1: it's that it has to be about inclusion and and 645 00:37:25,480 --> 00:37:27,800 Speaker 1: it's and I'm not suggesting it's easy for the government 646 00:37:27,840 --> 00:37:30,520 Speaker 1: because if you look at the scale and volume of 647 00:37:30,600 --> 00:37:33,200 Speaker 1: the way they do business with people like you and I, 648 00:37:33,320 --> 00:37:36,000 Speaker 1: the citizens, and they do business with the governments, and 649 00:37:36,000 --> 00:37:41,480 Speaker 1: they do business intro government, you know, it's their inherent risk. Right. 650 00:37:41,520 --> 00:37:46,440 Speaker 1: It evoves capital to be able to have people on 651 00:37:46,520 --> 00:37:49,640 Speaker 1: the ready to do things and make investments in what 652 00:37:49,680 --> 00:37:52,359 Speaker 1: the government would like you to do. And so it's 653 00:37:52,360 --> 00:37:55,600 Speaker 1: not easy. Critics say progress at the government level is 654 00:37:55,600 --> 00:37:59,439 Speaker 1: still moving in the wrong direction. But still John Rogers says, 655 00:37:59,560 --> 00:38:03,640 Speaker 1: changes emerging in corporate America can continue to move the needle. 656 00:38:03,840 --> 00:38:06,759 Speaker 1: You know, we have these progressive political leaders now in Washington. 657 00:38:07,200 --> 00:38:11,200 Speaker 1: Maxine Waters chairs the House Financial Services Committee, and Joyce Batty, 658 00:38:11,520 --> 00:38:15,239 Speaker 1: chairman of the Congression Black Caucus, really great leaders like 659 00:38:15,480 --> 00:38:20,200 Speaker 1: uh here in town comers from Robin Kelly. If we 660 00:38:20,239 --> 00:38:22,800 Speaker 1: lose the House, it's gonna be much more difficult to 661 00:38:22,840 --> 00:38:25,400 Speaker 1: bring the kind of change that we hope for because 662 00:38:25,440 --> 00:38:28,960 Speaker 1: I know this Congress is committed to getting uh supporting 663 00:38:28,960 --> 00:38:32,960 Speaker 1: minority business and resources to help minority businesses be successful. 664 00:38:33,200 --> 00:38:35,400 Speaker 1: So I worry that's gonna be a it could go 665 00:38:35,480 --> 00:38:38,600 Speaker 1: the wrong direction next year depending on the election, So 666 00:38:38,719 --> 00:38:43,600 Speaker 1: working hard hopefully that hope that doesn't happen. UM. The 667 00:38:43,680 --> 00:38:47,239 Speaker 1: positive side though, is that again our civic Committee, we 668 00:38:47,320 --> 00:38:49,200 Speaker 1: hope that that can be a role model for how 669 00:38:49,200 --> 00:38:54,600 Speaker 1: other cities can work with their local UM business organizations 670 00:38:54,640 --> 00:38:56,959 Speaker 1: to do the right thing. And I know there's lots 671 00:38:56,960 --> 00:38:59,479 Speaker 1: of talks going around the country, the Business round Table 672 00:38:59,520 --> 00:39:02,719 Speaker 1: and others talking more about working minority on companies. So 673 00:39:02,760 --> 00:39:05,400 Speaker 1: there is a buzz out there that's hopeful. So we 674 00:39:05,480 --> 00:39:08,120 Speaker 1: had a few green shoots, and I think finally we 675 00:39:08,160 --> 00:39:10,320 Speaker 1: have to we have to point out the success stories 676 00:39:10,920 --> 00:39:14,600 Speaker 1: here in Chicago. Companies like Excellon and McDonald's have long histories. 677 00:39:15,040 --> 00:39:17,560 Speaker 1: University of University Chicago has a great history of working 678 00:39:17,600 --> 00:39:21,560 Speaker 1: minority businesses and creating minority. Well, we need to celebrate 679 00:39:21,600 --> 00:39:24,520 Speaker 1: those success stories and hold them up with role models 680 00:39:24,719 --> 00:39:28,799 Speaker 1: where other anchor institutions can do similar things in their hometowns. 681 00:39:29,200 --> 00:39:32,120 Speaker 1: As John Rogers said, there are green shoots, but just 682 00:39:32,280 --> 00:39:35,360 Speaker 1: as many companies have made progress on some equality goals, 683 00:39:35,800 --> 00:39:39,200 Speaker 1: others are showing that there are setbacks too, and there's 684 00:39:39,280 --> 00:39:43,000 Speaker 1: no promise of progress moving faster either. It's why keeping 685 00:39:43,000 --> 00:39:46,880 Speaker 1: companies and the government accountable is so important for entrepreneur 686 00:39:46,920 --> 00:39:50,280 Speaker 1: and private equity. Alum Ryan Williams, it's about the follow 687 00:39:50,320 --> 00:39:55,480 Speaker 1: through and the change will simply take time, like this 688 00:39:55,680 --> 00:39:59,080 Speaker 1: wasn't just you know, lives service. I think the unfortunate 689 00:39:59,120 --> 00:40:02,920 Speaker 1: reality is that the numbers UH in terms of you know, 690 00:40:03,040 --> 00:40:07,960 Speaker 1: capital being committed to diverse managers, UM, in terms of 691 00:40:08,760 --> 00:40:13,759 Speaker 1: representation from hiring perspective, UM, they don't actually show the 692 00:40:13,800 --> 00:40:16,960 Speaker 1: kind of change that we would we would um you know, 693 00:40:17,200 --> 00:40:19,600 Speaker 1: have believed was in the making a couple of years ago. 694 00:40:19,680 --> 00:40:23,960 Speaker 1: And that's frustrating. And the inequality and representation has been 695 00:40:24,080 --> 00:40:27,920 Speaker 1: centuries into making, and you know, it's been craziness to 696 00:40:28,040 --> 00:40:31,439 Speaker 1: think that within a year or two years, UM, there'd 697 00:40:31,480 --> 00:40:34,200 Speaker 1: be parity or there'd be a level playing field. So 698 00:40:34,239 --> 00:40:37,160 Speaker 1: I think you have to take that, UM, that into 699 00:40:37,200 --> 00:40:40,600 Speaker 1: account the long term nature of the issues that we've 700 00:40:40,600 --> 00:40:45,240 Speaker 1: seen UM when assessing you know, the timeline for its solution. 701 00:40:45,520 --> 00:40:48,040 Speaker 1: What I will say is that despite the fact that 702 00:40:48,080 --> 00:40:50,400 Speaker 1: there hasn't been the kind of follow through in a 703 00:40:50,400 --> 00:40:52,239 Speaker 1: lot of fronts that you might have hoped, there have 704 00:40:52,360 --> 00:40:55,959 Speaker 1: been some really promising and impactful steps forward that are left. 705 00:40:56,160 --> 00:40:58,840 Speaker 1: And so my hope is that again, as we reflect 706 00:40:58,920 --> 00:41:02,000 Speaker 1: on these last couple of year years, UM, we recognize 707 00:41:02,040 --> 00:41:04,279 Speaker 1: that there's been far too many of us who have 708 00:41:04,400 --> 00:41:07,759 Speaker 1: made statements and and put out you know, commitments, but 709 00:41:07,800 --> 00:41:12,239 Speaker 1: I haven't followed through with attempts or action to substantiate 710 00:41:12,320 --> 00:41:15,920 Speaker 1: those those UM commitments. UM. And again, it's better in 711 00:41:16,000 --> 00:41:19,040 Speaker 1: many glints, to to try and to you know, take 712 00:41:19,360 --> 00:41:21,600 Speaker 1: the time to figure out how to bring to life 713 00:41:21,600 --> 00:41:25,600 Speaker 1: what you said, even if it's not initially or immediately 714 00:41:25,640 --> 00:41:28,400 Speaker 1: impactful UM. And it is to you know, take the 715 00:41:28,440 --> 00:41:32,440 Speaker 1: conventional path in or the lift lift path and uh 716 00:41:32,480 --> 00:41:35,440 Speaker 1: and wait, you know, to be pressured or pushed to action. 717 00:41:35,600 --> 00:41:40,239 Speaker 1: So hopefully these discussions can catalyze just one person UM 718 00:41:40,280 --> 00:41:42,839 Speaker 1: to reassess, you know, the difference between what they said 719 00:41:42,840 --> 00:41:46,080 Speaker 1: and what they're doing and drive change in meaningful ways. 720 00:41:46,160 --> 00:41:49,000 Speaker 1: And we'll leave it there with those thoughts from Ryan Williams. 721 00:41:49,040 --> 00:41:52,759 Speaker 1: Thanks for listening to this Bloomberg Equality special focusing on 722 00:41:52,840 --> 00:41:56,120 Speaker 1: achieving black equity. You can get more news and stories 723 00:41:56,160 --> 00:41:59,839 Speaker 1: like this online at Bloomberg dot com slash equality All. 724 00:42:00,040 --> 00:42:03,360 Speaker 1: So check out season four of The Paycheck, our podcast 725 00:42:03,400 --> 00:42:07,400 Speaker 1: focused on equality. Find that on Apple, Spotify and anywhere 726 00:42:07,400 --> 00:42:10,879 Speaker 1: else you get your podcasts um Shinali Bask and this 727 00:42:11,400 --> 00:42:13,759 Speaker 1: is Bloomberg h