Lawmakers question bank CEOs on efforts to close the racial wealth gap

Kirstin Garriss
·2 min read

CEOs from the country’s top banks are facing mounting pressure to address the growing racial wealth gap.

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Studies show that the net wealth of a typical black family in America is around one-tenth that of the average white family.

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The U.S. Treasury Department says wealth isn’t defined by the amount of a person’s paycheck, but the total financial value of what they or their household owns. For many minorities, that number is significantly lower when compared to white families.

Lawmakers on the U.S. House Committee on Financial Services recently met with the CEOs from seven banks  about efforts to close the racial wealth gap. The hearing included leaders of Wells Fargo, Bank of America, Citigroup, and PNC.

Democrats in the hearing wanted to know how the companies planned to improve access for people living in neighborhoods without banks.

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JP Morgan Chairman and CEO Jamie Dimon said they’re pledging $30-billion to minorities for mortgages, affordable housing, and small businesses.

‘We are focused on lifting up traditional underserved communities by increasing homeownership, expanding affordable rental housing, and growing small businesses,” Dimon said.

Some GOP leaders on the committee said they believe the focus should be on overall economic challenges rather than “social issues.”

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“We have an economy that’s at an inflection point,” Republican North Carolina Rep. Patrick McHenry said during the hearing. “We should talk about the regulatory challenges of giving consumers the options that they want and demand.”

Executives at Bank of America and Citigroup said they’ve also reduced or eliminated overdraft fees altogether to help customers.

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