Washington Trust bank agrees these additional actions after discrimination claim

Wheeler Cowperthwaite, Providence Journal
·2 min read

PROVIDENCE − Washington Trust, the 200-year-old bank that agreed to settle claims of racial discrimination with federal prosecutors, has reached an additional agreement for concessions with the Rhode Island Treasurer's Office.

Treasurer James Diossa announced last week that he was going to talk to bank CEO Edward Handy III about further actions to take, above and beyond the terms it agreed to in a proposed settlement agreement.

The proposed federal settlement has the bank paying $7 million in grants to would-be homebuyers in majority Black and Hispanic census tracts in Rhode Island and an additional $2 million in marketing, advertisements and educational programs, for a total of $9 million.

Rhode Island Treasurer James Diossa talks about "evaluating" his office's relationship with Washington Trust after a federal settlement on redlining allegations.
Rhode Island Treasurer James Diossa talks about "evaluating" his office's relationship with Washington Trust after a federal settlement on redlining allegations.

Diossa previously said his office has $190 million in deposits with the bank and that he wanted to "evaluate" the office's relationship with them in light of the redlining allegations. Handy has denied the allegations, even though federal officials said internal and external reports indicated there was a problem with racial discrimination as early as 2011.

Proposed redlining settlement: Washington Trust settles over accusations it discriminated against Black, Hispanic borrowers

The further concessions Washington Trust agreed to, according to a news release:

  • The bank will create a "diverse and inclusive community advisory board" including a representative from the treasurer's office.

  • The bank will "further expand its current paid advertisements" in "underserved" communities and communities of color. As part of the proposed settlement, the bank agreed to spend $1 million on marketing.

  • The bank will "continue and expand its sponsorship of community and cultural events in Rhode Island’s communities of color."

  • The bank will diversify its board of directors and leadership team. Of the 12-person board of directors, eight are white men and three are white women.

  • The treasurer's office will work with the bank to expand its financial literacy program inside "urban school districts"

  • The bank will share its community credit needs assessment, which assessed if a bank is meeting its community's needs, with the treasurer's office.

In a news release by the treasurer's office, Handy wrote that the bank will make sure everyone has equal access to credit and that its Olneyville branch will open in the next few months.

In the news release, Diossa wrote that he made progress in his talks with the bank.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Washington Trust agrees to more changes after discrimination claim