© 2020 Fortune Media IP Limited. Wells Fargo used this strategy and targeted Black churches through “wealth building seminars.” They took advantage of low credit borrowers and even Black people with high credit would end up with predatory subprime loans. Black Voices: Gov. He released an apology for his comments and pledged to invest in anti-racist policies within the business, as well as develop appropriate recruiting strategies to increase the diversity of their applicant pool. Support independent, award-winning college journalism on this site. They can also uncover the deep-rooted racism within big banking against its customers and employees. Within corporate America, only 8% of employees are Black. He must make more direct, concrete change this term. Drone wars: U.S. military maneuvers to defeat enemy unmanned aircraft. Joe Biden running on fear and hopelessness. Trump warns Democrats are 'trying to steal the election'. He resigned in 2007 during the firm’s collapse. See Charles W Scharf's compensation, career history, education, & memberships. As a result of these practices by Wells Fargo and several other big banks, Black people lost 53% of their wealth. This data scientist’s model shows Biden is still a 3-to-1 favorite to win—but he’s fading in the home stretch Quotes delayed at least 15 minutes. In 1970, the average American homeownership rate was about 60%, contrasting with Black homeownership averaging around 40%. Associated Press Charles Scharf, who joined BNY Mellon in July, has laid off staff, consolidated office space and overhauled executive pay as part of broad overhaul. Like much of the political and corporate world, the banking industry has had to face a reckoning in the wake of the death of George Floyd for its role in the racial and economic inequality that Black and other minorities face. Like what you're reading? Click to Read More The Daily Rundown is published Monday through Friday and gives you a quick look at the day's top stories. Charles Scharf, chief executive officer of Visa, speaks during the U.S.-Africa Business Forum in New York, Sept. 21, 2016. This exacerbated the wealth gap between white and Black families, as the average net worth of a white family is ten times more than the net worth of a Black family. Independent journalism for more than 150 years, Charles W. Scharf, CEO of Wells Fargo, arrives to testify March 10 during the House Financial Services Committee hearing in Washington, D.C. All Rights Reserved. Quiz: How much do you know about the U.S. Congress? Other large banks such as JPMorgan Chase have also faced several lawsuits for discriminatory practices against their customers as well as their employees. We must hold companies accountable for their discriminatory views. Black mortgage owners are also statistically charged higher interest rates than white ones and are denied mortgages that white borrowers would be approved for. Wells Fargo CEO Charles Scharf, who took over the bank in October, was grilled by the House Financial Services Committee over the bank’s practices of opening phony accounts in … States look to ban noncitizen voting, adopt ranked-choice ballots, Biden would implement public mask mandate, Dream Guns: High end pistols that are worth the price tag, CBS: Trump wins 279 electoral votes in ‘Republican surge’ scenario, Tag team: Polls, media join forces to close in on Trump, Doctor: “Doing This Every Morning Can Snap Back Sagging Skin (No Creams Needed)”, Edward Blum: Colleges shouldn’t use race as factor for admissions, Military passengers subjected to random COVID-19 testing, Daily Beast columnist under fire for Trump anxiety, ‘PTSD’ claim ‘due to things we saw’, Project Veritas sues New York Times over ‘dishonest’ report on ballot-harvesting sting, War and fleece: most inaccurate war movies, DHS chief labels Twitter a ‘threat’ to U.S. security over censorship, D.C. university warns students to stockpile ‘a week of food’ ahead of potential election unrest. FORTUNE may receive compensation for some links to products and services on this website. The last prominent African American to serve as CEO at a large financial services company was Kenneth Chenault, the former CEO of American Express. Quiz: How much do you know about U.S. presidents? Half of white Americans agreed there is too much attention devoted to racial issues. These predatory loan practices are what fueled the Great Recession. Wells Fargo CEO Charles Scharf recently said that their bank finds it difficult to hire more black people because “the unfortunate reality is that there is a very limited pool of black talent to recruit from.” Wells Fargo, like other banks and corporations, are forced to turn down skilled workers if they have white skin because the bank must meet their diversity quota. American banking is dominated by leadership that is largely white and male. Banks have announced changes to how they lend, and created new programs to spur economic development in communities of color. In the 90s, Black homeownership was finally increasing as a result of a government push. These comments highlight deeper issues regarding the lack of representation within corporate America. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices Charles W Scharf is President/CEO at Wells Fargo Bank NA. Donate here. NEW YORK — Wells Fargo CEO Charles Scharf apologized Wednesday for comments he made suggesting it is difficult to find qualified Black executives in the financial industry. This decreases sharply for senior management and executive positions as only 3.2% are Black. On Wednesday, Citigroup announced that it would direct $1 billion of the firm’s capital toward closing the “racial wealth gap” in the United States. Scharf on Wednesday said in a prepared statement that his comments reflected “my own unconscious bias.”. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Latest state-by-state vote tallies as ballot-counting goes past Election Day Charles Scharf is among the top highest paid Chief Executive Officers across the United States. Trump says he'll top 306 electoral votes, won't prematurely declare victory His yearly salary is in millions since joining BNY Mellon NA, The Bank of New York Mellon, Inc when he got appointed as the Director in July 2017. The highest rates are in the Midwest at a staggering rate of 79%. These discriminatory practices are not unique to Wells Fargo. “Perhaps it is the CEO of Wells Fargo who lacks the talent to recruit Black workers,” said Rep. Alexandra Ocasio-Cortez of New York, on Twitter. Get email updates with daily headlines and weekly recaps. Stanley O’Neal, the former CEO of Merrill Lynch while it was still an independent company, is also Black. The millionaire prime also made his net worth from previous work as the … Customers with ethnic sounding names were also targeted with higher rates, as well as those who had a language barrier.
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