As Wall Street navigates the shifting landscape of diversity, equity and inclusion (DEI), some firms quietly retreat while others make just enough adjustments to sidestep political backlash. Bank of America (BAC), BlackRock (BLK) and Citigroup (C) have publicly scaled back DEI commitments, while Capital One (COF) appears to be walking a fine line, paring down efforts without making headlines. JPMorgan Chase (JPM), on the other hand, remains committed to broad DEI goals but is cutting back on certain spending.
Much like Big Tech companies, the financial sector embraced DEI in 2020 amid national protests over racial justice, pledging to address systemic disparities through hiring initiatives and investment strategies. However, with shifting political climates, banks are reassessing those commitments.
The pressure is mounting as the Trump administration signals its intent to dismantle DEI initiatives across industries, from finance to education. Here’s how recent filings and statements from major U.S. banks and asset managers reveal a broader industry shift away from DEI:
BlackRock scales back on “three pillar DEI strategy”
In its annual report filed yesterday (Feb. 25), the world’s largest asset manager deleted references to its “three pillar DEI strategy,” which included diversity commitments in talent and culture, client and business partnerships, and social impact and policy. Instead, the report included a statement, under a new section called “connectivity and inclusivity,” saying the firm is “committed to creating an environment that supports top talent and fosters diverse perspectives to avoid groupthink.”
Bank of America replaces “diversity” with “opportunity”
Bank of America, which also filed its annual report yesterday, removed all references to “diversity and inclusion” mentioned in its 2023 report. In a few places, the bank replaced the word “diversity” with “opportunity.” For example, the “diversity and inclusion group” under the bank’s human resources department has been renamed “opportunity and inclusion group.”
“We have diversity and inclusion at our company. But, step back: We’ve always been the bank of opportunity,” CEO Brian Moynihan said at an event in Washington D.C. yesterday when asked about the bank’s DEI policy.
U.S. Bank stops reporting staff diversity data
In its latest annual report, U.S. Bank’s parent company, U.S. Bancorp, quietly removed the previous year’s overview of its DEI efforts, including the mention of its business resource groups, which supported minority employees. It also removed a pledge that the bank would include at least one woman or person of color on interview slates for all roles.
The bank also scrubbed its staff diversity data. The previous year, the document specified that 57 percent of its U.S. employees were women and 39 percent were people of color. The latest filing had no such mention. Nevertheless, it’s worth noting that U.S. Bancorp is about to have its first woman of color CEO. The bank’s president, Gunjan Kedia, who is Indian American, is set to take over as CEO in April.
Citigroup removes diversity goals in hiring
In a “Colleague Engagement Update” published Feb. 20, Citigroup announced it “will no longer have aspirational representation goals except as required by local law.” The bank also said it will no longer require diverse slates of candidates and interviewers. The move is a direct result of recent changes in U.S. federal government policy, Citigroup said.
Morgan Stanley shifts from “diversity and inclusion” to “meritocracy”
Morgan Stanley (MS)’s latest annual report didn’t include the “Diversity and Inclusion” section that was featured in previous years’ filings. However, the report retains a link to the company’s “Diversity & Inclusion” landing page, which is still live.
The bank’s only DEI-related statements are nested under a section dubbed “Human Capital,” which contains the stated value of committing to “diversity and inclusion” but now also mentions “meritocracy”—a call to President Trump’s advocacy for “merit-based opportunities” across industries.
Capital One removes “DIB” section but highlights supplier diversity
Similarly, Capital One’s latest annual report also no longer features the previous year’s “Diversity, Inclusion, and Belonging” (DIB) section. While a brief mention of “pay equity” remains, the bank’s promise to pay women and employees of color “100 percent” what men and White employees are paid is notably absent.
Capital One’s website still features a “Diversity, Inclusion and Belonging” statement and a “Supplier Diversity Program,” whose goal is “to include qualified diverse businesses in every sourcing opportunity based on commodity need wherever these suppliers exist.”
JPMorgan Chase and Goldman Sachs stand alone
JPMorgan Chase, the largest bank in the U.S., firmly sticks to its DEI commitments despite political pressure. In its latest annual report, the bank said it “has been and expects that it will continue to be criticized by activists, politicians and other members of the public concerning business practices or positions taken by JPMorgan Chase with respect to matters of public policy (such as diversity, equity and inclusion initiatives).”
However, JPMorgan CEO Jamie Dimon admitted that some DEI programs are wasteful and said the bank would scale back spending on them while maintaining its broader DEI commitments.
Similarly, Goldman Sachs (GS) states on its website that it remains “committed to making progress toward racial equity, advancing gender equality, and increasing representation at every level of our firm.”
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