In a significant move, BlackRock and Bank of America have decided to discontinue their Diversity, Equity, and Inclusion (DEI) policies. This action makes them the latest major financial institutions to step away from such initiatives following a shift in federal stance against so-called "woke" practices in corporate America.
According to regulatory filings reviewed by The Post, both Larry Fink’s BlackRock, the world’s largest asset manager with $11.4 trillion under management, and Bank of America, led by Brian Moynihan, have removed language that promoted the representation and participation of diverse minority groups. These changes align with a broader crackdown initiated by President Donald Trump on DEI practices in the workplace.
The shift in policy follows a January 21 executive order by President Trump, which tasked Attorney General Pam Bondi with eliminating DEI practices. Bondi, in a February 5 memo, stated that her Department of Justice would "investigate, eliminate, and penalize" such policies in the private sector.
In its latest annual report, BlackRock emphasized the importance of attracting top talent from around the world. The company stated its commitment to fostering an environment that supports diverse perspectives to avoid groupthink. This marks a considerable retreat for CEO Larry Fink, who previously supported DEI efforts, especially in the wake of the George Floyd incident and the Black Lives Matter movement.
Similarly, Bank of America has modified its stance on DEI policies as reflected in their recent annual report. The Charlotte-based financial institution has ended specific hiring and interviewing requirements related to diversity. A representative confirmed the policy shift, citing adjustments to align with new laws, court decisions, and executive orders from the current administration.
The rollback by these financial giants is part of a broader trend among major banks. Other institutions like Wells Fargo, Citigroup, and Morgan Stanley have also scaled back their DEI commitments. Goldman Sachs has even canceled its requirement to only take companies public if they have two diverse board members.
Despite the trend, JPMorgan CEO Jamie Dimon remains committed to DEI policies, though he has critiqued certain aspects of bias training. During a recent town hall meeting, Dimon expressed skepticism about some DEI initiatives, indicating a nuanced stance within his institution.
Dan McCarthy, CEO of One Search and head of the Young Women Into Finance non-profit, noted that while firms continue to value diversity, some DEI policies have become contentious. McCarthy emphasized that while diversity remains a hiring priority, there is a growing sense that DEI initiatives might have exceeded their intended scope, prompting a reevaluation towards more balanced approaches.
