Opening the next chapter of its Better Banks Accountability Project, the Committee for Better Banks’ new racial justice scorecard and report finds Black, Latino workers face particularly tough odds of getting higher paid positions at leading U.S. banks. Building on the success of CBB’s Covid Relief Bank Scorecard, this analysis captures the scale and depth of the diversity, equity and inclusion crisis in the U.S. banking industry. As bank executives wrestle with racial bias and discrimination within their own ranks, the findings indicate that while Black and Latino employees are concentrated at lower levels of employment, they have a substantially lesser chance of holding executive or other higher levels of employment compared to their white counterparts.
The BB&T and SunTrust merger creating Truist has resulted in a significant loss in opening branches in low and moderate income communities compared to in upper-income neighborhoods. The merger also resulted in a shift away from opening new branches in minority communities regardless of income. Click here to download the report.
For thousands of front-line employees, Wells Fargo has not fixed its culture of fear and intimidation. Click here to download the report.
Since the Wells Fargo fraudulent account scandal erupted in September 2016, bank workers and consumer advocates have called for new policies that address aggressive sales goals and incentive payment for front-line bank workers to avoid similar scandals and unethical behavior. At that time, we spoke to several dozen front-line bank workers to learn about the dangers of these practices to their customers and themselves, and we argued that to effectively curtail predatory practices workers’ experiences and inputs needed to be taken seriously. Instead, the chief federal body charged with overseeing this industry and protecting customers has dramatically limited its oversight responsibilities and congressional leaders have worked to dismantle legislation designed to prevent another bank-led financial crisis like that of 2008. Click here to read the report!
One year ago, the Los Angeles City Attorney’s office and federal regulators imposed a record- breaking fine on Wells Fargo for illegally opening millions of fake accounts. Local bank workers, who are part of the Committee for Better Banks, spoke out to spur the initial investigations and continue to expose irresponsible banking practices at Wells and other banks. In just the past several weeks, Wells Fargo admitted it opened a total of 3.4 million bogus accounts and was cited for charging millions of customers for auto insurance they didn’t seek. At the same, Banco Santander has come under fire for fueling a crisis in subprime auto lending in California and other states across the country. Click here to read the review.
Santander Bank – one of the world’s largest banks – has invested billions of dollars in the past eight years in building a massive U.S. fleet; as part of this expansion, its U.S. mortgage lending operations have brought in over $560 million in the last five years, and Santander’s fee income increased to $1.2 billion last year. Yet, analysis of the bank’s Home Mortgage Lending Act data reported each year to federal regulators reveals a disturbing pattern of racial and economic discrimination in Santander’s home mortgage lending. Click here to read the report!
Big banks bailed out by U.S. taxpayers continue to aggressively push high interest credit cards and other unnecessary financial products on customers, according to a new report by the National Employment Law Project (NELP). Analysis of industry data, class action lawsuits and interviews with dozens of frontline bank workers reveal the unscrupulous tactics that Wells Fargo and other major U.S. banks are using to force predatory products onto customers. Click here to see the report!
The Committee for Better Banks commissioned this report in order to begin to assess the quality of jobs within the banking industry and the state of the bank workplace from the perspective of retail, administrative, frontline and back office bank workers. Click here to read the report!
Many banks and insurance companies have returned to profit in 2013. Large banks in particular are making vast profits, with senior employees paid more than 100 times the lowest paid employees. Meanwhile workers continue to lose their jobs or have great pressure and stress placed upon them through the pressure to sell. Click here to read the report!