Unmuting themselves muting themselves. Consistent with the regulations accompanying House Resolution 965, staff will only use members to witnesses as appropriate avoid inadvertent background noise. Members are reminded all house rules relating to order and decorum apply to this remote hearing. This hearing is entitled Holding Financial regulators accountable for diversity and inclusion perspectives on the offices of minority and women inclusion. I now recognize myself for four minutes to give an opening statement. Today, Holding Financial regulators accountable for diversity and inclusion, perspectives from the offices of minority and women inclusion. Our country is facing three pandemics, covid19 and the economic pandemic, and the fight for social justice pandemic. These challenges have reshaped our work and our personal relationships in unprecedented ways. Todays hearing is totally virtual and i appreciate all of our witnesses and members for participating. I am hopeful we will be able to theke a balance between Historical Context with the demand for greater industry inclusiveness and transparency as well as highlight accomplishments for performance. 20 20 marks the 10th anniversary of the enactment of the dodd frank wall street reform and Consumer Protection act. Through the leadership of our members of the Democratic Caucus and countless diversity and inclusion stakeholders, section 342 of dodd frank woods devised to serve as a catalyst to enhance diversity and inclusion at the Financial Regulatory Agency and for the entities they regulate. Prior to the enactment of dodd frank, stakeholders lack access to performance data to transparently review diversity practices and policies of regulated entities. In the financial crises of 2008, they disproportionately impacted lowincome americans and communities of color. Congress recognizing the Important RoleDiverse Communities play in the United States economy, taking action to died first if i the financials diversify the Financial Services sector to reduce discriminatory practices to stop the crises from happening again. I alone, with my colleagues, have reminded that all diversity and inclusion is a business imperative. It is the bottom line and is essential for closing the racial wealth gap. Has brought new life into how Financial Institutions and agencies evaluate, access, and expand inclusiveness. Highlights aalysis persistent lack of racial at thety in senior roles Regulatory Agency. Our work has pointed to systemic racism and the need for us to be intentional in our inclusiveness, contrary to President Trumps comments. Systemic racism is a National Crisis that impedes the full inclusion of Diversity Community in our economy. In june, Jerome Powell acknowledged structural discrimination exists in the United StatesEconomy Today and impedes the economic success of communities of color. Thatowell highlighted Asset Management and brokerdealers who contract with meet diversity and inclusion performance requirements just as we have charged the bank and other Financial Institutions to discuss and share data regarding how they have improved the diversity policies and practices. We are eager to hear from you regarding your Agency Posture performance agencys performance because transparency and accountability are critical to achieving sustainable performance. We recognize your limited authority and have informed each of the Agency Directors that it is them in this committee who will be first in line for accountability on diversity and inclusion. In closing, we are resolute and regulated to see your entities achieve both the letter and spirit of dodd frank. The success of our economy depends on the full inclusion of all communities. Recognizes the anding member from missouri my friend, congresswoman magner, for five minutes. You, madam chairman. It is good to see you and most of our committee here today. I appreciate you holding this hearing and i would like to thank all the witnesses for testifying today. We look forward to hearing from each of you on the work that the offices of minority and women doing to have been successfully diversify the workforces of our financial regulators. The the past year, subcommittee has held multiple hearings on the benefits of a Diverse Workforce. Studies Show Companies with Diverse Workforces perform better compared to their less diverse competitors. Diverse firms proved to be more innovative. It is in a company its best interest to create an Inclusive Work environment. Several agencies like the private sector will realize many benefits from a Diverse Workforce. Diversity and inclusion, while related, are separate issues that must be addressed, although a company or federal agency may. E able to increase recruitment it is equally as important to focus on efforts on making sure the environment is inclusive for retention to fully realize the benefits of a Diverse Workforce. Studies continue to show minorities and women tend to leave Financial Services firms at a higher rate than their white male counterparts. To improve the rates of retention, Companies Must adjust culture and promote the development of diverse talent. This requires a pronounced commitment for leadership and a specific action plan to increase inclusion. In order to be most effective, Company Policy changes should be implemented from the top down and have buyin at all levels of management. When i think of top down policy changes being implemented, a prime example is mentioned in she meets regularly with the agencys executive committee and Senior Management to ensure the occ fulfills its commitment to diversity and inclusion. It is buyin like this at the senior level that makes a diverse that makes a big difference, whether it is a director meeting regularly with an Agency Director or a chief diversity officer having constant communication with the ceo, that relationship fosters a strong commitment to successfully recruit, retain, and promote minorities and women. The benefits of a Diverse Workforce were wellestablished and the private sector has established best practices to recruit and maintain a Diverse Workforce and prioritize inclusion. Federal agencies would benefit from into lending implementing these strategies pick some of the best practices we have learned about that and increases transparencynclude regarding salaries, and promotion opportunities, mentoring and sponsorship programs, Employee Research groups, unconscious bias training, and Flexible Work hours for working mothers. , identified as a successful strategy for recruiting and retaining minorities and women and explore how Government Agencies can better implement those strategies within their own structures. I look forward, madam chairman, to learning about the work that you all have been doing today and i am proud of this committee for examining these important issues. I think you and i yield back, madam chair. Much, rankingery member. The chair now recognizes the chair of the full committee from california, the author of dodd frank 342. Congresswoman Maxine Waters. Thank you very much. February hearing today. Office of minority and women financial from the Regulatory Agency to discuss their progress and challenges in fulfilling their diversity and inclusion oversight mission. 10 years ago, i authored the language in the dodd frank reform. Omwi to be champions. Systemic racism. This hearing is long overdue. I want to thank you and miss wagners for the work you have been doing, giving oversight. Been taking on this responsibility and i am so appreciated to you. The Financial Services regulators play a role in removing systemic, racial, and theyr barriers to ensure are inclusive insensible for all. I yield back the balance of my time. Chairwoman. Today, we are welcome. We welcome the testimony of nine witnesses divided into two. Our first panel of omwi directors will focus on the banking regulators. Schofield is the executive director, office of minority and women inclusion of the office of the comptroller. Sheila clark is the director of the office of minority women, inclusion of the board of governors of the Federal Reserve system. Lacey damon is the director in the office of minority and women inclusion of the Federal Reserve inc. Of new york. The actingson is director, office of minority women inclusion of the federal deposit insurance corporation. Monica davey is the Director Office of minority and women inclusion of the National Credit union administration. Witnesses are reminded that their oral testimonies will be limited to five minutes. A chime will go off at the end of your time and i ask that you respect the members and other witnesses time by wrapping up your oral testimony. Without objection, your written statement will be made part of the record. You are nowld, recognized for five minutes to give an oral presentation of your testimony. Beatty, ranking woman magner, and members of the subcommittee, i serve as the executive director of the office of minority and women inclusion at the office of the comptrollers for currency. The pleased to discuss commitment to diversity and inclusion within our workplace in a federal Banking System. In occ omwi was established 2010 pursuant to the dodd frank act. I have served as the executive director since its inception. , ourg comptroller brooks executive committee, and i share a commitment for promoting diversity and inclusion. I meet with the acting comptroller. The occ is dedicated to maintaining a Diverse Workforce where the focus is on leadership, commitment, Recruitment Strategies for diverse workplaces, building an employee competency pipeline, retention strategy, sensitive to employee differences, and a culture that respects, values, and seeks diversity. As the subcommittee has explored in previous years, successful inclusion begins at the top. The acting comptroller has rigorously championed his commitment towards improving the impact of occs Diversity Program and has engaged the executive committee on how to improve the diversity of candidates for hiring and promotion decisions. Additionally, we are excited about a recently launched Initiative Project that convenes leaders from banking, civil rights, technology, and business organizations to execute projects that will reduce full and faire economic participation and expand access to credit and capital to minority and underserved communities. Ensure that occ hires and retains diverse management staff, omwi provides each Business Unit with Detailed Analysis of the Workforce Trends to facilitate integration of diversity and inclusion into Business Unit plans. These are now these analyses include promotions and separations to expand the diversity of our applicant pools, the occ went to 200 colleges and universities, additions,ispanics historically black colleges and universities, and institutions with large female student populations. We participate in minority professional organizations that actively support interns. 100 mil high schools for six weeks paid virtual leadership internship. Despite limitations from the coronavirus, the occ provided nye interns with mezam positive enriching experiences. The occ provides developmental opportunities. Omqwwi supports these efforts by providing diversity training, including unconscious bias courses, and women in leadership. The agency recently added leadership exploration and Development Program to build leadership competencies for aspiring leaders and managers. There was 53 females, 18 black and 12 hispanic. The occ is also committed to the inclusion of minority and women owned businesses at all level of our Business Activity. Im proud that over the last 10 years, greater than 30 of all occ contracts have gone to minority and women owned businesses. College,losely with omwi provides greater assistance and facilitates matchmaking with potential contractors. Omwi efforts including collecting data from the banks we supervised. In 2015, we joined in the publication of a policy for joint standards. This policy statement provides the framework for banks to complete a selfassessment and increases awareness of the banks commitment to diversity. To encourage banks to submit self assessments, we collaborated with the other agencies. This year, the banks will have until october to return there ir 2020 selfassessment. I thank you for the opportunity to appear before you today. You. Beatty thank you are now recognized for five minutes to give an oral presentation on your testimony. Thank you. Chair beatty, Ranking Member wagner, members of the subcommittee, thank you for the opportunity to testify today on the Important Role of the office of minority and women inclusion of the Federal Reserve board. The board is deeply committed to inclusion and a Diverse Workforce, as well as fostering diversity in our own procurement practices and those the institution regulates. Those perspectives lead to the best decisions and advance the Federal Reserves mission in serving the public. The board established the office of diversity and inclusion to promote Diversity Inclusion throughout the board, the system and within the Financial Services industry. I work closely throughout the board and the system with the other omwi directors at the 12 reserve banks, recognizing the commitment of the board on these important issues is shared by the banks and their leadership. Has equal opportunity compliance programs and includes the office of minority and women inclusion. Omwi pursuant to the dodd frank act, developed initiatives to ensure fair inclusion of minorities, women, and minority owned and women owned businesses, and all activities of the board. As well as developing standards for assessing diversity policies and practices of regulated entities. The boards omwi outline its activities, successes and challenges. I will highlight two areas of this report. The board Shows Progress in increasing the level of diversity in Senior Leadership. In 2019, there were 19 appointments, in which five were minorities and six were women. There are six female directors, which one is africanamerican. Eight Division Directors are male, of which one is hispanic. In addition, there are three africanamericans, one hispanic and three females who serve as deputy directors in their respective divisions. Odis staff engages with the Division Leaders for the boards diversity and inclusion standards. We will continue to address challenges including candidates for major job functions, such as financial analysts and economists, and strengthening the pipeline to senior staff levels. The Federal Reserve system focuses on increasing racial and Ethnic Diversity among reserve bank and branch directors. These boards function more effectively when they are constituting in a matter that encourages a variety of diverse perspectives. Of2020, approximately 75 directors, those who are appointed by the board to represent the public and 70 of class v directors, those elected by the bank to represent the public diversity in gender. The board has made progress. Contractse, 2019 awarded to minority and women owned businesses increased 9 over 2018. This was due in part to our engagement that focuses on forging partnerships with minorities and women owned businesses. And also creating a database of diverse suppliers and ensuring their capability to offer goods and services that meet the boards needs. In addition with respect to the boards capital project, we aligned minority and women owned businesses for subcontracting opportunities. The board has engaged in a wide range of Community Outreach events to increase Financial Literacy and help students explore the field of economics. For example, we facilitate