Diversity and Financial Reform in 2010

Abstract

There is a provision in the 2010 financial reform legislation that calls for an evaluative process of the hiring decisions of firms that do business with the federal government. Under the provision, federal officials may recommend that the government terminate contracts with companies that do not make a “good faith effort” to hire women and people of color. This article explores the possibilities for assessing the good faith of financial institutions, investment and mortgage banking firms, brokers, dealers and financial services providers when making hiring decisions.