JP Morgan Chase & Co. CEO Jamie Dimon addressed inequality, racism and corporate responsibility in his annual letter to shareholders Wednesday morning. Hours later, the JP Morgan board, which he chairs, urged shareholders to vote against a racial fairness audit proposal.
JP Morgan Chase is one of the few largest banks in the country urged to conduct a racial equity audit to examine how its practices and policies affect non-white customers and communities of color in the wake of the Black Lives protests. Matter from last year. Dimon, in particular, went further than other CEOs by going to a Chase branch in New York last year and kneeling down to show solidarity with the Black Lives Matter movement. Additionally, Dimon spoke about the importance of careful planning, analysis and reporting on the economic and racial crises facing the United States in a letter to shareholders published Wednesday morning. See: The US economy will boom in 2023, but inequality needs to be addressed: Jamie Dimon in his latest letter to JPMorgan shareholders He also mentioned the importance of transparency: “Unlike many companies that just tell you They will sell a product if you can afford it, banks must necessarily turn away customers or enforce rules that a customer does not like (for example, agreements). This makes open and transparent deals even more important. ”However, when the bank unveiled its power on Wednesday afternoon, JP Morgan urged a vote“ no ”on a shareholder resolution that would ensure transparency over racial equity, saying it is already addressing those issues. In its defense, the company cited a $ 30 billion commitment over five years to “close the racial divide of wealth, support employees, and break down the barriers of systemic racism. “and said it has” a broad commitment to stakeholders who are affected by our activities, “as well as a system to diversify its workforce. In its shareholder proposal, CtW Investment Group noted JP’s” troubled history ” Morgan in addressing racial injustice. Among other things, the group cited the company’s $ 55 million federal lawsuit settlement related to mortgage discrimination; the closing of s us branches in black majority communities; and discrimination lawsuits against its black and Hispanic employees. See: Companies Declared ‘Black Lives Matter’ Last Year, Now Being Asked To Prove JP Morgan Joins Citigroup Inc. C, + 0.12%, Wells Fargo & Co. WFC, + 0.35% , Bank of America Corp. BAC, + 0.91% and Goldman Sachs Group Inc. GS, -0.16% when asking shareholders to reject a racial fairness audit. Morgan Stanley MS, -0.06%, which had faced a similar proposal, recently struck a deal with CtW. According to CtW, which agreed to withdraw its proposal, Morgan Stanley promised to conduct an internal review of its workforce and leadership, and to speak more about its practices that affect fairness for other non-white stakeholders before next year’s annual meeting. A JP Morgan spokesman declined to comment Wednesday night.