New Controversy: Financial Reform Bill Contains Quotas For Minority Hiring On Wall Street

maxine waters congress

This is always how it goes with big bills. Politicians and the media focus on a few big issues (prop trading, the Consumer Financial Protection Agency, etc.) while small, but controversial measures, get slipped in the back door, and then become the subject of fascination several days after the bill has passed.

It happened with healthcare, after people suddenly realised there was a provision to go after fast food.

And now with the Dodd-Frank Act, according to POLITICO, there’s a measure, authored by Maxine Waters, that essentially mandates a certain amount of minority hiring at firms that do business with the government, which is everyone.

Obviously the argument is totally academic now, since the bill passed. And even some Senators who were critical of the measure, like Maine’s Olympia Snowe, did end up voting for the whole thing.

 Apparently the measure’s inclusion was the result of a major effort among certain minority groups. Folks on the right side of the aisle, who have argued that the Community Reinvestment Act was a contributor to the crisis will find this line of argument disturbing

“It is arguably the best part of the bill,” said Gary Acosta, co-founder of the National Association of Hispanic Real Estate Professionals, which lobbied for the section.


“Considering the devastation that has taken place in the minority communities – that was done by irresponsible and predatory lending – this makes sense and helps them mitigate that,” Acosta said of the financial industry. “Inclusion is a good thing, always. And sometimes we have to be compelled to make changes.”

Read the whole story >

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.