Black Lives Matter has brought to the fore a discussion on institutional racism. But how does that actually work? An excellent article in the New York Times highlights the challenges of banking for minorities with a focus on black clients. This article documents how individuals of color face significant barriers in getting basic banking services. The article shows how efforts to prevent fraud are too often used to make it difficult for black clients to receive basic banking services. And with police occasionally being called, the very real threat of physical harm to the client exists.
Perhaps even more shocking is that there is no requirement that banks are required to handle all clients equally regardless of race. Since banks were not specifically included in the Civil Rights Act of 1964, it is nearly impossible to hold banks responsible for racist actions. Of course large banks note their commitment to equality and provide diversity training. But in the case that starts the story, Wells Fargo seeks to avoid any damages. They argue “that because she was eventually able to cash her check, a judge should dismiss (the case).” As a matter of law that may be correct. But is it right?
