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Wall Street is under pressure over its lack of diversity

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Protestors and police officers clash for the second morning in a row on July 1, 2020 in New York City following a budget vote. (Photo by David Dee Delgado/Getty Images)

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A global corporate reckoning that began in the United States after the killing of George Floyd has prompted industries long dominated by White males, such as the financial sector, to rethink diversity.

George Floyd was killed by a Minneapolis police officer on May 25, who knelt on Floyd’s neck for 8 minutes and 46 seconds. Floyd was arrested on suspicion of using a counterfeit $20 bill. His death ignited worldwide protests aimed at addressing racial injustice and inequality.  

Wall Street has long been an industry dominated by White males. At Goldman Sachs, just 2.7 percent of executives, senior officials and managers are Black. At Citi, 2 percent of executives and senior managers are Black.

Closing the racial wealth gap

While companies and banks cannot single-handedly solve the systemic and historic racism that has existed in the United States since its founding, an effort is being made to try and give Black Americans a better chance at economic equality.

In addition to the obvious benefit closing the racial wealth gap would mean for affected communities, a 2019 McKinsey report projected doing so could net the U.S. economy between $1.1 trillion and $1.5 trillion by 2028.

“Public companies and private companies have to focus on ‘how can you show your corporate purpose,’ not just to your employees and your clients, but in every society you work,” BlackRock CEO Larry Fink told CNBC’s Hadley Gamble in a World Government Summit panel last week. He added that “purposeful” companies are going to have better long term profitability.

BlackRock has promised 30 percent more Black employees at the firm by 2024. As CEO of the world’s largest asset manager, Fink oversees more than $6 trillion and hires 16,000 people across the globe, only 5 percent of which are Black. Global Infrastructure Partners Chairman Adebayo Ogunlesi told CNBC’s Hadley Gamble that thanks to “prodding” from CEOs like Fink, business is recognizing that it has a leadership role to play in society in areas like economic and racial injustice.

Wall Street wakes up

Under pressure, banks have taken steps to do more to fight racism. Many CEOs released statements and spoke out about the killing of George Floyd, recognizing the deep divisions America faces when it comes to race.

JPMorgan CEO Jamie Dimon released a statement recognizing the “reality” of police brutality, and “coupled with the COVID crisis, highlights the inequities black and other diverse communities have and continue to face every day,” vowing to do more as a firm.

Wells Fargo pledged to double Black leadership over the next 5 years at the bank. According to a memo, only 6 percent of the San Francisco-based bank’s senior leaders are Black.

Bank of America announced a $1 billion, four-year commitment of additional support to help local communities address economic and racial inequality accelerated by Covid-19.

The gender gap

Wall Street doesn’t struggle only with racial diversity. Women are significantly underrepresented in the financial services industry.

Francesca McDonagh, the CEO of the Bank of Ireland, told CNBC the banking sector is “notoriously non-representative” of women.

“There are very few female CEOs of systemically important banks,” she said. “When I look around at opportunities to promote women, I always look hard and fast, but there is a shortage at the senior level.”

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Venezuelan court sentences 2 former Green Berets to 20 years in prison

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ID cards of people linked to an operation denounced by Venezuelan President Nicolas Maduro are displayed during a meeting with members of the Armed Forces in Caracas, Venezuela on May 4, 2020. Venezuela’s President Nicolas Maduro confirmed the detention of two US “mercenaries” among 13 attackers involved in Sunday’s two failed maritime raids.

Miraflores Presidential Palace | Anadolu Agency | Getty Images

A Venezuelan court sentenced two former U.S. special forces soldiers to 20 years in prison for their part in a failed beach attack aimed at overthrowing President Nicolas Maduro, prosecutors announced late Friday.

Former Green Berets Luke Denman and Airan Berry admitted to taking part in the May 4 operation orchestrated by a third ex-U.S. soldier who remains in the United States, Venezuelan’s chief prosecutor Tarek William Saab announced on Twitter.

“THEY ADMITTED THEIR RESPONSIBILITY FOR THE FACTS,” Saab wrote, adding that the case will continue for dozens of other defendants. He did not offer details.

“Operation Gideon” was launched from makeshift training camps in neighboring Colombia and left at least eight rebel soldiers dead while a total of 66 were jailed. Former Green Beret Jordan Goudreau, who operated a private, Florida-based security firm called Silvercorp USA, claimed responsibility for the failed attack.

Venezuelan prosecutors announced that Denman and Berry, both decorated former U.S. service members, were found guilty of conspiracy, trafficking in illegal arms and terrorism.

The two Americans arrested in the coastal fishing community of Chuao have ever since been widely displayed by officials on Venezuelan state TV as proof of their long-held claims that the United States is set on overthrowing Maduro’s socialist government.

The incident also unleashed claims that U.S. backed opposition leader Juan Guaido had authorized Goudreau through a signed agreement to carry out the attack, executed by two of Guaido’s former political advisors.

Guaido and U.S. officials have denied any role in the attack. Secretary of State Mike Pompeo said Washington would use all possible means to win the freedom of Denman and Berry.

A day before authorities announced that the two ex-Green Berets were sentenced, Venezuelan authorities opened the trial of six American executives of the Houston-based Citgo company. The six men were arrested over two years ago in Venezuela on corruption charges.

The case had lingered for months until former New Mexico Gov. Bill Richardson met personally in July with Maduro in Caracas to urge they be released so they could return home to the United States.

Both play out amid hostility between Washington and Caracas. The Trump administration last year threw its support behind opposition leader Guaido, who declared he was Venezuela’s legitimate president, vowing to oust Maduro.

Guaido blames Maduro for the once wealthy nation’s economic and social collapse, while the socialist leader says Washington is manipulating Guaido to steal the nation’s vast oil wealth.

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As Trump bans WeChat, some in China turn to encrypted messaging app Signal

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The Signal Messenger app is displayed on a smartphone in Hong Kong, China.

Roy Liu | Bloomberg | Getty Images

President Donald Trump’s executive order banning American use of WeChat, the most popular app in China, takes effect next month, but some in China are already turning to an American app renowned for its privacy protections.

Downloads for Signal, an encrypted chat app that privacy advocates generally regard as best-in-class for everyday use, are spiking in China, a spokesperson for the app said Friday.

The Chinese government heavily regulates domestic internet use, funneling most of its citizens to WeChat, a multipurpose app that offers messaging, games and ridesharing options, among other uses. On Thursday, Trump, citing the likelihood that WeChat sends users’ data to the Chinese government, signed an executive order banning people and companies in the U.S. from engaging in “any transaction” with the app beginning Sept. 20.

It’s unclear whether that would require U.S. companies to cut off access to the app, but the order comes as Trump has threatened broad bans on Chinese tech companies operating in the U.S.

China’s Great Firewall, a censorship system that restricts citizens from directly visiting much of the internet, bans easy access to most other major Western chat programs. While a comparatively small number of Americans use WeChat, a ban would hamper those who use the app to communicate with friends, family or business associates in China.

But Signal isn’t blocked by the Great Firewall, both for iPhones via the App Store and Android via a direct download from Signal’s website, as Google’s Play Store is blocked.

“We are actually not banned in China, believe it or not,” said Jun Harada, a spokesperson for Signal.

While he declined to share actual download numbers because of a policy of not sharing user data, he said downloads in China began to skyrocket in the hours before Trump’s ban. “It’s looking to be on par if not bigger than when we made it to #1 in the App Store in Hong Kong,” he said, referring to a spike in downloads there last month, when China began implementing its National Security Law, which gave the country broad powers to crack down on protests in Hong Kong.

“We think that has helped us to get more mainstream awareness within China but also with the Chinese diaspora,” Harada said.

Signal gets high marks from privacy experts because it stores little information about its users and its messages are end-to-end encrypted, meaning a government that accesses them in transit would only see them encoded.

Yaqui Wang, a China researcher at Human Rights Watch, said she has long used Signal to communicate with people inside China, but cautioned that the government there could move to block it if it catches censors’ eyes, making it all the more difficult for people in the U.S. and China to communicate directly.

“Chinese authorities can block Signal if its popularity surges, just as it did to WhatsApp and Telegram,” Wang said.

“The bifurcation of the internet, the formation of two paralleled information and communication universes is becoming increasingly evident,” she said.

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City in China’s Inner Mongolia issues warning after bubonic plague patient dies

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Authorities in a city in the Chinese region of Inner Mongolia issued a warning after a patient who had bubonic plague died of multiple organ failure, state media reported on Saturday.

Cases of plague are not uncommon in China, although outbreaks have become increasingly rare. From 2009 to 2018, China reported 26 cases and 11 deaths.

The patient was confirmed to have bubonic plague, the People’s Daily reported, citing an announcement from the health committee of the Bayan Nur city. The bubonic plague, known as the “Black Death” in the Middle Ages, is a highly infectious and often fatal disease that is spread mostly by rodents.

The committee issued a third-level alert, the second lowest in a four-level system, effective Friday to the end of 2020 to prevent the spread of the disease, the People’s Daily reported.

This marks the second death of a plague patient reported this month in the Inner Mongolia region.

Residential buildings in Baotou city, Inner Mongolia.

Simon Song | South China Morning Post | Getty Images

On Thursday, authorities in Baotou city, which is adjacent to Bayan Nur city, reported that a patient with an “intestinal-type plague” died of circulatory system failure.

Bayan Nur authorities have locked down the area where the dead patient lived and quarantined seven close contacts of the patient, who have tested negative for the disease so far and taken preventive medicines.

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