Can The Finance Industry Hold On To Its Diversity Gains?

Plus: 3 Ways The COVID-19 Pandemic Could Change Disability Policies

Morning Banter

Access to capital has long been a challenge for minority business owners. But over the years, banks have stepped up to provide underrepresented entrepreneurs with the resources needed to build and scale their companies.

Much of their investments in diversity initiatives, however, have taken place within the last five years, during periods of robust economic growth. As the coronavirus recession looms, some wonder whether Wall Street will continue to prioritize diversity programs.

In 2018, Morgan Stanley executive Carla Harris warned that the next bear market would test Wall Street’s diversity push. “Diversity and inclusion has long been a bull-market phenomenon. When things are going well, we spend lots of money,” she said at the time.

But as the finance industry prepares for a prolonged economic downturn, Harris says that it has no choice but to continue to prioritize diversity efforts. “I wanted people to be mindful that when we got back into this [bear market] situation...if they didn't want to see the same scenario that we've had over the last 20 years, they were going to have to be consistent,” she tells Forbes.

As for Morgan Stanley, which recently kicked off its annual startup accelerator for diverse founders, she says that diversity remains a topic of conversation.

Have some insight? I want to hear from you. Send me an email at rumoh@forbes.com.

Fill In The Blank

___ in five investors say that incorporating more women and multicultural entrepreneurs is not a firmwide priority. (Answer located at the bottom of this newsletter.)

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Up Ahead

• Attend the virtual Women Tech Founders conference on April 24, where female trailblazers will share insight on adapting and creating in an uncertain world.
• Join For(bes) The Culture on April 27 for an Instagram Live discussion on maintaining mental wellness.

Quiz answer: When asked if incorporating more women and multicultural entrepreneurs is a firmwide priority, three in five investors said no, according to a survey.