Banks Targeted by Attorney Generals

On January 21, 2025, President Donald Trump, through Executive Order, declared affirmative action and Diversity, Equity, and Inclusion programs unlawful in the federal government and also for those employers who enter into contracts with the federal government. As part of his Executive Order, Present Trump required the heads of all federal agencies to “encourage the private sector to end illegal discrimination and preferences, including DEI.” He required each federal agency to identify nine civil compliance investigations aimed at publicly traded companies.

Ten State Attorney Generals in support of the Executive Order recently collaborated to target JPMorgan Chase, Bank of America Corporation, Morgan Stanley & Co., Goldman Sachs Group, Citigroup Inc., and BlackRock for their DEI efforts. Specifically, the Attorney Generals cited that the financial institutions seemingly considered race and sex when selecting their vendors, and their boards, and also “embraced race- and sex-based quotas and to have made business and investment decisions based not on maximizing shareholder and asset value, but in the furtherance of political agendas.” The Attorney Generals’ letter is linked here. Where does that leave our financial institutions, corporate America, and our smaller, private employers? As employers navigate the tension between the Executive Order and their own DEI efforts, we are here to offer our support and guidance.