Wall Street’s leading investment banking firms are offering career opportunities to college students with a caveat – applicants are expected to belong to specific racial and gender identity categories.
Companies like Morgan Stanley, JPMorgan Chase, and Bank of America have programs designed to increase diversity by prioritizing students based on their race and gender. However, legal experts have raised concerns that these programs may violate federal civil rights laws.
University of Michigan-Flint professor emeritus Mark Perry, who has filed numerous civil rights complaints against colleges, stated that these programs likely violate federal civil rights laws, including Title VI, Title VII, Title IX, and Section 1981 of the Civil Rights Act of 1866. He described them as discriminatory based on race, color, national origin, sex, gender identity, or sexual orientation.
The programs often encourage specific racial and gender groups to apply but include statements suggesting that they are open to all eligible students. For instance, Bank of America offers MBA Diversity Fellowships to “Black/African American, Hispanic/Latino, Native American, military veterans, LGBT+, students with disabilities, and women in their first year of business school”.
While they aim to target underrepresented groups, they claim to be open to all eligible students regardless of background.
Legal experts argue that merely stating that other racial groups are eligible to apply may not be enough to guarantee legal protection if these programs provide racial preferences.
Goldman Sachs is hosting a diversity symposium that is restricted to individuals who “identify as Black, Hispanic/Latinx, Native American, or women”. This has raised concerns about potential discrimination in employment decisions.
A Goldman Sachs spokesperson told the DCNF the company regularly hosts “a variety of information sessions to increase awareness of opportunities at the firm for all students both on and off campus”.
“Whether these programs violate state and federal civil rights law turns on whether they are employment opportunities—as opposed to mere outreach efforts”, Canaparo told the DCNF.
While Goldman Sachs’ symposium seems to be “outreach only”, the Morgan Stanley program guarantees a job interview to attendees, Canaparo noted.
“That may be enough to bring it within the reach of civil rights laws”, Canaparo said.
Bernstein said Goldman Sachs’ program could potentially be used “as evidence of intent to discriminate” in legal action brought by a white individual.
Otherwise, he said “a regulatory body would have to go after this”, given that there is no contract or employment decision involved.
Corporate diversity practices have increasingly faced legal challenges from conservative groups. These lawsuits highlight the ongoing debate over affirmative action, diversity, and inclusion in the corporate world.
