CONYERS Leads Effort for Diversity In Federal Reserve Bank Leadership

Washington, DC - Reps.  John Conyers, Jr. (D-MI), Ranking Member on the Judiciary Committee;  John Lewis (D-GA), a senior member of the House Ways & Means Committee; David Scott (D-GA), a senior member of the Financial Services Committee; and Maxine Waters (D-CA), Ranking Member on the Financial Services Committee, urged the Federal Reserve to conduct an inclusive, transparent search for the next President of the Reserve Bank of Atlanta, one that engages candidates from many diverse backgrounds.

Dean of the U.S. House
of Representatives
John Conyers, Jr.

In a letter to Federal Reserve Chair Janet Yellen and Thomas Fanning, Chairman of the Atlanta Fed, the Members emphasized the need for Federal Reserve policymakers to account for our nation’s grave racial disparities in terms of unemployment, wages, and income in the development of monetary policy, especially since the economic downturn severely damaged the already tenuous financial security of traditionally underserved communities.  In the sixth Federal Reserve district, where the new president will serve, unemployment and poverty rates for African-Americans, for example, are about double those for white Americans.

Presidents of the 11 other reserve banks have all worked for major financial firms or at the Federal Reserve before their appointments.  The Members urged the Fed to consider a wider range of backgrounds, including academia, labor, and non-profit institutions, to capture the perspectives of all Americans as they develop economic policy.  Since the appointment of Andrew Brimmer to the Federal Reserve Board of Governors by Lyndon Johnson, there have been only a few minority governors, and no African-American or Latino bank presidents have ever been appointed.  Currently there is one Asian bank president, Neel Kashkari, who heads the Reserve Bank of Minneapolis.

A report by the Center for Popular Democracy in February 2016 showed that the overwhelming majority of Reserve Bank directors and presidents are white, and there has never been an African-American or Latino Federal Reserve Bank president in the Fed’s history.  In May, 127 Members of Congress, led by Congressman John Conyers, Jr., signed a letter urging for more diversity and a greater focus on high employment in minority communities at the Fed. 

“Selecting the first African-American or Latino Regional Bank president would be a historic milestone for the Federal Reserve, and I greatly appreciate Chair Yellen’s focus on increasing diversity.  But given the Fed’s long history of prioritizing low inflation over job creation, the candidate also should be truly committed to full employment and possess deep knowledge of labor market disparities that too often leave workers, especially workers of color, behind,” said Rep. John Conyers, Jr., Ranking Member on the House Judiciary Committee and Chair of the Congressional Full Employment Caucus.

“With this search, the Federal Reserve has a unique opportunity to restore confidence in our financial system by including the perspectives and experiences of a wider range of Americans,” Rep. John Lewis said.  “Metro Atlanta was hit hard by the Great Recession, and many people in the South are still mired in poverty due to that downturn.  In light of recent crises, the Federal Reserve should look far and wide to find the best person for this important job, not only within its own network.  The Fed has a responsibility to ensure that the financial needs of the most vulnerable are considered within the policymaking process.”                                      

“The Federal Reserve has an opportunity to do something very significant with the recent retirement announcement of the current President of the Atlanta Federal Bank,” said Rep. David Scott.  “We’ve never had an African American Regional Fed president.  I’m asking the Federal Reserve to take this opportunity to make history.  We have many exceptionally qualified African Americans who can do this.”

In September, Atlanta Federal Reserve President Dennis Lockhart announced his retirement, effective in February 2017.  To find a new president, the Directors of the Federal Reserve Bank of Atlanta will identify and consider candidates, who then must be interviewed and approved by the Federal Reserve Board of Governors.  The Federal Reserve Bank of Atlanta is one of 12 regional Reserve Banks and covers Georgia, Florida, Alabama, eastern Tennessee, southern Mississippi, and southern Louisiana.

Congressman Conyers launched the 32-member Congressional Full Employment Caucus in February 2014. Full employment is defined as the lowest possible unemployment rate that the economy can reach. Congressman Conyers has introduced several pieces of legislation to further that goal:  H.R. 1000, the Humphrey-Hawkins 21st Century Full Employment and Training Act of 2015, which would tax Wall Street speculation to guarantee a job or training to every American who wants to work; H.R. 3531, The Full Employment Federal Reserve Act, which instructs the Federal Reserve bank to target a four percent national unemployment rate – the rate reached in the late 1990s; and H.R.3674, The Labor Statistics Improvement Act, which would create a commission to ensure that unemployment statistics accurately reflect the reality on the ground for job seekers. The Congressional Full Employment Caucus serves as a platform and working group for Members of Congress who are dedicated to identifying solutions and advocating for legislative action to reduce unemployment. 

Congressional Letter to Federal Reserve About Federal Reserve Bank of Atlanta Presidential Search by Beverly Tran on Scribd

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Waters, Conyers, Johnson Lead Over 60 House Democrats in Letter Supporting CFPB Arbitration Proposal

Members Urge Swift Action to Finalize Rule to Restore Consumers’ Rights

WASHINGTON – 65 House Democrats, led by Reps. Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services; John Conyers, Jr. (D-MI), Ranking Member of the Committee on the Judiciary; and Henry C. “Hank” Johnson, Jr. (D-GA), Ranking Member of the Subcommittee on Regulatory Reform, Commercial and Antitrust Law, sent a letter to the Consumer Financial Protection Bureau expressing strong support for its proposal to limit forced arbitration in consumer contracts. The rule would ban class-action waivers in forced arbitration agreements for financial products and services, restoring consumers’ right of action when harmed by financial institutions. In the letter to Director Richard Cordray, the Members wrote that the proposed rule “is a critical step to protect the public interest by ensuring that consumers receive redress for systemic unlawful conduct.” Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress directed the CFPB to research the impact of forced arbitration clauses and promulgate a rule that would be in the public interest and for the protection of consumers. The CFPB proposed the rule in May after conducting a three-year, in-depth study on the landscape of consumer arbitrations. “By restricting class actions and class-wide arbitration in consumer contracts, these clauses enable corporations to avoid public scrutiny by precluding access to the courts,” the letter states. “This is particularly problematic for small, diffuse misconduct that harms innumerous consumers.” The Members encouraged Director Cordray to proceed quickly on the rule “to ensure that consumers have equal protection under the law.”

Conyers, Johnson, Waters Lead Over 60 House Democrats in Letter Supporting CFPB Arbitration Proposal by Beverly Tran on Scribd

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Conyers & Congressional Advocates Announce Creation of Full Employment Caucus

(WASHINGTON) – Today, in response to the ongoing jobs crisis in America, Representatives John Conyers, Jr. (D-Mich.), Frederica Wilson (D-Fla.), Charles Rangel (D-N.Y.), Maxine Waters (D-Calif.), Barbara Lee (D-Calif.), Sheila Jackson Lee (D-Texas), José Serrano (D-N.Y.), and Mike Quigley (D-Ill.) announced the creation of a Congressional Full Employment Caucus. To end the unacceptably high rate of unemployment and underemployment in the United States - and achieve a truly full employment society - more than 24 million jobs need to be created. The Congressional Full Employment Caucus will serve as a platform and working group for Members dedicated to identifying solutions to our current unemployment crisis and advocating for legislative action. Ultimately, the goal of the Caucus is to realize the dream of a society in which every American who wants to work has the right to some form of employment. After the establishment of the Congressional Full Employment Caucus was finalized, the Representatives in attendance issued the following statement:

Congressman John Conyers, Jr. and Congresswoman Frederica Wilson, joined by their colleagues Congressman Charles Rangel and Congresswoman Barbara Lee, announcing the creation of a Congressional Full Employment Caucus.

Congressman John Conyers, Jr. (D-Mich.): “For far too long, the plight of the unemployed and underemployed in the United States has been - at best - ignored by Congress, or encouraged - at worst - by callous austerity-minded policies. When more than 24 million of our family members, friends, and neighbors are out of work, we cannot allow this to continue or become the new normal in America. It is for this reason that I have come together with a coalition of concerned Representatives from all corners of the country to form the Congressional Full Employment Caucus. Together, we will craft legislative responses to address the jobless crisis - like my ‘Humphrey Hawkins Full Employment and Training Act’ - and serve as advocates, working towards a society in which employment is recognized as a fundamental human right. As Congress shifts its attention to legitimate concerns over gaping income inequality in the United States, we must not forget about the millions of Americans who lack an income to begin with through no fault of their own. Our work with the Congressional Full Employment Caucus will ensure that the unemployment crisis never leaves Congress’s radar until millions of hardworking Americans are able to find work once again.”

Congresswoman Frederica Wilson (D-Fla.): “With nearly 30 million Americans unemployed or underemployed, Congress has a moral obligation to make full employment a reality.  We’ve formed this caucus to fight for a 21^st Century New Deal. This means making sure there are no more collapsed bridges, contaminated water, or falling positions in global education rankings.  It also means restoring the dignity of work for millions of people.”

Congressman Charles B. Rangel (D-N.Y.): "In America, if you work hard and play by the rules, you should have the opportunity to succeed. When thousands of men and women work full time but need food stamps to put food on their tables, when they can't get health benefits, when they can't get paid sick days, then we must do whatever we can to stand up for them. In his State of the Union Address, the President has reminded the country that, with optimism for the future and action on all of our parts, we can expand economic opportunities for everyone in America. I look forward to work with Members of the Full Employment Caucus to advancing the set of concrete, practical proposals he has laid out to help more Americans find work, and more workers find the economic security they deserve."

Congresswoman Maxine Waters (D-Calif.): “As Congressional leaders, we must focus on long-term strategies that put every American back to work. Our country’s economic recovery will not be complete until we eradicate the chronic unemployment that plagues each and every one of our communities. Collectively, this caucus will work hard to ensure that all Americans are fully employed and set on a sustained path to economic prosperity.”

Congresswoman Barbara Lee (D-Calif.): “The creation of this Caucus provides a crucial platform for our colleagues in Congress and builds on the great efforts of the Humphrey-Hawkins Full Employment Act of 1977, that I had the honor of working on as a Congressional staffer decades ago. This Caucus will continue that call to justice by working with advocates and job creators, to take an active role in creating the 24 million new jobs needed to end unemployment and underemployment, to reach full employment, and ultimately to grow an economy that works for all and eliminates poverty in America. We all know that the best way to tackle the deficit is full employment, and the best way to lift folks out of poverty is a good paying job. This Caucus will join with other caucuses in Congress, the Out of Poverty Caucus, the Progressive Caucus, and others, to reignite the American dream.”

Congresswoman Sheila Jackson Lee (D-Texas): “Nearly 1.3 million long-term unemployed workers, including the 64,000 Texas residents, lost their unemployment insurance when benefits expired on December 28. I am proud to be a Member of the Congressional Full Employment Caucus – a Caucus that will work diligently and effectively to find solutions to our current unemployment crisis while advocating for any and all legislative strategies to combat the issue at hand.”

Congressman José Serrano (D-N.Y.): “I was proud to join the Full Employment Caucus, to focus on creating and sustaining good jobs. In too many of our communities – particularly the Hispanic and black communities – unemployment is at levels not seen in the rest of the nation since the Great Depression. We cannot rest until people in all communities have access to good jobs as well as the training and skills they need get them. Our nation is stronger when everyone is employed.”

Congressman Mike Quigley (D-Ill.): “Even as America’s economy is steadily improving, American workers are being left behind. Congress has a responsibility to change that, which is why I’m proud to join this effort and work towards meaningful legislation that will create jobs, grow our economy and strengthen the middle class.”

Congressman John Conyers, Jr. and Congresswoman Frederica Wilson, joined by their colleagues Congressman Charles Rangel and Congresswoman Barbara Lee, announcing the creation of a Congressional Full Employment Caucus.

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