Diversity at the Fed before and after the GFC.

Time for another #FedThread

- Diversity on Boards
- The GFC
- The data
- Gender
- Race
- Age
- Sector
- Geography

[1/17]
Before jumping into analysis, I wanted to highlight four cool steps towards diversity requirements on Boards of Directors:
(a) Nasdaq will require at least one woman and one diverse director for all companies whose stock is traded on the exchange. https://www.nytimes.com/2020/12/01/business/dealbook/nasdaq-diversity-boards.html?referringSource=articleShare

[2/17]
Nasdaq Pushes for Diversity in the Boardroom

It will ask the S.E.C. to approve a new rule requiring more diverse corporate directors.

https://www.nytimes.com/2020/12/01/business/dealbook/nasdaq-diversity-boards.html?referringSource=articleShare
(b) Goldman now requires at least one diverse board member for companies it takes public. https://www.goldmansachs.com/what-we-do/investing-and-lending/launch-with-gs/pages/commitment-to-diversity.html
(c) CA passed a law requiring public companies headquartered in CA have at least one director from underrepresented communities. https://corpgov.law.harvard.edu/2020/10/10/new-law-requires-diversity-on-boards-of-california-based-companies/

[3/17]
New Law Requires Diversity on Boards of California-Based Companies

In a move that continues California’s push for increased diversity on corporate boards, Governor Gavin Newsom on September 30, 2020 signed into law a bill that requires publicly held companies...

https://www.goldmansachs.com/what-we-do/investing-and-lending/launch-with-gs/pages/commitment-to-diversity.html
(d) This CA law is similar to one on gender from a few years ago that so far has increased female directors by 66.5%. https://www.lexology.com/library/detail.aspx?g=6f5d19b8-dab7-4c6a-9df2-3497efa7a24f
Ht @andrewrsorkin @jkaraian @LaurenSHirsch @el72champs

[4/17]
The Global Financial Crisis (GFC) was a wild-fire that ran rampant through the financial system ‘07-’09. The resulting Great Recession left millions of families out of work and financially devastated.

[5/17]
Policy makers stretched the boundaries of historical precedent in attempts to stop their collapsing economies from crashing through the floor. Yet despite the drastic emergency measures, the pain of severe unemployment took years and years to recover - some never did.

[6/17]
The GFC had a profound impact on our society, including dramatic populist political movements and a further erosion in trust in experts and policymakers.

This dramatic event surely impacted the make-up of leadership at the Fed, right?

[7/17]
My hypothesis was that the directors after the GFC would be more female, more nonwhite, younger, more with a background in Labor, and more from outside of the reserve city.

Of the five measures - I was correct on two and incorrect on three.

[9/17]
Gender:

Excellent increase! All the districts increased except @bostonfed who had the most pre-GFC

[10/17]
Gender:Excellent increase! All the districts increased except @bostonfed who had the most pre-GFC[10/17]
Gender:Excellent increase! All the districts increased except @bostonfed who had the most pre-GFC[10/17]
Gender:Excellent increase! All the districts increased except @bostonfed who had the most pre-GFC[10/17]
Gender cont.:

Sad to see how few female bankers

A pattern you’ll see repeated - the Class C directors (the ones appointed by the Fed folks in DC) are way ahead of the people elected by the bankers

[11/17]
Gender cont.:Sad to see how few female bankersA pattern you’ll see repeated - the Class C directors (the ones appointed by the Fed folks in DC) are way ahead of the people elected by the bankers[11/17]
Gender cont.:Sad to see how few female bankersA pattern you’ll see repeated - the Class C directors (the ones appointed by the Fed folks in DC) are way ahead of the people elected by the bankers[11/17]
Gender cont.:Sad to see how few female bankersA pattern you’ll see repeated - the Class C directors (the ones appointed by the Fed folks in DC) are way ahead of the people elected by the bankers[11/17]
Race:

Doubled! ...from 12% to 23% of the total newly elected/appointed directors

[12/17]
Race:Doubled! ...from 12% to 23% of the total newly elected/appointed directors[12/17]
Race:Doubled! ...from 12% to 23% of the total newly elected/appointed directors[12/17]
Race:Doubled! ...from 12% to 23% of the total newly elected/appointed directors[12/17]
Race cont.:

Again, sad to see how few nonwhite bankers

Most of the nonwhite directors are appointed by the Fed in DC

[13/17]
Race cont.:Again, sad to see how few nonwhite bankersMost of the nonwhite directors are appointed by the Fed in DC[13/17]
Race cont.:Again, sad to see how few nonwhite bankersMost of the nonwhite directors are appointed by the Fed in DC[13/17]
Race cont.:Again, sad to see how few nonwhite bankersMost of the nonwhite directors are appointed by the Fed in DC[13/17]
Age:

Very little change. Average age is glaringly consistent over the last two decades.

[14/17]
Age: Very little change. Average age is glaringly consistent over the last two decades.[14/17]
Age: Very little change. Average age is glaringly consistent over the last two decades.[14/17]
Age: Very little change. Average age is glaringly consistent over the last two decades.[14/17]
Age: Very little change. Average age is glaringly consistent over the last two decades.[14/17]
Sector:

Sadly the number of newly elected/appointed directors with a background in either Labor or Community/Consumer sectors actually decreased.

[15/17]
Sector:Sadly the number of newly elected/appointed directors with a background in either Labor or Community/Consumer sectors actually decreased. [15/17]
Sector:Sadly the number of newly elected/appointed directors with a background in either Labor or Community/Consumer sectors actually decreased. [15/17]
Sector:Sadly the number of newly elected/appointed directors with a background in either Labor or Community/Consumer sectors actually decreased. [15/17]
Sector:Sadly the number of newly elected/appointed directors with a background in either Labor or Community/Consumer sectors actually decreased. [15/17]
Geography:

In the whole analysis this one was probably the most surprising. The number of directors from outside of the reserve city actually decreased slightly.

[16/17]
Geography:In the whole analysis this one was probably the most surprising. The number of directors from outside of the reserve city actually decreased slightly. [16/17]
Geography:In the whole analysis this one was probably the most surprising. The number of directors from outside of the reserve city actually decreased slightly. [16/17]
Geography:In the whole analysis this one was probably the most surprising. The number of directors from outside of the reserve city actually decreased slightly. [16/17]
I’ll end with this reminder from a few days ago in response to another call-to-action @Claudia_Sahm blog post

https://twitter.com/KalebNygaard/status/1333935918139535370?s=20

[17/17]
I've started a sub stack...because I'm sure I can get real rich with my #fedthreads!! hahaha, jk of course - it's just a cleaner and easier to share article version of the thread. https://kalebnygaard.substack.com/p/diversity-on-the-federal-reserve
Diversity on the Federal Reserve Bank Boards Before and After the GFC

Part II in the ongoing series using the new biographical database of all the directors in the history of the Fed.

https://kalebnygaard.substack.com/p/diversity-on-the-federal-reserve
You can follow @KalebNygaard.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:
Those who think consciousness raising & movement building are disconnected, or even a distraction from electoral politics have not paid attention to the history of social change.In this thread, we
Read more
The 2020s will be known as the Remote Work decadeA few predictions of what is likely to emerge[ a thread ] Third Space: Office and Working from Home will
Read more
1/29: Have you ever had a concept explained to you that helps frame complex issues you’ve been wrestling with and opens your eyes to new possibilities? A concept that I
Read more
By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.