Beatty Rule Earns Praise at Financial Services Committee Hearing
Press Release
During a June 20th House Financial Services Committee hearing on "Diversity in the Boardroom: Examining Proposals to Increase Diversity of America's Board," U.S. Congresswoman Joyce Beatty's (OH-03) signature piece of legislation, the Ensuring Diverse Leadership Act, H.R. 281, was one of several legislative proposals closely examined. If enacted, the Beatty Rule would require that at least one gender diverse candidate and racially or ethnically diverse candidate are interviewed when there is a vacancy among the Federal Reserve Bank presidents.
"This is an amazing day for the Financial Services Committee because what we are talking about today is historic," Beatty said at the hearing. "The positive effects of having a diverse slate of talented candidates for any job cannot be overstated. My bill, the Beatty Rule, does exactly that--it ensures a more talented pool of applicants when a position is open among the 12 Federal Reserve Regional Bank presidents." She continued, "I urge my colleagues to join me in my mission to create an economy that reflects the unique experiences and responds to the needs of all Americans."
H.R. 281 is modeled after the National Football League's (NFL) "Rooney Rule," which was instituted in 2003 to increase diversity among top positions in the League. Under the Rooney Rule, at least one minority must be considered for any head coach and general manager vacancy. In the 12 years before the Rule went into effect, the NFL had only six non-white head coaches; under the Rule the League has since had 18 total head coaches of color.
Established in 1913, the Federal Reserve has had more than 130 different presidents of Regional Banks. Of those presidents, Atlanta Federal Reserve President Raphael Bostic is the first and only African-American to serve in that capacity. Moreover, eight of the twelve Federal Reserve Banks have never had a woman president, with the first woman not serving in the role until 1982.
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