WASHINGTON – Today, the U.S. Department of the Treasury’s Assistant Secretary for Financial Institutions Graham Steele and Counselor for Racial Equity Janis Bowdler convened a discussion to address financial barriers faced by people who have come in contact with the criminal justice system or have been previously incarcerated. The event included insights from experts who have firsthand experience with these challenges, discussion of the underlying barriers to accessing banking services, and a conversation between regulators, financial institutions, and non-profit organizations to foster collaboration towards inclusive financial solutions.
While access to a bank account plays a pivotal role in financial well-being and for economic security and mobility, research has indicated that individuals re-entering society often encounter challenges in accessing bank accounts and affordable financial services, leading them to resort to high-cost options or go without financial products and services. This can lead to long-term negative effects for these individuals, their families, and communities, particularly people of color, women, and low-income communities. Pursuant to the goals in the May 2022 Executive Order “Advancing Effective, Accountable Policing and Criminal Justice Practices to Enhance Public Trust and Public Safety,” the Treasury Department is working with the White House-organized Alternative Re-entry Committee to dismantle banking barriers for individuals involved in the criminal justice system striving for societal reintegration. As part of these efforts, the Department is hosting sessions with stakeholders and regulators to discuss this critical issue and illuminate the barriers that impede these communities from using banking services.
The conversation, moderated by CNN commentator and former South Carolina State House Representative Bakari Sellers and Senior Advisor to the Assistant Secretary for Financial Institutions Chastity Murphy, included representatives from nearly 70 national civil rights and legacy organizations, advocacy and consumer organizations, individuals involved in the criminal justice system and related organizations, federal financial agencies, Community Development Financial Institutions and respective trade organizations, banks and respective trade organizations, immigrant groups, academic and legal experts, and credit reporting agencies and respective trades.
In addition, the event included remarks from several principal regulators across the federal government:
- Rohit Chopra, Director, Consumer Financial Protection Bureau
- Martin Gruenberg, Chair, Federal Deposit Insurance Corporation
- Mike Hsu, Acting Comptroller, Office of the Comptroller of the Currency
- Kristin Johnson, Commissioner, Commodity Futures Trading Commission
- Todd Harper, Chairman, National Credit Union Administration
- Vanessa Chen, Special Assistant to the President, Domestic Policy Council
In the coming months, the Treasury Department will release a fact sheet that outlines the commitments made by financial institutions, financial regulators, and nonprofit organizations to overcome barriers in accessing capital and bank accounts.
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