Weighing in late, but our bank is taking the Buffett position on this subject. The family members and board of our family-owned bank are divided politically, but we manage to work in harmony in the business. We for the most part extend the "shut up" strategy to our personal social media also. I have rarely regretted keeping my mouth shut, and I haven't noticed anyone missing my opinions on those hot-button issues.
Barb, good to hear from you again, and I always enjoy reading John's and Neil's comments.
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Mary Fowler
Chief Executive Officer
The Peoples Bank
Magnolia, AR
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Original Message:
Sent: 06-27-2022 16:20
From: Barb Rehm
Subject: Tuesday Topic: Weighing In On Roe?
Debate over high-profile cultural questions – gun control, abortion rights – is making it harder than ever to be a banker. Companies that remain quiet are subject to public pressure and criticism of complacency while ones that speak out risk angering customers, suppliers, and employees.
Following the 2018 mass shooting at Parkland High School in Florida, Citigroup told retailers it wouldn't do business with them if they sold guns to people under the age of 21. The bank's execs hoped competitors would follow suit. None did, and Citi ended up losing significant state business in Louisiana and Texas, and it lost Bass Pro Shops as a client.
Warren Buffett, who took a $3 billion stake in Citi earlier this year, recently said the best approach is to "basically shut up." "You can make a whole lot more people sustainably mad than you can make temporarily happy by speaking on any subject," he said at Berkshire Hathaway's most recent annual shareholders meeting. "And on certain subjects, they will take it out on our companies."
After the Supreme Court's decision Friday to overturn Roe v. Wade, Citi and JPMorgan told workers the banks would cover their travel to states where they could have legal abortions. Goldman Sachs and Bank of America followed suit, as did Starbucks, Tesla, Microsoft, Mastercard, and Amazon.
Of course, offering to cover travel costs for abortions isn't quite the same as, say, refusing to do business in states that prohibit abortions. Nor did the large national banks make bold public statements against the ruling; they simply said their decisions were about ensuring equal access to health care.
Some community bank execs reacted much more strongly- particularly those located in blue states. "I stand in disbelief," said Laurie Stewart, President and CEO of Sound Community Bank in Seattle. The ruling will create a "workplace equity issue" that ultimately harms companies and workers alike, added Maura Keaney, first Vice President of Amalgamated Bank in New York City.
Is your board and/or senior team discussing the pros and cons of speaking out one way or the other on Roe? What factors do you weigh: public opinion polling, your personal beliefs, the demographics of your customer base? Do you have any policies in place to deal with these questions? What role, if any, do you think banks have in these sorts of societal debates? There are no easy answers here, but as always, I'd be fascinated to hear your thoughts.
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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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