In a much-needed reversal, major U.S. banks are scrubbing their Diversity, Equity, and Inclusion (DEI) initiatives, distancing themselves from divisive programs that have done more harm than good. Morgan Stanley, JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America are among the financial giants that are not only deleting DEI-related language from their websites and reports but also actively dismantling programs that prioritized ideology over merit. This welcome shift reflects a broader corporate correction against woke excesses, driven by legal risks, financial prudence, and political pressure—especially under President Donald Trump’s administration.
Trump’s Crackdown: Ending the DEI Grift
The about-face on DEI is a direct response to President Trump’s bold executive order directing federal agencies to investigate and penalize companies engaging in discriminatory hiring practices under the guise of DEI. As the administration rightly pointed out, “Billions of dollars are spent annually on DEI, but rather than reducing bias and promoting inclusion, DEI creates and then amplifies prejudicial hostility and exacerbates interpersonal conflict.”
The legal landscape has also shifted. After the Supreme Court’s 2023 decision striking down affirmative action in college admissions, it became clear that corporate DEI programs would soon face similar legal challenges. Banks are wisely getting ahead of potential lawsuits by gutting race-based hiring and scholarship programs. As JPMorgan Chase noted in its latest annual filing, the company “has been and expects that it will continue to be criticized by activists, politicians and other members of the public concerning business practices or positions taken by JPMorgan Chase with respect to matters of public policy (such as diversity, equity and inclusion initiatives).” Rather than bowing to activists, banks are now taking the sensible step of eliminating these costly and legally dubious programs.
Leading the Charge: Banks That Are Doing the Right Thing
Morgan Stanley has already begun modifying its so-called diversity scholarship, previously reserved for “historically underrepresented” groups. Instead of pandering to identity politics, the program will now focus on economic need, opening the door to truly deserving applicants rather than those selected based on race.
JPMorgan Chase, which once loudly trumpeted its DEI commitments, has significantly scaled back its language. In its 2023 report, it boasted about “global Diversity, Equity & Inclusion centers of excellence.” By 2025, the section was gone. A workforce demographics table previously titled “Diversity, Equity, and Inclusion” has been appropriately renamed “Workforce Composition.” HSBC, another financial powerhouse, has taken even stronger measures, reducing its DEI webpage from 1,000 words to fewer than 100, cutting out all unnecessary virtue-signaling.
Goldman Sachs has also joined the movement, abandoning its ill-advised requirement that companies seeking IPOs must have a diverse board. The bank cited “legal developments related to board diversity requirements” as the reason. In reality, they’re simply recognizing the obvious: DEI-driven policies that prioritize identity over competence make no business sense.
Even Citigroup has backed away from its more radical DEI initiatives, quietly removing materials that promoted credit card name changes for transgender and nonbinary customers. While this might seem like a small step, it reflects a broader shift—corporations are realizing that pushing woke agendas does not translate to profit.
The Consequences of Keeping DEI: Legal and Financial Disaster
Companies that stubbornly cling to DEI face serious risks. Conservative activists and legal watchdogs are increasingly targeting businesses that maintain discriminatory hiring and promotion practices. Shareholder proposals aimed at gutting DEI programs are gaining traction, and whistleblowers now have the backing of a federal administration that views these initiatives as unlawful. The message is clear: continue DEI at your own peril.
Even some business leaders have admitted that DEI was an expensive mistake. JPMorgan CEO Jamie Dimon, once a vocal supporter of these initiatives, recently expressed frustration with how much money had been wasted. “I saw how we were spending money on some of this stupid s—, and it really pissed me off,” he said, signaling an overdue shift toward fiscal responsibility.
Canada’s Push for Even More DEI
While America is waking up to the dangers of DEI, Canada is doubling down on it. The Canadian government is proposing new regulations that would force banks to disclose the racial and gender composition of their leadership and implement additional diversity mandates. According to the proposal, “Diversity is fundamental to creating a thriving and successful financial sector that reflects Canadian values.” In reality, this is just another example of Canada’s obsession with performative wokeness at the expense of meritocracy and economic growth.
Unlike their American counterparts, Canadian banks are being forced to appease radical bureaucrats who seem more concerned with identity quotas than financial stability. If they continue down this path, they will suffer the same fate as woke corporations that prioritized activism over profitability—stagnation and decline.
A Return to Sanity?
The long-overdue rejection of DEI by major financial institutions is a major victory for fairness, competence, and economic sense. As more banks and corporations recognize the legal and financial dangers of these programs, expect to see even more companies quietly abandon them. While some may attempt to disguise diversity initiatives under new branding, the days of overt DEI virtue-signaling are coming to an end.
The corporate world should take a lesson from the banks leading this charge: focus on hiring the best people, serving customers effectively, and staying out of divisive political battles. Meritocracy is making a comeback, and not a moment too soon.
