America's big banks are reacting to President Donald Trump's executive order on diversity, equity and inclusion, scrubbing public mentions amid fear of federal investigations or potential litigation.
Morgan Stanley, JPMorgan, and Citigroup are among the banks to remove or massage DEI language in recent weeks, The Wall Street Journal reported Monday.
"In the private sector, many corporations and universities use DEI as an excuse for biased and unlawful employment practices and illegal admissions preferences, ignoring the fact that DEI's foundational rhetoric and ideas foster intergroup hostility and authoritarianism," the White House wrote in its Jan. 22 fact sheet.
"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."
JPMorgan Chase expects to face criticism on some of its business practices on DEI, according to a regulatory filing Friday.
The largest U.S. bank "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)," the filing said.
The bank's latest annual filing has only one mention of DEI, in contrast with six mentions in the previous year.
Big corporations have been facing increasing pressure from conservative groups to cut back on DEI policies aimed at boosting racial and ethnic representation at workplaces.
Wall Street giant Goldman Sachs said it had ended a DEI pledge tied to the investment bank's initial public offering business.
Other major U.S. companies such as Apple and Meta Platforms have dropped or considered altering their DEI policies following President Donald Trump's executive order to curtail such programs at the federal and private level.
Information from Reuters was used to compile this report.