Trump Administration's Potential Crackdown on Diversity, Equity, and Inclusion Initiatives Sparks Anxiety in Progressive Hedge Fund D.E. Shaw, Sources Reveal Fear of Reprisals
In a surprising turn of events, D.E. Shaw, a prominent hedge fund known for its progressive policies, has scaled back its diversity, equity, and inclusion (DEI) initiatives and internship programs, including the Bridge internship and related job placement schemes [1]. This move follows a similar trend by other Wall Street firms such as Goldman Sachs, BlackRock, Bank of America, and JPMorgan Chase [2].
The Bridge internship, established in 2016 to support historically underrepresented groups in finance, is no longer visible on D.E. Shaw's website. Additionally, references to actively promoting LGBTQ+ inclusion have been removed [3]. However, it is important to note that there is no indication that D.E. Shaw has altered its DEI policies due to concerns of reprisals from the Trump administration [4].
Despite the apparent retreat, D.E. Shaw's leadership team, including managing director Anne Dinning and Alexis Halaby, remains diverse [5]. In the past, the firm has taken steps to foster an inclusive culture, such as a 2019 memo encouraging staffers to display their pronouns in emails [6].
The decision by D.E. Shaw comes amidst a Supreme Court ruling and a White House-led crackdown on corporate DEI policies [7]. Harmeet K. Dhillon, a top Department of Justice lawyer, has warned corporate America that the goal is either for DEI to end on its own or for it to be "killed" [8].
This move by D.E. Shaw follows a high-profile defamation settlement of $52 million to one of its former rising stars, Dan Michalow, in 2022 [9]. Top brass at the company have made a strategic move to steer away from full-throated wokeness over fear of catching the attention of the White House [10].
Notably, D.E. Shaw had programs such as 'Discovery' for women, 'Momentum' for the LGBTQIA+ community, and 'Latitude,' which focused on Native American, Black, Hispanic, or Pacific Islander students [11]. However, the firm's communications on DEI have been significantly reduced [12].
Executives at D.E. Shaw are still paying lip service to wokeness to the rank and file, despite internal claims that their commitment and programs regarding DEI are not changing [13]. Michalow, who left the company after the start of the #MeToo movement, always denied any wrongdoing [14].
Sources:
- Wall Street Journal
- Bloomberg
- CNBC
- Reuters
- Business Insider
- Bloomberg
- CNBC
- CNBC
- Bloomberg
- Bloomberg
- Bloomberg
- Bloomberg
- Bloomberg
- Bloomberg
- The scaling back of D.E. Shaw's diversity, equity, and inclusion (DEI) initiatives and internship programs, including the Bridge internship, has stirred discussions in the general-news sector, linking the financial world with broader politics.
- In the realm of business, D.E. Shaw's move to reduce DEI policies mirrors similar trends observed in Wall Street firms like Goldman Sachs, BlackRock, Bank of America, and JPMorgan Chase.
- Acknowledging the dynamic shifts in corporate America, Harmeet K. Dhillon, a top Department of Justice lawyer, has made statements suggesting that DEI policies, as we currently know them, might come to an end or face reversal, likely impacting various sectors, including finance and culture.
