New “Gotcha” in Dodd-Frank Wall Street Reform and Protection Act of 2010

As is happening with increasing frequency, deep within this bill to reform Wall Street is a major grab for control of business behavior.  Little known Section 342 is a dangerous and costly social engineering move that does many things:

  1. Imposes gender and racial quotas on the financial services industry – today over 10% of the nation’s GDP.
  2. Establishes 29 new bureaucracies at the Federal level to manage “Offices of Minority and Women Inclusion” requirements.
  3. New bureau will implement rules to require diversity hiring in all private business that has a relationship (contractual or otherwise) dealing with Federal government or Agencies of Treasury.
  4. Will terminate contracts with all companies that do not follow as yet undetermined rules.
  5. Applies to over 40,000 financial service firms, as well as over 10,000 other businesses (including accounting and legal firms) that do business with the Fed.

Forcing U.S. business to hire on racial or gender guidelines, versus merit and skill will make U.S. firms uncompetitive with other firms worldwide!

In addition, 4 of the 8 Commissioners of the U.S. Commission on Civil Rights sent a letter objecting to congress stating it might encourage discrimination.

This financial crisis has given the President and Congress cover to impose their political agenda on private business activity!

Extracted from Good Intentions Gone Haywire, Forbes, September 27, 2010

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