After racist leak, L.A. County Fed finds a new leader to repair damaged relationships
In a statement released Wednesday, the L.A. County Fed released a response to the leaked document, which showed how the bank’s leadership failed to effectively repair the bank’s damaged relationships with minority business owners. More than 70 percent of respondents from the bank’s minority business surveys said that in the three months following the release of the survey, they’d lost business due to fear of discrimination.
During a press conference Wednesday, John L. Lewis, the first African-American president of the Los Angeles Fed, said the leaked survey had been an opportunity for the county to discover who the bank’s leaders really are, and to show that they have the courage and leadership to fix these issues.
“For decades, the bank has been on the wrong side of the business owners and communities by failing to recognize and appreciate the critical role our minority business owners play,” Lewis said. “Instead of embracing the community, the bank has attacked it. That’s why this leak has been so important. Now we know that the bank needs to do a better job at repairing its relationship with the community.”
According to the leaked survey, 80 percent of respondents said they were more likely to do business with a Bank of L.A. compared to a competitor, and 75 percent said they felt more trust with the bank. But the leaked survey also included a very different result about customer service. Only 34 percent of respondents said they have a good or excellent experience, and 49 percent are either dissatisfied or very dissatisfied. According to the leaked survey, 56 percent said they would leave the bank if they had a better customer experience.
The leak was obtained by the Los Angeles Times’ John M. Broder in a story posted on Sunday about the findings of a recent survey of minority business owners. The story included the leaked survey and the leaked documents, and many were surprised by the findings. But those who contacted the Times to comment on the story said they were disappointed and angry
