SUPPORTING STATEMENT
High-profile police killings of black people have galvanized the movement for racial justice. That movement, together with the disproportionate impacts of the pandemic, have focused the attention of the media, the public and policy makers on systemic racism, racialized violence and racial inequities.
Assured has stated that “[l]ong-standing and systemic inequities in society – in access to healthcare, in criminal justice, in employment and in everyday social interactions – have been exposed, once again, by the current pandemic and recent racially biased incidents.”1 The Company touts its $100,000 donation to the NAACP Legal Defense and Education Fund, as well as its Diversity and Inclusion Policy and matching program for employees’ charitable giving.2
Assured’s efforts to increase diversity in its workforce and executive ranks cannot be evaluated due to lack of disclosure. Assured does not report publicly the proportion of its top executives who are nonwhite, nor does it disclose any specific diversity, equity and inclusion goals. The Company’s Diversity and Inclusion Policy contains no concrete goals for hiring, retention or promotion, and it relies solely on “self-assessment” to determine progress.3
A racial equity audit would allow Assured to go beyond philanthropy and diversity to examine the impact of its business on communities of color. Assured insures bonds issued for “municipal, public infrastructure and structured financings.”4 Some municipal bond offerings are used to pay police brutality settlements, a practice one report characterized as “a transfer of wealth from over-policed communities of color to Wall Street and wealthy investors.”5 The fact that majority-minority communities are forced to pay higher interest rates when issuing bonds6 and that bond insurance can be used to mitigate that problem,7 means that Assured may be benefiting from systemic racism.
A racial equity audit would allow Assured to identify racially adverse impacts of its political activities. During the current cycle (2021-2022), Assured donated to Members of Congress who objected to certifying the 2020 election results,8 an action some viewed as “a direct attack on the voting rights of people of color.”9 Assured does engage in lobbying,10 though it is not possible to determine from publicly available information the positions Assured has taken.
We urge Assured to assess its behavior through a racial equity lens to identify how it contributes to systemic racism, and how it could begin to help dismantle it.
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1. https://assuredguaranty.com/assured-guaranty-supports-diversity-equality-inclusion-and-justice 2. https://assuredguaranty.com/assured-guaranty-supports-diversity-equality-inclusion-and-justice
3. https://assuredguaranty.com/images/uploads/Diversity_and_Inclusion_Policy_v022322.pdf4. https://assuredguaranty.com/about-us5. http://nathancummings.org/wpcontent/uploads/PoliceBrutalityBonds-Jun2018-1.pdf, at 7.6. Id.7. https://www.municipalbonds.com/bond-insurance/the-municipal-bond-insurance-industry-chronology/8 https://www.opensecrets.org/political-action-committees-pacs/assured-guaranty-municipal- corp/C00685958/candidate-recipients/2022; https://edition.cnn.com/interactive/2021/01/business/corporate- pac-suspensions/; https://www.cnn.com/interactive/2021/01/business/corporate-pac-suspensions/9 See https://www.nytimes.com/2021/01/15/us/politics/lankford-apology-election-biden.html; https://www.marketwatch.com/story/business-leaders-call-for-action-on-trump-after-mob-siege-at-capitol- 1160997665510 https://www.opensecrets.org/federal-lobbying/clients/summary?id=D000058975