Wall Street may not have its own Harvey Weinstein to contend with, but the #MeToo movement has forced the industry to address its own history, practices, and culture in uneven, and sometimes shameful, ways.
Jim Yong Kim, the World Bank’s president, is
trying to revitalize a hidebound institution.
But his embrace of Wall Street is controversial... provides cash to companies in exchange for equity stakes, the World Bank currently drums up more than $7 billion a year from the private sector to invest in ventures in the developing world. Mr. Kim wants that figure to increase eventually to $30 billion... The World Bank promised to protect investors against some losses... those benefiting from the World Bank’s lending practices were “the people who fly in on a first-class ticket to give advice to governments.”.. The argument was that growing investment flows into developing countries rendered World Bank lending mostly superfluous.
.. Last year, the World Bank dispensed $61 billion in loans and investments. By contrast, investors now inject more than $1 trillion a year into emerging markets
.. In effect, he was pitching the bank’s services as a middleman, ready to back projects with guarantees and other incentives. No longer could the World Bank be the sole provider of loans, which, he said, are “crowding out” the private sector.
.. the World Bank economists whose pay is tied to how many loans they churn out
.. “One of the most difficult things to do in a large bureaucracy is to change incentives,
.. “And if you have a large bureaucracy full of economists it is especially hard, because it turns out that economists really hate it when you change the incentives.”
.. On Wednesday, the bank’s top economist, Paul Romer, abruptly resigned.
.. His end came after he claimed, in an interview with The Wall Street Journal, that the World Bank’s closely-watched report on business conditions in different countries had been altered for political reasons.
.. the bank tends to see private sector solutions — those involving the profit motive — as morally questionable.
.. World Bank staffers are used to talking to governments, and now they have to leverage the private sector? It is a different skill set, and flexibility is not the hallmark of development institutions.”
.. “He had to work against his own incentives,” Mr. Kim said, referring to the bank’s practice of rewarding staff for loans. “And that is part of the institutional problem here.”
.. “He has pursued a strategy of making himself popular in Davos by attacking the organization and its staff,” said Lant Pritchett, a retired World Bank executive. “It is this idea that his hand has been hampered by bureaucratic machinations. That may be accepted in Davos — but it’s completely false.”
.. His biggest coup was working with Ivanka Trump
.. They eventually settled in Muscatine, Iowa, where Mr. Kim was a high school quarterback before going on to Brown and securing advanced medical and anthropology degrees from Harvard.
There is little doubt that finance has had just as many cases of sexual predation as other industries, and perhaps more. Finance is a male-dominated industry and the few women who manage to enter it, and to climb its ranks, often become the targets of the men who work there.
.. Renée-Eva Fassbender Amochaev, a broker who successfully sued Smith Barney for gender discrimination in a subsequent case when it was part of Citigroup, told me that the way Wall Street firms resolve sexual harassment cases continues to protect perpetrators and firms. Large settlements are paid, but the men who either committed the bad behavior or who effectively condoned it, often remain. “No one gets fired,” she said. “Everyone on the inside knows the system is rigged.” And, because the settlements are confidential, the incidents are kept quiet.
.. members of her department went to Scores, a topless dance club in Manhattan, to celebrate a colleague’s promotion.
.. Managers placed all the women’s desks together, and that part of the floor was known as the “pink ghetto.” The rest of the office was decidedly more masculine. “It was a locker room,” she said. “It was horrible, but I just sucked it up for a year.”
.. Carnoy said she thought about suing Bear Stearns because what went on there was so “despicable,” but then she thought better of it. “I remember thinking, ‘Wow, I can sue them but I want to be in this industry for the next thirty years’,”
.. An executive’s annual bonus can be in the millions of dollars and if a woman experienced egregious harassment or criminal sexual assault on Wall Street, the settlement would also be in the millions.
.. Pao told me that she thought part of the reason might be because that while women had won a few legal victories—and had received cash settlements—their careers had stalled afterward.
.. the broader #MeToo moment is strengthening an “underground” movement, or whisper network, where women who work in finance help each other. “What Wall Street still underestimates is that the ‘underground’ is still alive and well and growing stronger with this new movement,” she said. “These women find me, contact me, call me—for twelve solid years now. We plot, we organize in secret and effect change through an underground, which is how you, and countless women, have found me. It’s all we have right now.