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00:00I think what you put it so well in the story is we've lacked a sense of community engagement and sustainability on Wall Street. Are they getting that given that some aren't willing to to be so flamboyant now they understand that the inequality is so grave at the moment in the US. Well thank you for having me on. It's always a pleasure. I would just say that I think what we're feeling here what they're feeling is a change that has been coming for a long time. It's not just this year. It's not just 20 21 bonuses. The system of Wall Street has really been biased and there's been inequitable distribution of capital. You know unlike your last guest Gerard who left the industry I've decided to stay in. But to make change and I feel that my role at known and EFA is to make that change. And that change is coming. It's inevitable. And so I think a lot of the bankers and the professionals you mentioned know that things are not going to stay the same. It's almost like technology becoming obsolete. The systems that are at play right now in the financial industry will become obsolete and irrelevant. Valerie it's so interesting on the margin. Wall Street has embraced more women more people of color given more money to their foundations and smaller communities. But that has all still lagged in a big way. And I'm wondering what is the opportunity going forward here. Absolutely philanthropic capital is fantastic. You know I work for a philanthropic organization that will not make the change that we're talking about when you consider that 70 percent of the world's population identifies people of color and yet people of color manage less than two percent of our assets. It's inequitable and it needs to change. You talked about the 5 trillion that went out in investment banking capital. It's all connected. The wealth management and then what companies get funded. And again it is resorting over and over again to the same subset of ownership and C suite level. The changes you mentioned are important but they're not changing in ownership. The wealth gap. C suite level and generational wealth. And so what we're going to see is a change in systems in equitable distribution that will be a major shift. Are some of those shifts a little bit under way. Of course there's still a long ways to go but we've seen some of these big banks make promises to underserved communities to investing in black businesses minority women businesses. Is that sort of the realistic change that you would like to see even if it's just a start. Yes and no I think similar to the tech industry. The change is going to come from the customer base not the owners of the banks. So we're going to experience the greatest shift in capital and wealth. As baby boomers turn over control of assets and family wealth to this next generation and the younger generation cares about environment sustainable investing racial equity and transparency is very very important. And so systems have to change and it will be driven by the customer and the banks will have to respond or they will become obsolete and irrelevant. As I mentioned. And so this this shift in this change is much more than a big bank saying we're going to do a program over here that invest in some black companies. That's great. I don't want to demean that effort but it's not enough. And so we're going to see a huge shift to where we can actually shift capital and ownership and generational wealth. And remind us how with known holdings we'll try to accelerate some of that change yourself. We'll be focusing on distribution of capital to diverse managers to communities to diverse founders. We're actually going to create new technology that redefines risk. Right now if you look at how risk. We've talked a lot about risk in this program. Risk is defined in a way that defaults to the same managers of capital and really leaves out access to managers who are diverse. And that is just a systems change that needs to happen.

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Wall Street Hit With Existential Angst

Known Holdings co-founder Valerie Red-Horse Mohl, discusses the shifting culture on Wall Street, and changes that need to be made for women and minorities. She speaks with Caroline Hyde, Sonali Basak, and Taylor Riggs on "What'd You Miss?" (Source: Bloomberg)

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