FDIC Workplace Culture Concerns: Impact on Fair Lending in Cities

You might remember hearing bank commercials say "FDIC insured" at the end of their spiel of why you should bank with them, but if you don't that's ok, the next time you hear a bank commercial you'll probably hear it. To catch you up on what this federal agency does, and why you should care it about it is that the Federal Deposit Insurance Corporation (FDIC) helps insure our money at banks and upholds fair lending practices so that loans are race blind. This means more people can borrow which creates critical economic mobility in our cities.

But recently, the FDIC Chair Martin Gruenberg has been in the news for workplace culture concerns, making many go hmmm... Various sources like The Wall Street Journal, Bloomberg, and The New York Times have highlighted allegations of a toxic work environment under his leadership. Gruenberg even got a "bipartisan grilling" at the House Financial Services Committee and some members signaled they had lost their confidence in him. With minimal options left, on May 20th Gruenberg announced that he will step down "once a successor is confirmed.”

If you're wondering how this FDIC workplace concern matters to urban planning? It all comes down to ethics and access. A positive workplace culture is essential for the FDIC to effectively carry out its mission rooted in integrity and fairness. Fair lending practices are vital for the future of cities, ensuring people trust they are getting race blind opportunities to loans and fair access to banking options.

Learning AI's Climate Impact

Fun Fact: Microsoft's move to AI has pushed it's CO2 emissions 30% higher than 2020 creating a big wrinkle in its ambitious climate action goals.

We are all learning many things in the AI race, including it's impact on the environment. While this stat may raise some eyebrows we can't let it hold us back. We will keep learning and iterating to bring AI's carbon footprint down. 

Durham's Free Transit Initiative: Boosting Ridership

If you're in Durham, North Carolina, and haven't heard of their free transit initiative yet, you're living under a pretty big rock akin to Sisyphus' rock. The city launched a fare-free public transit initiative, and the impact has been nothing short of remarkable.

Whether you're commuting to work, heading to school, or just exploring the town, riding the bus is not only easy on your wallet—it’s also a step toward a more connected city.

More Riders, More Jobs

As we enter the second year of GoDurham's "fare-free" public transit program, ridership in Durham has seen a significant boost, and it's helping ridership numbers recover after the significant decline caused by the COVID-19 pandemic. It's not just about saving money—although that's always a plus—but also about creating more equitable access to jobs and other opportunities. By removing the cost barrier, more people can get to work, school, and other essential services. This is especially critical for those who don't own a car or can't afford the rising costs of gas and maintenance.

Environmental Impact

The environmental impact of increased public transit use is another reason Durham's initiative is turning heads. More people on buses means fewer cars on the road, which eventually translates to reduced traffic congestion and lower carbon emissions as more people consider getting out of their cars and riding public transit.

The Federal Connection

Durham's free transit initiative wouldn't be possible without strong federal support. The city has been able to secure a series of federal grants, thanks in no small part to its close relationship with the U.S. Department of Transportation. At Durham's recent State of the City address, Mayor Leo Williams casually dropped that he is on texting basis with Secretary of Transportation Pete Buttigieg. Good move Mayor Williams! We need all the resourcefulness we can get when trying to increase access to public transit.

A Long-Term Sustainability Question

While the fare-free public transit program has made a splash, the question on my mind is: how sustainable is it? Funding from federal grants can only go so far, and maintaining a program of this scale requires consistent financial support. The challenge for Durham is to find a way to keep the initiative going without sacrificing service quality or overburdening taxpayers. This uncertainty makes long-term planning complex, but the city is committed to exploring creative solutions.

Durham's fare-free public transit initiative is a bold move, but whether it's financially sustainable in the long run is still up in the air. The program has shown that it can boost ridership and reduce carbon emissions, but long-term viability depends on finding stable funding sources. As the city navigates these challenges, the rest of us can sit back, relax, and enjoy the free ride while it lasts.