'Oversight issues' at NY's Home Loan bank; new tool IDs 'CDFI deserts'

August 23, 2024 2:17 PM

In this week's banking news roundup: The Federal Home Loan Bank of New York paid its departing director of diversity and inclusion $561,600 after an external review found "oversight issues" that led to a shake-up of the bank's human resources department; CDFI Friendly America launches an online mapping system to spotlight growth opportunities nationwide; global law firm A&O Shearman expands its U.S. debt finance team; and more.

New York FHLB pays $561,600 to exiting head of diversity and inclusion

The Federal Home Loan Bank of New York said in a filing with the Securities and Exchange Commission that it has paid $561,600 to Edwin Artuz, its chief administrative officer, director of diversity and inclusion and senior vice president of the bank, who stopped working at the bank on July 1.

Jose Gonzalez, the district's president, said in an internal memo to employees obtained by American Banker that Artuz left the district after "oversight issues" were uncovered by an external review.

"An external review of our Human Resources Department identified oversight issues that need to be addressed, necessitating a restructuring of the group," Gonzalez wrote to employees earlier this year announcing staff changes.

In addition to Artuz, Mildred Tse-Gonzalez, director of human resources and corporate real estate, also has left the bank.

A spokesman for the bank said that a review of the human resources department had "identified opportunities for restructuring and modernization." —Kate Berry

Free online tool spotlights growth opportunities in ‘CDFI deserts’

This week, Philadelphia-based CDFI Friendly America announced the launch of its CDFI Market Map, a free, online mapping system built around the concept of "CDFI deserts."

The tool — intended for CDFIs, bankers, regulators, philanthropists, impact investors and local officials — makes it easy to spot the market potential for CDFIs anywhere in the U.S. "What's most noteworthy is that until now, everyone knew that CDFIs (and banks) were not reaching some places. Now we know there are 1,292 CDFI deserts across the U.S. and we show you where they are, down to the census tract level," said CDFI Friendly America's president, Mark Pinsky.

The map will also help CDFIs and communities seeking to participate in the Greenhouse Gas Reduction Fund, the $27 billion program created by the Inflation Reduction Act, by identifying "Justice40" areas which are key to the program. —Traci Parks

A&O Shearman expands its U.S. debt finance team

Global law firm A&O Shearman — formed in 2024 via the merger of historic firms Allen & Overy and Shearman & Sterling — announced on Monday the hiring of Alyssa Simon as a partner in its U.S. debt finance practice based in the firm's New York office.

"Alyssa's expertise in high-yield financings bolsters our newly combined firm's position as a one-stop shop for all forms of leveraged financings in the market," said Jake Mincemoyer, the firm's global co-head of debt finance, in a press release.

Simon began her career at a major global law firm before moving to a leading investment bank, where she held a variety of roles. "I am very happy to be joining the outstanding team at A&O Shearman," Simon said in the release. "The firm's global reach, its talented team and its top tier client roster is a great fit for my practice." —Traci Parks

Wells Fargo hires TD’s Fadi Aboosh for financial sponsors group

Wells Fargo has hired Fadi Aboosh from TD Securities as a managing director in its financial sponsors group focusing on infrastructure funds, according to people familiar with the matter.

Aboosh will join Wells Fargo's corporate and investment bank after a period of leave and will be based in New York, said the people, who asked not to be identified discussing confidential information. He'll report to Malcolm Price, the bank's head of financial sponsors, they said.

Aboosh was most recently a managing director in TD's financial sponsors group. He joined the Toronto-based investment bank in 2011 and had worked in its loan syndications and leveraged finance groups, according to his LinkedIn profile.

Wells Fargo, which has been on a hiring spree to bolster its corporate and investment bank, also brought in Sam Chaturvedi as a managing director in financial sponsors from Bank of Montreal this year. –Valida Pau, Bloomberg News

Goldman’s deputy head for China unit leaves to join HSBC

Goldman Sachs Group's deputy head for a China unit is leaving for HSBC Holdings, the second senior exit from the U.S. bank's China operations this year, people familiar with the matter said.

Lu Tian, deputy general manager of Goldman Sachs (China) Securities, will replace Irene Ho, who will retire as CEO and general manager of HSBC's securities business in China, the people said, asking not to be identified before an announcement.

Hong Kong-based spokespeople at Goldman and HSBC declined to comment. Lu declined to comment.

Lu's departure from Goldman follows that of E.G. Morse, who retired in April as the bank's co-head for China after 16 years at the firm. Based in Shanghai, Lu had been leading the firm's global markets operation, focusing on fixed-income, currencies and equities. —Cathy Chan, Bloomberg News