Financial elites and the spatial variation of inequality: examining the intersection of gender, race and class in Frankfurt, London, and New York
Keywords: financial elites
diversity
international financial centres
inequality

Unlike any of its predecessors, the 2007 – 2009 financial crisis forced the recognition of gender inequality in finance. Gendered narratives rose to prominence and financial elites came under scrutiny for their behaviour as well as their make-up. Studies investigating the links between diversity and finance originate primarily from behavioural economics or business and management studies. The two strands of research focus mostly on gender, exploring mainly gender differences in behaviour and the ‘business case for diversity’, i.e. the economic proposition underpinning arguments in favour of greater diversity. Building on feminist critics of both literature and entering the debates surrounding transnational elites and international financial centres (IFCs) as well as elite labour, this doctoral thesis visits three financial centres. Studying financial elites residing in Frankfurt, London, and New York City, the thesis closes a gap in financial geography and feminist intersectional theory.
The objectives that underpin this doctoral project are three-fold. It sets out to systematically examine gender, class, and race relations among financial elites in three financial centres and how these are reproduced. It also aims to explore the impact of social, institutional, and cultural factors on gender, class, and race inequalities in finance. Finally, it seeks to assess the influence of external stakeholders like executive search firms (ESFs) and regulators on the formation and reproduction of financial elites. To meet these objectives, data collected through 62 in-depth, semi-structured interviews with professionals working for a range of financial organisations (asset managers, (investment) banks, insurers and ESFs) is triangulated with secondary qualitative and quantitative data.
The analysis demonstrates that financial elites, despite operating globally, are firmly embedded in local cultures, institutional frameworks, and societies. The thesis advances an argument on the spatial variation – or geography – of the discourses and the practices surrounding diversity. Whereas gender and a racial silence dominate in German finance, class privilege emerges as the main concern among the financial elite in London. Racial domination as well as stratification emerge as characteristic features of New York City investment banking. Scrutinising the ideology that underpins both diversity as well as meritocracy critically and disclosing the strategies minorities deploy in order to successfully navigate their careers, this research furthermore explains why inequalities persist in finance. The empirical section of this project consists of three parts. First is a study of intersecting inequalities at work and embedded discourses among British and German asset managers, banks, and insurers. Second, and adopting an external perspective, is an examination of ESFs in Frankfurt and London. Third is the analysis of gender and racial inequalities in US investment banking.
The thesis showcases the benefits of a spatial reading of intersectionality, which is able to provide a complex analysis of financial elites and allows to expand existing theories of IFCs as well as their developments in financial geography. It is in particular London whose competitiveness as a financial centre is underscored from a new angle and through the lens of elite labourers. Feminist and intersectional theory can also learn from this empirical study, which highlights the importance of contextual factors and provides insights into the intersection of class, gender, and race in the elitist space of finance. In addition, the findings have implications for policies and practitioners.