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Katherine Ross: So Real Money's Kevin Kern gave the big bang sort of report card. And I'm wondering the sector in general, what rating would you give them?

SallieKrawcheck: On diversity?

Katherine Ross: On diversity.

SallieKrawcheck: A C.

Katherine Ross: A C? Why a C?

SallieKrawcheck: A C. Because they haven't made much progress since the financial crisis. [00:03:30] In fact, as of a couple of years ago ... So it's bit outdated, but as of a couple of years ago gender diversity has gone backwards since the financial crisis. So we tend to think of diversity's a good thing to do, so there will be forward movement and motion. But in fact, it can go backwards too. I don't give them an F because they talk about it, and they have a bunch of programs for it. And some of them I really do believe are meaning. What I've thought about them is that some of them [00:04:00] talk about it as being a pipeline issue. It hasn't been a pipeline issue since the 1980's. It's been a promotion issue.

When you dig into the research, it's not that there aren't enough women at the bottom. It's not that all those women are leaving for work/life balance, right? It's that they aren't promoted. And so they get clogged up there at the bottom and don't make it to the top. And that's why we see Citi a year ago came out with their gender pay disparity. And the number they [00:04:30] came out in the U.S. a year ago was we don't have one.

And they've just come out with, I think, a 29, 30 percent gender pay disparity this year. Like what? Did they go backwards? The number last year was job for job are men and women getting paid the same? This year was overall are women and men getting paid the same? And what that show you is another really important problem, which is simply the women simply aren't as senior as the men.

After the financial sector reported earnings, Real Money's Kevin Curran gave the big banks a report card based on their earnings. 

Ellevest CEO Sallie Krawcheck sat down with TheStreet to discuss her report card for the financial sector. 

Before starting her own company, Krawcheck was the CFO at Citibank (C - Get Report) . 

When asked what grade Krawcheck would give big banks when it came to diversity, Krawcheck responded, "A C."

"Because they haven't made much progress since the financial crisis," she explained. 

"So we tend to think of diversity's a good thing to do, so there will be forward movement and motion. But in fact, it can go backwards too. I don't give them an F because they talk about it, and they have a bunch of programs for it," explained Krawcheck. "And some of them I really do believe are meaning. What I've thought about them is that some of them talk about it as being a pipeline issue. It hasn't been a pipeline issue since the 1980's. It's been a promotion issue."

Watch the full interview here

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