This is a great question. It must be stated that institutional racism is usually not blatant. It is usually veiled, but this does not mean that it does not exists. Let me offer a few examples of institutional racism.
First, we can see this in college admissions. There is racism when it comes to admitting Asian students. There is a quota system that only admits a certain percentage, no matter how qualified a student is. The only state that has gotten rid of this is the state of California. This is why the best public schools in California has 50% Asian students.
Second, we see racism in government. There are not many people of color as elected officials. Certainly president Obama is an exception, but we need to keep in mind that he is not the rule. Minorities are still not readily accepted in politics and mainline media. More interestingly there are more than 400% more death threats against president Obama than president Bush. This statistic should tell you something.
These two examples show that racism is real in American culture.