JPMorgan proclaims efforts to shut the racial wealth hole

Jamie Dimon, CEO of JPMorgan Chase & Co.

Giulia Marchi | Bloomberg | Getty Images

JPMorgan Chase announced Tuesday its latest round of initiatives to support banks and credit unions primarily owned or run by colored people, as well as banking institutions that work with underserved communities.

It’s part of JPMorgan’s $ 30 billion commitment to eradicating wealth inequality.

“These new initiatives focus on empowering minority-owned and diversified financial institutions by providing additional access to capital, connections with institutional investors, special support for Schwarz-led commercial projects, and mentoring and training opportunities,” said one Message from the bank publication.

JPMorgan announced its initiative last October after George Floyd and Breonna Taylor were killed. The ongoing coronavirus pandemic has also exposed longstanding systemic health and social inequalities.

“Systemic racism is a tragic part of American history,” said JPMorgan CEO Jamie Dimon in a statement made at the time. “We can do more and better to dismantle systems that have spread racism and widespread economic inequality, especially for blacks and Latin Americans.”

In the past, banks have contributed to inequality through now banned practices such as redlining. JPMorgan peers like Bank of America and Citigroup have also made billion dollar pledges to reduce inequality.

JPMorgan Chase has invested as part of its recent endeavors, tying the first $ 40 million of its $ 50 million capital commitment to minority black and Latinx-led depositaries.

The company added that it has also set up a racial equity program by providing New Markets Tax Credit investment prices to Black-run, black-owned, and black-served nonprofits and corporations.

This tax credit offers investors a tax incentive to invest in low-income communities.

JPMorgan said it will help divert funding from the tax credit to community projects like emergency shelters, health clinics and small businesses.

The bank is also launching Empowering Change, a “unique program sponsored by Google that works in partnership with minority custodians and financial institutions with diverse community development leadership to provide economic opportunities to underserved communities.”

“Google is anchoring the launch of the program with the intention of investing $ 500 million in the Empower money market share class, initially from various MDIs, Maryland Harbor Bank, Liberty Bank and Trust, M&F Bank and Unity National Bank, is marketed. ” the company said.

JPMorgan said the program includes a new Empower money market share class for distribution by MDIs and variously run CDFIs, as well as an annual donation of 12.5% โ€‹โ€‹of the management fee income for Empower share class assets to support community development.

The bank will also provide access to its resources, including education and training.

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