JPMorgan Chase makes $ 30 billion commitment to help reduce America’s racial wealth gap

JPMorgan Chase CEO Jamie Dimon spoke at the legislative conference of the Building Trades Unions of North America (NABTU) 2019 in Washington on April 9, 2019.

Jena moon | Reuters

JPMorgan Chase is making a $ 30 billion commitment that it says will help remove US wealth inequality, especially in traditionally underrepresented black and Latino communities.

The bank’s pledge is a combination of debt, investment and philanthropy over five years that says what it will do in the normal course of business. The goal, according to the firm’s press release: “To drive inclusive economic reform, support employees and break the barriers of systemism.”

Questions about racial inequality in the US began following the death of George Floyd on May 25 when a police officer staged protests across the country for several weeks. The coronovirus epidemic specifically highlighted differences in conditions and health outcomes faced by the black community, resulting in far higher Kovid-19 mortality than the overall population.

“Systemic racism is a sad part of America’s history,” JPMorgan CEO Jamie Dimon said in a statement. “We can do more and do better to break the systems that have spread racism and macroeconomic inequality, especially to Blacks and latex people. It has long been that society has become more concerned with racial inequalities. Addresses in tangible, meaningful way. ”

Banks, which historically have now contributed to inequality through restrictive practices including redistribution, are expected to be part of the solution to society’s problems. Earlier, Bank of America and Citigroup had each made $ 1 billion in commitments to reduce inequality.

JP Morgan’s Dollar Commitment is tied to Great Wholesale Housing. The New York-based bank says it will provide $ 14,000 in loans and investment, prompting the construction of 100,000 affordable rental units among disqualified people.

The bank will also generate 40,000 home purchase loans for Black and Latino families, with its commitment to include mortgages of $ 8 billion. It will help another 20,000 Black and Latina customers reduce their mortgage payments with $ 4 billion in refinancing. The effort will include grants for down payment and closing costs, the bank said.

The bank said the $ 12 billion in additional mortgages is calculated based on the firm’s 2019 mortgage volume for minority communities, using it as a default rate for the loan it would make over the next five years.

JP Morgan said it would provide $ 2 billion in loans to small businesses in Black and Latino areas and launch a new program to help coach entrepreneurs. It will also spend an additional $ 750 million with Black and Latino suppliers.

“I am pleased to see JP Morgan’s specific, measurable commitments that we believe will address systemic racism for black communities for decades – and the well-being of families across the country, as well as our collective economy. , “Mark Morial, President National Urban League, said in a statement.

JPMorgan also said it would provide 1 million people access to low-cost bank accounts, opening branches in low-cost middle-income communities.

With respect to its own workforce of 256,710, the bank stated that it would hold managers accountable for diversity goals by including targets in compensation decisions.

Finally, the bank is providing $ 2 billion in philanthropy, expanding and expanding the previous $ 1.75 billion, a five-year pledge in 2018.


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