JPMorgan’s Announces Efforts in Its Commitment to Help Close the Racial Wealth Gap

Jamie Dimon, CEO of JPMorgan Chase & Co.

Giulia Marchi | Bloomberg | fake images

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

It is part of JPMorgan’s commitment of $ 30 billion to help address wealth inequality.

“These new initiatives focus on strengthening diverse group-led and minority-owned financial institutions by providing additional access to capital, connections with institutional investors, specialized support for black-led business projects, and mentoring and training opportunities,” said the bank in a news. release.

JPMorgan announced its initiative last October, following the murders of George Floyd and Breonna Taylor. The ongoing coronavirus pandemic has also highlighted long-standing systemic health and social inequalities.

“Systemic racism is a tragic part of American history,” Jamie Dimon, JPMorgan’s chief executive, said in a statement at the time. “We can do more and do better to end the systems that have spread racism and widespread economic inequality, especially for Blacks and Latinos.”

Historically, banks have contributed to inequality through now-banned practices like red lines. JPMorgan’s peers, such as Bank of America and Citigroup, also made multi-billion dollar commitments to reduce inequality.

As part of its latest series of efforts, JPMorgan Chase said it has invested and committed the first $ 40 million of its $ 50 million equity commitment to black and Latinx led minority depository institutions.

The firm added that it has also established a racial equity program, by providing New Markets Tax Credit investment pricing for black-led, black-owned, and black-serving businesses and organizations.

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

JPMorgan said it will help direct tax credit funding to community projects, including shelters, health care clinics and small businesses.

The bank is also launching “Empowering Change,” which it called a “unique program supported by Google and in partnership with minority depository institutions and community-led community development finance institutions to provide economic opportunity 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 that will initially be distributed by MDIs run by various sectors such as The Harbor Bank of Maryland, Liberty Bank and Trust, M&F Bank and Unity National Bank “. the company said.

JPMorgan said the program includes a new Empower money market share class for distribution by multi-sector led MDIs and CDFIs, as well as an annual donation of 12.5% ​​of revenue received from management fees of the Empower share class assets to support community development.

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

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