JPMorgan Chase (JPM) on Thursday announced a five-year, 30 billion initiative to address racial inequality in black and Hispanic communities.
This comprehensive initiative seeks to establish homeownership, expand banking in underworld communities, provide capital to minority-owned enterprises, and diversify the bank’s own workforce.
In total, the largest bank in the US is pledging 26 26 billion for various housing initiatives, which is the bank’s financial commitment. This amount is the largest amount committed to date by a single entity, and the U.S. Social unrest and coronavirus result from epidemics.
“Systemic racism is a tragic part of American history,” JPMorgan’s chief executive Jamie Dimon said in a statement.
“We can do more and better to break down systems that spread racism and widespread economic inequality, especially for blacks and Latinos. It’s been a long time since society has addressed racial inequalities in a more tangible, meaningful way, “the CEO added.
The move follows a similar initiative by the City, which pledged 1 1 billion for the racial equality initiative. Recently, the bank released a report that found that systemic racism has cost the United States 16 16 trillion in the last 2 decades.
Brian Lamb, JP Morgan’s global head of diversity and content, said in a statement:
“The Covid-19 crisis has exacerbated long-standing inequalities for blacks and Latinos around the world,” Lambe wrote. “We are using this catalytic moment to create change and economic opportunities that promote racial equality for black and Latin communities.”
JPMorgan said part of its programming through its ‘Advanced Black Pathways’ will be aimed at 13 cities – including Detroit, New York, Houston, New Orleans, Los Angeles, Baltimore and Atlanta.
The firm’s goal is to increase Black and Latino home ownership by creating an additional 40,000 loans for home buyers, while helping 20,000 homes refinance their home loans and mortgage payments for thousands of newcomers.
In addition, the bank plans to target affordable rental housing by lending an additional 100,000 rental units.
Renting, making ‘reality’ for Blacks, Latino
Low house ownership rates in minority households have long been a major cause of racial inequality in the country, especially in cities like Chicago where redlining was prevalent. Prior to the turn of the century, land acquiescence was denied to blacks, blacklisting red houses, contract purchases and racist policies of land devaluation.
In Chicago, Chase has doubled a homebuyer assistance grant of 5,000 5,000 to majority-black communities, the bank said.
“To help more current homeowners take advantage of historically-low interest rates, but can’t afford the further cash needed for refinancing, Chase Pay offers a ની 2,500 grant to refinancing customers with Dreamer product.”
The bank’s move was applauded by various grassroots and activist organizations, including the National Fair Housing Alliance and the National Urban League.
“JPMorgan Chase’s new commitments will help to own or rent more Black and Latinx families whose housing systems have been blocked by decades of systemic racism and are now disproportionately affected by the effects of COVID-19,” said CEO Lisa Rice. National Fair Housing Alliance, in a statement.
Addressing an affordable crisis, now covered with an epidemic, will require many players on many fronts, and these commitments are concrete, meaningful steps, he said, he said.
The bank also looks to raise capital in businesses owned by Black and Hispanic. Studies have shown that race ventures influence capital companies’ investment decisions. All said, about 35 35 trillion would be allocated separately if racial bias did not influence investment decisions.
JPMorgan said that as part of this commitment, the bank is promising an additional ,000 15,000 in loans to small businesses in the majority black and Latinx communities through a 2 billion loan.
JPMC says it will launch a new program to help coaching, technical support and capital entrepreneurs. It will “spend an additional 7 750 million” with new and existing minority suppliers.
To address inequalities in access to financial services, JPMorgan Chase also plans to help 1 million people open checking accounts. Traditionally, minorities pay more to access banking services than their white counterparts.
But JPMorgan recently told Yahoo Finance that his initiative would not just face the public. The bank is also committed to increasing diversity within its own ranks, and will create a “liability framework” within the bank to hold managers accountable for their track records on diversity.
To promote black and Hispanic employees in the bank’s ranks, JPMC is committed to employing approximately 1,000 Black students in internships and other entry-level positions. The company also plans to add a variety of employees as part of senior leadership.
Seeing that inequality in education leads to inequality in employment, JPMorgan has detailed Yahoo Finance programs that help students at HBCU overcome financial difficulties, as well as provide scholarships to hundreds of students.
Christine Myers is a Yahoo Finance reporter. Follow him On Twitter.
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