JPMorgan commits $30 billion to fight the racial wealth gap – Axios

JPMorgan commits $30 billion to fight the racial wealth gap – Axios

JPMorgan Chase announced Thursday a $30 billion investment over the next five years that the company says will address some of the largest drivers of the massive wealth gap between Black and white Americans.

  • The commitment makes the bank by far the largest monetary contributor to efforts by businesses to fight systemic inequality and racism in the U.S.

Why it matters: “JPMorgan essentially is setting an example of what to do,” Andre Perry, a fellow at the Brookings Institution, told Axios.

  • JPMorgan is the country’s largest bank but more importantly CEO Jamie Dimon is past chairman of the Business Roundtable, a group of nearly 200 CEOs at America’s largest corporations, Perry said.
  • “If a fraction of the members of the Business Roundtable follow suit then you’re talking about a more concrete effort than anything we’ve seen before.”

Details: JPMorgan has earmarked $14 billion for new housing loans to Black and Latino borrowers plus…

  • $8 billion to increase affordable housing and homeownership in underserved communities.
  • $4 billion for mortgage refinancing.
  • $2 billion for small business lending.
  • $2 billion in philanthropic capital.

The bank also committed to increased hiring and investment in existing employees “to build a more equitable and representative workforce and hold executives accountable” as well as $50 million of deposits in minority-owned financial institutions.

  • All of the programs are designed to drive “an inclusive economic recovery and support Black, Latinx and other underserved communities,” the bank said.

Say it with your chest: “Systemic racism is a tragic part of America’s history,” Dimon said in a statement.

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