This Week in ESG and Impact Investing

For the full forecast, please join us at 6 pm on February 13, 2018 (1/9/2018). RSVP at https://forecast2018.eventbrite.com

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"U.S. clean energy developer shares dropped this week, as the Senate tax bill threatens to erode the $12 billion tax-equity financing market for wind and solar. Renewable-energy developers sell the credits to banks and insurance companies, which then apply the credits to their own tax bills." See:  https://www.bloomberg.com/news/articles/2017-12-04/tax-reform-could-stifle-jpmorgan-s-support-for-renewable-energy

Webinar: $60 Wednesday, December 13, 2017 from 2:00 PM to 3:00 PM (EST) RSVP: https://newtaxlaw.eventbrite.com This seminar will review the impact of the recently passed tax bill. According to news reports, "The Congressional Budget Office..analysis of the Senate's tax bill..estimates, anyone making less than $30,000 a year would feel the pinch starting in 2019, with the greatest 'savings' to the government (not to you - a combination of either increases in payments or decreases in money spent on a group in services) coming from those who make less than $10,000 a year. By 2020, everyone making $40,000 or less a year would also be contributing to lowering the deficit by paying more in taxes and/or receiving less in services, creating a net savings for the federal government. In that year, the groups making between $10,000 and $20,000 and between $20,000 and $30,000 would each be contributing double what the under-$10,000 group did in savings. By 2027, everyone ...

Blockchain, Cryptocurrency and the Future of Monetary Policy https://www.prlog.org/12785779-blockchain-cryptocurrency-and-the-future-of-monetary-policy.html  Is FedCoin, a US Government-issued cryptocurrency, feasible? https://www.prlog.org/12772509-is-fedcoin-us-government-issued-cryptocurrency-feasible.html Comments to the Reserve Bank of India on Blockchain, Crypto https://www.prlog.org/12765825-comments-to-the-reserve-bank-of-india-on-blockchain-crypto.html  

The emergence of blockchain technology and cryptocurrency creates potential threats, but also opportunities for the world’s central banks. We noticed a pivot toward greater discussion of blockchain at the IMF and World Bank meetings we attended in early October as central bankers, financial institutions and policymakers took note of these developments. Cryptocurrencies do not require an intermediary to verify and oversee transactions, allowing transactions to bypass the current monetary system overseen by central banks using fiat currencies. In their official capacities as international organizations seeking coordinated and stable monetary policy, the International Monetary Fund and the World Bank recognize the potential of blockchain technology and both have taken significant steps in this fintech space. Christine Lagarde, managing director of the IMF, suggested the creation of a digital currency based on the special drawing rights, a basket of international reserve currenci...

IMF Annual Meetings Small Is Beautiful – Regulatory Approaches for Non-Systemic Banks October 14, 2017 Question about Black banks at a session on: How can a more proportionate approach to regulation of small banks be applied to align more closely with their size and business models? Questioner: William Michael Cunningham Creative Investment Research Speakers: David Lipton, First Deputy Managing Director, IMF Michael Gibson, Director of the Division of Banking Supervision and Regulation, Federal Reserve Board

According to an official assessment obtained by Foreign Policy Magazine, the US government has declared “black identity extremists” like the "Black Lives Matter" movement a violent threat to the country. This assessment was made by the FBI’s counter-terrorism division. The finding, which carries with it the authority of a major counterterrorism arm of the United States, authorizes agencies of the Federal Government to use extraordinary means to protect the country from this erroneously declared threat. This might include spying on, rounding up, or forcibly detaining BLM activists and their supporters. History has shown what this means. COINTELPRO, "a series of covert, and often illegal, projects, starting in 1956 and conducted by the United States Federal Bureau of Investigation (FBI), aimed at surveilling, infiltrating, discrediting, and disrupting American political organizations." FBI records show that COINTELPRO resources targeted groups and individuals ...

Texas Economic Forecast 2017:  https://youtu.be/9wW5I1AcSPE

The meteoric rise of cryptocurrencies supported by the blockchain has regulatory agencies, financial institutions and central banks around the globe asking the same question: What in the world is going on here? Applications in finance, data storage, cybersecurity, and government merit the attention blockchain technology has received. As of last week, Bitcoin (the first and most notable cryptocurrency) approached $5,000, up +600% on the year compared to a 20% return for the Dow Jones Industrial Average over the same time. (Bitcoin has since returned to the more mundane level of $4,470 as of 9/5/17) Other cryptocurrencies ,including Litecoin and Ethereum, have seen a similar pattern of rise, retreat and rise. Governments and financiers acted decisively in the past month in an attempt to seemingly make up for lost time. The Securities and Exchange Commission issued new regulations on the proliferation of Initial Coin Offerings (see: the American Banker Newspaper BankThink ...

Eight years after the Great Recession, many in the country still struggle economically. While we continue to look forward positively with respect to the future, we need economic policy initiatives that promote growth and fuel our entrepreneurial spirit. Technology has allowed many more people to work for themselves and build economic security. This is even truer for the African American community, which has traditionally been locked out of opportunities in corporate America, but for whom, as the chart below shows, is starting to see some modest improvement. Economic independence is one key to our future. There are many pathways to achieving the American dream. Some of these pathways lead to entrepreneurship and to the use of empowering and flexible business models, such as franchising and the shared economy. Recent economic policy initiatives may serve to block the door to opportunity. Specifically, federal and state efforts to expand the definition of a “joint employer” ...

Maggie L. Walker founded St. Luke Penny Savings Bank in 1903, a time when Jim Crow laws and institutionalized prejudice conspired to prevent blacks from borrowing money or from even having bank accounts. This was done, of course, to keep blacks in a position of economic servitude, a situation blacks still suffer from to this day. Born a year before emancipation, Ms. Walker, the daughter of a former slave, is the first American women to have successfully opened a bank. (Having attempted in 2008 to raise $50 million to create  a black-owned bank holding company  to make capital investments in and own parts of new and existing black-owned U.S. banks, I can tell you that this is no easy task.) She did so in the South. In Richmond, Va., the capital of the confederacy. during a time when even white women were not allowed to vote.  In the South . (Oh, and she also led a boycott of Richmond’s segregated trolley car system, 50 years  before  the Montgomery Bus Boyc...

That's funny..SO ARE WE!

The Securities and Exchange Commission’s (SEC) recent report defines tokens sold through ICO offerings as “securities.” This is neither appropriate nor in the public interest. This definition will restrict the ability of startups to raise much needed capital without having to go to commercial banks, investment banks and venture capitalists, institutions who long ago abdicated their role in providing capital to deserving startups and small businesses. (Commercial banks, investment banks and venture capitalists focus on providing capital to a narrow group of non-minority and non female firms. As Uber and others (Google?) have shown, many of the women who dared work for these commercial bank, investment bank and venture capitalist supported firms found themselves harassed..and we know what happened when they sought funding.) In a press release, the SEC concluded that anyone using "..distributed ledger or blockchain enabled means for capital raising (needs) to take appropriate st...

The Securities and Exchange Commission’s concern about “initial coin offerings” is understandable. There are significant problems in the ICO marketplace, but new markets always have issues. Unfortunately, the SEC’s recent restrictions defining the tokens sold through such offerings as “securities” completely miss the point and once again will constrain the ability of startups to raise much-needed capital without having to go to a bank or venture capitalist first. See:  https://www.americanbanker.com/opinion/sec-takes-jab-at-startups-while-leaving-the-big-banks-alone

On Wednesday, July 26th, I watched as Senator Bob Corker (R-TN) sat down with David Ignatius of The Washington Post to discuss the current foreign policy environment in the United States. Part of the Post's “Securing Tomorrow” Series, Senator Corker, as Chairman of the Senate Foreign Relations committee, answered questions on Congress’ attitude towards a variety of foreign policy concerns. The major takeaways from the event include Corker’s firm stance on the need for congressional review of Presidential actions, his continued praise for Secretary Tillerson and President Trump’s cabinet, and his belief that sanctions on both Russia and Iran are absolutely vital pieces to American foreign policy. Corker's bill not only enhances sanctions on Russia and Iran, but also limits the president’s ability to lift sanctions currently imposed.  Mr. Corker believes very strongly in increasing Congress’ role in foreign policy when it comes to sanctions and his bill does just that. I...

Picture above: the author with (l-r)  John Ray, CIR Intern and  Craig Newmark, Founder of Craigslist. On Monday July 24, the Internet Governance Forum USA (IGF-USA) was held in Washington D.C. This event featured “panels, keynotes, and plenaries discussing issues vital to the continued growth of the Internet and increasing its benefits for all,” as described in the program for the day. I attended two sessions during IGF-USA, and wanted to share some highlights from each. The first session I attended was a plenary session titled, “Nationalism, Disinformation and Free Expression in the Age of the Internet.” As it was described in the program, this panel examined: • “How the internet ecosystem allows nativist content & movements to flourish & increasingly silos people • “How content is weaponized & disinformation used in politics • “How to ensure free expression with any proposed solutions.” Conversations exploring these issues are extremely important...

On July 24th, I attended a Branchless Banking Roundtable discussion sponsored by the Financial Services Innovation Coalition (FSIC) at the Rayburn House Office Building in D.C.  Panelists include the Co-Founder of BankMobile, Luvleen Sidhu, Founder of Creative Investment Research, William Michael Cunningham, and the founder of HBCU Wall Street, Torrence Reed. The moderator was the founder of FSIC, Kevin B. Kimble. During the hour-long discussion, they discussed issues related to the inefficiency of bank branches, the problem of bank transaction fees, and how newly developed technologies can change people’s way of banking. The discussion kicked off with agreement among the panelists that bank branches are no longer a necessary part of people’s banking experience. Based on statistics, bank branches are, on average, only getting one account opened each week per branch, which equals 52 accounts opened a year at each branch. Apparently, the influence of bank branches on ...

An inter-agency forum for executives across the federal government to learn about advances in Blockchain technology, discuss use cases and set an agenda for working together to evaluate and implement it among our diverse missions. The U.S. Federal Blockchain Forum is a program of GSA’s Emerging Citizen Technology program, organized in partnership with the Secretary of State’s Office of Global Partnerships and GSA’s Office of Information Technology Category.

On July 13, the Senate Committee on Banking, Housing, and Urban Affairs met in open session with the Chair of the Board of Governors of the Federal Reserve System, the Honorable Janet L. Yellen, for“The Semiannual Monetary Policy Report to the Congress.” I attended this hearing and this blog post shares my reaction as well as some analysis. Despite the fact that the hearing was supposed to be about monetary policy, the Senators mostly questioned Yellen about regulatory issues. Republicans have been pushing for widespread rollbacks of Dodd-Frank financial regulations, so this is not surprising. This regulatory theme was apparent from the beginning, with Sen. Mike Crapo (R-ID), the Chairman of the Committee, asking Yellen to affirm that she believes Congress needs to act on some areas of financial reform and that the Fed would work to make suggestions to the Committee, both of which Yellen readily agreed to. The ranking Democrat, Sen. Sherrod Brown (D-OH), quickly responded b...

On July 14th, 2017, Seed Spot hosted their first ever demo day for their Washington, D.C. location. Seed Spot is a nonprofit organization, based in Phoenix, AZ., committed to supporting social entrepreneurs through education and investment. They did not disappoint. At core, Seed Spot embraces entrepreneurs seeking to solve social problems, regardless of the entrepreneur's race, gender, age, or socio-economic background.  Seed Spot's dedication to the D.C. area was on full display as well, with the CEO and many board members in attendance. Their dedication to inclusion and excellence was also on vivid display at the magnificent Warner Theater in downtown Washington on Thursday night, with nine truly remarkable DC-area startups being showcased to a packed crowd. The startups on display completed Seed Spot's 14-week accelerator program. These businesses are more than just individuals with a dream or good idea.  Each startup had a strong team complete with a board of d...

We are conducting a survey of Black Business Conditions as we prepare for our Texas Talks (see above). Note that you do not have to be either in Texas or a Black-owned Business to fill out this survey. In fact, we prefer to have a range of business owners respond. We are, however, specifically focused on the Black business sector in Texas. To view and complete the survey, please go to: https://www.surveymonkey.com/r/NCVQLLL Thank you!

Soon, it may be easier to be a Wall Street Bank. We knew that one of President Trump’s central campaign promises was to dismantle the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 ( LA Times )— passed after the 2007-2009 financial crisis to prevent similar crises from occurring—but that didn’t necessarily mean anything major was going to happen. Campaign promises go unfulfilled all the time ( *cough* the Wall *cough* ). Now, the Trump administration seems to be moving to follow through on dismantling Dodd-Frank. With that in mind, we take a look at developments in this area over the past few weeks to see what changes are likely in the near future. On June 8, there was a surge of excitement (either out of fear or joy, depending on your perspective) when the House passed the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs Act, which would repeal many of Dodd-Frank’s banking reforms ( CNBC ). Then, everyone calmed down a bit a...

The State of Black Business will inform members and community leaders on the climate, condition, and trends of African American business.  The Keynote Speaker, Economist William Michael Cunningham, is the founder of Creative Investment Research and serves as Managing Partner for National Crowdfunding Services. The Forum is a critically important forum to discuss and design a plan for greater economic impact within our communities. You will want to join this discussion with black business leaders from around the city! Invitees to this event will include elected officials, corporate sponsors, community leaders, DBCC Board of directors and select Chamber members. August 22, 2017 Cityplace 2711 N. Haskell Dallas, Texas 75204 8:30 a.m. – 6:00 p.m. State of Black Business Registration:  (Early Bird Special) $75 Member/$100 Non-Member http://dallasblackchamber.org/current-events/state-of-black-business-forum/

On June 27th 2017, the House of Sweden, located on the banks of the beautiful Potomac River, hosted the Speakers of the Parliaments of Sweden and Latvia, the President of Parliament of Norway, along with Derek Cholett, the Executive Vice President at the German Marshall Fund of the United States, and Kurt Volker, the executive director of the McCain Institute for International Leadership, to discuss challenges in Northern Europe and how to face them in partnership with the United States. The seminar focused on the possible withdrawal of the United States from NATO, and how the Scandinavian countries would be left vulnerable to potential military aggression and geographical expansion of Russia in the near future, should the close relationship between President Trump and President Putin hold true. One key point the speakers all agreed upon is this fact: a great nation needs great neighbors. As Russia sits in close proximity to the Scandinavian countries, the Scandinavians are all ...