This Week in ESG and Impact Investing

  O ver the past six months, a portfolio of stock in minority banks beat the S&P 500. The S&P 500 Index (green) returned 14.4% The Minority Bank portfolio (blue) returned 59.18%. Much of this performance has been due to the increased attention being paid to the minority banking sector. The portfolio consists of equal weights in the following banks Symbol Name Ethnic Group BOH Bank of Hawaii Corporation Hispanic BPOP Popular, Inc. Hispanic BYFC Broadway Financial Corporation Black CARV Carver Bancorp, Inc. Black CATY Cathay General Bancorp Asian CZBS CITIZENS BANCSHARES CORP GA Black EWBC East West Bancorp, Inc. Asian HAFC Hanmi Financial Corporation Asian HRBK HARBOR BANKSHARES CORP Black IBOC International Bancshares Corp Hispanic IBWC IBW FINANCIAL CORP Black MFBP M & F BANCORP INC Black PFBC Preferred Bank Hispanic Now, there are a few things to keep in mind: It's hard to actually buy this portfolio, mainly because stock in Black-owned banks is hard to come by. It is

Banks of all sizes are continuing to direct funds to minority-owned businesses months after the social unrest that followed last year’s death of George Floyd. JPMorgan Chase just announced plans to invest $40 million in four Black-run banks. Ally Financial, Banner, Citigroup, Texas Capital Bancshares and First Republic Bank joined JPMorgan in providing capital to help fund Broadway Financial’s pending acquisition of the $435.4 million-asset CFBanc in Washington. Four community banks — First National in Strasburg, Va.; Fauquier Bancorp in Warrenton, Va.; Eagle Financial Services in Berryville, Va.; and Potomac Bancshares in Charles Town, W.Va. — recently created a $1 million fund to provide loans to Black-owned businesses and farms in their markets. The latest efforts show that the banking industry is still evaluating ways to help underserved markets. “There’s no doubt we needed to do an assessment on what more we could do as a firm,” said Brian Lamb, global head of diversity and inclus

The seventeen Sustainable Development Goals (SDGs), approved by the United Nations at the end of 2015, seek to develop the living conditions and conservation of the environment especially in developing countries. It also seeks to eliminate inequality across the globe in all sectors. SDG 16 and 17 clearly recognize the fact that only through the implementation of laws and enforcement of same can we guarantee the SDGs. Implementation of the SDGs will therefore require that countries use a wide range of policy and program approaches. It is therefore pleasant and refreshing to learn that the African Continental Free Trade Area (AfCFTA) has a strong development focus, highlighting economic and social development.  The AFRICAN UNION’s (AU) Agenda 2063 highlights the point that Africa’s growth and integration into the Sustainable Development Goals (SDGs) is part of the Agenda agreement. The positive aspect is that African Countries, by signing and ratifying the AfCFTA, will in the long run, h

On crowdfunding website Kickstarter, 57,502 gaming projects have raised $1.37 billion dollars as of January, 2021. In fact, the most successful crowdfunding project raised $300 million (and counting) for Star Citizen, a computer game. GameStop is a crowdfunding project. Along with the recent increase in the value of bitcoin, from $3,000 to $42,000 (low to peak in 2020), this points to the main problem with economics and finance: these "fields" serve the needs of a small, non-minority group of people. They are also, at core, racist and dishonest. We pointed this out some time ago in comments to the US Securities and Exchange Commission: December 22, 2003 "Envy, hatred, and greed have flourished in certain capital market institutions, propelling ethical standards of behavior downward. Without meaningful reform, there is a small (but significant and growing) risk that our economic system will simply cease functioning." http://www.sec.gov/rules/proposed/s71903/wmccir122

Sounding long overdue and welcome words at his inauguration, President Biden has gotten off to a brilliant start. The new President signed thirty (30) executive orders in three days. One third directly reverse the policies of the prior Administration. As the first real first attempt by any Administration to address the COVID-19 crisis, we applaud the effort. What’s brilliant about these policies is the honest way they address the touchstone of American politics: race. One of the first Executive Orders issued by the Biden Administration mandated a “ comprehensive approach to advancing equity for all. ” The executive order requires the US Government to “identify the best methods, consistent with applicable law, to assist agencies in assessing equity with respect to race, ethnicity, religion, income, geography, gender identity, sexual orientation, and disability.” Finally, the order requires that “each agency...assess whether underserved communities and their members face systemic bar

(For the original June 11, 2016 post on LinkedIn, click here:  https://drive.google.com/file/d/1xL15GdePWD_3nOJJT60nM4686gqq0yVU/view?usp=sharing  ) Our initial 2016 Election Fully Adjusted Return Forecast indicates that Donald J. Trump will win the election for the Presidency of the United States. This follows from one sufficient and one necessary condition.   The sufficient condition:   seventeen (17)   Republican states have enacted laws restricting access to the voting booth, restrictions so onerous as to defy both common sense and the spirit of democratic governance. These laws guarantee that the people who would vote against Mr. Trump will be blocked from participating in the election. For example, to vote in the State of Texas, a gun permit suffices. A college ID does not. So it is in 17 of 50 US States.  Game.  The movement to block access to voting has been a long term effort, a reaction to the election of the first African American president. Rather than effectively fighting

For the original 12/26/2016 post, see:  https://drive.google.com/file/d/16wkfCn1aD7iCw1VQaSaH48r8BzDW8Scs/view?usp=sharing  "Populism is a belief in the right of ordinary people, rather than political insiders, to rule." Trumpism, by contrast, operates on the presumption that ordinary white working class people are never going to get a chance to rule, no matter what, so they might as well disrupt the political process using the only tool left that is still available to them: the vote.  These are white, working class men and women who know that, by all intellectual and economic standards, they cannot win at the fixed "money game." So, egged on by wealthy bigots at Fox and Breitbart, they lash out at politicians, judges, Hispanics, scientists, teachers, Wall Street, universities, Blacks, the media, women, legislatures—even at elections. They are not interested in serious reform to the system. Under the enormous economic pressure of a rigged "free market" the

Our economic models are based on our December 26, 2016 forecast:  "Under any conceivable scenario, the current situation is very bad, and I mean toxic, for democratic institutions in general and for people of color specifically. Bottom line: our Fully Adjusted Return Forecast** indicates that, over time, things will get much, much worse....."   From: Trumpism.  https://www.linkedin.com/pulse/trumpism-william-michael-cunningham-am-mba/   Unfortunately, we were right. By January 6, 2021:  1. An administration-inspired violent insurrection attempted to prevent the Congress of the United States from certifying the result of the 2020 presidential election. This is, of course, the true nature of the republican party: racist, greedy, angry, entitled and violent. Black people know that crowd: it's the same mob seen at every lynching. The noose below was constructed at the US Capitol on January 6, 2021.   2. A foreign government (Russia) attacked and compromised  all  critical fed

There can only be one reason for the events of January 6, 2021 - republican political culture officially sanctioned “insurrection, terrorism and treason.” A collection of racist and fascist sympathizers sought to murder the Vice President and members of Congress.  We discussed this eventuality on December 26, 2016: "Under any conceivable scenario, the current situation is very bad, and I mean toxic, for democratic institutions in general and for people of color specifically. Bottom line: our Fully Adjusted Return Forecast** indicates that, over time, things will get much, much worse....." From: Trumpism.   https://www.linkedin.com/pulse/trumpism-william-michael-cunningham-am-mba/    Now, the power of right-wing lobbyists, conservative think tanks and fanatic media outlets have directed American public policy in support of extremism and militarism.  In order to understand what happened, we must recognize that   the   key motivational force was Trump’s call to violence. Only a

Reuters launched one of the biggest and most ambitious leadership summits in the world, bringing together 25,000 executives over four days to hear from leading names in business, finance, politics, tech and media on the most pressing issues of our age. Over four days in January, Reuters Next ( https://reutersevents.com/events/next/ ) will deliver agenda-setting discussion around the theme of Rethink, Rebuild, Recover; A New Vision For A Better Tomorrow, with the first speakers named including: European Central Bank president Christine Lagarde; Sandeep Mathrani, CEO WeWork; activist and businessman, Bobi Wine; Kristin Peck, CEO Zoetis; Shan Weijian, Chairman and CEO, PAG Group; and Mike Wirth, Chevron CEO. The virtual summit – which takes place January 11-14, 2021 - will examine topics such as global trade, climate change and sustainability, the fallout from the U.S. election and the impact of Brexit, new work models, press freedom, and economic recovery following the pandemic through a