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Showing posts with the label #BankBlack

Over the Past Six Months, a Portfolio of Stock in Minority Banks Beat the S&P 500.

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Over the past six months, a portfolio of stock in minority banks beat the S&P 500. The S&P 500 Index (green) returned 74% The Minority Bank portfolio (blue) returned 112%. 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 thinl

The largest Black-Led (but not Black-owned) bank in the U.S.

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Black-Owned Broadway Financial Corporation and “Black-Led” CFBanc Corporation announced a merger of equals that may lead to the creation of the largest Black-led (but not Black-owned) bank in the U.S. The resulting institution will have more than $1 billion in combined assets and approximately $850 million in total depository institution assets (as of June 30, 2020). (Also see: BLACK BANKS MERGE TO CREATE NATION’S FIRST BLACK-LED BANK WITH OVER $1 BILLION IN ASSETS.  https://www.blackenterprise.com/black-banks-merge-to-create-nations-first-black-led-bank-with-over-1-billion-in-assets/ Black-Owned Banks in LA, DC Announce Merger. https://mynewsla.com/business/2020/08/27/two-black-banks-merge/ Merger of two Black-led banks aims to help break a painful cycle https://www.latimes.com/business/story/2020-08-27/black-banks-broadway-federal-bank-city-first-merger ) Broadway is one of the best Black banking institutions in the US, based on their longevity and positive impact on Bl

MINORITY FIRMS AND COVID2019 - KEY IMPACTS

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 MINORITY FIRMS AND  COVID2019 | KEY IMPACTS https://drive.google.com/file/d/1JLHqG9q4Hq7sep_aePzmLbiX__qnRMnU/view?usp=sharing

Six (6) Companies Are 70% of Black Lives Matter Pledges

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According to a new report issued by Creative Investment Research, as of August 3, 2020, $7.854 billion in corporate pledges have been made to facilitate efforts that support racial justice. Just six companies account for 70% of that total. For the summary report, see: https://www.linkedin.com/pulse/six-companies-account-70-corporate-black-lives-matter/   Also see: https://youtu.be/t7aqn7oGGj0 via @YouTube  Creative Investment has launched a crowdfunding campaign to pay for the development of a BLM Corporate tracker:  https://www.gofundme.com/f/tracking-corporate-donations-to-blm?rcid=r01-159828617213-f92f83fc925f4b9a&pc=tw_co_campmgmt_w&utm_medium=social&utm_source=twitter&utm_campaign=p_lico+share-sheet To donate directly, please contribute at paypal.me/cirm  

Black communities need more help from the Federal Reserve Board

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An estimated  $7 billion in corporate  pledges have been made to facilitate efforts that support racial justice, and help activities  that seek immediate solutions  to the crisis affecting Black people. We are very familiar with these types of promises, having launched the first website focusing on financial support for minority communities in 1995 and a new website to monitor such corporate pledges. Yet it appears that only $188 million of that $7 billion is money someone can reasonably expect to get their hands on. Further, in certain sections of the Black community, there is concern about the effectiveness of the traditional organizations identified as recipients of the pledges. And there appears to be less  concern with newer, trending  organizations. Our recent survey of  customers banking at black-owned banks  suggests most consumers who do not use Black banks are concerned about their financial stability, and have not been able to leverage financial resources from th

Black Bank Survey

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We are conducting a customer satisfaction survey on Black Banks To participate, see:  https://www.surveymonkey.com/r/YQZXZY7 Questions include: 1. How frequently do you utilize Black-owned Banks? 2. What is your overall satisfaction level when dealing with Black-owned banks? (5 starts - highest). 3. Have you had success in getting  loans, etc. from Black-owned Banks? 4. Are/were you worried about the financial stability of Black-owned banks? 5 .   Do you believe that Black-owned banks prioritize your needs? For a list of Black banks, see: https://www.minoritybank.com/research/blackbanks.html See: The country’s last black-owned banks are in a fight for their survival. https://www.washingtonpost.com/news/wonk/wp/2015/02/13/the-countrys-last-black-owned-banks-are-in-a-fight-for-their-survival/ 2011 - Crisis - The Current State of #BlackBanks  https://www.prlog.org/11541435-crisis-the-current-state-of-black-banking.html  2016 - Creative Investment released an analysis

Is capital haul too much of a good thing for Black-run banks? By John Reosti, American Banker Newspaper, June 24, 2020

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An effort encouraging investors to buy stock in Black-run banks could create new challenges for the leaders of those companies. The Buying Black movement, which took root last week, led to sharp increases in the shares of companies such as Broadway Financial in Los Angeles, Carver Bancorp in New York and M&F Bancorp in Durham, N.C. An influx of new investors could increase pressure to improve shareholder returns, while any strategic effort designed to generate higher profits could also draw a backlash. At the same time, markets are fickle — most shares in Black-run banks have fallen significantly in recent days as some existing shareholders cashed out. Indeed, Broadway's biggest investor — who had been pushing for the company's sale — abruptly sold all of its stock after the value of its holdings soared. Leaders of Black-run banks contend that what they need more than capital is more partnerships with bigger banks to extend their reach to underserved custo

New Bill Could Help Black Banks Raise Capital, Cut Costs, and Attract Black Investors

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Article by Jeff McKinney in Black Enterprise describes HR 41, "the Rescue Act for Black and Community Banks . The bill–initiated in January 2019–aims to, along with other measures, bring regulatory relief for black banks from Congress, boost wealth-building for black consumers and businesses, and help save black banks from failing." See: https://www.blackenterprise.com/new-bill-black-banks-black-investors/

Bill to Support Black and Community Banks

New federal banking legislation,"H.R.41 - RESCUE Act for Black and Community Banks" was introduced by Congressman Bobby Rush (D-Il) on January 3, 2019. We worked, along with the Financial Services Innovation Coalition (FSIC), to draft this new legislation, which contains many of the ideas we have been working on for some time. Recently, FSIC sponsored a letter of support. To add your name, please see: https://lnkd.in/ejv9Ef6 The bill is designed to take a focused approach to saving and expanding the number of Black-owned banks operating in the US. This legislation is designed to meet the needs of the Black community, not just serve bankers. Our contributions were part of a collaborative effort in the overall national interest. The bill, which has just started the legislative approval process, contains the following provisions: 1. Establishes in the Office of the Comptroller of the Currency the "Office of Black and Community Banks". 2. Seeks to partially or complet

The IMF, BASEL III and Black Banks

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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

Black Business Index & Survey

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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!

The Problem with OneUnited and #BankBlack

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 According to the New York Times, "WASHINGTON — Top banking regulators were taken aback..when a California congresswoman helped set up a meeting in which the chief executive of a bank with financial ties to her family asked them for up to $50 million in special bailout funds, Treasury officials said. Representative Maxine Waters, Democrat of California, requested the September meeting on behalf of executives at OneUnited, one of the nation’s largest black-owned banks. Ms. Water’s husband, Sidney Williams, had served on the bank’s board of directors until early last year and has owned at least $250,000 in stock in the institution. Treasury officials said the session with nearly a dozen senior banking regulators had been intended to allow minority-owned banks and their trade association to discuss the losses they had incurred from the federal takeover of Fannie Mae and Freddie Mac. But Kevin Cohee, OneUnited’s chief executive, instead seized the opportunity to plead for s