This Week in ESG and Impact Investing

The Department of Justice announced a settlement with City National Bank of Los Angeles for "refusing  to underwrite mortgages in predominantly Black and Latino communities."  The $31 million dollar settlement requires the bank to:  Invest at least $29.5 million in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in Los Angeles County. (We note our work on an investment vehicle that deals with homelessness and another that deals with HIV/AIDS. See: https://www.impactinvesting.online/2018/11/william-michael-cunningham-on-impact.html  and The opening of Brenda House Women's Shelter https://www.prlog.org/12708015-william-michael-cunningham-to-speak-at-the-opening-of-brenda-house-womens-shelter.html );  Spend at least $500,000 for advertising and outreach targeted toward the residents of these neighborhoods;  Spend at least $500,000 for a consumer financial education program to help increase access to credit for residents;  Sp...

According to news reports, "The Congressional Black Caucus Foundation, Inc. (CBCF)..(made a) $5 million (deposit) in African-American banking institutions as part of a broader effort to increase the availability of loans for businesses and individuals in African-American communities. In all, five banks will receive $1 million each" in deposits. The Foundation, "established in 1976, is a non-partisan, non-profit, public policy, research and educational institute intended to broaden and elevate the influence of African Americans in the political, legislative and public policy arenas." The banks are: Chicago-based Seaway Bank and Trust Co.  New Orleans-based Liberty Bank and Trust Co.  Washington, DC-based Industrial Bank Newark, NJ-based City National Bank Durham, NC-based M&F Bancorp  This effort was spearheaded by Ron Busby, Sr., CEO, U.S. Black Chambers, Inc. (pictured right). All in all, a good move. This is modeled on efforts we spearheaded ov...