Posted on 11/23/2020 5:24:11 AM PST by karpov
The biggest banks in the U.S. will give Black-owned businesses advantageous terms on a crucial type of financing that companies use to manage their cash flow, a novel effort to narrow the wealth gap between white and non-white communities.
Banks made multibillion-dollar commitments to expand lending to Black consumers and businesses after the wave of protests throughout the U.S sparked by the killing of George Floyd. The targeted lending is meant to correct decades of discrimination in lending whereby banks denied loans to Black borrowers or steered them toward products with high interest rates and other terms many couldn’t afford.
As part of those promises, Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp. say they will lower charges to Black- and other minority-owned companies in supply-chain finance programs. Companies use supply-chain finance to manage short-term spending needs, similar to the way a consumer might use a credit card.
In a typical supply-chain finance deal, a bank will pay a company’s supplier faster than the normal payment terms, which, depending on the industry, typically vary from 30 to 180 days. In return for getting paid early, the supplier agrees to receive slightly less than it would get by waiting, and pays the bank a fee.
The company pays back the bank the full amount down the road, improving its working capital by padding out the time it gets to hold on to its cash. The bank profits by keeping the difference between what it paid the supplier and what it received from the company.
As part of their diversity efforts, the banks will pay Black-owned suppliers earlier than other customers or charge them lower fees, the banks say.
(Excerpt) Read more at wsj.com ...
unfortunately many rino senators are chomping at the bit to make a deal with slojoe!
I’ve noticed that.
They will all make a fortune again and that’s all that ever really mattered to them,
Give us money or we’ll burn you down. Things looking up for BLM.
Some people have short memories. They forget what happened in the banking debacle, which, that also was the result of giving loans to people based on race, that could not afford to pay it back.
EQUAL CREDIT OPPORTUNITY ACT
Enacted on October 28, 1974, the Equal Credit Opportunity Act (ECOA) makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of: Race, Color, Religion, National Origin, Sex, Marital Status, Age, Income Derived from Public Assistance, or having exercised their rights under the Consumer Credit Protection Act.
Seems like a clear violation to me. Giving preferential treatment to one Race in obtaining credit....
This will probably go like other race preferred programs, like special development grants or contract bidding. Interested companies, no matter their ownership, will bring in an interested black investor to fulfill the requirement to participate, and gain access to the program. Businesses and lenders have been dancing circles around these silly schemes since they were invented. I know of one loan officer who has several black investors on speed dial just for these opportunities.
The way to end racism is to stop doing racist things.
Obviously, white people need to shout “no justice, no peace” and burn a few cities down (I’d say Washington D.C. is a good choice) to get equality. Loot some Targets for Christmas.
What happened to the color-blind society we are supposed to be pursuing??
‘Deja vu all over again’
That is illegal and unconstitutional.
blacks will get favorable deals. ok...
i’m guessing to make up for the inevitable short fall (risk analysis isn’t usually wrong), they will increase the rates they charge WHITE customers
just an extra 0.01% ... on EVERYONE
all under the benevolent flag of racial justice.
He sounds like the 3rd member of the just us team.
flip flop flip flop................................
No, it's not novel, it's called racial discrimination and when it happens the other way around, people go to prison.
This is identical to the subprime lending mandate implement by Clinton that resulted in one of the worst recessions in American history.
Talk about racist.
The targeted lending is meant to correct decades of discrimination in lending whereby banks denied loans to Black borrowers
Thanks for the link.
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