Jamie Dimon, CEO of JPMorgan Chase & Co.
Giulia Marchi | Bloomberg | Getty Images
JPMorgan Chase on Tuesday announced its latest round of initiatives to support banks and credit unions that are primarily owned or run by people of color, as well as banking institutions working with underserved communities.
It is part of JPMorgan’s $ 30 billion commitment to help combat wealth inequality.
“These new initiatives focus on strengthening minority-owned and multi-led financial institutions, providing additional access to capital, connections with institutional investors, specialized support for black-led business projects, and mentoring and training opportunities.” said the bank in a news release.
JPMorgan announced its initiative last October, following the assassinations of George Floyd and Breonna Taylor. The ongoing coronavirus pandemic has also highlighted long-standing systemic health and health inequalities.
“Systemic racism is a tragic part of U.S. history,” JPMorgan CEO Jamie Dimon said in a statement at the time. “We can do more and do better to break systems that have spread racism and widespread economic inequality, especially for blacks and Latinos.”
Historically, banks have contributed to inequality through now-prohibited practices, such as downsizing. JPMorgan partners, such as Bank of America and Citigroup, also made multi-million dollar commitments to reduce inequality.
As part of its latest series of efforts, JPMorgan Chase said it invested and pledged the first $ 40 million of its $ 50 million equity pledge to minority depository institutions run by Blacks and Latinx.
The firm added that it also established a racial equity program, providing tax credit investment prices for new markets for businesses and nonprofits run by blacks, owned by blacks and blacks.
This tax credit provides investors with a tax incentive to invest in low-income communities.
JPMorgan said it will help fund the tax credit directly to community projects, including shelters, health clinics and small businesses.
The bank also launches “Empowering Change,” which it called a “unique program with the support of Google and in collaboration with minority depository institutions and community development financial institutions driven by various economic opportunities in underserved communities.”
“Google is anchoring the launch of the program with the intention of investing $ 500 million in the Empower money market share class that will be initially distributed by several MDIs led by Harbor Bank of Maryland, Liberty Bank and Trust, M&F Bank and Unity National Bank “. said the company.
JPMorgan said the program includes a new Empower money market share class for distribution by MDIs and CDFIs run by several, as well as an annual donation of 12.5% of the revenue received from asset management commissions. the Empower action class to support community development.
The bank will also provide access to its resources, including training and education.
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