Economy

JPMorgan Chase pledges $ 30 billion to close US racial gap

Jamie Dimon, CEO of JPMorgan Chase, speaks at the 2019 Assembly Conference of North American Building Trade Associations (NAPTU) on April 9, 2019 in Washington.

Gina Moon | Reuters

JPMorgan Chase is making a $ 30 billion commitment to help address U.S. wealth inequality, especially in traditionally low-income black and Latin communities.

The bank’s pledge is a combination of loans, investments and benefits over five years, which it says goes beyond what it would do in the normal course of business. According to the company’s press release, the goal is to “drive inclusive economic recovery, support employees and break down barriers to formal racism.”

Questions about racial inequality in the United States were later raised May 25 death At the hands of a police officer, George Floyd provoked protests across the country for weeks. The International spread of corona virus Exposed the gap in circumstances Health effects Especially faced by the black community, resulting in a much higher Govt-19 mortality rate than the overall population.

“Systematic racism is a tragic part of American history,” JPMorgan CEO Jamie Timon said in a statement. “We can do more and better to break the racism and widespread economic inequality, especially the systems that have spread to the black and Latin people. It is a thing of the past for society to address racial inequality more firmly and meaningfully.”

Banks that have historically contributed to inequality through now-prohibited practices Redness, Hope to be a part of the solution to the problems of the community. Previously, Bank of America and the Citigroup each earned $ 1 billion Duties To reduce inequality.

Much of JPMorgan’s dollar commitment is tied to housing. The New York-based bank says it will provide $ 14 billion in loans and investments, prompting the creation of 100,000 affordable rental units in low-income communities.

The bank will also generate 40,000 home purchase loans for Black and Latin families, and will add $ 8 billion worth of mortgages to its commitment. It will also help 20,000 Black and Latin customers reduce their mortgage payments with a $ 4 billion refinancing. The bank said the effort would include lower payments and subsidies for final expenses.

Additional mortgages are estimated at $ 12 billion based on the company’s 2019 mortgage size, the bank said Minority communities, Uses it as the default rate for loans over the next five years.

JPMorgan said it would provide $ 15 billion in loans to small businesses in the Black and Latin neighborhoods and launch a new program to help coaches. It will cost an additional 750 million with Black and Latin suppliers.

“JP Morgan’s specific, measurable obligations will address decades of systematic racism against black communities – and I hope it will improve the well – being of families across the country and our collective economy,” the National City League said in a statement.

JP Morgan also said that by opening branches in low- and middle-income communities, 1 million people in low-income areas will have access to low-cost bank accounts.

With 256,710 of its own employees, the bank said it would hold managers accountable for diversity targets by incorporating targets into compensation decisions.

Finally, the bank is offering a $ 2 billion bounty, expanding the previous 75 to 1.75 billion, a five-year pledge made in 2018.

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