Summary of recent news articles on black-owned banks 09/12/16-09/23/16

Boosting A Black Bank. By Karen Morales, Bay State Banner. September 21, 2016.

In less than a month, $10 million in deposits were added at OneUnited, and customer activity “continues to be at elevated levels,” said Teri Williams, President of OneUnited Bank. She said the movement is a way to create change by not only moving your money but also moving your mind or changing your mindset. Williams believes that the #BankBlack movement can be a public reminder that black-owned banks and businesses offer the same quality service as any other company.

Past & Present: The 'Black Money Matters' Movement. By Robert E. Weems Jr., KMUW 89.1 Wichita Public Radio. September 20, 2016.

While the Black Money Matters Movement is a favorable development in the context of African American business history, the past several decades have been disastrous for many historic black enterprises. As recently as the 1960s, there were more than 50 viable black insurers in the United States. Today, that number has dwindled to just two, and will be zero by the end of this decade based upon recent trends.

A Letter of Appreciation to All Who Decided to Open Accounts in Black Banks: This Might Prove to Be a Game-Changer. By Michael Grant, The AFRO. September 16, 2016.

The president of the National Bankers Association Michael Grant says opening accounts in Black banks is a great first step for African Americans to achieve financial independence. And next, the Black bankers have a responsibility to teach banking 101 to the masses. The more home equity loans are used to create new businesses or to expand existing ones, the more jobs (and job training) these businesses can provide. The bank’s increased lending capacity is how we begin growing the collective wealth of the community.

How #BankBlack Could Help Narrow the US Wealth Gap. By Eliza Lambert, The Takeaway, Public Radio International. September 15, 2016.

The #BankBlack hashtag revolution has grown black-owned banks’ assets by about $6 million. The President of OneUnited Bank Teri Williams says, “What it really has meant is that the black community is finally coming to recognize the power of our spending dollars.” Mehrsa Baradaran, the author of the book “The Color of Money: A History of Black Banking”, calls black-owned banks “the engines of wealth growth in the black community”, and the only ones trying to make a dent in the wealth gap.

Some Residents Support Black-owned Bank. By Alva James-Johnson, Ledger-Enquirer. September 13, 2016.

The local organizing committee of the Justice Or Else! Millions More March formed last year to promote the importance of supporting black businesses in the Columbus community. They put the next spotlight on the Columbus branch of Citizens Trust Bank, encouraging black residents to open accounts with the only black-owned bank in the city.

The Promise and Challenge of Moving Money Into Black-Owned Banks. By Gillian B. White, The Atlantic. September 12, 2016.

#Bankblack’s successes are certainly impressive, but making black-owned banks economically viable in the long term will require larger and more systemic change. Less than 50 years ago, legislation mandated that white banks serve black customers, exposing black-owned banks to far more powerful competitors. Since the Great Recession, smaller banks have objected to stricter compliance reporting and heightened capitalization standards. John Robinson said the revival of black-owned banks would require a massive change to the American banking system, which still favors the largest banking operations over community-based banks and credit unions.

Summary of recent news articles on black-owned banks 08/31/16-09/11/16

Black-owned Banks See Surge in Deposits. By Akilah Johnson, The Boston Globe. September 10, 2016.

The #bankblack movement has brought OneUnited Bank more than $10 million in deposits in less than a month. Black-owned banks across the country have struggled in recent years to keep pace with a changing world. William Michael Cunningham thinks having another #bankblack event with a failing black-owned bank won’t make a long-term difference. “The question becomes: How do you harness and channel the spending of the $1.1 trillion black buying power so you’re actually benefiting from it?” says Darnell Williams.

What’s Next if Payday Loans Go Away? By Tara Jeffries, Morning Consult. September 7, 2016.

The proposed Consumer Financial Protection Bureau regulation aims to prevent borrowers from being stifled by high interest rates and monthly payments. Stronger regulation of payday lending could increase the use of financial technology such as online marketplace lending, said William Michael Cunningham. He also suggested, “CFPB should take some of that fine money that they’re getting from these financial institutions and create a fund to create responsible depository institutions serving some of these communities.”

How U.S. Backed Banks Robbed Ex-Slaves of $66 Million. By Admin, Huewire. September 1, 2016.

The Freedmen’s Savings and Trust Company was established and run by white men in 1865 for ex-slaves. Due to fraud, mismanagement, and discriminatory lending, the bank closed in 1874, and 61,144 black depositors were robbed of the modern equivalent of $66 million. The failure of the bank left many African Americans distrustful of the white banking community. And it’s still harder for African Americans to get mortgages or small business loans compared to whites with the same variables. Usher and Booker T. Washington call on people to bank black. “Empowerment starts with ownership,” said Usher.

The Rise and Fall of Black Wall Street. By Alexia Fernández Campbell, The Atlantic. August 31, 2016.

The Jackson Ward neighborhood of Richmond, once dubbed America’s “Black Wall Street”, was one of the most prosperous black communities in the United States at the turn of the 20th century. Richmond is where the first black banks opened. The first black bank, the St. Luke Penny Savings Bank opened here. But due to troubled loans and lack of capital, the bank was taken over in 2011, renamed as Premier Bank, and lost its African American majority ownership. The bank still mainly serves black community and gained preference of black entrepreneurs.

What’s Next if Payday Loans Go Away?

Tara Jeffries from Morning Consult wrote about the payday loans regulation after her interview with William Michael Cunningham from Creative Investment Research, Inc.

"As the Consumer Financial Protection Bureau prepares to finalize proposed rules cracking down on payday lenders, critics and proponents alike are speculating on what would fill the need for short-term, small-dollar loans. The proposed Consumer Financial Protection Bureau regulation aims to prevent borrowers from being stifled by high interest rates and monthly payments. Stronger regulation of payday lending could increase the use of financial technology such as online marketplace lending, said William Michael Cunningham. He also suggested that CFPB should take some of that fine money that they’re getting from these financial institutions and create a fund to create responsible depository institutions serving some of these communities. Dennis Shaul, chief executive of the Community Financial Services Association of America, took aim Tuesday at the CFPB, saying it “buried and ignored” a slate of positive testimonials about payday loans. ”

Click on https://morningconsult.com/2016/09/07/whats-next-payday-loans-go-away/ to read the full story.

William Michael Cunningham to deliver fourth consecutive Texas Economic Forecast

WASHINGTON - Sept. 1, 2016 - PRLog -- The Texas Association of African American Chambers of Commerce (TAAACC) will host its 16th Annual Conference in Austin, Texas on September 22-23.

"We are especially pleased that William Michael Cunningham will deliver his Texas Economic Forecast for the fourth consecutive year," said TAAACC President Charles O'Neal. Mr. Cunningham is a Washington, DC-based economist, author and business expert. "William's analysis and understanding of the dynamic Texas marketplace is always remarkably insightful, and he never makes his observations without offering solutions for the benefit of Texas Black-owned businesses. We are thrilled to be able to provide this invaluable presentation to conference attendees."

Mr. Cunningham's update follows his 2016 forecast, delivered at the Texas Association of African American Chambers of Commerce (TAAACC) previous Annual Conference in Austin, Texas September 24-25, 2015. As he noted at the time,

"Economic conditions in Texas are strong. Our research indicates that the economic recovery is finally getting to the most difficult to reach population segment, African Americans, those hardest hit by the crisis to begin with."

As reported in The Dallas Weekly on August 18, 2015. a presentation by Mr. Cunningham at TAAACC sparked successful Texas crowdfunding legislation.

RSVP at: http://taaacc.org/event-2295166