JPMorgan Chase pledges $30 billion to close the racial wealth gap in the United States.

JPMorgan Chase pledges $30 billion to close the racial wealth gap in the United States.

Jamie Dimon, CEO of JPMorgan Chase, speaks at the North American Building Trade Union (NABTU) 2019 Legislative Meeting in Washington, April 9, 2019.

Jina Moon | Reuters

JPMorgan Chase has a $30 billion promise he says will help address inequality in the United States, especially in traditionally marginalized black and Latino societies.

The bank’s commitment is a combination of five years of lending, investment and philanthropy that he says goes beyond what can be done in the normal course of business. According to the company’s press release, the goal is “to drive an inclusive economic recovery, support employees and break down barriers to systematic racism.”

The question of racial inequality in America is Died May 25 George Floyd’s protests in the hands of police sparked protests across the country for weeks. that much Coronavirus infectious disease worldwide epidemic It also revealed a gap in the situation Health outcome In particular, the black community faced, resulting in Covid-19 mortality far higher than the entire population.

“Organizational racism is a tragic part of American history,” said JPMorgan CEO Jamie Dimon in a statement. “We can do more and do better to break down the system that has spread racism and widespread economic inequality, especially for blacks and Latinos. As society addresses racial inequality in a more specific and meaningful way,” It’s a long time ago.”

Banks that have contributed to inequality through practices that are historically currently prohibited Red lining, Hoping to be part of a solution to social problems. Earlier, Bank of America and Citigroup each made $1 billion. Appointment To reduce inequality.

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Most of JPMorgan’s dollar commitments are related to housing. The New York-based bank says it will provide $14 billion in loans and investments to spur the creation of 100,000 affordable rental homes in marginalized communities.

The bank will also launch 40,000 home loans for black and Latino households, adding $8 billion worth of mortgage to the pledge. It will also help other 20,000 black and Latino clients lower their mortgage payments with $4 billion in refinancing. The effort will include subsidies for down payments and closing costs, the bank said.

The bank said an additional $12 billion mortgage was calculated based on the company’s 2019 mortgage size. Minority community, Use it as the base rate for the loan you would have made over the next five years.

JPMorgan also said it will launch a new program that will provide $2 billion worth of 15,000 loans to small businesses in black and Latino regions and help guide entrepreneurs. It will also spend an additional $750 million on black and Latino suppliers.

Marc Morial, president of Marc Morial, said, “We are delighted to see JPMorgan’s concrete and measurable promise to address decades of systematic racism against the black community and strengthen the well-being of families across the country.” The National Urban League said in a statement.

JPMorgan also said it will provide access to low-cost bank accounts to one million people in underprivileged areas, in part by opening branches in mid- and low-income communities.

Regarding its own workforce of 256,710, the bank said it would incorporate the objectives into its compensation decisions, giving managers responsibility for the diversity objectives.

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Finally, the bank is extending and expanding the existing $1.75 billion five-year commitment signed in 2018 with a $2 billion philanthropy offering.

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