JP Morgan makes $30-billion commitment to fight racial inequality

JP Morgan has committed $30 billion to tackle racial inequality through loans, investments, and direct funding.

CNN’s Jazmin Goodwin reported:

JPMorgan Chase (JPM) is committing $30 billion over the next five years to promote racial equality.

“Systemic racism is a tragic part of America’s history,” said JPMorgan Chase Chairman and CEO Jamie Dimon in a news release. “We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people. It’s long past time that society addresses racial inequities in a more tangible, meaningful way.”

Imani Moise from Reuters wrote:

The initiative seeks to provide $8 billion in new mortgages for Black and Latino borrowers, $14 billion in loans for affording housing projects, $2 billion in small business loans, and $2 billion in philanthropy.

In comparison, Bank of America Corp and Citigroup Inc have made similar pledges totaling about $1 billion each.

JPMorgan, the largest U.S. bank by assets, earned $36.4 billion in profit last year.

Bloomberg’s Michelle F Davis noted:

The changes are the culmination of months of discussions about how to address racial inequity sparked by this summer’s nationwide protests in the U.S. after the police killing of George Floyd. JPMorgan and other big U.S. banks have been pressured to help remedy race-based economic gaps the industry helped create. Firms including Goldman Sachs Group Inc. and Wells Fargo & Co. have promised to improve diversity among their own ranks.