Two recent articles in the New York Times provide substantial food for thought for bankers. It is increasingly recognised that racism exhibits itself in many ways and often not directly. If racism is to be addressed comprehensively, it is necessary to look at the many ways in which it becomes embedded in our economic, political and social systems. The financial system is one where attention needs to be paid.
In an editorial comment on 26 June 2020 in the New York Times, Angela Glover Blackwell and Michael McAfee argue that “Banks Should Face History and Pay Reparations.” Whilst one does not need to accept fully their proposed solution, they provide a very substantial historical record of how banks have been complicit in reducing wealth accumulation for blacks. This record includes not only finance for the development of slavery but ongoing discrimination continuing through the present that has been a significant impediment for accumulation of wealth by the black community. The end of slavery in the US in the 1860s did not end the impact of racially discriminatory actions.
On 30 June 2020 an article in the New York Times provides the story of Wole Coaxum. He left a Managing Director role at JP Morgan Chase to set up Mobility Capital Finance. This entity focuses on getting financial products and services to the unbanked and underbanked – often individuals and entities of colour. Similarly Maria Blow built and sold a business focusing on alternatives to payday lending. She is now working at MasterCard’s Center for Inclusive Growth. These are concrete examples of how banks can, and should, address racial discrimination.
These effort are very challenging but the financial system needs to find ways to support racial justice. Doing nothing is not an acceptable option.
