JPMorgan committed $13 billion of its racial equity pledge
JPMorgan spent $13 billion of the $30 billion it pledged over five years to improve racial equity, the bank said an update today.
Why it matters: The bulk of funds so far went to housing-related initiatives, a significant racial justice cause given the difficulty Blacks and Latinos have historically had securing mortgages.
Yes, but: This isn't a donation — it's an extension of the bank's existing lending business (and it will collect interest).
Details: JPMorgan issued $7 billion in loans to preserve 600,000 affordable housing units or build more — half of what it pledged in this arena.
- Another $4 billion went toward refinancing 16,000 mortgages for Black and Latino borrowers (of the 20,000 incremental goal).
- It didn't give an update on its goal for an incremental 40,000 home loan originations in minority neighborhoods.
Among the pledges not totally tied to its lending business: a separate $2 billion of "philanthropic capital" — grants, direct equity and low cost loans to organizations led by Blacks, Hispanics and Latinos.
- It's committed $128 million here so far.
What to watch: Citibank will undergo an independent racial audit (after initially fighting a shareholder push) that will focus on the $1 billion commitment it made last year after Floyd's death.