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Tuesday's news that Netflix would invest $100 million of its cash holdings in "financial institutions and organizations that directly support Black communities" sparked discussion about Black-owned financial institutions in the United States.

Why it matters: The company's $100 million investment helps illustrate why individual actions won't close the racial wealth gap.

By the numbers: As of the fourth quarter of 2019, Black-owned banks held assets totaling $5.2 billion, compared to $17.7 trillion in non-minority institutions held in community and non-community banks, according to data from the FDIC.

  • That comes out to 0.03% of the total assets.
  • Minority financial institutions in total hold $234 billion.

By comparison, JPMorgan Chase, the country's largest bank, holds $3.1 trillion in assets. The bank made a profit of $2.87 billion in the first quarter — more than half the total assets of all Black-owned banks in the United States.

  • And that profit total was down 69% from a year earlier.

The big picture: Politicians and others have long suggested that if more Black families and businesses used Black-owned banks it would help Black people overcome the massive racial wealth gap in the U.S.

  • However, a recent Brookings report shows Black-owned firms with paid employees generated just over $103 billion in revenue annually.

What it means: If every single Black-owned business put every single dollar of its revenue into Black-owned banks every year, after a decade Black-owned banks would have 6% of the total assets that banks led by white people had in the fourth quarter of 2019.

  • It would take just under 30 years of every dollar earned by all of the Black-owned businesses invested in Black-owned banks for their assets to surpass those held by JPMorgan Chase in the first quarter of this year.

The bottom line: Netflix didn't actually say it was putting its money into Black-owned banks.

Go deeper: The myth of closing the racial wealth gap through education

Go deeper

Oct 20, 2020 - Technology

Netflix stock sinks after Q3 subscriber miss

Illustration: Rebecca Zisser/Axios

Netflix's stock was down more than 5% in after-hours trading Tuesday after the tech giant reported that it missed expectations on global subscriber growth for the quarter.

Why it matters: Netflix experienced explosive growth during the first half of the year. It wasn't expected to match that growth this quarter, when lockdowns lifted and after new competitive services had launched, but analysts were still expecting it to meet expectations of at least 3.3 million net new global subscribers.

Axios-Ipsos poll: Voters of color worry about militias, arrests

Data: Axios/Ipsos poll; Note: ±2.6% margin of error; Chart: Naema Ahmed/Axios

Fears that armed militias, police or COVID-19 await them at the polls are disproportionately shaping how Americans of color think about in-person voting, according to an Ipsos poll for Axios.

Why it matters: Participation by voters of color could decide whether President Trump or Joe Biden wins, and whether Democrats take control of both chambers of Congress.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines"Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode againFed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.