MinorityBank Blog

Black America Should Apply for Membership in BRICS

In a world that constantly evolves and redefines the dynamics of power and influence, the time has come for African Americans to explore innovative avenues that can bolster their collective progress. One such opportunity lies in seeking membership within the BRICS alliance – a coalition of emerging economies that has reshaped global diplomacy and economic dynamics. By advocating for African American inclusion in BRICS, we can pave the way for enhanced socio-economic empowerment, representation, and collaboration on an international scale.


BRICS, comprised of Brazil, Russia, India, China, and South Africa, represents a formidable force in the global arena. This group brings together nations that share common challenges and aspirations, including a desire to break free from historical patterns of cultural dominance. The potential benefits for African Americans to engage with BRICS are significant and multifaceted:

  1. Economic Empowerment: The BRICS economies contribute significantly to the global GDP and trade. By aligning with these nations, African Americans farmers, for example, might be able to tap into vast markets. This effort might also result in significant investments, and technology transfers that foster economic growth and entrepreneurship within the Black community.
  2. Political Representation: Joining BRICS would offer African Americans a platform to raise their voices on global matters, contributing to policy decisions that address racial equality, social justice, and human rights not just domestically, but across the world.
  3. Cultural Exchange: Membership in BRICS would facilitate cultural exchange, providing African Americans with the opportunity to share their rich heritage while learning from the cultures of other member nations. This cultural exchange could foster mutual understanding and respect.
  4. Education and Innovation: BRICS members are known for their advancements in science, technology, and innovation. Collaboration with these nations could result in knowledge transfer, research partnerships, and educational opportunities that benefit African American communities.
  5. Diversified Alliances: Engaging with BRICS would help African Americans diversify their diplomatic and economic partnerships beyond traditional Western allies, creating a more balanced and strategic approach to international relations.

Challenges and Opportunities:

It’s important to acknowledge the challenges that may arise from pursuing BRICS membership. Geographical and political complexities, as well as alignment with member nations’ goals, would need careful consideration. However, history teaches us that transformative change often requires the courage to explore, without seeking to colonize, uncharted territories. By advocating for BRICS membership, African Americans can expand their global influence and contribute to reshaping international norms.

Steps Forward:

  1. Awareness and Mobilization: African American leaders, scholars, and influencers must raise awareness about the potential benefits of joining BRICS, sparking conversations within the community and beyond.
  2. Diplomatic Engagement: Advocates should seek to initiate dialogues with BRICS member nations, emphasizing shared values, historical connections, and the potential for collaborative growth.
  3. Policy Formulation: Collaborative efforts should result in well-defined policies that outline the benefits, goals, and strategies for African American engagement within BRICS.
  4. Public Support: Garnering support from both domestic and international stakeholders, including policymakers, civil society, and business leaders, will be crucial in advancing this vision.

As the global landscape continues to shift, African Americans have a unique opportunity to redefine their position and influence. Joining BRICS offers a chance to forge new partnerships, access resources, and contribute to a more balanced and inclusive world. By advocating for membership within this alliance, African Americans can be at the forefront of change, promoting their interests while championing equality, justice, and prosperity on a global scale.

Lawsuit Targeting Fearless Fund Part of a Disturbing Trend

Recent events have unveiled a deeply unsettling truth within the intricate fabric of American society and law: the once-revered cloak of justice is marred by visible signs of distress. At the forefront of this narrative, a legal battle unfolds that sheds light on the broader challenges facing marginalized communities.

On one side, several financial institutions have perpetuated fraud, leading to economic ruin for many, and some in the industry have condoned the harmful practice of redlining, disproportionately impacting the Black community. On the other side, even modest strides toward equality encounter seemingly insurmountable obstacles.

This complex tale of systemic inequality pivots around a recent legal clash. The American Alliance for Equal Rights (AAER), founded by a conservative activist instrumental in the U.S. Supreme Court’s June decision rejecting affirmative action, has taken aim at an Atlanta-based venture capital fund: the Fearless Fund. This fund stands as a vital force in supporting Black women-owned small businesses, providing them a platform for growth and empowerment. Notably, the Fearless Fund has also backed African American-owned enterprises like Capway, as they venture into the competitive fintech space.

AAER’s lawsuit against the Fearless Fund alleges that its exclusive support for Black women-owned small businesses breaches Section 1981 of the Civil Rights Act of 1866. This legal confrontation serves as a poignant reminder of the enduring legacy of systemic racism, intensified by the actions of influential financial giants.

The story of systemic injustice takes us back to pivotal moments of financial reckoning. In April 2003, major U.S. commercial and investment banks faced conviction for abetting fraudulent business practices and schemes. The consequences were a paltry $1.4 billion fine imposed by the U.S. Securities and Exchange Commission — a trivial penalty that allowed unethical conduct to thrive unabated. This stark contrast is highlighted as Black individuals continue to bear disproportionate penalties for minor transgressions, as exemplified painfully by the case of George Floyd. The haunting reverberations of the $19 trillion economic catastrophe triggered by the 2008 financial crisis, documented meticulously by the U.S. Department of the Treasury, serve as a stark reminder of the dire consequences stemming from unchecked greed and corruption.

The disheartening pattern persisted into 2012 with the LIBOR scandal. Here, financial giants manipulated a crucial interest rate to their advantage, leaving a trail of damage, including negative impacts on the $250 trillion-dollar derivatives market, in their wake. This is a grim testament to the enduring presence of unaddressed misconduct.

As we reflect on this disconcerting narrative, a jarring incongruity becomes apparent. Why does AAER target a modest venture capital fund supporting Black women, while predominantly white institutions perpetuate systemic financial turmoil without bearing equivalent consequences? This stark divergence forces us to scrutinize the very foundations of our economic system and the systemic biases that persist.

In the midst of this tumultuous backdrop, a pressing question demands answers: Why this specific legal battle, and why now? Our strategic course moving forward may not be fully detailed here, but one thing is clear: In the face of potential political pushback, retreating is not an option. The undeniable influence of race and gender on economic disparities necessitates an authentic and courageous approach. Advancing both moral and business progress demand unwavering commitment.

As the threads of this legal confrontation intersect and intertwine, an opportunity emerges to untangle the knots of inequity and prejudice. Only through collective determination can we hope to mend the frayed edges of our cherished cloak, weaving anew a revitalized fabric of equality, liberty and justice for all.

Published in the BankThink section of the American Banker Newspaper on August 24, 2023, 10:00 a.m. EDT. https://www.americanbanker.com/opinion/the-lawsuit-targeting-the-fearless-fund-is-part-of-a-disturbing-trend

S&P Joins Moody’s In Cutting Ratings for U.S. Banks

On August 22, two weeks after Moody’s Investors Service sent shockwaves through the financial sector by downgrading numerous U.S. banks, S&P Global Ratings has taken a similar stance, citing a challenging environment for lenders, downgrading banks including KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp., and Associated Banc-Corp. The move comes as a stark reminder of the complex pressures facing the banking industry in today’s economic landscape.

S&P attributed these downgrades to the confluence of factors such as rising interest rates and shifts in deposit patterns across the industry.

Adding to the downgrades, the agency revised its outlook for River City Bank and S&T Bank to negative, underscoring the broader concerns it shares regarding the industry. Furthermore, S&P’s assessment of Zions Bancorp remains pessimistic even after their review, reflecting the challenges faced by this specific institution.

This recent move by S&P echoes the actions of Moody’s earlier this month, when it cut credit ratings for ten U.S. banks and cautioned about the possibility of further downgrades as part of a comprehensive analysis of mounting industry pressures. The synchronicity between the actions of these two major credit rating agencies underscores the systemic issues that banks are grappling with, signaling a broader concern within the financial sector.

Additionally, it is worth noting that 11 days before Moody’s initiated its ratings cuts, MinorityBank.com commented on a report that one of the largest black-led banks in America had begun a national search for a new CEO. The announcement, made on August 11, 2023, sparked discussions about the unique challenges that the incoming CEO might face in an evolving banking landscape.

We highlighted some of the pressing issues that the new Carver CEO will confront. These include the disruptive influence of artificial intelligence on banking operations, as well as the potential implementation of new capital rules that could necessitate immediate capital raising.

We also emphasized the new CEO’s responsibility to navigate the possible elimination of all minority business programs, a development that might stem from debates around affirmative action programs. The outcome of these discussions could substantially impact the business foundation of the black-led bank, adding an additional layer of complexity to the CEO’s role.

We speculated that a younger leader might be better equipped to tackle these multifaceted challenges, although this perspective challenges traditional norms within the banking industry.

In conclusion, the recent downgrades by both Moody’s and S&P Global Ratings highlight the turbulence faced by U.S. banks as they navigate through a complex web of economic, regulatory, and societal challenges. As the financial sector continues to evolve, the role of leadership in banks, particularly those facing unique circumstances like Black-led institutions, takes on new dimensions of complexity and responsibility. The decisions made by these institutions’ leaders will not only shape the banks’ futures but also influence the trajectory of the entire industry.

ONE OF THE LARGEST BLACK-LED BANKS IN AMERICA LAUNCHES NATIONAL SEARCH FOR CEO

According to MinorityBank.com banking analyst William Michael Cunningham, Carver’s new CEO will face a challenging business environment, including the impact of AI on banking and new potential capital rules that will require the CEO to raise capital immediately.

Further, he says the CEO will have to manage the impact of the potential elimination of all minority business programs due to the fallout over affirmative action programs, which could affect Carver’s business base.

“I think a younger person will be better able to deal with these issues, but this tends to go against tradition in the banking industry,” Cunningham says.

See: https://www.blackenterprise.com/carver-bancorp-launches-national-search-ceo/

HERE’S HOW BLACK BANKS ARE TAPPING INTO BANKING GIANT TO MAKE A DIFFERENCE

“Economist William Michael Cunningham, founder of MinorityBank.com, says JPMorgan Chase’s commitment shows increased attention to MDIs as part of a renewed focus on needs in the Black community. However, he says, the real test comes when the bank approaches the complex issues in the Black community like Black maternal mortality. ‘We see an opportunity for JPMorgan Chase to make loans to companies and nonprofits that are working on that issue.’ ” See: https://www.blackenterprise.com/how-black-banks-are-tapping-into-banking-giant-to-make-a-difference/

Investments in Minority Depository Institutions

To genuinely address the needs of the Black community, it is essential to be critical of JPMC’s commitment. The real test lies in how JP Morgan Chase addresses complex issues such as Black maternal mortality. Mere financial support is insufficient; substantial efforts are needed to tackle systemic problems disproportionately affecting minority communities. See: https://www.impactinvesting.online/2023/07/critical-reflection-on-jpmorgan-chases.html.

Also see: https://www.blackenterprise.com/how-black-banks-are-tapping-into-banking-giant-to-make-a-difference/

Bidenomics: A Pragmatic Approach to Economic Growth, Equity, and Competition

Since assuming office, President Joe Biden has implemented an economic agenda known as Bidenomics, aiming to replace the dominant Chicago-school approach to the American economy with a more effective and inclusive set of economic principles. The link below is to an article that examines key elements of Bidenomics, comparing it to past policies and exploring its potential to drive job growth, address income inequality, and promote competition.

For more, see: https://www.impactinvesting.online/2023/07/bidenomics-pragmatic-approach-to.html

Challenges Persist as Cryptocurrencies Inch Closer to Traditional Finance

Recent developments in the global financial landscape, including the resurgence of digital currencies and the first inclusive global financial summit in Paris, have undeniably captured the attention of the finance world. These developments, which seemingly promise a new era of integration, transformation, and collaboration, hold significant implications for the future of finance and international economic dynamics. However, amidst the excitement, it is crucial to recognize the formidable obstacles that still stand in the way of realizing these lofty ambitions.

The resurgence of Bitcoin, with its staggering surge year-to-date from a low of $16,486 to a high at $31,392, is often hailed as a testament to its enduring relevance. It would, however, be remiss to overlook the inherent risks and uncertainties that accompany such a volatile digital asset. The unprecedented support from influential financial institutions like Blackrock and Fidelity adds an air of legitimacy to Bitcoin as an investment asset. Still, it is essential to approach this endorsement with caution, considering the ever-present specter of market manipulation and the regulatory challenges that continue to cast doubt on the long-term sustainability of cryptocurrencies.

Similarly, the exploration of a digital pound by the United Kingdom’s central bank, while reflective of the need to adapt to a digital future, raises fundamental questions about the stability, security, and privacy of central bank digital currencies (CBDCs). While the digital pound holds promise for greater efficiency in domestic transactions and international payments, it also poses complex regulatory and technological challenges. The Bank of England’s ambition to stay at the forefront of financial technology must grapple with concerns regarding data privacy, cybersecurity, and the potential concentration of economic power that digital currencies may exacerbate.

Moreover, the discussions surrounding a BRICS digital currency, potentially expanded to include African countries, may signal a desire to reduce reliance on dominant global currencies. It would be foolish to fail to recognize that the road to challenging the long-standing dominance of the US dollar in international trade and finance is fraught with geopolitical complexities, technical hurdles, and economic disparities. The creation of a digital currency within this influential economic bloc necessitates overcoming deeply entrenched political rivalries, differing economic priorities, and the intricate task of establishing interoperability and trust among participating nations.

Furthermore, while the recently convened Summit for a New Global Financing Pact, held in Paris on 22-23 June 2023, with its noble aim of addressing pressing global challenges and fostering international collaboration, deserves commendation, the reality remains that racism, greed, the legacy of colonialism, and the inertia derived from the status quo continue to impede meaningful progress. The world’s history is replete with instances where lofty aspirations have succumbed to self-interest and the perpetuation of existing power structures. The question of whether this summit will be a true inflection point or merely a symbolic gesture hinges on the ability to confront these deep-rooted obstacles and dismantle systemic barriers on the way to genuine financial inclusion, sustainable development, and equitable economic growth.

Even as the introduction of FedNow by the US Federal Reserve promises faster and more efficient payment options, the stark reality is that the benefits of such innovations often accrue disproportionately to those already in positions of privilege. The digital divide, income inequality, and the exclusion of marginalized communities remain persistent challenges. Reshaping the payment landscape and the enhancement of financial inclusivity must be accompanied by deliberate efforts to address these inequalities and ensure that the benefits of digital transformation are shared equitably across society.

In conclusion, while recent developments in the global financial landscape portend the integration of cryptocurrencies into traditional finance, the push toward digital transformation, and the imperative of international collaboration must be approached with caution. We must temper optimism with a sober understanding of the formidable challenges that lie ahead. Racism, greed, the legacy of colonialism, and the inertia derived from the status quo continue to cast a long shadow.

BLACK BUSINESSES TO SEE $1B IN LOANS FROM THE SMALL BUSINESS ADMINISTRATION

Based on a calculated analysis by Creative Investment Research, the SBA’s 7(a) Loan Program, the agency’s main and most common lending program, is projected to lend Black firms and businesses $1 billion this year, a whopping jump from $599 million in 2017.

The Washington, D.C.-based firm figured 7.76% of SBA loans were issued to Black business owners from October 2022 through mid-June 2023, versus 3.86% in 2017. It reports the percentage of loan dollars to Black entrepreneurs in that time frame rose to 4.41% from 2.36%.

See: https://www.blackenterprise.com/analysis-sba-projected-to-supply-black-businesses-1-billion-in-loans-this-year/