For our first installment in the Economic Forum we will begin with the Community Reinvestment Act of 1977 (CRA, or The Act). Watch the video below provided by the Federal Bank of San Fransisco for a brief explanation of the act and what it means for low-moderate income communities.


My first question regarding the CRA was "Who is keeping them accountable?" The video mentions an evaluation system which is actually completed by the Federal Financial Institutions Examination Council (FFIEC). You can view the exam schedule here. I tried searching for the exam schedule in my home town of Cleveland, but the process was a bit tedious and I can't seem to locate a small bank in the city. Exams are scheduled to occur every 48-60 months and members of the public may submit on a banks performance by commenting on FederalReserveConsumerHelp.gov.

Back in 2010 the CRA held public meetings in 4 major cities, Arlington, VA, Atlanta, GA, Chicago, IL, and Los Angeles, CA. These meetings were regarding the public's input on modernizing the CRA's regulations. The press release and call for comment collection was posted one (1) month before the first meeting was held in July of that year.

 The public is also encouraged to engage with their local bank to create a Strategic Plan. The Act allow an institution to develop a plan with the community input detailing how the institution proposes to meet its CRA obligation. Here are the basics of the process:

• The bank informally seeks suggestions from the public 
• Notice of the plan is published 
• The public has 30 days of that publishing to comment 
• The plan is submitted for approval

This is the basic information of the CRA and how it functions. There will be a more concentrated post on Community Development and the CRA will once again make an appearance, but for now you have some background information.

However, before I end this post I must be honest, the basic information and links provided above where the low hanging fruit. I still have yet to identify a bank that has been approved of a strategic plan in a predominantly-Black neighborhood, known to me anyway, and I can't find any information on what an example of "informally seeks suggestions" really means. The more research I do on the community development efforts of the Federal Reserve and all its supporting acts, policies, and affiliates I have found that they operate in an odd form of opaque transparency. One thing I may do at some point is call one of the banks listed that have an approved strategic plan to see if it is posted somewhere, ask how they collected their information, etc. as I am truly curious has to how this information is collected and the true turn time from suggestion to Fed approval. If I do so, I will be sure to update you all on it!

Until next time...

While talking with a friend I mused as to why Black Wall Street had never been replicated, and when he spoke of his intentions to do so it only led to more questions about approach and methodology. One could argue many reasons as to why we never saw the resurgence of this ethnically-concentrated financial district, but one roadblock I found in my research was the lack of information available. (Though I read somewhere that John Legend and Tika Sumpter have teamed up to make a movie on the legendary district)

My knowledge quest on the history of Black Wall Street reminded me a bit of the research spiral I went through after returning from the CBCF ALC (read more about my experience here). From Correspondent Banking, to the Community Reinvestment Act, to the United Nations Capital Development Fund, I was made aware of so many organizations, programs, and policies that have been put into place to aid the low and moderately incomed across the globe. Yet, many of us don't know about them.

Though this is not my call to action to galvanize some economic movement, or new BWS blueprint, I am hoping that just by knowing these institutions exist others will be encouraged to their own research, to take some interest in global economics, and possibly start a conversation that might change someone's world. I am also hoping this will catch the eye of those much more well versed in these global economic matters than I to engage me in an awesome learning opportunity.

With that said, I am turning this into a series of some sort; welcome to the introductory post! I promise you lots of links and me trying to make sense of it all (if I can, no promises). What I cannot promise you is some eloquent prose regarding the economic state of the impoverished and how we may remedy their condition through these institutions. Maybe one day, but not today. For now just enjoy some new information with me.

Check back here as this will be our "Home Base" and will be updated with links to the forthcoming posts in this series as they are made available.

Last week I attended the Congressional Black Caucus Foundation's Annual Leadership Conference in Washington, D.C. held at the Walter E. Washington Convention Center. I was my first time attending the conference and I really am glad that I was talked into going. One, I learned a lot about diverse plights of Black people from all over the globe, as well as a few terms and organizations that I had never heard of before. Below I am going to give a quick recap of the workshops I attended and (where available) link them to their livestream. I am also going to link some of the new phrases and organizations that I learned about during the conference. Let's get started.

The ALC is structured in tracks that an attendee can follow, but it's not required. So if your interest is in Education then that track will highlight all the workshops surrounding that industry. Otherwise it's pretty much a free-for-all. I didn't follow any track and decided to attend whatever peaked my interest.


Last year it was reported that Black women were the fastest growing group of business owners in the U.S.,  and this workshop made sure that all those that are inspired to start their business or are already deep in the trenches know where and how to get the support (financial and otherwise) that they need in order to have a business that will last and flourish.

Here is what I learned I never knew from this workshop: 

• Minority Business Development Agency - an agency of the U.S. Department of Commerce that work throughout the Nation to link minority-owned businesses with the capital, contracts, and markets they need to grow. 
• Women's Chamber of Commerce Certification -  One of the panelists discussed how the certification opened her business to a mentor/protegee program offered by the organization and how that helped to grow her business 

Here are the gems that I received from the panelists: 

• Not a hobby or a quick fix: It was stated that many women end up finding themselves outside of the workforce for one reason or another and decide that they then want to start their own business. The only problem is a good number of those businesses are lifestyle based and aren't built or maintained for perpetuity, which can make it hard for mentors or financial institutions to invest in. If you are building a business are you doing it because you have nothing else to do anyway? 
• All money ain't good money: The direct quote was "Think like a customer when you are borrowing" Just because someone is willing to give you what you are asking for make sure that you agree with all that comes with that money. You also have the option to say no. Remember, it is possible to build a profitable business with no debt. 

Quote to Remember: 

Panelist Janice Howroyd  quotes her father when she complained about having old school books with the pages missing:

"Read the pages, you're smart enough to figure out what's missing. Then, write what's missing and tape it in for the next student"

• Social Care- I keep trying to find something concrete on this term as it was used a lot by the panelists, however, it appears to mean working with community based organizations. If there is anyone out there that is more knowledgeable on the topic I invite them to comment. 
• Community Reinvestment Act- The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. 

 Here are the gems that I received from the panelists: 

• Laws of Attraction: The question was asked, "what attracts businesses to the underserved communities?" And I asked myself, what are the factors of that attraction? What are the laws in place that protect the people of that neighborhood of attraction? 
• Mental Detour: Veronica Smith of the City of Sacramento's SEED Corporation presented the challenge of redirecting our thought process on how we build policies and the policies of the entities that serve the basic needs of our communities. She made the point that subsidies with no opportunity to get our of that situation (that is causing them to need a subsidy in the first place) is not working. (She had me on the edge of my seat)

"When you think about development policy think about where people live" 

• Correspondent Banking -  When financial institutions provide services on behalf of another, equal or unequal, financial institution. 
• De-Risking - the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid, rather than manage, risk.
• Trade Diversions - occurs when tariff agreements cause imports to shift from low cost countries to higher cost countries.
• Regional Advocate - helps to identify regulatory concerns of small business by monitoring the impact of federal and state policies at the grassroots level.
  

 Here are the gems that I received from the panelists: 

• Lend on Me: Approximately 3'700 banking groups depend on correspondent banking
• You're Money's No Good Here: A country is kept in a state of poverty when they can only use their currency inside their own country. Imagine if you could only spend the dollar from California to Maine. 
• I'm the Captain Now: Understanding how trade diversion helps growing economies willing to invest in smaller economies, that larger economies are not willing to invest in, gain global power and influence. Like building an economic brand loyalty is the way I make sense of it.

Quote to Remember:

"We don't have a penny in that dollar" 

• Agenda 2063 - Africa’s endogenous plan for structural transformation and a shared strategic framework for inclusive growth and sustainable development
• Sa-hel Region - semiarid region of western and north-central Africa extending from Senegal eastward to The Sudan.

 Here are the gems that I received from the panelists: 

• Jet Set: I had heard talk of this before of alleviating the issues of intra-continental travel. Think of it like with the European Union and easy travel among the member countries, but as simplistic. The idea of an African passport had been mentioned. 
• Implementation: When discussing the execution of select initiatives no matter the proposing organization, it was brought up that the two largest obstacles were lack of clarity, and a lack of financing. 

Quote to Remember:

"How do you reconcile this rich Africa with poor people?" 

• The 242 - The Blue Wall - The 18 states that have voted Democrat in the past 6 elections. These particular states combined equals 242 electoral votes.  
• IWillVote.Com - Where you can register, update your registration, and check your status as a registered voter

Here are the gems that I received from the panelists:

• Youth Matters: There was a young man on the panel that gave great gems for those of all generations. From dealing with the youths one-on-one to help dispel generational fear, to the necessities of partnership to feel as if they have a cause, stating that their fight in the Obama campaign made them feel as if they had a cause. 
• Poll Taxes: Knowing the ways in which states are making it difficult to vote is vital, and many of the questions dealt with specific issues around difficulties with voting. Even something like parking tickets on your record can keep you from the polls in some states. 
• Filling in the Gaps: There were questions about where to find comprehensive information on each candidate's stance on specific issues, especially a side-by-side comparison. Residents of non-battleground states were told that it would take extra effort and maybe even them creating the materials themselves to have more comprehensive information regarding the candidates, especially for national elections. 

 Quote to Remember:

"There is no more powerful person than a 24 yr old in Cleveland...that person in Cleveland determines who becomes president." 

So there we have it! Feel free to take a look at the videos, and any others on the CBCF Channel on YouTube that may be of interest to you. I truly enjoyed my experience and I anticipate attending again next year.

Happy Enlightenment!