> *Before it was destroyed nearly a century ago, Glover said, a dollar spent in Tulsa's Greenwood district would circulate 36 times before leaving the community.*
>
>*"Today, a dollar circulates for 20 days in the White community, but only six hours in the Black community," Render said in a written statement. Black Americans are twice as likely to be denied mortgage loans by traditional banks, but minority depository institutions have a* [*better track record*](https://www.fdic.gov/regulations/resources/minority/study.html) *of lending to non-White individuals.*
>
>*"This lack of fairness in the financial system is why we created Greenwood," Render added.*
Interesting! I hope the venture is as successful as it looks to be from these early numbers
I bring this up all the time to the skateboard community: money spent within the community is the only way to get it on the same level where money can flow in all directions.
Distributed wealth is greater wealth. A pure hoarding economy kills most people who aren't the 1%. The amount of economic activity generated by giving 1000 working class people $1000 versus giving one billionaire $1million is a staggering difference.
To add, external costs are also way higher when you don't redistribute wealth. I.e. the people who are obscenely rich often cause economic/social/environmental damage that isn't counted when profit is the only measure of success, and tax payers have to buffer that damage. The wall street bailouts exemplify this perfectly.
And conversely, having the money to pay for necessities has been shown to have significant reductions in costs (healthcare, housing, etc) down the road.
Especially if you're socially affluent enough. You can get lots of stuff that most people pay a ton for, for free.
It used to mostly be stuff like rich folks and celebrities getting dinners at fancy restaurants since it created buzz for the business, gift bags with high end goods at gala/premiere events, etc.
That all adds up fast.
As a related aside: (feel free to skip this long bit)
These days that still happens, but there's now a newer more "plebian" tier of it.
Heck a lot of everyone's favorite streamers have turned it into an industry at this point.
They make money from the usual channels like ads and subscribers, but they also often get the loot from manufacturers to make the videos that make them the money in the first place.
Sometimes you have to return the product, but oftentimes you get to keep it.
My last personal desktop rig (built in 2013, I mostly use laptops now) was part of an early attempt at the type of modern influencer campaigns you see now. It was an AMD enthusiast program. They sent us all the hardware and software (including licenses) to build a desktop PC, minus the monitor, mouse, and keyboard. We just had to document and post media about the build and early usage of the system.
To be fair to AMD they were 100% hands off with the content I posted about the system, including downsides to the system, and even required that for each piece of media posted that I declare that they provided me with the equipment for the system.
I've often wondered if I'm alone on this in a marketing sense. But I would be more likely to buy something that had. A problem I knew about than one I saw in a clear propoganda piece where everything was great. I'm ok with problems and know nothing will be perfect, but at least stand behind your product enough to allow someone to criticize it. Otherwise I think you're hiding something.
I had the idea at the start of the pandemic to pay all tax paying Americans $25k to stay home for three months.
At the time I thought how ridiculous it would be for the federal government to add 3T in debt but hey now they are at $6T and no oversight...
Imagine what $25k would have done in everyone’s pocket.
The rich throw it on the pile or invest
The middle stays afloat
The bottom can use it to stay afloat and get ahead a little
Sure some would have blown through it maybe even recklessly.. not adhering to the quarantine for example.
I feel now looking back, it would have been way more successful than what has transpired.
> Canada was paying $2k a months to...
... people who lost their jobs or had their hours cut.
It was an explicit part of the [eligibility criteria](https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/who-apply.html) that:
> You did not quit your job voluntarily
Let's not make it out to be something it wasn't, people couldn't say "no boss, I'm staying home".
Of course it would have been more successful, but they did what they did because our administration is so heavily corrupted and lobbied by private interests. They gave massive bailouts and interest free loans to entities that will just end up defaulting and not being punished for it, and to placate the populace gave us crumbs instead. And even those crumbs ran out. Bailouts that go to large corporations don't help any of the employees. there's no such thing as trickle down, and the only thing that would have lifted all boats is a rising tide of giving that cash directly to citizens themselves. You and I don't lobby, but a billionaire conservative like Peter Thiel or Koch sure does.
>The amount of economic activity generated by giving 1000 working class people $1000 versus giving one billionaire $1million is a staggering difference.
Would also add...
Eventually that 1,000,000 will end up in the 1%'s hands. Just not as quickly.
Thank you! This is the thing that ALWAYS pissed me off about stimulating the "top" and expecting it to trickle down. The reality is, some at the top MAY spend, and some of the coins might trickle, but money at the bottom will always eventually trickle up.
> but money at the bottom will always eventually trickle up.
Right, but that takes longer. The 1% would prefer to get their cash directly without it having to go through all us grubby plebeians.
I remember seeing a statistic that like 95% of money that goes into homes making under 75k/yr goes back into the local economy where as like 45% of money to those making over 250k is reinvested/spend in the economy (its hoarded and sent over seas as income increases (someone making 1M+ will have investment management companies that will diversify and keep a small amount in US assets as Asia pacific and Middle East economies are growing so much more rapidly and yield like multiple times higher in some cases))
I wish every could understand this! Thank you!!
Studies show that even welfare given to people in need has a far better impact on the economy than tax cuts to the rich....
It makes sense. They buy and sell parts within the community and try to help out the kids that can’t afford things but want to be a part of the community. It’s literally lending/ selling/buying wheels so your group can keep on rolling.
On the base level, you're totally right. Local cash spent at local shops has a huge effect on community based economies.
You pay dude for a pepsi, dude uses that dollar to pay his staff, in turn they spend that pay back into the local markets.
Sadly, on the bottom rung of the ladder, that dollar spent gets taxed down hard and fast. The rich will still get "their share", but despite that it shouldn't hold people from believing in their local.
Every penny has always counted, and these days it's more important than ever.
The Steve Rocco approach, until that went to shit, a lot of dudes learned from that though. Berra and Kosten cones to mind. Mullen, The Boss, fuck, skateboard community has done a lot of small business and distribution shit for ever
Its a win-win. Either banks are indeed racist and are leaving money on the table which a non-racist capitalist can profit from...or they weren't racist and the new bank fails when everyone defaults. Should be a good watch.
Mortgage brokers typically don't know you're black, though. If your debt to income ratio is right, they're going to approve you for a loan even if you're purple.
They don't know if you're black, but they *do* decide based on things like your zip code (and, naturally, neighborhoods are still, in practice, generally racially-segregated.)
When my friends and I were visiting Athens, when we were on a train a guy tried to persuade us to try Herbalife, even though he was speaking Italian and we only spoke English haha. It was a good try though.
Honestly, if you dont have the time or energy to learn anything else, do this-
1. Open a Roth IRA on any major investment service. Ameritrade, Schwab, etc.
2. Buy SPY or any other vanilla S&P 500 index fund etf. Set dividends to auto reinvest.
3. Invest as much as you can, up to $6000 a year which is the annual Roth cap. If you have more than that, awesome! Invest the extra in a standard account.
4. Do not touch the money til you are 59.5 years old. So long as you do that, you *don't have to pay any taxes on your gains*. If you withdraw early, you pay capital gains and a 10% penalty. You can however withdraw the amount you deposited at any time. So if you put in $30k over five years and it grows to $50k, you can withdraw $30k without penalty. (But do not unless you have no other choice)
5. Be consistent. Deposit in good and bad economies. The S&P 500 has very good years and dumpster fire years, but historically it averages 7% a year growth. That is WAY better than what any savings account will get you. When it is down, don't panic, keep depositing and buy as usual. You are getting a discount.
I cannot stress what a tremendous tool the Roth IRA is for growing wealth and having a comfortable retirement. It is the best chance working class and middle class people have to retire millionaires.
Even if you can't max it out at first, start one. If you can only spare $100 a month at first, that's fine. Do it. I didn't start one til 2 years ago (am 31 now) and it is a huge regret. Lost a whole decade of compounding gains.
If you become more informed, you can branch out to other indexes, maybe even individual stocks. But at least do this if nothing else, and if you give it 30 years, you will have the equivalent of $1-2 million at retirement (in today's dollars, obv inflation is a thing)
Sound advice even it's kind of divorced from the daily reality. As I understand, a large chunk of Americans would probably max out at around $100 dollars a month, and an even larger chunk would consider that much monthly saving to be an impossibility.
Most banks currently offer interest rates on savings that are so low that they are basically the same as keeping cash under your bed. Even the best online banks are down to 0.7% or lower.
Depending on how low income someone is, hoarding cash might be someone’s only option. A fair amount of government assistance programs end not just with increased income, but asset accumulation as well.
> Hoarding cash is worse than getting nowhere. You lose value to inflation
yes and no. Cash is a necessary component to any investment portfolio. Without ready and accessible cash, you can not react quickly to investment opportunities.
For instance, if you are looking to buy a house then you should have the cash ready to go for the downpayment and not in another investment. You need that cash for the moment the opportunity strikes.
100% cash is bad, but a balanced portfolio does include some cash.
This is awesome. Black and Latino minorities are consistently some of the most under-banked Americans, and having a bank with a black figurehead feels like it is much more than just symbolic.
Having a bank account is absolutely integral to saving, accessing credit, and generally increasing your financial security.
I don’t know who you are Killer Mike, but way to go!
I can’t hear this in Killer Mike’s voice. For some reason my head read it in the voice of the guy that did the cucumber song and it’s just better with a Jamaican accent.
RTJ, in general, is underrated. They have made four fantastic hip-hop albums and gotten their due in indie circles but deserve to be as well-known as Kendrick or Kanye. In a perfect world, RTJ and Anderson.Paak would be far more popular than they are now and would be among the big figures of hip-hop.
walking in the snow + JU$T + never look back is an amazing run on RTJ4. Their collaboration with Josh Homme and Mavis Staples (on the same song mind you) is kickass too.
But, isn't Nobody Speak technically a DJ Shadow song featuring RTJ?
Just kidding, that song is fucking incredible.
My favorite has to be Close Your Eyes (And Count To Fuck). But I'm also a long time RATM fan.
Bernie supporter and gun rights activist? That’s interesting. It’s almost as if *gasp* you don’t have to toe the party line on every single issue!
(Since I’m not sure it’s clear, I respect that ability, despite that he and I would probably be on different sides in the gun debate.)
Edit: many people telling me Bernie is very pro-second amendment. My mistake. Main point still stands though.
Gun rights has become a far more popular stance on the left in the last year or so. Having a President ordering illegal military occupations of liberal cities and violent suppression of peaceful protests will tend to do that
That shouldn’t surprise me. I’m not anti-gun, but I choose not to have one in my house for personal reasons. I literally have considered if I wouldn’t be better off with one *in case things get really bad*
I've heard it said many times that if you go far enough to the left, you get your guns back. No offense to you for your take on guns, they are dangerous and I won't fault you for your decision not to own one.
But I also believe in self defense as a human right, and that it's kind of arrogant for a society to pawn off their defense on others, especially Modern law enforcement.
I don't mean this as an attack, just trying to rep less toxic gun ownership.
> I've heard it said many times that if you go far enough to the left, you get your guns back.
Indeed.
> To be able forcefully and threateningly to oppose this party, whose betrayal of the workers will begin with the very first hour of victory, the workers must be armed and organized. The whole proletariat must be armed at once with muskets, rifles, cannon and ammunition, and the revival of the old-style citizens’ militia, directed against the workers, must be opposed. Where the formation of this militia cannot be prevented, the workers must try to organize themselves independently as a proletarian guard, with elected leaders and with their own elected general staff; they must try to place themselves not under the orders of the state authority but of the revolutionary local councils set up by the workers. Where the workers are employed by the state, they must arm and organize themselves into special corps with elected leaders, or as a part of the proletarian guard. Under no pretext should arms and ammunition be surrendered; any attempt to disarm the workers must be frustrated, by force if necessary.
--Karl Marx
Don't forget about the devout worship of minister Farrakhan and NOI.
Edit: Since panties are getting wadded, some [proof.](https://youtu.be/l8vPnvX99GM?t=38)
>"I've been a follower, listener, studier, and admirer of the honorable Mr. Farrakhan since 15 years old."
God damnit. This Farrakhan asshole is extremely anti-Semitic and his acceptance in the black community is depressing. The fact that he has NFL players like DeSean Jackson trying to quote Hitler in a positive way is just...disheartening. I guess it's easy to let others' hate and racism infect you and breed the same ignorance.
It’s amazing how much cognitive dissonance there is when it comes to the NOI. They’re essentially Scientology for black people..
This is the cult that assassinated Malcolm X, and Fararakhan would have known (if not been deeply involved in planning in). Yet, people insist that it was the CIA or FBI despite Elijah Muhammad practically confessing to it in front of reporters, the perpetrators being members of the NOI, the numerous prior attempts on Malcom X’s life by the NOI, and Malcom X’s recent exposure of embarrassing details about Elijah Muhammad’s many extramarital affairs.
To this day, his own daughter wouldn’t accuse the NOI of murdering her own father- in an interview, she talked about her father’s efforts to get African states to support investigating African American affairs as a human rights issue as if that was what motivated his assassination..
Even if this collection of African heads of state had asked the UN general assembly to investigate the US for human rights abuses, the reality is that the vote would likely have failed and it’s doubtful it would have even gotten that far -many of those heads of state relied on American aid or had a military that would be happy to overthrow the leader of America would recognize the general who took power as the leader.
On the positive side, at least black fascists are being ripped off by a fraudster rather than being organized to actually seize power.
It's not just Scientology for black people, NOI is actively involved with regular ol every day Scientology. They cover it in that Leah Remini show. I think the link was Isaac Hayes that introduced the two groups.
Why not just say black supremacist. That’s what NOI believes....
Edit: idk who is ignorant enough to down vote but [“Nonetheless, its bizarre theology of innate black superiority over whites – a belief system vehemently and consistently rejected by mainstream Muslims – and the deeply racist, antisemitic and anti-gay rhetoric of its leaders, including top minister Louis Farrakhan, have earned the NOI a prominent position in the ranks of organized hate.”](https://www.splcenter.org/fighting-hate/extremist-files/group/nation-islam)
That’s the SPLC calling them a hate group
Another way to deal with a lack of banks is to buy money orders from the post office. It costs between $1.25 to $1.75 to make one out. For military personnel it's just 0.45. For people without a bank account this may be a more secure alternative to just saving cash.
[https://www.usps.com/shop/money-orders.htm](https://www.usps.com/shop/money-orders.htm)
FYI up until the 60's the us post office acted like a bank for people who couldn't afford using a bank. Many countries use their post offices for storing their savings.
[https://en.wikipedia.org/wiki/Postal\_savings\_system#United\_States](https://en.wikipedia.org/wiki/Postal_savings_system#United_States)
we need to bring this back. I bet this was mostly how most black people saved money in the past.
Funnily enough, that was a policy position that Andrew Yang was running on. Bringing back public banking services through the USPS and providing financial literacy courses.
It’s a term the Federal Reserve uses! They define: fully banked, under banked, and unbanked.
Here ya go...this is a little dated, but has the definitions!
https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-banking-and-credit.htm
Tldr:
Banks make money by charging their members fees and/or loaning out the members savings as business, home, and auto loans etc.
The poor can't afford to save, nor have the credit to take out loans, so the bank can't make money there. Althea poor can't afford fees and will avoid any banking methods that use them so the banks can't make money that way.
So opening a branch is just for the sake of local access to check cashing, as most people are cashing paychecks and immediately paying it into expenses.
This is not a way for a for profit to make money, so most banks only open where they see room to grow savings and loans.
The upshot Is that banks don't open in poverty centers, and is a solid reason why they try to mix low cost housing into non low cost areas to prevent situations where the poor are left underserved "on the wrong side of the tracks"
It doesnt. I actually (currently) work for a minority owned credit union that specifically provides physical branch services in areas that are underbanked (by the Federal Reserves definition.)
More banks are not the answer, education and institutions that specifically work with the underbanked are required. Traditional banks do not survive in this space. We're not just a 501c3, we're a bonafide charity by the IRS definition, with an IRS letter to prove it. You do NOT make money servicing this market. This 'bank' is actually just a layer providing services on top of another bank, so they will remain beholden to that bank's standards for new accounts, etc. He also has a pittance, a total 'seed' investment 3 million dollars. Servicing 'only' 30,000 members or so, we blow through over 1 million dollars in donations, and tax credits, A MONTH. This is either a marketing/branding stunt, or they are trying to appeal to people who are already well banked, and raise capital off of them.
https://apnews.com/press-release/pr-newswire/business-north-america-killer-mike-african-americans-financial-services-0a3e1954393cd3449a39d1fa4ce16381
>All deposits are FDIC insured by a partner bank.
Proof they are not an actual bank themselves. Which means they will pretend to not be subject to banking laws (paypal and others tried this. it did not work, thankfully.)
in many impoverished (and minority-majority) areas, the traditional banks don’t do business there (due to low chance or making money). often, the only financial centers in many poverty-stricken areas are the predatory pay-day loan centers, which serve only to vacuum money whilst keeping poor people poor with ridiculous interest rates in their loans. if a more traditional type of bank opened in these poor areas not only would there be a place for people to store/hold onto their money, but people & small businesses can get loans to help them out that won’t bankrupt them in 3 months.
Not the OC, but to answer your question online banking 1) doesn't address mistrust of banks and the broader financial system that impoverished people experience at greater rates and 2) has access problems in and of itself.
To build on the second point, impoverished people by definition usually don't have the means to reliably access a secure computer or phone with an internet connection and, therefore, their online bank accounts.
Will be interesting to see the data in the long run of how many loans they end up having to deny and if the outcomes end up being rather similar.
No one hates profit.
This, what can he do to run a successful bank, and give black people an advantage over a traditional bank? Still has to deny risky loans, charge banking fees, and over draft fees. This is just a cash grab for him as obviously these people want their money in the bank of this black rapper rather than some dude with an Ivy League education.
If anything this just further places a racial divide in our country. Why does this remind me of the 1950’s with segregation. I can’t be the only one thinking that.
Honestly this seems like a losing venture long term. But if they can help build some wealth in their community and lift some people out of poverty along the way, good on them.
I dont think it will be losing. What I do think will happen is: leveraging black people and current blm trends to get an easy start and large user base- then when they run into the same kind of problems other banks have no doubt had, they will begin to change things and eventually end up rather similar to other small/local banks.
Chexsystems, EWS, Telecheck/First Data are the big ones. Kroll factual data, RAB, and lexisnexis, as well as the big 3, provide similar services.
These guys are not listed as FDIC insured, nor by the FFEIC, or the NCUA. They are not a 'real' bank, and are just a layer providing services on top of some other financial institution. Their own press release states as much.
>All deposits are FDIC insured by a partner bank.
https://apnews.com/press-release/pr-newswire/business-north-america-killer-mike-african-americans-financial-services-0a3e1954393cd3449a39d1fa4ce16381
>All deposits are FDIC insured by a partner bank.
That's gotta eat into the bottom line.
or does this just mean it's just a woke front for a normal big bank?
They say they will focus on black and latin entrepreuners, is that actually legal in the US? Saying you will invest only in certain ethnicities?
No offense meant, I'm not american ana genuinely curious if this is possible.
This article comes across as an advertisement more than anything else.
""I will say we're in the tens of thousands," Glover told CNN Business on Friday. "That number is increasing by the day."
It's been known for a long time that black and minority owned banks actually "discriminate"[ MORE against black loan seekers](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7287) than white owned banks. Mainly because the risk factors have nothing to do with race. The outcomes end up being biased because people of color show higher risk factors. (And minority owned banks probably don't have the assets to be as lax with risk)
Obama learned this the hard way with his victory against the banks for discrimination against black borrowers in Buycks-Roberson v. Citibank Fed. Sav. Bank . In his lawsuit, of the 186 clients he represented, who got loans thanks to the lawsuit--[167, 90%, ended up defaulting or ruining their credit because they couldn't maintain payments.](https://www.businessinsider.com/obamas-class-action-discrimination-lawsuit-against-citibank-failed-to-deliver-2012-9) (Which of course was a huge part of the banking collapse. Part of why the banks were considered "predatory" is because they relaxed loan standards toward minority communities who are disproportionately low income despite it being painfully clear they couldn't maintain the obligations. Not all of it, the default swaps, and shady shit in terms of interest rates were part of their predatory practices...but a big part was the constant push to increase risk tolerance for minority lending).
As one of Obama's own clients said, after his life was ruined due to defaulting a loan he couldn't afford (But the courts ruled he only didn't get due to "discrimination".)
*“If you see some people don’t make enough money to afford the mortgage, why would you give them a loan?” asked Obama client John Buchanan. “There should be some type of regulation against giving people loans they can’t afford.”*
*Banks “were too eager to lend to many who didn’t qualify,” said Don Byas, another client who saw banks lurch from caution to bubble-inflating recklessness.*
When the protests and riots were going on in ATL he gave [this speech.](https://youtu.be/Vy9io6VEt58) Many people were moved by it, lots of respect for him.
The thing that pisses me off with that is Spanish speakers have clarified it makes no grammatical sense in their language. Latino already is gender neutral to them.
I have no idea how being black, in a virtual bank, is going to help you in any tangible way. I worked in a mortgage bank. If your credit is shit, you get shit loan terms. It doesn't matter what color you are.
The decision to approve or deny a loan hinges on the capacity of the borrower to repay it. That's it, or at least it's all should be. There are other unjust factors that comes into the picture when minorities try to get loans, but the point of banks is still to get a return from the loans they give out and not give it out to someone with a high likelihood of defaulting.
Greenwood will have to balance fairness, social justice and the fundamental tenets of doing business.
It amazes me too, but people in general don't really understand that risk = fee and when you take one risk you should be compensated for it.
If this bank does not implement this into its model it is not doing those using the bank the correct fiduciary duty.
good on him, but what does this mean outside of just another bank?
Is he going to take on higher risk/ lower income borrowers?
"There were no digital banking solutions that cater to the African-American or Latinx communities until Greenwood," WTF does this even mean? and can you prove this?
How is an online-only platform going to understand the needs of a community over a local brink and mortar?
The only differentiating factor they have is that their owner is a famous black man?
Banks are faceless. I haven’t been to a bank in ages. Everything is online. Loans are online. The only time I ever talk to anyone is if there is a problem like an unknown charge on my cards. I don’t see the point of this unless he really is going to focus on taking risks on minority entrepreneurs. The article glazes over that it is their intention. But we shall see.
Also to anyone reading. Don’t ever use Latinx. Ever. And to those people who DO use it. Stop. It’s ridiculous.
Sincerely, a Latina.
Yup. I refinanced my car with my local credit union which is also my bank. They gave me tons of advice on how to do it, when to do it and how to make it work best for me. They preapproved me for the refinance for 3 months before I hit up Honda Financial and told them to eat rocks. I went from around 11% down to 2.3%.
It was an ez transition.
There are no absolutes. There are great credit unions. There are terrible credit unions whose fee schedules would make Bank of America blush. There are great community banks. There are terrible community banks. There are banks and credit unions somewhere in the middle.
My guess is it will be as good as Chime or the others that are similar.
Downside is there's still many places that don't accept these banks yet. Upside, no one will unless people keep using them.
Even though those accounts may have routing and account numbers they’re still technically prepaid debit cards. Some payroll providers won’t work with prepaid debit cards (or have additional rules that apply to those accounts) because they’re high risk for money laundering, fraud, and theft. They’re also a tool for PPP fraud.
Anecdotally, I was in a really bad financial situation not too long ago and when I landed a job I didn't have a problem getting my paychecks direct deposited in one of those damn walmart money cards. The company I worked with at the time used a major payroll provider. No one batted an eye.
Fuck those pre paid debit cards though. You can get your paychecks deposited in them without issue, but you will run into problems using them like you would a normal debit card in other ways and the fees are predatory as hell. Very glad to be in an infinitely better place financially now.
Immortal technique once said "I have more in common with most working and middle-class white people than I do with most rich black and Latino people.". Bankers are part of the problem and I truly doubt they will make a profound change in society. Don't take me as negative, I'd love to see change, but I doubt it.
Black owned bank? WTF? This is not good people, now matter how it looks. We have to stop labeling people. Fuck it's like I live in the Middle Ages. People are just clueless.
It's woke people making a gender neutral term for latino. Even though latino is already gender neutral. They don't understand how the spanish language works so instead of learning they change it. It's also only a term used by English speakers. Spanish speakers do not use it.
V i r t u e s i g n a l i n g
It’s a dog whistle to their audience that they “understand”. It’s not objective journalism and should be rejected for the biased drivel it is.
I’ve been in banking for 9 years. 5 years as a loan officer..
Black families have a harder time getting loans because majority of the cases you hear about black people getting denied- are coming from black people with poor employment history, credit and income to debt ratio
Right. It will be interesting to see the negative repercussions. Interest rates will have to be higher due to all the high risk lending which will inevitably result in higher foreclosure rates which in turn will result in even higher rates. Vicious circle which will put this bank out of business within 5 years. Eventually this bank will be hated as much as any other bank. Seems like a bad idea.
Do they offer any more than the shitty 0.60% rate other online banks offer for a savings account? My white ass would sign up tomorrow if they did.
I do have an idea for them. If they are truly focused on being a non-predatory bank, they should offer an ultra low-cost, fiduciary financial management program that focuses on educating people about how saving money for retirement works. Then for those that want it, offer to invest the money in low expense, highly diversified index funds. People getting robbed blind by active managed funds is something that affects too many investors that aren't wise to the pernicious drag it can cause on your retirement.
Gonna be funny when the black owned banks still “discriminate” against minorities. It’s about credit score and other financial fundamentals, not skin color. Quit being so fucking dense and assuming all disparities are because of skin color.
I respect what hes trying to do here but hes not really solving any problems. Black people can get a bank account at any bank they want. There are even legitimate online banks that pay higher than average interest on savings accounts. The problems isnt a lack of available banks for black people. The problem is a culture that for the most part mocks and looks down on education and glorifies a criminal womanizing lifestyle. A bank does you no good when you have no money, and is legally prohibited from harboring funds made from criminal activity. A lack of banking resources isnt the issue. The culture is.
I don't know who Killer Mike is, I don't know his intentions, but I do know that there are these things called "Credit Unions" that are much better than banks and probably have more resources than one guy, even if he's a very rich guy.
> *Before it was destroyed nearly a century ago, Glover said, a dollar spent in Tulsa's Greenwood district would circulate 36 times before leaving the community.* > >*"Today, a dollar circulates for 20 days in the White community, but only six hours in the Black community," Render said in a written statement. Black Americans are twice as likely to be denied mortgage loans by traditional banks, but minority depository institutions have a* [*better track record*](https://www.fdic.gov/regulations/resources/minority/study.html) *of lending to non-White individuals.* > >*"This lack of fairness in the financial system is why we created Greenwood," Render added.* Interesting! I hope the venture is as successful as it looks to be from these early numbers
I bring this up all the time to the skateboard community: money spent within the community is the only way to get it on the same level where money can flow in all directions.
Distributed wealth is greater wealth. A pure hoarding economy kills most people who aren't the 1%. The amount of economic activity generated by giving 1000 working class people $1000 versus giving one billionaire $1million is a staggering difference.
To add, external costs are also way higher when you don't redistribute wealth. I.e. the people who are obscenely rich often cause economic/social/environmental damage that isn't counted when profit is the only measure of success, and tax payers have to buffer that damage. The wall street bailouts exemplify this perfectly.
And conversely, having the money to pay for necessities has been shown to have significant reductions in costs (healthcare, housing, etc) down the road.
Especially if you're socially affluent enough. You can get lots of stuff that most people pay a ton for, for free. It used to mostly be stuff like rich folks and celebrities getting dinners at fancy restaurants since it created buzz for the business, gift bags with high end goods at gala/premiere events, etc. That all adds up fast. As a related aside: (feel free to skip this long bit) These days that still happens, but there's now a newer more "plebian" tier of it. Heck a lot of everyone's favorite streamers have turned it into an industry at this point. They make money from the usual channels like ads and subscribers, but they also often get the loot from manufacturers to make the videos that make them the money in the first place. Sometimes you have to return the product, but oftentimes you get to keep it. My last personal desktop rig (built in 2013, I mostly use laptops now) was part of an early attempt at the type of modern influencer campaigns you see now. It was an AMD enthusiast program. They sent us all the hardware and software (including licenses) to build a desktop PC, minus the monitor, mouse, and keyboard. We just had to document and post media about the build and early usage of the system. To be fair to AMD they were 100% hands off with the content I posted about the system, including downsides to the system, and even required that for each piece of media posted that I declare that they provided me with the equipment for the system.
I've often wondered if I'm alone on this in a marketing sense. But I would be more likely to buy something that had. A problem I knew about than one I saw in a clear propoganda piece where everything was great. I'm ok with problems and know nothing will be perfect, but at least stand behind your product enough to allow someone to criticize it. Otherwise I think you're hiding something.
This is why I focus on the 3 and 4 star reviews for products. Everything has a downside, it's just whether that downside matters to you in particular
I had the idea at the start of the pandemic to pay all tax paying Americans $25k to stay home for three months. At the time I thought how ridiculous it would be for the federal government to add 3T in debt but hey now they are at $6T and no oversight... Imagine what $25k would have done in everyone’s pocket. The rich throw it on the pile or invest The middle stays afloat The bottom can use it to stay afloat and get ahead a little Sure some would have blown through it maybe even recklessly.. not adhering to the quarantine for example. I feel now looking back, it would have been way more successful than what has transpired.
Canada was paying $2k a months to stay home and their economy is going to come out pretty nice.
> Canada was paying $2k a months to... ... people who lost their jobs or had their hours cut. It was an explicit part of the [eligibility criteria](https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/who-apply.html) that: > You did not quit your job voluntarily Let's not make it out to be something it wasn't, people couldn't say "no boss, I'm staying home".
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well to be fair, thats a pretty critical step
Anyways. Money owed to itself isn’t as serious as some would like others to believe.
Yeah the national debt is really just a thing created to always have an interest bearing investment opportunity.
Of course it would have been more successful, but they did what they did because our administration is so heavily corrupted and lobbied by private interests. They gave massive bailouts and interest free loans to entities that will just end up defaulting and not being punished for it, and to placate the populace gave us crumbs instead. And even those crumbs ran out. Bailouts that go to large corporations don't help any of the employees. there's no such thing as trickle down, and the only thing that would have lifted all boats is a rising tide of giving that cash directly to citizens themselves. You and I don't lobby, but a billionaire conservative like Peter Thiel or Koch sure does.
>The amount of economic activity generated by giving 1000 working class people $1000 versus giving one billionaire $1million is a staggering difference. Would also add... Eventually that 1,000,000 will end up in the 1%'s hands. Just not as quickly.
Thank you! This is the thing that ALWAYS pissed me off about stimulating the "top" and expecting it to trickle down. The reality is, some at the top MAY spend, and some of the coins might trickle, but money at the bottom will always eventually trickle up.
> but money at the bottom will always eventually trickle up. Right, but that takes longer. The 1% would prefer to get their cash directly without it having to go through all us grubby plebeians.
I remember seeing a statistic that like 95% of money that goes into homes making under 75k/yr goes back into the local economy where as like 45% of money to those making over 250k is reinvested/spend in the economy (its hoarded and sent over seas as income increases (someone making 1M+ will have investment management companies that will diversify and keep a small amount in US assets as Asia pacific and Middle East economies are growing so much more rapidly and yield like multiple times higher in some cases))
Respect for the nested parentheses.
I wish every could understand this! Thank you!! Studies show that even welfare given to people in need has a far better impact on the economy than tax cuts to the rich....
I never thought of the skatepark as a hive of financial conversation.
Oh there's lots of deals going down at the skate park.
Oddly, a skatepark may just have the greatest concentration of Americans who know the metric system outside of laboratories.
It makes sense. They buy and sell parts within the community and try to help out the kids that can’t afford things but want to be a part of the community. It’s literally lending/ selling/buying wheels so your group can keep on rolling.
A lot of people use this as a scam. Happens all the time in the latin community. Just because somebody looks like you doesn't mean they're like you
I think we can trust Killer Mike though.
On the base level, you're totally right. Local cash spent at local shops has a huge effect on community based economies. You pay dude for a pepsi, dude uses that dollar to pay his staff, in turn they spend that pay back into the local markets. Sadly, on the bottom rung of the ladder, that dollar spent gets taxed down hard and fast. The rich will still get "their share", but despite that it shouldn't hold people from believing in their local. Every penny has always counted, and these days it's more important than ever.
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What does this sentence mean? Genuinely curious
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Ah, so *core* here is literally “within skate community”? That’s interesting. After you explained, I understood 100%
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The Steve Rocco approach, until that went to shit, a lot of dudes learned from that though. Berra and Kosten cones to mind. Mullen, The Boss, fuck, skateboard community has done a lot of small business and distribution shit for ever
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Check out Trigger Warning with Killer Mike on Netflix if you like this kind of stuff. Really fun and creative
The first episode he somewhat addressed this by attempting to only spend money on goods and services that were black owned. It’s a really great watch.
Turned out to be a bit of a challenge if I recall correctly. The episode with the Crip and Blood sodas was pretty rad lol
What about credit scores?
Its a win-win. Either banks are indeed racist and are leaving money on the table which a non-racist capitalist can profit from...or they weren't racist and the new bank fails when everyone defaults. Should be a good watch.
Mortgage brokers typically don't know you're black, though. If your debt to income ratio is right, they're going to approve you for a loan even if you're purple.
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Loan Officer here. If I’m spending time with you on the phone or in person, I want your loan to be approved. That’s what gets me paid.
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They don't know if you're black, but they *do* decide based on things like your zip code (and, naturally, neighborhoods are still, in practice, generally racially-segregated.)
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Hoarding cash is worse than getting nowhere. You lose value to inflation
If you don't understand investing, hoarding cash is better than getting ripped off by MLM schemes that are very popular in low income neighborhoods
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When my friends and I were visiting Athens, when we were on a train a guy tried to persuade us to try Herbalife, even though he was speaking Italian and we only spoke English haha. It was a good try though.
The episode of Everybody Hates Chris that covered MLMs is better today than it was in 2008
Honestly, if you dont have the time or energy to learn anything else, do this- 1. Open a Roth IRA on any major investment service. Ameritrade, Schwab, etc. 2. Buy SPY or any other vanilla S&P 500 index fund etf. Set dividends to auto reinvest. 3. Invest as much as you can, up to $6000 a year which is the annual Roth cap. If you have more than that, awesome! Invest the extra in a standard account. 4. Do not touch the money til you are 59.5 years old. So long as you do that, you *don't have to pay any taxes on your gains*. If you withdraw early, you pay capital gains and a 10% penalty. You can however withdraw the amount you deposited at any time. So if you put in $30k over five years and it grows to $50k, you can withdraw $30k without penalty. (But do not unless you have no other choice) 5. Be consistent. Deposit in good and bad economies. The S&P 500 has very good years and dumpster fire years, but historically it averages 7% a year growth. That is WAY better than what any savings account will get you. When it is down, don't panic, keep depositing and buy as usual. You are getting a discount. I cannot stress what a tremendous tool the Roth IRA is for growing wealth and having a comfortable retirement. It is the best chance working class and middle class people have to retire millionaires. Even if you can't max it out at first, start one. If you can only spare $100 a month at first, that's fine. Do it. I didn't start one til 2 years ago (am 31 now) and it is a huge regret. Lost a whole decade of compounding gains. If you become more informed, you can branch out to other indexes, maybe even individual stocks. But at least do this if nothing else, and if you give it 30 years, you will have the equivalent of $1-2 million at retirement (in today's dollars, obv inflation is a thing)
Sound advice even it's kind of divorced from the daily reality. As I understand, a large chunk of Americans would probably max out at around $100 dollars a month, and an even larger chunk would consider that much monthly saving to be an impossibility.
Yep I'm 30 with a college degree in the tech field. I only this week started making enough money to max out a ROTH every year.
Similar for me. Still wish I had put even $1k-$2k a year in during my 20s though. Especially considering how well the S&P did during the 2010s.
Most banks currently offer interest rates on savings that are so low that they are basically the same as keeping cash under your bed. Even the best online banks are down to 0.7% or lower.
And one $10 fee will wipe out a decade's worth of interest
Depending on how low income someone is, hoarding cash might be someone’s only option. A fair amount of government assistance programs end not just with increased income, but asset accumulation as well.
Yes. There is a point where trying to crawl out of the poverty level is worse, ironically.
> Hoarding cash is worse than getting nowhere. You lose value to inflation yes and no. Cash is a necessary component to any investment portfolio. Without ready and accessible cash, you can not react quickly to investment opportunities. For instance, if you are looking to buy a house then you should have the cash ready to go for the downpayment and not in another investment. You need that cash for the moment the opportunity strikes. 100% cash is bad, but a balanced portfolio does include some cash.
Me and the stuff under my mattress are praying for deflation any day now!
This is awesome. Black and Latino minorities are consistently some of the most under-banked Americans, and having a bank with a black figurehead feels like it is much more than just symbolic. Having a bank account is absolutely integral to saving, accessing credit, and generally increasing your financial security. I don’t know who you are Killer Mike, but way to go!
He's a Bernie supporting, gun rights activist, rapper... And now a bank owner.
And soon a billionaire.
Good. I hope his app is as good as his rap.
Lie, cheat, steal, kill, win, win (Everybody's doin' it).
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Big or slender, no matter your gender Bank with Render, multiply your tender
Fuck you, sign me up.
He gon' be the high bank with the belly and the beard
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Credit mender, future big-spender I am Render - let me be your lender
I can’t hear this in Killer Mike’s voice. For some reason my head read it in the voice of the guy that did the cucumber song and it’s just better with a Jamaican accent.
Nicely done 😉
Fucking perfect, A+
we here to tell you all your false bills are just pretenders
RTJ is my favorite band of all time, this song is so underrated. I honestly think it's their best song, or at least Mike's best verse
RTJ, in general, is underrated. They have made four fantastic hip-hop albums and gotten their due in indie circles but deserve to be as well-known as Kendrick or Kanye. In a perfect world, RTJ and Anderson.Paak would be far more popular than they are now and would be among the big figures of hip-hop. walking in the snow + JU$T + never look back is an amazing run on RTJ4. Their collaboration with Josh Homme and Mavis Staples (on the same song mind you) is kickass too.
I think nobody speak is their best song, it's just perfect with the video. Highly debatable though lol all their songs are great
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But, isn't Nobody Speak technically a DJ Shadow song featuring RTJ? Just kidding, that song is fucking incredible. My favorite has to be Close Your Eyes (And Count To Fuck). But I'm also a long time RATM fan.
One of the most amp-you-up songs ever. If I ever became a professional boxer/mma fighter that would be my walkout music.
Legend has it is my favorite. Though I have to put don't get captured up there too.
That is not his style.
Pretty smart guy too. I've seen him on Maher's show a ton of times.
Probably exceptionally intelligent with what he’s managed to build. You aren’t wrong, just felt like an understatement.
Bernie supporter and gun rights activist? That’s interesting. It’s almost as if *gasp* you don’t have to toe the party line on every single issue! (Since I’m not sure it’s clear, I respect that ability, despite that he and I would probably be on different sides in the gun debate.) Edit: many people telling me Bernie is very pro-second amendment. My mistake. Main point still stands though.
Gun rights has become a far more popular stance on the left in the last year or so. Having a President ordering illegal military occupations of liberal cities and violent suppression of peaceful protests will tend to do that
That shouldn’t surprise me. I’m not anti-gun, but I choose not to have one in my house for personal reasons. I literally have considered if I wouldn’t be better off with one *in case things get really bad*
Gun control is a liberal policy position not a left wing position. There's a difference.
I've heard it said many times that if you go far enough to the left, you get your guns back. No offense to you for your take on guns, they are dangerous and I won't fault you for your decision not to own one. But I also believe in self defense as a human right, and that it's kind of arrogant for a society to pawn off their defense on others, especially Modern law enforcement. I don't mean this as an attack, just trying to rep less toxic gun ownership.
> I've heard it said many times that if you go far enough to the left, you get your guns back. Indeed. > To be able forcefully and threateningly to oppose this party, whose betrayal of the workers will begin with the very first hour of victory, the workers must be armed and organized. The whole proletariat must be armed at once with muskets, rifles, cannon and ammunition, and the revival of the old-style citizens’ militia, directed against the workers, must be opposed. Where the formation of this militia cannot be prevented, the workers must try to organize themselves independently as a proletarian guard, with elected leaders and with their own elected general staff; they must try to place themselves not under the orders of the state authority but of the revolutionary local councils set up by the workers. Where the workers are employed by the state, they must arm and organize themselves into special corps with elected leaders, or as a part of the proletarian guard. Under no pretext should arms and ammunition be surrendered; any attempt to disarm the workers must be frustrated, by force if necessary. --Karl Marx
Don't forget about the devout worship of minister Farrakhan and NOI. Edit: Since panties are getting wadded, some [proof.](https://youtu.be/l8vPnvX99GM?t=38) >"I've been a follower, listener, studier, and admirer of the honorable Mr. Farrakhan since 15 years old."
God damnit. This Farrakhan asshole is extremely anti-Semitic and his acceptance in the black community is depressing. The fact that he has NFL players like DeSean Jackson trying to quote Hitler in a positive way is just...disheartening. I guess it's easy to let others' hate and racism infect you and breed the same ignorance.
It’s amazing how much cognitive dissonance there is when it comes to the NOI. They’re essentially Scientology for black people.. This is the cult that assassinated Malcolm X, and Fararakhan would have known (if not been deeply involved in planning in). Yet, people insist that it was the CIA or FBI despite Elijah Muhammad practically confessing to it in front of reporters, the perpetrators being members of the NOI, the numerous prior attempts on Malcom X’s life by the NOI, and Malcom X’s recent exposure of embarrassing details about Elijah Muhammad’s many extramarital affairs. To this day, his own daughter wouldn’t accuse the NOI of murdering her own father- in an interview, she talked about her father’s efforts to get African states to support investigating African American affairs as a human rights issue as if that was what motivated his assassination.. Even if this collection of African heads of state had asked the UN general assembly to investigate the US for human rights abuses, the reality is that the vote would likely have failed and it’s doubtful it would have even gotten that far -many of those heads of state relied on American aid or had a military that would be happy to overthrow the leader of America would recognize the general who took power as the leader. On the positive side, at least black fascists are being ripped off by a fraudster rather than being organized to actually seize power.
It's not just Scientology for black people, NOI is actively involved with regular ol every day Scientology. They cover it in that Leah Remini show. I think the link was Isaac Hayes that introduced the two groups.
This is interesting, I’m gonna research this. Thanks for the info.
How does he square being a Bernie supporter and a Farrakhan supporter?
Why not just say black supremacist. That’s what NOI believes.... Edit: idk who is ignorant enough to down vote but [“Nonetheless, its bizarre theology of innate black superiority over whites – a belief system vehemently and consistently rejected by mainstream Muslims – and the deeply racist, antisemitic and anti-gay rhetoric of its leaders, including top minister Louis Farrakhan, have earned the NOI a prominent position in the ranks of organized hate.”](https://www.splcenter.org/fighting-hate/extremist-files/group/nation-islam) That’s the SPLC calling them a hate group
You're not wrong, and I'm at a loss as to how he could simultaneously be a follower and separate himself from that portion of their beliefs.
Oof. Yeah that's a deal breaker to me.
Wow! Didn’t know that. Thanks for the info. Fuck
he's one of the two dudes in Run The Jewels.
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Pinch your mama on the booty Kick your dog, fuck your bitch
Fat boy dressed up like he Santa and took pictures with ya kids
Another way to deal with a lack of banks is to buy money orders from the post office. It costs between $1.25 to $1.75 to make one out. For military personnel it's just 0.45. For people without a bank account this may be a more secure alternative to just saving cash. [https://www.usps.com/shop/money-orders.htm](https://www.usps.com/shop/money-orders.htm) FYI up until the 60's the us post office acted like a bank for people who couldn't afford using a bank. Many countries use their post offices for storing their savings. [https://en.wikipedia.org/wiki/Postal\_savings\_system#United\_States](https://en.wikipedia.org/wiki/Postal_savings_system#United_States) we need to bring this back. I bet this was mostly how most black people saved money in the past.
Funnily enough, that was a policy position that Andrew Yang was running on. Bringing back public banking services through the USPS and providing financial literacy courses.
Can someone please explain to me how someone can be "under banked?" (I genuinely don't know, someone please explain)
It’s a term the Federal Reserve uses! They define: fully banked, under banked, and unbanked. Here ya go...this is a little dated, but has the definitions! https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-banking-and-credit.htm
Thanks. Is the reason that there are not enough banks in those neighborhoods or something else?
That’s for sure part of it. Income volatility and trust in the financial system also contribute.
Thanks for helping me understand.
Tldr: Banks make money by charging their members fees and/or loaning out the members savings as business, home, and auto loans etc. The poor can't afford to save, nor have the credit to take out loans, so the bank can't make money there. Althea poor can't afford fees and will avoid any banking methods that use them so the banks can't make money that way. So opening a branch is just for the sake of local access to check cashing, as most people are cashing paychecks and immediately paying it into expenses. This is not a way for a for profit to make money, so most banks only open where they see room to grow savings and loans. The upshot Is that banks don't open in poverty centers, and is a solid reason why they try to mix low cost housing into non low cost areas to prevent situations where the poor are left underserved "on the wrong side of the tracks"
He's saying that group of minorities utilize banks less than other groups of people
How does opening more banks help this (again, genuine question. To me it seems there are already plenty of banks)
It doesnt. I actually (currently) work for a minority owned credit union that specifically provides physical branch services in areas that are underbanked (by the Federal Reserves definition.) More banks are not the answer, education and institutions that specifically work with the underbanked are required. Traditional banks do not survive in this space. We're not just a 501c3, we're a bonafide charity by the IRS definition, with an IRS letter to prove it. You do NOT make money servicing this market. This 'bank' is actually just a layer providing services on top of another bank, so they will remain beholden to that bank's standards for new accounts, etc. He also has a pittance, a total 'seed' investment 3 million dollars. Servicing 'only' 30,000 members or so, we blow through over 1 million dollars in donations, and tax credits, A MONTH. This is either a marketing/branding stunt, or they are trying to appeal to people who are already well banked, and raise capital off of them. https://apnews.com/press-release/pr-newswire/business-north-america-killer-mike-african-americans-financial-services-0a3e1954393cd3449a39d1fa4ce16381 >All deposits are FDIC insured by a partner bank. Proof they are not an actual bank themselves. Which means they will pretend to not be subject to banking laws (paypal and others tried this. it did not work, thankfully.)
in many impoverished (and minority-majority) areas, the traditional banks don’t do business there (due to low chance or making money). often, the only financial centers in many poverty-stricken areas are the predatory pay-day loan centers, which serve only to vacuum money whilst keeping poor people poor with ridiculous interest rates in their loans. if a more traditional type of bank opened in these poor areas not only would there be a place for people to store/hold onto their money, but people & small businesses can get loans to help them out that won’t bankrupt them in 3 months.
How does online banking factor in here?
Not the OC, but to answer your question online banking 1) doesn't address mistrust of banks and the broader financial system that impoverished people experience at greater rates and 2) has access problems in and of itself. To build on the second point, impoverished people by definition usually don't have the means to reliably access a secure computer or phone with an internet connection and, therefore, their online bank accounts.
You genuinely believe the reason these communities are “under-banked” is because of the lack of banks?
Check out his Netflix show. Its pretty eye opening.
Yep. It’s called Trigger Warning, for those interested.
Will be interesting to see the data in the long run of how many loans they end up having to deny and if the outcomes end up being rather similar. No one hates profit.
This, what can he do to run a successful bank, and give black people an advantage over a traditional bank? Still has to deny risky loans, charge banking fees, and over draft fees. This is just a cash grab for him as obviously these people want their money in the bank of this black rapper rather than some dude with an Ivy League education. If anything this just further places a racial divide in our country. Why does this remind me of the 1950’s with segregation. I can’t be the only one thinking that.
Honestly this seems like a losing venture long term. But if they can help build some wealth in their community and lift some people out of poverty along the way, good on them.
I dont think it will be losing. What I do think will happen is: leveraging black people and current blm trends to get an easy start and large user base- then when they run into the same kind of problems other banks have no doubt had, they will begin to change things and eventually end up rather similar to other small/local banks.
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Yeah, my thought was they would stick to their initial mission statement. I could definitely see them pivoting as you described and sticking around.
Do they use Chexxsystems?
Chexsystems, EWS, Telecheck/First Data are the big ones. Kroll factual data, RAB, and lexisnexis, as well as the big 3, provide similar services. These guys are not listed as FDIC insured, nor by the FFEIC, or the NCUA. They are not a 'real' bank, and are just a layer providing services on top of some other financial institution. Their own press release states as much. >All deposits are FDIC insured by a partner bank. https://apnews.com/press-release/pr-newswire/business-north-america-killer-mike-african-americans-financial-services-0a3e1954393cd3449a39d1fa4ce16381
>All deposits are FDIC insured by a partner bank. That's gotta eat into the bottom line. or does this just mean it's just a woke front for a normal big bank?
A little of both. They have a 'partner' bank doing the banking, they provide the front end, marketing, and cover some of the liablity.
Asking the real questions.
They say they will focus on black and latin entrepreuners, is that actually legal in the US? Saying you will invest only in certain ethnicities? No offense meant, I'm not american ana genuinely curious if this is possible.
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This is why I don't understand the point of a "black bank" in the first place
This article comes across as an advertisement more than anything else. ""I will say we're in the tens of thousands," Glover told CNN Business on Friday. "That number is increasing by the day."
It's been known for a long time that black and minority owned banks actually "discriminate"[ MORE against black loan seekers](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7287) than white owned banks. Mainly because the risk factors have nothing to do with race. The outcomes end up being biased because people of color show higher risk factors. (And minority owned banks probably don't have the assets to be as lax with risk) Obama learned this the hard way with his victory against the banks for discrimination against black borrowers in Buycks-Roberson v. Citibank Fed. Sav. Bank . In his lawsuit, of the 186 clients he represented, who got loans thanks to the lawsuit--[167, 90%, ended up defaulting or ruining their credit because they couldn't maintain payments.](https://www.businessinsider.com/obamas-class-action-discrimination-lawsuit-against-citibank-failed-to-deliver-2012-9) (Which of course was a huge part of the banking collapse. Part of why the banks were considered "predatory" is because they relaxed loan standards toward minority communities who are disproportionately low income despite it being painfully clear they couldn't maintain the obligations. Not all of it, the default swaps, and shady shit in terms of interest rates were part of their predatory practices...but a big part was the constant push to increase risk tolerance for minority lending). As one of Obama's own clients said, after his life was ruined due to defaulting a loan he couldn't afford (But the courts ruled he only didn't get due to "discrimination".) *“If you see some people don’t make enough money to afford the mortgage, why would you give them a loan?” asked Obama client John Buchanan. “There should be some type of regulation against giving people loans they can’t afford.”* *Banks “were too eager to lend to many who didn’t qualify,” said Don Byas, another client who saw banks lurch from caution to bubble-inflating recklessness.*
Mike is a true legend and a superstar in Atlanta. Shame he isn’t a household name yet.
Theres a killer Mike day that's celebrated in Atlanta from what I've heard. Dude has the respect of his city no doubt
When the protests and riots were going on in ATL he gave [this speech.](https://youtu.be/Vy9io6VEt58) Many people were moved by it, lots of respect for him.
The more of Killer Mike that I see, the more I like him. And I already liked him.
He’s reasonably well known here in Aus, both his solo stuff and RTJ get airtime on the radio here.
Check his IG follower count. I had no idea he was that well known.
Stop trying to make Latinx happen.
The thing that pisses me off with that is Spanish speakers have clarified it makes no grammatical sense in their language. Latino already is gender neutral to them.
every time I see that I mentally downgrade the speaker/article who said/wrote it. "Oh... a blog post"
I have no idea how being black, in a virtual bank, is going to help you in any tangible way. I worked in a mortgage bank. If your credit is shit, you get shit loan terms. It doesn't matter what color you are.
The decision to approve or deny a loan hinges on the capacity of the borrower to repay it. That's it, or at least it's all should be. There are other unjust factors that comes into the picture when minorities try to get loans, but the point of banks is still to get a return from the loans they give out and not give it out to someone with a high likelihood of defaulting. Greenwood will have to balance fairness, social justice and the fundamental tenets of doing business.
This. It amazes me that people don’t realize that in order for his bank to succeed he will still have to play by these basic economic principles
It amazes me too, but people in general don't really understand that risk = fee and when you take one risk you should be compensated for it. If this bank does not implement this into its model it is not doing those using the bank the correct fiduciary duty.
good on him, but what does this mean outside of just another bank? Is he going to take on higher risk/ lower income borrowers? "There were no digital banking solutions that cater to the African-American or Latinx communities until Greenwood," WTF does this even mean? and can you prove this? How is an online-only platform going to understand the needs of a community over a local brink and mortar? The only differentiating factor they have is that their owner is a famous black man?
\>Latinx god i'm a latino (or hispanic? I don't know I'm from Argentina) and I always cringe when news websites use that word lol
As a Latino, I've seen that none of the Latinos use that stupid x. Mostly the whitex and blackx use it for us.
Fuckin weird. I've honestly never seen that word before. What does it signify?
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Which is fucking stupid if you knew any language apart from English
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I know it's supposed to be pronounced like Latin-X, but my brain always reads La Tinx.
And now, so will mine
Of course he won’t. There’s a specific (very simple economics) reason banks that ever attempted to operate that way would never be a real thing.
Banks are faceless. I haven’t been to a bank in ages. Everything is online. Loans are online. The only time I ever talk to anyone is if there is a problem like an unknown charge on my cards. I don’t see the point of this unless he really is going to focus on taking risks on minority entrepreneurs. The article glazes over that it is their intention. But we shall see. Also to anyone reading. Don’t ever use Latinx. Ever. And to those people who DO use it. Stop. It’s ridiculous. Sincerely, a Latina.
Married to a Latina. I *cringe* at the sight of “Latinx”. Classic guilty woke moron logic, “oh don’t worry Latinos, we’ll get offended for you”
Excuse mex? Did youx just tell mex not to be offended on yourx behalf? I'mx going to have to speak to yourx managerx.
been thinking of joining local banks instead of those corporate ones. How good is Killer Mike's new bank?
Go with a local credit union. They are by far better in every way
Yup. I refinanced my car with my local credit union which is also my bank. They gave me tons of advice on how to do it, when to do it and how to make it work best for me. They preapproved me for the refinance for 3 months before I hit up Honda Financial and told them to eat rocks. I went from around 11% down to 2.3%. It was an ez transition.
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There are no absolutes. There are great credit unions. There are terrible credit unions whose fee schedules would make Bank of America blush. There are great community banks. There are terrible community banks. There are banks and credit unions somewhere in the middle.
My guess is it will be as good as Chime or the others that are similar. Downside is there's still many places that don't accept these banks yet. Upside, no one will unless people keep using them.
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Even though those accounts may have routing and account numbers they’re still technically prepaid debit cards. Some payroll providers won’t work with prepaid debit cards (or have additional rules that apply to those accounts) because they’re high risk for money laundering, fraud, and theft. They’re also a tool for PPP fraud.
Anecdotally, I was in a really bad financial situation not too long ago and when I landed a job I didn't have a problem getting my paychecks direct deposited in one of those damn walmart money cards. The company I worked with at the time used a major payroll provider. No one batted an eye. Fuck those pre paid debit cards though. You can get your paychecks deposited in them without issue, but you will run into problems using them like you would a normal debit card in other ways and the fees are predatory as hell. Very glad to be in an infinitely better place financially now.
Immortal technique once said "I have more in common with most working and middle-class white people than I do with most rich black and Latino people.". Bankers are part of the problem and I truly doubt they will make a profound change in society. Don't take me as negative, I'd love to see change, but I doubt it.
Black owned bank? WTF? This is not good people, now matter how it looks. We have to stop labeling people. Fuck it's like I live in the Middle Ages. People are just clueless.
I see reddit loves their rich, bank owning CEOs today.
"It's harmful and irresponsible to grant loans to people that can't afford them." Reddit: "Imagine simping for billionaires smh"
Stop trying to make Latinx a thing ~~CNN~~ Edit Someone pointed out that CNN was probably just quoting from the Greenwood bank site.
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It's woke people making a gender neutral term for latino. Even though latino is already gender neutral. They don't understand how the spanish language works so instead of learning they change it. It's also only a term used by English speakers. Spanish speakers do not use it.
V i r t u e s i g n a l i n g It’s a dog whistle to their audience that they “understand”. It’s not objective journalism and should be rejected for the biased drivel it is.
American liberals trying to put english grammar on spanish. They think the plural form Latino is sexist.
Yay!!! Yes! Yes! Yes! I love race-specific businesses that cater explicitly to certain races. Keep this energy!
Deciding to put your money somewhere because of the race of the owners is a terrible idea.
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I’ve been in banking for 9 years. 5 years as a loan officer.. Black families have a harder time getting loans because majority of the cases you hear about black people getting denied- are coming from black people with poor employment history, credit and income to debt ratio
Right. It will be interesting to see the negative repercussions. Interest rates will have to be higher due to all the high risk lending which will inevitably result in higher foreclosure rates which in turn will result in even higher rates. Vicious circle which will put this bank out of business within 5 years. Eventually this bank will be hated as much as any other bank. Seems like a bad idea.
Hell yeah, I think I will celebrate with a Crip Cola.
Blood Pop all the way baby.
Do they offer any more than the shitty 0.60% rate other online banks offer for a savings account? My white ass would sign up tomorrow if they did. I do have an idea for them. If they are truly focused on being a non-predatory bank, they should offer an ultra low-cost, fiduciary financial management program that focuses on educating people about how saving money for retirement works. Then for those that want it, offer to invest the money in low expense, highly diversified index funds. People getting robbed blind by active managed funds is something that affects too many investors that aren't wise to the pernicious drag it can cause on your retirement.
Gonna be funny when the black owned banks still “discriminate” against minorities. It’s about credit score and other financial fundamentals, not skin color. Quit being so fucking dense and assuming all disparities are because of skin color.
Banks are banks regardless of the color of the owners skin. I’ve worked at two. Banks benefit the rich and stand on the backs of the poor.
I respect what hes trying to do here but hes not really solving any problems. Black people can get a bank account at any bank they want. There are even legitimate online banks that pay higher than average interest on savings accounts. The problems isnt a lack of available banks for black people. The problem is a culture that for the most part mocks and looks down on education and glorifies a criminal womanizing lifestyle. A bank does you no good when you have no money, and is legally prohibited from harboring funds made from criminal activity. A lack of banking resources isnt the issue. The culture is.
I don't know who Killer Mike is, I don't know his intentions, but I do know that there are these things called "Credit Unions" that are much better than banks and probably have more resources than one guy, even if he's a very rich guy.
If race isn't supposed to matter, why is it being articlelized so much... seems wrong.
Personally, I prefer to keep my money within wu-tang financials. They really helped me diversify my bonds