The proposed credit reporting requirement may be a precursor to discriminatory loan quotas

No one should be denied credit because of their sexual orientation or gender identity.

Ostensibly to deter such discrimination, a Congressional proposal (HR 1443) would require small business lenders to provide data to the Federal Consumer Financial Protection Bureau detailing the LGBTQ business ownership status of credit applicants.

This reflects the current law imposing similar reports on owners of women-owned or minority-owned businesses. But whatever the supposed intention of the supporters of the bill, the reporting requirements are a next step in bringing quotas to the credit markets.

Ironically, such quotas enshrine discrimination by making market success partly dependent on membership in a politically favored category. This runs counter to the American ideal of equality before the law and equal protection of the law.

Of course, in cases of unlawful discrimination, the government should enforce the law and private parties should have the right to take legal action.

However, such discrimination would be rare in the financial services industry, even without legal protections in place. For a financial institution, shareholder value is maximized by lending capital to companies best equipped to meet market demands by effectively combining capital, ingenuity and hard work, regardless of irrelevant category distinctions.

Discrimination based on race, sex, gender or sexual orientation puts the company at a disadvantage compared to competitors who determine creditworthiness based on relevant factors.

Unlike the mistreatment of racial minorities under Jim Crow (legislated racial discrimination), there is little evidence that market or cultural forces discriminate against businesses in credit based on sexual orientation or the gender identity of business owners.

In fact, businesses that celebrate the LGBTQ community thrive economically. According to the National Gay and Lesbian Chamber of Commerce, the 1.4 million LGBTQ businesses in the United States contribute more than $ 1.7 trillion to our economy. This demonstrates that market forces support the values ​​of the LGBTQ community.

Many large corporations, from Amazon to Chipotle to Disney, as well as financial institutions such as TD Ameritrade, PNC, Wells Fargo and Bank of America are celebrating Gay Pride Month with special events, products and messages .

The real agenda of HR 1443 is to shift the corporate focus from maximizing shareholder value to achieving the designs of a few social elites. Category quotas, whether for crediting, college admissions, or corporate leadership, shift the basis of success from individual merit to category membership.

Credit Applicant Category Distinctions reporting requirements bring us closer to setting quotas across the financial industry.

The Nasdaq, for example, already pursues diversity quotas combined with reporting requirements for board members of listed companies. Such quotas are discriminatory, immoral and have no economic basis.

This proposed reporting requirement is a solution to a problem – systemic credit discrimination based on sexual orientation and gender identity – that does not exist.

Instead, it’s another step in the quest to enforce discriminatory credit quotas or preferences based on category distinctions.

This adherence to identity politics and classism goes against American values ​​of equality before the law. It also imposes an additional cost on small business loans which will increase the cost of borrowing and make small business bank loans less economically attractive.

Instead, Congress should ensure that the Small Business Administration is focused on its Congress-mandated mission of “helping, advising, assisting and protecting the interests of small businesses, preserving free competitive enterprise, and sustaining and strengthening the economy.” overall. of our nation.

This piece originally appeared in The Daily Signal.


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Neo-Nazi group disfigures George Floyd statue in New York City | Racism News

The far-right American Patriot Front cell inscribed its name on the monument to the black man murdered by the police.

A statue of George Floyd was disfigured and branded with the name of a neo-Nazi group in New York City, police say, less than a week after it was unveiled.

Police said the nearly two-meter-tall monument honoring the 46-year-old black man murdered by a police officer in May last year was found covered in paint on Thursday morning.

The inscription was from the far-right United States cell, the Patriot Front, which also allegedly vandalized another tribute to Floyd in neighboring New Jersey.

Authorities released a video showing four people, one of whom was holding a can of spray paint, near the crime scene in Brooklyn’s Flatbush neighborhood.

[Screenshot/Reuters]

The degradations came ahead of Friday’s conviction of Derek Chauvin, the 45-year-old officer whose murder of Floyd sparked the biggest racial justice protests in decades in the United States.

New York Police said they were investigating the attack on the monument.

“I’m going to be absolutely clear with the neo-Nazi group that did this: get out of our state,” tweeted New York State Governor Andrew Cuomo, adding that specialized state police officers would offer to help the investigation.

“We are going to bring these cowards to justice,” New York Mayor Bill de Blasio commented on Twitter.

The wooden statue – made by artist Chris Carnabuci – was inaugurated on Saturday in the presence of Terrence Floyd, George’s brother.

Late Wednesday or early Thursday, another statue of Floyd outside City Hall in Newark, New Jersey, was also covered in paint.

According to the news site NJ.com, the inscription “Patriot Front” was also discovered there, before the bronze statue was immediately cleaned.

Newark Police have launched an investigation.

Minnesota law provides a minimum sentence of 12.5 years for Chauvin, who has been jailed since his conviction on three counts of murder and manslaughter two months ago.

But the prosecution cited Chauvin’s “particularly cruel” behavior and called for a maximum sentence of 30 years.


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Wealth managers need to hear the call of diversity

Wealth and investment management is often seen as a bastion of upper-class white privilege, although the industry is actually more diverse than it sometimes appears.

But with Britain becoming an increasingly diverse country and the number of ethnic minority entrepreneurs rapidly increasing in the UK, wealth management companies need to step up the pace at which they respond to the country’s ethnic diversity. .

Wealth managers need to consider diversity when considering their clients and values, and planning their own employment strategies. Industry cannot risk being left behind, devoid of the diversity of thought that different backgrounds can bring.

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To view Savanta’s data on minimum portfolios, fees, services and past performance of managers, download here (PDF)

I’ve been talking to entrepreneurs and executives for over a decade and during that time diversity has spontaneously emerged as an increasingly common theme. Business leaders and managers have become accustomed to forming teams with varied profiles and skills. Many are also responding to pressure from stakeholders, including shareholders, to increase diversity on their boards and leaders.

In the 2011 census, 80.5% of the British population identified as white, meaning that almost a fifth of Britons now come from other origins.

While most ethnic minorities are lagging behind in terms of wealth, entrepreneurs and business leaders increasingly come from diverse backgrounds.

Immigrants, as has often been noted, are often more dynamic than natives. the Global Entrepreneurship Observatory Report on the UK from 2019 notes that total early-stage entrepreneurial activity – a measure of entrepreneurship – stands at 10.2% for immigrants, compared to 8.5% for natives.

Each entrepreneur has a unique life experience that helps shape their vision of wealth and investment managers. Customers care and expect the diversity of the companies they work with. Savanta’s MillionaireVue Omnibus survey found that two in three UK millionaires believe it is very important that their advisor has a diverse workforce.

In its Global Wealth Research Report 2021, EY, the consulting firm, found that one in eight wealthy people believe that a diverse team of advisers is an important reason in selecting a wealth manager. This rises to one in five among those from the LGBTQ + community.

The decision of clients to hire is often an emotional one, so there is a strong business case for having advisors as diverse as the clients.

Wealth managers also need diversity to adapt. They can do this more easily because, as EY notes, diverse teams are better able to “spot blind spots, improve innovation and identify investment opportunities.”

It is worrying, however, that in this year’s survey conducted by Savanta of asset managers, the average share of employees from an ethnic minority is only 14%.

Worse, only half of the 32 wealth managers we surveyed could provide data, and a paltry five told us they aim to increase the proportion of ethnic minorities by the end of 2023.

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Industry needs to take these issues more seriously. Fortunately, there are signs that it is starting to do so. The Personal Investment Management & Financial Advice Association is hosting its inaugural Diversity and Inclusion Awards this year, with the aim of showcasing the companies, people and initiatives that are successfully starting to bridge the gap.

And individual wealth management companies are taking action. Rothschild & Co was among the first large financial institutions to join the Sutton Trust’s Pathways to Banking program, which works with state-funded schools in London to expand access to finance.

Rothschild also offers positions designed to attract talented black students to careers in the investment management industry under the # 10000BlackInterns initiative.

Clients can expect to deal with more diverse wealth managers in the UK in the future. But the industry needs to move faster to meet customer demand.

David Barks is Director of the Wealth Management Team at Savanta, a global market research agency

The advantages and dangers of Paycheck Advance applications

While services can be a good option for workers with limited access to emergency cash, they can present dangers when overused.

“These apps seem to be a good tool for people who have bills to pay before receiving their paycheck,” says Patrick Bernard Washington, PhD, associate professor of finance at Morehouse College. “Workers earning low wages may have an emergency for which they need a loan to resolve the problem. However, it is still a loan against income which may not be a living wage. “

Ted Rossman, Industry Analyst at CreditCards.com and Bankrate.com, says “Earned Payroll Apps may work for some people from time to time, but you definitely shouldn’t make it a habit.”

“At the end of the day,” he adds, “if the need for additional funds occurs on a regular basis, you have to find ways to earn more and / or spend less. “

But industry leaders say these products can help users avoid traditional payday loans, vehicle title loans, black market lenders, pawn shops, and other potentially dangerous sources of money. emergency.

They can also help users avoid overdraft fees, which Bankrate.com says tends to cost around $ 34 per person.

“Overdraft fees only affect people in difficulty,” said Ram Palaniappan, CEO of Earnin. “To a large extent, our clients tell us that they are saving $ 50 per month in overdraft fees. It’s a lot for our clients, it’s like half a day’s work going to the bank.

“MoneyLion’s Instacash helps our members pay their bills on time, cover unforeseen expenses and avoid costly overdraft fees,” a company spokesperson told Consumer Reports. “Our members tell us that the service gives them more control over their money, makes them feel less stressed about their financial situation, and helps them achieve their financial goals.”


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How to protect yourself from phishing emails


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