Netflix Moves $100 Million in Deposits to Bolster Black Banks

 Netflix Moves $100 Million in Deposits to Bolster Black Banks

By Michael J. de la Merced

Netflix said on Tuesday that it would move up to $100 million, or 2 percent of its cash holdings, to financial institutions that focus on Black communities. It is intended to address a longstanding problem that these communities face: a lack of capital for the banks and other lenders that service them.

Earlier in June, the streaming company’s chief executive, Reed Hastings, pledged $120 million to support scholarships at historically Black colleges and universities. The move on Tuesday by the company he runs aims to fight racial inequality not through charity but via a routine commercial aspect of its business. As the company’s considerable cash pile grows, so might its deposits.

Netflix will start with $35 million, split two ways: $25 million in financing for a new fund, the Black Economic Development Initiative, that will itself invest in Black financial institutions, and $10 million deposited with the Hope Credit Union. These institutions join the roughly 30 banks worldwide that Netflix uses to hold its cash.

The big banks where Netflix and other multinational companies keep their money are not able to operate “at the grassroots level these Black-led institutions can and do,” Netflix said in a statement. “So we wanted to redirect some of our cash specifically toward these communities, and hope to inspire other large companies to do the same with their cash deposits.”

The idea was hatched in April during discussions about improving diversity within Netflix’s leadership ranks, according to company executives and others involved in the process. Aaron Mitchell, a member of Netflix’s recruiting team, took the lead in developing the idea of bolstering Black-owned and -run banks.READ MORENetflix’s big idea to support Black communities.

After encouragement from Mr. Hastings and Spencer Neumann, Netflix’s chief financial officer, Mr. Mitchell — who joked in an interview that he had “no business” devising ways the company should manage its money — worked with Shannon Alwyn of the company’s treasury division to put the plan into action.

The project took on greater urgency the next month after the killing of George Floyd while in custody of Minneapolis police officers, which set off weeks of nationwide protests against systemic racism and police brutality.

Mr. Mitchell said he had drawn on the book “The Color of Money: Black Banks and the Racial Wealth Gap,” by Mehrsa Baradaran, a law professor at the University of California, Irvine. Professor Baradaran argues that Black-focused lenders are undercapitalized, depriving these communities of economic opportunities.

“You need capital to build more capital,” she said in an interview.

Hope Credit Union, which is based in Jackson, Miss., reported just over $300 million in assets at the end of last year. The money from Netflix will have “a tremendous impact” in Black communities, Hope’s chief executive, Bill Bynum, said in an interview.

“Pound for pound, no entity has a bigger impact” than a community lender, he said, pointing to a greater ability to lend to small businesses and aspiring homeowners.

Lack of capital at banks serving rural and minority communities is a concern among regulators as well: The Federal Reserve’s chairman, Jerome H. Powell, deplored “financial deserts” in America at a forum hosted last year by Hope.

Read more

Originally posted on NY Times

Ae29vik2

http://www.ningfei-china.net/hair-care-products/hair-care-shampoo/

This product has a impressive effect of hair conditioner , which is suitable for men and women. Suitable for all hair types from dry, to itchy, to oily scalp.Extract natural herbal extracts, repair hair follicles, reduce bifurcation, improve dry and frizzled and other issues, So that hair become much glossier, moisturizing hair care more supple and healthier. Description: 鈼?Hair shampoo is specially designed for Hair clean & care and maintain.It's the first step based on anti-hair loss 4 step protocol. 鈼?Hair shampoo removes serum and DHT from the scalp.It contains indispensable bio-active nutrients that improve the hair and scalp condition,creating a healthy environment for Hair growth. 鈼?This product is a new hair-care product in a formula of natural luxurious herbal medicines,based on the characteristics of hair of oriental,combining international advanced biological hair-care technology with secrete recipe of traditional medicine extraction. Ingredient are Saponins, Wormwood, Arborvitae, Ginseng, Angelica, Chuanxiong, Fangfeng Cnidium. The plant shampoo developed by Chengdu University of TCM and Ningfei Company contains dozens of precious herbs such as Saponins, Wormwood, Arborvitae, Ginseng, Angelica, Chuanxiong, Fangfeng Cnidiu. This formula can cleanse oil, prevent hair loss, and regrowth hair. It is completely safe and free of silicone oil. prevent hair loss, and regrowth hair. It is completely safe and free of silicone oil. Note: 鈼?Transition: 1cm=10mm=0.39inch 鈼?No retail package. 鈼?Please allow 1-2cm error due to manual measurement. pls make sure you do not mind before you bid. 鈼?Due to the difference between different monitors, the picture may not reflect the actual color of the item. Thank you!China Hair Care Shampoo website:http://www.ningfei-china.net/hair-care-products/hair-care-shampoo/

Leave a Reply

Your email address will not be published. Required fields are marked *