In a significant development, JPMorgan Chase & Co stated it has decided to commit $30 billion to address racial inequality over the next 5 years. The development marks the largest corporate pledge to bring down racial tensions in the United States following the death of George Floyd.
The initiative aims to provide $8 billion in new mortgages to Latino and Black borrowers, $14 billion in loans for affording housing projects, $2 billion in small business loans, and $2 billion in philanthropy.
Peers, Citigroup Inc and Bank of America Corp have also made similar pledges of about $1 billion each.
“We didn’t lead with philanthropy …We wanted the businesses to lead because we knew that would have sustainable impact,” said Brian Lamb, global head of diversity and inclusion in an interview. “JPMorgan Chase is stepping up as a firm to use its own balance sheet as well to provide access.”
JPMorgan has also committed to doing more business with minority suppliers, and improve diversity of its workforce; it has also pledged to open 100 branches in low-income communities.