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(Bloomberg) -- JPMorgan Chase & Co. invested in 10 banks with diverse leadership, acquiring stakes with a total value of more than $60 million, and is giving their customers free access to thousands of ATMs as part of its effort to help address the racial wealth gap.
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The “investments and commitments” JPMorgan has made in minority deposit institutions, known as MDIs, and community development financial institutions this year now stands at more than $100 million, according to a statement Tuesday from the New York-based firm. The biggest U.S. bank had announced in February that it invested $40 million in four firms.
Corporate America has responded to the killings of George Floyd and other African Americans by police officers with pledges to fight systemic racism. The financial industry has been singled out in particular for its role in creating and prolonging economic disparities.
“The most important thing for us is we really want to see MDIs continue to play the role that they play in their local communities well into the future,” Brian Lamb, global head of diversity and inclusion at JPMorgan, said in an interview. The equity investments help recipients expand into new markets, he said.
The 10 banks will also become JPMorgan clients and receive special training and advice. JPMorgan also said the investment product it developed for Black-owned banks earlier this year -- a special class of shares offered across its money market funds -- surpassed $5 billion in assets under management.
JPMorgan said Tuesday it took stakes in these lenders:
Arkansas-based Southern Bancorp
Florida-based Sunstate Bank
Georgia-based Carver State Bank and Citizens Trust Bank
Harbor Bank of Maryland
Michigan-based First Independence Bank
South Carolina-based Optus Bank
Texas-based Rio Bank and Unity National Bank
Washington, D.C.-based Industrial Bank
Read more: JPMorgan Creates Investment Product for Black-Owned Banks
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