Bankers may find project to identify racist deeds intriguing

U.S. Sen. Tina Smith (D-Minn.) is seeking support for a bill she wrote which would provide grant money to organizations that help identify property deeds containing racist covenants. Some deeds written in the early 20th century contained provisions prohibiting the sale of land to Black people and other minorities. More research needs to be done to determine the impact of decades-old racist covenants on today’s patterns of homeownership. Perhaps Sen. Smith’s legislation could result in additional understanding. [Continue]

Democratic control brings new financial leadership

With democrats now in control of Congress and the White House, the transition in political power means shake-ups in top federal economic positions, too. Democratic regulators are more likely to push for tighter banking regulations as well as prioritize increased federal relief as the economy falters due to the COVID-19 pandemic. [Continue]

Consensus around PPP’s success

Democrats and Republicans unsurprisingly have different takes on the success of the Paycheck Protection Program. Opposing political parties routinely take shots at one another; weeks before a presidential election, the partisanship is especially acute. With respect to PPP, however, small business advocates should agree that the program provided crucial support very quickly, with safeguards against fraud that made PPP as effective as any massive government grant program can realistically be. [Continue]

Bridging wage and wealth gaps isn’t the right Fed mandate

The Federal Reserve, with its enormous capacity for research, tells us the coronavirus recession has hit women and minority populations hard due to disruptions in the retail and service sectors. Federal Reserve Chair Jerome Powell said in June that the persons least able to weather an economic downturn are now carrying the greatest burden. [Continue]