Jpmorgan Chase Announces Initiatives To Support Minority
Launches new Empower money market share class anchored by Google, for distribution by MDIs and diverse-led CDFIs and features annual donations from JPMorgan Chase to support community development.
Dedicates $40 million in direct equity investments and commitments to leading MDIs, while expanding mentoring and training support.
Establishes a Racial Equity Program to support diverse community commercial projects.
NEW YORK, February 23, 2021JPMorgan Chase today announced initiatives to further support Minority Depository Institutions and diverse-led Community Development Financial Institutions , as part of the firms recently announced $30 billion commitment to advancing racial equity.
MDIs and CDFIs provide vital financial services in communities that are often underserved. In order to provide this necessary funding to underrepresented communities, many MDIs and CDFIs need additional capital themselves.
These new initiatives are focused on strengthening minority-owned and diverse-led financial institutions by providing additional access to capital, connections to institutional investors, specialty support for Black-led commercial projects and mentorship and training opportunities.
To support MDIs and CDFIs, today the firm is announcing:
1. A New Money Market Share Class for Distribution by MDIs and Diverse-Led CDFIs
The Empowering Change program includes:
2. $40 Million in Direct Equity Investments and Commitments to Leading MDIs
Lasting Community Impact
Protecting Against Inflation: Part 2 The Labour Market Is Key
Part 2 – The labour market is key
In the second of this inflation mini-series we take a closer look at what is going on in the developed worlds labour markets. The supply chain problems discussed in part 1 may linger for some months but whether this turns into a lasting inflation problem depends on the jobs market. If workers are able to bargain for higher wages in the face of rising living costs then this has the potential to feed a wage-price spiral and medium-term inflationary pressure.
Such bargaining power was notably absent in the last cycle. For several years after the financial crisis, as unemployment declined, wage growth remained lackluster. It appeared that the inverse relationship between unemployment and wage growth was broken. It took a long-time and near record low levels of unemployment before wages started to pick up.
Whats so remarkable about the recent recovery in the labour market from the deep pandemic induced recession is the sheer speed at which we have returned to the point where workers again have bargaining power. From its peak of 10%, US unemployment took 8 years to fall to current levels after the financial crisis. From its pandemic peak of nearly 15%, US unemployment has recovered to 3.9% in less than 2 years.
Exhibit 1: US unemployed and job openingsMillions of people
The key point is that even if the participation rate does rise, the number of available workers is likely to remain low relative to the number of job vacancies.
Jp Morgan Using Blockchain Network To Automate Money Market Fund Payments
Last week fund management network Calastone announced that JP Morgan Asset Management would use Calastones blockchain-based solution for automated money market fund settlement. Calastone, with more than 1,900 clients in the fund management sector, migrated its entire infrastructure onto blockchain a year ago. It positions its platform as a Distributed Market Infrastructure and essentially provides integration for the fund sector.
Now all parties share the same view of transactions, whether an administrator, asset manager, broker / intermediary or retail investor. Before the migration to distributed ledger technology , communications between parties always involved messaging using SWIFT and other formats.
In 2018 Calastone launched its money market services. It automates the connection of corporate or bank treasury management systems that have cash to invest, linking them to money market funds. Any money market fund connected to the Calastone network automatically has a connection to any investors on the network.
Calastone already enables trade automation for JP Morgan funds globally. Now the asset manager will use new features, including automated payments, the first to sign up for the new service.
As of last year, the Calastone platform was based on Enterprise Ethereum, but with a desire to remain blockchain agnostic. The company is a member of Hyperledger and an investor in Digital Asset.
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