Anderson@Large

Pew Study Shows Black Americans are Broke

A new Pew Research Center study found the black-white wealth gap has risen to a record high. The median net worth of white Americans is 20 times that of black Americans.

Thirty-five percent of black households have zero net wealth. By contrast, only 15 percent of white households have zero assets.

The Pew study found:

The net worth of black households fell from $12,124 in 2005 to $5,677 in 2009, a decline of 53%. Like Hispanics, black households drew a large share (59%) of their net worth from home equity in 2005. Thus, the housing downturn had a strong impact on their net worth. Blacks also took on more unsecured debt during the economic downturn, with the median level rising by 27%.

The drop in the wealth of white households was modest in comparison, falling 16% from $134,992 in 2005 to $113,149 in 2009. White households were also affected by the housing crisis. But home equity accounts for relatively less of their total net worth (44% in 2005), and that served to lessen the impact of the housing bust. Median levels of unsecured debt among whites rose by 32%.

The study underscores the disparate impact of the subprime mortgage crisis. It is unconscionable the NAACP and the National Urban League are in bed with Wells Fargo, a predatory lender that was fined $85 million for steering creditworthy borrowers into subprime loans.

The Huffington Post reports:

The Department of Justice is preparing a lawsuit against Wells Fargo, the nation’s largest home mortgage lender, for allegedly preying upon African American borrowers during the housing bubble and steering them into high-cost subprime loans, according to three people with direct knowledge of the probe.

The company, the fourth-largest U.S. bank by assets, is currently embroiled in pre-lawsuit negotiations with the Justice Department in hopes it will settle the accusations and avoid a public lawsuit, these people said.

The allegations mirror those in public actions taken by the Federal Reserve and a separate lawsuit filed by the city of Baltimore.

[…]

Taken together, the various investigations paint a picture of a lender that profited by knowingly targeting less-sophisticated borrowers, in particular preying upon those communities that traditionally lacked access to a full range of consumer credit products.

The state of black America? Busted and broke.

Free to Speak Truth to Empower

I am a lifelong activist. Speaking up is in my DNA. It’s also what I do.

When you’re not concerned about losing “access,” you’re free to speak truth to empower.

Janis Joplin, a charter member of the 27 Club, famously sang: “Freedom is just another word for nothing left to lose.”

Ask a Woman Who Knows

Last week the leaders of two civil rights organizations, Marc Morial and Benjamin Jealous, met with President Obama to discuss job creation and economic growth.

The readout of the meeting notes that Obama “congratulated the leaders on their upcoming conventions.”

As expected, my post about black female civil rights leaders being left out of the meeting sparked accusations that I am a “hater.” My response: Guilty as charged.

I hate that Wells Fargo was the “Lead Sponsor” of the NAACP’s 101st annual convention. And they’re still hooked up in Los Angeles.

The predatory lender was a “Principal Sponsor” of the National Urban League’s centennial conference, and will be back on board when the League kicks off its annual conference this week.

Now check this out: On Wednesday, the Federal Reserve Board ordered Wells Fargo to pay an $85 million fine for steering borrowers with good credit into subprime loans. I hate when that happens.

The order reads:

The $85 million civil money penalty is the largest the Board has assessed in a consumer-protection enforcement action and is the first formal enforcement action taken by a federal bank regulatory agency to address alleged steering of borrowers into high-cost, subprime loans.

[…]

The order addresses allegations that Wells Fargo Financial sales personnel steered borrowers who were potentially eligible for prime interest rate loans into loans at higher, subprime interest rates, resulting in greater costs to borrowers. The order also addresses separate allegations that Wells Fargo Financial sales personnel falsified information about borrowers’ incomes to make it appear that the borrowers qualified for loans when they would not have qualified based on their actual incomes.

I have been asked to identify the black women leaders who should have been invited. I will not name names because that would be a betrayal of their trust. Although they know their stuff, they would be ostracized and penalized for breaking the silence.

And I would really hate for that to happen.

UPDATE: The Huffington Post reports the Civil Rights Division of the U.S. Department of Justice is investigating Wells Fargo for “allegedly preying upon African American borrowers during the housing bubble and steering them into high-cost subprime loans.”

What About Black Women Leaders

It is hot as hell in DC. It is even hotter under the collars of some African American women who are asking: Are we not civil rights leaders?

The women were set off by the news that President Obama was scheduled to meet with the leaders of two civil rights organizations – National Urban League President Marc Morial and NAACP President Benjamin Jealous. A readout of the meeting said "the President discussed the continued efforts his administration is making to spur job creation and economic growth."

The readout noted:

The President also reiterated that reducing unemployment, which disproportionately burdens the African-American community at 16.2%, remains a top priority for him and his Administration. The President also spoke with the two civil rights leaders about dramatic efforts his Administration has already made to address urban economic development through initiatives such as Strong Cities, Strong Communities, a program that acts to spur economic growth in urban centers while ensuring taxpayer dollars are used wisely and efficiently; the Treasury Department’s Community Development Financial Institutions fund; and the Minority Business Development Agency at the Department of Commerce.

This is the second time in two years that Obama has held a meeting with civil rights leaders and no black woman had a seat at the table.

In February 2010, the late Dr. Dorothy I. Height was the only black woman invited to the Urban Economy Summit. The then-97-year-old could not attend because of the extreme snow conditions.

There was extreme heat yesterday, but black women leaders felt a cold chill when they realized history was repeating itself. While they're not ready to go on the record, they told me they won't be silent much longer. They have earned a seat at the table. More important, they want to ensure issues of importance to black women and black families are addressed.

And lest the knee-jerk “hater” is bandied about, these are women who year-after-year -- election-after-election -- make things happen. All they're asking for is a little respect.

MMTC Access to Capital and Telecom Policy Conference

I will be in DC today. It will feel like 116 degrees in the shade. But that’s OK because I don’t plan to leave the hotel where the Minority Media and Telecommunications Council is holding its 25th Anniversary Access to Capital and Telecommunications Policy Conference.

The conference will be streamed live here.

MMTC President and Executive Director David Honig writes:

After more than two decades of work to promote and preserve equal opportunity and civil rights in mass media and telecommunications, there have been many victories and a few defeats. Through it all, the need for advocacy, sometimes loud, sometimes quiet, but always determined, remains unchanged.

[…]

Access to capital is crucial to the success of minority entrepreneurs, and telecommunications policies can open doors for minority participation in American media — or close doors, if those policies are written without care and foresight. Providing access to needed capital and ensuring telecommunications policies provide for equal opportunities remain central to MMTC’s mission and to this year’s conference.

Truth be told, even Steven Wonder can see the doors to needed capital remain largely closed.

What It Takes to Get Over

Philadelphia is revving up efforts to change the conversation about young black males. Anthony Martin, executive director and co-founder of What It Takes Foundation, is showing the way. WIT is a national outreach initiative to connect black boys with black men who can show them “what it takes” to achieve success.

Yesterday, I attended the launch of What It Takes E-mentoring program, which will use social media to connect 200 black males with 100 e-mentors in structured, caring online relationships.

Donna Frisby-Greenwood, Program Director for Philadelphia Knight Foundation, said the program will “show how technology can be used to engage people… It will show what technology can do when people come together.”

Indeed, Martin wants to augment the reality of what it means to be a black man:

Black males are portrayed in a negative light. When you’re portrayed in a negative light it becomes a negative reality… Kids see a lot of negativity and they start thinking negatively… We need more positive mentors in the community who can deliver the message about what it takes.

Martin said What It Takes will accentuate the positive:

Mentoring is vitally important… There are a lot of black men who are doing positive things and they need to be brought to light.

The keynote speaker, Dr. Anthony Junior, Education Program Manager for the Department of the Navy Office of Naval Research, is a black man who is doing positive things. He is also living proof of what can happen when someone takes the time to share knowledge and wisdom.

Dr. Junior shared his story of being one of those kids that folks cross the street to avoid. With the encouragement and support of a mentor, he went from a GS-4 federal employee to a high-ranking administrator and sought-after speaker with a Ph.D. from Jackson State University:

When you look at where people have arrived, you forget where they come from… Regardless of your circumstances, you were once that same kid, the disruptive kid, the kid who stayed out too late and knew too much.

He encourages young men to dream big:

Do you. Be you. You don’t need to be me. It’s not your circumstances that dictate where you are. Your blackness is not a handicap. Your blackness is a sword and shield that got you where you are.

Dr. Junior reminded us that we stand on the shoulders of unnamed and unsung heroes and heroines who cared enough to get involved in their community. Also, people who dreamed big.

If What It Takes takes root and is successful in Philly, Frisby-Greenwood said the Knight Foundation will roll it out across the country.

So if you have what it takes to show African American males how to get over the barriers to success, take the pledge.

Someone has to care.

BME in City of Brotherly Love

Philadelphia is the City of Innovators. Philly is now one of two cities with an innovative campaign to recognize “black men and boys leading in solutions, participating in decision-making and fully engaged in all issues and opportunities affecting their communities,” Black Male Engagement.

While the mainstream media sensationalizes “flash mobs,” BME (pronounced “Be me”) will tell untold Philadelphia stories. The stories of black males who likely carry a flash drive.

Donna Frisby-Greenwood, Program Director for Knight Foundation Philadelphia, said the City of Brotherly Love “has a chance to lead.” The campaign will “start with what is right rather than problems and challenges.”

That was music to the ears of Harvey L. Crudup, chairman of the Philadelphia Chapter of Concerned Black Men, a mentoring organization whose mission is “to develop and present youth in our community, particularly African American male youth, with programs and activities that motivate, educate and build self-esteem.”

Harvey told me:

I like the name – BME. That says it all. Their concept is the first time I’ve heard that in 36 years… Concerned Black Men focuses on the good kids… We highlight and recognize the good kids.

BME is not looking for Superman. Instead, they’re looking for “Average Joes” age 14 and older:

We’re not looking for perfection. We just want to share stories about the good things that black males do for their community, how you serve your neighborhood, your city and how you get others to join you. You don’t always realize that you are an example for the future leaders of our communities, so we’re asking the people around you to come forth and recognize you too.

BME will launch on August 1. In the meantime, I want to give a shout-out to the do-it-or-die brothers who dare to make a difference in their community.