BofA Invests $50 Million in Black-Owned Banks in Equality Drive

(Bloomberg) — Bank of America Corp. invested $50 million in three Black-owned banks as a part of its $1 billion pledge over 4 years to advance racial equality.

The second-largest U.S. lender took fairness stakes of about 5% in three minority depository establishments: First Independence Corp. in Detroit, Liberty Monetary Companies Inc. in New Orleans and SCCB Monetary Corp. in Columbia, South Carolina, it stated in an announcement. Bank of America is also in discussions with a number of different African-American and Hispanic lenders serving low- and moderate-income communities which can be anticipated to be accomplished inside a 12 months.

“The idea of this is to join forces,” Bank of America Vice Chairman Anne Finucane stated in an interview. “It’s all with the goal of creating capacity to lend more and create wealth for minorities and people of color.”

The bank additionally laid out plans for different initiatives aimed toward selling racial and financial equality, together with $200 million allotted to direct fairness investments in Black- and Hispanic-owned companies.

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