MINORITY OWNED MANAGERS OF RENTAL PROPERTY.
I WANT TO START TALKING ABOUT THIS PULLBACK IN LENDING.
DURING THE PRESS CONFERENCE JEROME POWELL WAS ASKED ABOUT
THE EFFECTS ON UNDERSERVED COMMUNITIES, UNDERREPRESENTED
COMMUNITIES. THE IDEA THAT THERE IS ECONOMIC
PAIN. AND MAY TRANSLATE TO THE FED'S
MANDATE FOR PEOPLE ON THE GROUND ARE FEELING.
I AM WONDERING WHERE DO YOU FIND THE BALANCE BETWEEN THOSE
TWO?
>> BLACK AND BROWN, WE ARE ALL SICK. IT IS DEEPER IN THE
NEIGHBORHOODS I CARE A LOT ABOUT HOW TO REPRESENT.
I AM SUPPORTIVE OF THE FED'S APPROACH.
THERE TRYING TO REEL IN MORE THAN A DECADE OF FREE MONEY.
THAT IS INFLATED EQUITIES, INFLATED ASSET PRICES, IT
INFLATED PEOPLE'S CONCEPT OF SUCCESS.
PRICE RE-STABILIZATION IS A PLACEHOLDER FOR CONCERNS AROUND
THE STRUCTURAL INTEGRITY OF THE ENTIRE MARKET.
EVERYBODY IS KICKING THIS CAN DOWN THE ROAD FOR DIFFERENT --
MARKETS HAVE ALREADY SAID NO. THEY HAVE USED THE PANDEMIC
RECOVERY AS A NICE HALO EFFECT OF SAYING THE STIMULUS MONEY
CAME IN AND WE NEED TO OFFSET THAT.
I THINK THIS IS THE FED TRYING TO RESET EVERYTHING SO THAT YOU
DO NOT EVER RUN AWAY FROM THE ECONOMY AND YOU HAVE THINGS
WITH THE U.S. THAT IS THE LEADER IN THE FREE
WORLD AND ALSO HEALTHY. THAT SAID IN THE SHORT-TERM, MY
FAMILY IS USED TO HIGH PRICES. WE ARE NOT SHOCKED WHEN THE
PRICE IS HIGHER. WE CAN HANDLE THE IN THE SHORT
TERM. WE ARE MORE CONCERNED ABOUT
ACCESS TO CAPITAL.
>> WHAT IS THE ACCESS TO THAT?
WHEN YOU SEE RATE REGIONAL BANK FAILURES, THEY ARE BEING A
LOT MORE CAUTIOUS WITH EXTENDING CAPITAL?
>> LET US BE PERSONAL, I WAS A CHAIRMAN OF THE COMMUNITY
ADVISORY BOARD FOR FIRST REPUBLIC BANK DURING THE
PANDEMIC, I AM STILL ON THE REVISED REPORT WHEN THEY WERE
TAKING OVER. I SAW WHAT THEY DID, THEY ARE A
RICH BANK. I SAW THEM TAKING RESOURCES
FROM THE SUCCESS AND INVESTING IT INTO COMMUNITIES VERY
INTELLIGENTLY AND DOING THINGS OTHERS WILL NOT DO.
BANKS LIKE THAT, THERE ARE OTHERS, YOU HAVE REGIONALS AND
SUPER REGIONALS WERE CLOSE TO THE GROUND.
THEIR BREAD AND BUTTER IS CONNECTING THOSE COMMUNITIES,
THEY DO THINGS DIFFERENTLY THAN A MONEY CENTER BANK.
A BETTER OR WORSE, DIFFERENTLY. ACCESS TO CAPITAL IS BETTER
WHEN YOU HAVE COMMUNITY BANKS IN THE GAME. ROMAINE:
WHY DO YOU THINK THE MESSAGE IS A LITTLE BIT MORE IMPORTANT OR
A LITTLE BIT MORE CENTRAL TO SOME OF THE DECISIONS
REGULATORS ARE MAKING?
WHEN I SEE THEM TAKE OVER FIRST REPUBLIC, SIGNATURE BANK, A LOT
OF THE DEPOSITS GOING INTO JP MORGAN AND OTHER BIG MONEY
CENTER BANKS, DOES NOT TELL MIKE BALANCING THE SYSTEM?
>> I AM A TRENDING INDICATOR, NOT A BLEEDING ONE.
WHAT I -- NOT A LEADING ONE. I AM THE CENTER OF
CONVERSATIONS. THE TREASURY IS TALKING TO ME.
I WAS ON THE PHONE WITH THE TREASURY THREE DAYS AGO.
BY THE TIME I TALK -- ROMAINE: WHAT DO THEY WANT TO KNOW?
>> I AM HELPING THEM PROVIDE WARMTH AROUND POLICIES TO
UNDERSTAND THESE ISSUES. AND THEY ARE THANKING ME FOR
THE INPUT. THE URGENT CONSULT THE
IMPORTANT. WHAT I'M TALKING ABOUT IS
IMPORTANT. WHAT THEY ARE DEALING WITH IS
URGENT. THERE HAS BEEN A POSITIVE PLACE.
A DECADE ALONG. THEY'RE GETTING THE BACK END OF
IT. HERE COMES JOHN BRYANT, YOU CONSIDER THE COMMUNITY AND THE
FIRE IS RAGING. LET ME PUT THAT OUT AND COME
BACK TO YOU.
RAINBOWS AFTER STORMS. MAYBE THIS IS A MOMENT IN TIME WHERE
WE CAN CORRECT THIS FOR THE FUTURE.
YOU CANNOT DO ANYTHING ABOUT THE PAST. I WAS NOT IN THOSE
ROOMS THAN. ROMAINE: THEY WILL FOCUS ON THE URGENT.
THAT'S WHAT THEY HAVE TO DO. ARE THEY RECEPTIVE TO THE
LONGER-TERM ISSUES YOU ARE ADDRESSING?
>> YES. MATH DOES NOT HAVE AN OPINION.
THERE IS NOT ENOUGH COLLEGE-EDUCATED WHITE MEN TO
DRIVE THE ECONOMY FOR THE NEXT 30 OR 40 YEARS.
THAT IS DEMOGRAPHICS. YOU NEED BLACKS TO START
BUSINESSES, LATINOS AND WOMEN TO BE PART OF THE ECONOMY.
OTHERWISE CHINA IS A REAL THREAT.
THEY WANT TO LEAD THE WORLD AND THEY WANT TO TAKE IT FROM US.
YOU CANNOT DO THAT UNLESS IT IS AN UNFAIR FIGHT.
WE ARE BETTER TOGETHER ECONOMICALLY. THE GDP WILL RISE.
THAT IS MY MESSAGE. THE EMERGING-MARKET.
WE WILL HAVE PEOPLE AT THE BOTTOM AND GET THEM IN THE GAME
AND GET THEIR DEBT DOWN SO BANKS CAN SAY YES. ROMAINE:
I WANT TO STAY ON THE TOPIC OF REGIONAL BANKS.
WE ARE GETTING BREAKING NEWS CROSSING THE TERMINAL ABOUT PAC
WEST WHICH IS SAID TO BE WEIGHED STRATEGIC OPTIONS
INCLUDING A SALE.
THIS IS A REMINDER THAT WHATEVER CHAPTER WAS CLOSE WITH
JP MORGAN , IT IS A TAKEOVER OF FIRST REPUBLIC, THERE ARE A LOT
OF OTHER CHAPTERS TO GO?
>> WE ARE SITTING AT A MOMENT IN HISTORY, I THIS THE THIRD
RECONSTRUCTION. WE HAVE TO GO FROM PROTESTING
TO CUTTING BUSINESS DEALS. WERE NOT GOING TO GROW THE
ECONOMY -- WE ARE NOT GOING TO GROW THE ECONOMY FROM WHICH
PEOPLE. BLACK-OWNED BUSINESSES ARE
DRIVING ECONOMIC GROWTH. IT STARTED MODESTLY.
A LOT OF JEWISH BUSINESSES STARTED MODESTLY.
ALL OF THESE IMMIGRANT STORIES ARE PART OF THE AMERICAN FABRIC
THAT MAKE US STRONGER. WE HAVE TO REMEMBER ALL OF THIS
PROSPERITY COMES FROM NURTURING THOSE AT THE BOTTOM OF THE
PERIOD AND THEY NEED ACCESS TO CAPITAL FROM BANKS THAT GET
THEIR MESSAGE. ROMAINE: YOU ARE ALSO OLD ENOUGH TO KNOW
HOW MUCH WE HAVE CONTRACTED IN OUR BANKING SECTOR.
I GREW UP IN CHICAGO. COMMUNITY BANKS AND BLACK-OWNED
MINORITY OWNED COMMUNITY BANKS ARE PROLIFIC.
I WALKED THROUGH THE SAME NEIGHBORHOOD.
NONE OF THEM ARE THERE. NONE OF THEM.
>> WE ARE SEEING HOW PROFITABLE THESE COMMUNITIES CAN BE.
MY MESSAGE IS NOT A GIVEAWAY PROGRAM.
IF WE CREATE 230 THOUSAND BLACK BUSINESSES THAT OFFER HOPE, ONE
MILLION BLACK BUSINESS INITIATIVE HAS A FAST COMPANY
AWARD FOR OUTSIZED TRENDING IDEAS.
THIS IS NOT A GIVEAWAY PROGRAM, THESE ARE BUSINESSES ON SHOPIFY.
WE WANT A LARGER SHARE OF EMERGING BLACK BUSINESSES, WHAT
IS THE NUMBER ONE GROUP OF BUSINESSES STARTING AFTER THE
PANDEMIC? BLACK BUSINESSES, BLACK WOMEN.
IF BANKS AND CORPORATIONS IN THE CONTORTING ENVIRONMENT ARE
LOOKING FOR PROFITABILITY, I HAVE IT FOR YOU. ROMAINE:
YOU HAVE A TON OF ACCOLADES FOR ALL OF THE WORK YOU HAVE BEEN
DOING WITH THE SOCIAL IMPACT. WE ARE AT A STAGE WHERE SOME
PEOPLE ARE SAYING MAYBE THE ROLE OF BANKS IN THE
TRADITIONAL SENSE, THAT ROLE NEEDS TO BE SHOULDERED BY
PRIVATE INVESTMENT FUNDS. BY SOCIAL IMPACT BONDS.
BY THE SO-CALLED DIRECT LENDING, SHADOW LENDING.
WHAT DO YOU MAKE OF THIS IDEA THAT THEY CENTER A POWER HAS
SHIFTED AWAY FROM THE TRADITIONAL REGULATORY BANKING
SECTOR TO THIS OTHER RELATIVELY NONREGULATED SECTOR?
>> I DISAGREE. THERE IS A COMPETITION AND
THERE SHOULD BE. ONLY BANKS ARE FDIC INSURED.
NOBODY CAN PUT YOUR MONEY IN A BANK BECAUSE YOU KNOW IT IS
FDIC INSURED.
TAKE FDIC INSURANCE OFF, WATCH HOW FAST THE MONEY FLIES OUT
THE DOOR. THESE NON-BANK ENTITIES HAVE A
PLACE. WE NEED THEM. THANKS, BECAUSE THEY ARE
INSURED -- BANKS, BECAUSE THEY ARE INSURED, THEY HAVE A
RESPONSIBILITY.
COMMUNITY REINVESTMENT ACT, AFFORDABLE HOUSING, SMALL
BUSINESSES, IT IS FUNDED $4 BILLION IN THE LAST 20 YEARS
THROUGH COMMUNITY REINVESTMENT ACT.
THESE ALTERNATE FINANCIERS ARE NOT DOING THAT.
A COMMAND MILKEN FOR REFINANCING BUT THAT IS ONLY
ONE. WE NEED MILLIONS OF THAT. WE NEED WOMEN AND MEN FROM
UNDERSERVED NEIGHBORHOODS TO RISE UP AND TAKE THEIR PLACE AT
THE MILKEN CONFERENCE IN FIVE YEARS.
ON THE NASDAQ AS A NEW LISTED COMPANY.