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OP-ED: Congress Is Right: Federal Reserve’s Reg II Will Hurt Minority Communities in America

NNPA NEWSWIRE — The Fed is taking every effort to promote income equality and workplace diversity and inclusion, but Regulation II would undercut its great work in this respect and cause potential harm to millions of minority families. Now that a congressional coalition has drawn the Fed’s attention to this concern, the central bank should respond by taking a closer, harder look at its Regulation II proposal. It is the only right and just thing to do.
The post OP-ED: Congress Is Right: Federal Reserve’s Reg II Will Hurt Minority Communities in America first appeared on BlackPressUSA.

Published

2 months ago

March 11, 2024

Oakland Post

By Dr. Benjamin F. Chavis, Jr., National Newspaper Publishers Association President and CEO

I am pleased to congratulate Rep. Nikema Williams (D-Ga.) who led a coalition of lawmakers who wrote to the Federal Reserve urging the central bank to withdraw Regulation II — its new proposal to reduce the cap on the debit card swipe fees merchants must pay to debit card processors — out of concern that it will hurt minority communities’ credit access.

I sympathize with the feelings of these congressional members. Having dedicated my life to advancing civil rights and promoting economic advancement for African Americans, I fear that this proposal, while well-intentioned, will create regressive outcomes that will ultimately hurt the very people it is intended to help.

While lowering the current cap on debit card swipe fees may appear like a reasonable measure to take in what has proven to be a lackluster economy for many merchants, my experiences — from coordinating youth activities with Rev. Martin Luther King to serving on the national board of directors for the NAACP — have underscored the importance of scrutinizing policies for their broader implications. When doing so with Regulation II, I — like the congressional coalition — concluded that lowering the swipe fees would hurt the same small financial institutions that minority communities depend on for credit access, which would thus widen the nationwide racial wealth gap and banking disparities.

Economic history tells this story well.

While reluctant to do so at the time, the Federal Reserve first limited swipe fees on debit card transactions on 2011. Studies, including one from the Richmond Federal Reserve, indicate that most retailers did not pass their savings onto consumers — a significant portion even raised prices. Meanwhile, as Main Street continues to struggle with the policy, Federal Reserve studies have found that large corporations have reaped nearly $8 billion annually since this rule was enacted.

Although large corporations benefited from not having to pay as much in swipe fees, this price control hit the small financial institutions that had to subsidize this giveaway for them hard. It gave many of them no choice but to reduce fee-free checking from 75 percent to 40 percent.

The Federal Reserve now estimates that six million Americans are “unbanked,” and many more are “underbanked ” — meaning they must use alternative financial products like check cashing services instead of traditional checking and savings accounts to make ends meet. The debit card cap has contributed significantly to this crisis.

Many financial institutions have also raised customer fees in response to interchange fee caps, with Rule II poised to intensify these challenges. Regulation II will increase them even further. According to Nick Bourke, former Director of Consumer Finance at The Pew Charitable Trusts, it may bring up to $2 billion in additional consumer costs. This escalation of fees threatens to sideline even more minority communities from the banking system, impeding their access to essential credit services required for entrepreneurship and homeownership.

The Board of Governors at the Federal Reserve are committed to advancing racial equity. By proposing Regulation II — are not intentionally doing the bidding of large corporations; however, they may be being misled by these companies’ advocacy efforts.

The Fed is taking every effort to promote income equality and workplace diversity and inclusion, but Regulation II would undercut its great work in this respect and cause potential harm to millions of minority families. Now that a congressional coalition has drawn the Fed’s attention to this concern, the central bank should respond by taking a closer, harder look at its Regulation II proposal. It is the only right and just thing to do.

Benjamin F. Chavis, Jr., an African American civil rights leader, is the President and CEO of the National Newspaper Publishers Association (NNPA). He is a former Executive Director and CEO of the National Association for the Advancement of Colored People (NAACP) and a former NC statewide youth assistant to Martin Luther King, Jr. and the Southern Christian Leadership Conference (SCLC).

The post OP-ED: Congress Is Right: Federal Reserve’s Reg II Will Hurt Minority Communities in America first appeared on BlackPressUSA.

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IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78

NNPA NEWSWIRE — Born on September 4, 1945, in Los Angeles, California, activist Ramona Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.
The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

Published

3 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Once upon a time, Black Americans were simply known as colored people, or Negroes. That is until Ramona Edelin came along. The activist, renowned for her pivotal roles in advancing civil rights, education reform, and community empowerment, died at her D.C. residence last month at the age of 78. Her death, finally confirmed this week by Barnaby Towns, a communications strategist who collaborated with Dr. Edelin, was attributed to cancer.

Born on September 4, 1945, in Los Angeles, California, Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.

Edelin’s contributions to academia and activism were manifold. She was pivotal in popularizing the term “African American” alongside Rev. Jesse L. Jackson in the late 1980s.

Jackson had announced the preference for “African American,” speaking for summit organizers that included Dr. Edelin. “Just as we were called Colored, but were not that, and then Negro, but not that, to be called Black is just as baseless,” he said, adding that “African American” “has cultural integrity” and “puts us in our proper historical context.”

Later, Edelin told Ebony magazine, “Calling ourselves African Americans is the first step in the cultural offensive,” while linking the name change to a “cultural renaissance” in which Black Americans reconnected with their history and heritage.

“Who are we if we don’t acknowledge our motherland?” she asked later. “When a child in a ghetto calls himself African American, immediately he’s international. You’ve taken him from the ghetto and put him on the globe.”

The HistoryMakers bio noted that Edelin’s academic pursuits led her to found and chair the Department of African American Studies at Northeastern University, where she established herself as a leading voice.

Transitioning from academia to advocacy, Edelin joined the National Urban Coalition in 1977, eventually ascending to president and CEO. During her tenure, she spearheaded initiatives such as the “Say Yes to a Youngster’s Future” program, which provided crucial support in math, science, and technology to youth and teachers of color in urban areas. Her biography noted that Edelin’s efforts extended nationwide through partnerships with organizations like the National Science Foundation and the United States Department of Education.

President Bill Clinton recognized Edelin’s expertise by appointing her to the Presidential Board on Historically Black Colleges and Universities in 1998. She also co-founded and served as treasurer of the Black Leadership Forum, solidifying her standing as a respected leader in African American communities.

Beyond her professional achievements, Edelin dedicated herself to numerous boards and committees, including chairing the District of Columbia Educational Goals 2000 Panel and contributing to the Federal Advisory Committee for the Black Community Crusade for Children.

Throughout her life, Edelin received widespread recognition for her contributions. Ebony magazine honored her as one of the 100 Most Influential Black Americans, and she received prestigious awards such as the Southern Christian Leadership Award for Progressive Leadership and the IBM Community Executive Program Award.

The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

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Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues

NNPA NEWSWIRE — Recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.
The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

Published

3 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Tennessee State University (TSU), the state’s only public historically Black college and university (HBCU), faces a tumultuous future as Gov. Bill Lee dissolved its board, a move supported by racist conservatives and MAGA Republicans in the Tennessee General Assembly, who follow the lead of the twice-impeached, four-times indicted, alleged sexual predator former President Donald Trump. Educators and others have denounced the move as an attack on diversity, equity, and inclusion (DE&I) and a grave setback for higher education.

Critics argue that TSU’s purported financial mismanagement is a manufactured crisis rooted in decades of underinvestment by the state government. They’ve noted that it continues a trend by conservatives and the racist MAGA movement to eliminate opportunities for Blacks in education, corporate America, and the public sector.

Gevin Reynolds, a former speechwriter for Vice President Kamala Harris, emphasizes in an op-ed that TSU’s financial difficulties are not the result of university leadership because a recent audit found no evidence of fraud or malfeasance.

Reynolds noted that the disbanding of TSU’s board is not an isolated incident but part of a broader assault on DE&I initiatives nationwide. Ten states, including Tennessee, have enacted laws banning DE&I policies on college campuses, while governors appointing MAGA loyalists to university trustee positions further undermine efforts to promote inclusivity and equality.

Moreover, recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.

The actions echo historical efforts to suppress Black progress, reminiscent of the violent backlash against gains made during the Reconstruction era. President Joe Biden warned during an appearance in New York last month that Trump desires to bring the nation back to the 18th and 19th centuries – in other words, to see, among other things, African Americans back in the chains of slavery, women subservient to men without any say over their bodies, and all voting rights restricted to white men.

The parallels are stark, with white supremacist ideologies used to justify attacks on Black institutions and disenfranchise marginalized communities, Reynolds argued.

In response to these challenges, advocates stress the urgency of collective action to defend democracy and combat systemic racism. Understanding that attacks on institutions like TSU are symptomatic of broader threats to democratic norms, they call for increased civic engagement and voting at all levels of government.

The actions of people dedicated to upholding the principles of inclusivity, equity, and justice for all will determine the outcome of the ongoing fight for democracy, Reynolds noted. “We are in a war for our democracy, one whose outcome will be determined by every line on every ballot at every precinct,” he stated.

The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

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Braxton Haulcy and the Expansion of Walker|West Music Academy

May 24, 2023 – Walker West Music Academy gets an early start on expansion. Join us for a Wednesday episode of The …
The post Braxton Haulcy and the Expansion of Walker|West Music Academy first appeared on BlackPressUSA.