WEATHER ALERT
Corporations become unlikely financiers of racial equity
Read full article: Corporations become unlikely financiers of racial equityCompanies donated or pledged about $8.2 billion of the $12 billion in total contributions that were earmarked for racial equity โ the โfirst time direct corporate giving to racial equity causes has reached this magnitudeโ โ said Andrew Grabois, Candidโs corporate philanthropy manager. โWhen George Floyd was killed, consumers and stakeholders called on companies to invest in issues related to racial equity, and many responded,โ Grabois said. But traditionally, Grabois noted, large corporations funded mainly educational and cultural groups, while donating comparatively little to racial equity causes. Since late May, Grabois said, financial commitments by companies to racial equity causes have grown โexponentially largerโ than any other cause other than COVID-19. At the same time, experts say, thereโs no consensus on how to define racial equity giving.
Citi picks Jane Fraser as next CEO, first woman in that role
Read full article: Citi picks Jane Fraser as next CEO, first woman in that roleNEW YORK Citigroup announced that Jane Fraser would succeed Michael Corbat as the bank's next chief executive, making Fraser the first woman to ever lead a Wall Street bank. Fraser is currently head of Citi's global consumer banking division, a major part of the bank that includes checking and savings accounts but also Citi's massive credit card business. Fraser will be the first woman to lead one of Wall Street's big six banks. JPMorgan Chase's Jamie Dimon has had women as his second-in-command for years, but shows no signs of stepping down from the CEO role. Corbat turned Citi into a much smaller and stable entity, focusing on its credit card businesses and its international banking franchise.
Banks set aside billions, bracing for more economic pain
Read full article: Banks set aside billions, bracing for more economic painThanks largely to the funds set aside for bad loans, JPMorgan's profit fell by half in the April-June quarter, Citigroup's sank about 70% and Wells Fargo reported its first quarterly loss since the financial crisis of 2008. In its second-quarter results, JPMorgan said it set aside $10.5 billion to cover potentially bad loans. Thats on top of the $8.3 billion the bank set aside in April, when the pandemic was only just starting to impact the U.S. economy. Citi, which is heavily exposed in credit cards, set aside an additional $7.9 billion to cover potentially bad loans. Wells Fargo, which did not set aside as much money as its peers in April, had to play catch up this quarter, setting aside $8.4 billion to cover potentially bad loans.