21. The ghetto isolation index was 91 percent in Chicago, the same as it was before the Great Depression. Public housing, according to historian Arnold Hirsh, created a “second ghetto" that was “solidly institutionalized and frozen in concrete." Arnold R. Hirsch, Making the Second Ghetto: Race and Housing in Chicago (Chicago: University of Chicago Press, 1998).
22. Dalton Conley, Being Black, Living in the Red: Race, Wealth, and Social Policy in America (Berkeley: University of California Press, 1999), 38-39. Peter Mieszkowski and Richard F. Syron, “Economic Explanation for Housing Segregation," New England Economic Review, November-December 1979, 35. Massey and Denton, American Apartheid, 99, 114.
23. “For every dollar of mean net financial assets owned by white middle-income households (yearly incomes of $25,000-50,000) in 1984, similar black households held only twenty cents." Melvin Oliver and Thomas M. Shapiro, Black Wealth/White Wealth: A New Perspective on Racial Inequality (New York: Routledge, 2006), 25.
24. Ibid.
25. Robert E. Weems and Lewis A. Randolph, Business in Black and White: American Presidents and Black Entrepreneurs in the Twentieth Century (New York: NewYork University Press 2009), 193.
26. Weems and Randolph, Business in Black and White, 172.
27. Ibid., 173.
28. Ibid.
29. Dean J. Kotlowski, Nixon’s Civil Rights: Politics, Principle, and Policy (Cambridge, MA: Harvard University Press, 2002), 186. His administration also strengthened enforcement of voting rights and job discrimination cases by the Department of Justice and the Equal Employment Opportunity Commission.
30. Presidential Statement, September 12, 1977, Martha Mitchell Files, MBE 5/773/78 Folder, Box 14, Carter Library.
31. Weems and Randolph, Business in Black and White, 193.
32. Jimmy Carter, “Minority Bank Deposit Program Memorandum for the Heads of Departments and Agencies," April 8, 1977, http://www.presidency.ucsb.edu/ws /index.php?pid=7327&st= minority&st1=bank. Nathaniel Sheppard Jr., “Minority Bankers Are Chagrined as Deposits by U.S. Show Drops," New York Times, November 24, 1977, http://www.nytimes.com/1977/11/24/archives/minority -bankers-are-chagrined-as-deposits-by-us-show-drops.html?_r= 0.
33. “Minority Fronts," 60 Minutes, 2(14), Sunday, December 17, 1978, 14, Burrelles Luce Transcripts, Livingston, NJ.
34. James H. Lowry and Associates, A New Strategy for Minority Business Development, undated report, Louis Martin Files, Box 71, Carter Library.
35. In 1977, there were only 113 black firms that employed more than a hundred workers. There were another 1,060 black owned corporations that had more than twenty employees. This was 0.46 percent, less than one-half of 1 percent of all blacks engaged in private enterprise. As for black executives, there fewer less than two hundred individuals who were employed by large enterprises or managed them themselves. Manning Marable, How Capitalism Underdeveloped Black America (Chicago: Haymarket Books, 2015), 146-149.
36. Most of President Carter’s efforts to help blacks were done through executive and agency actions, according to Carter biographer, Burton Kaufman, “and their greatest impact was on mid- and upper-income minorities, not the poor." Burton I. Kaufman, The Presidency of James Earl Carter, Jr. (Lawrence: University Press of Kansas, 1993), 110.
37. Republican Party Platform of 1988, “An American Vision: For Our Children and Our Future," August 16, 1988, http://www.presidency.ucsb.edu/ws/index.php ?pid=25846&st=minority&st1=bank. F. McCoy, “A Decade in Review: The B. E. Board of Economics Takes a Hard Look at Forces over the Past 10 Years to Continue to Impact on the Economic Development of Black America," Black Enterprise, June 1992, 208-214.
38. Ronald Reagan, “Remarks at a White House Briefing for Minority Business Owners," July 15, 1987, http://www.presidency.ucsb. edu/ws/index.php?pid =34548&st=minority&st1=bank.
39. Ronald Reagan, “Remarks in Denver, Colorado, at the Annual Convention of the National Association for the Advancement of Colored People," June 29, 1982, http://www.reagan.utexas.edu/archives/speeches/1981/62981a.htm.
40. Republican Party Platform of 1988, http://www.presidency.ucsb.edu/ws/?pid =25846. “Each year the U.S. Department of Commerce’s Minority Business Development Agency and the U.S. Small Business Administration’s (SBA) Office of Government Contracting and Business Development collaborate to hold regional conferences and activities. The recognition also aims to promote the growth of minority-owned businesses as well as encourage equal access to federal contracts, capital, management, and technical assistance." Jessie Carney Smith, ed., Encyclopedia of African American Business, vol. 2 (Westport, CT: Greenwood Press, 2006), 536.
41. Weems and Randolph, Business in Black and White, 219.
42. Ibid.
43. Republican Party Platform of 1988.
44. Republican Party Platform of 1984, http://www.presidency.ucsb.edu/ws/?pid =25845.
45. Public Papers of the Presidents of the United States, The Administration of Jimmy Carter (Washington, DC: U.S. Government Printing Office, 1980), 74, https:// books.google.com/books?id= T3mqobvfZecC&pg=PA77&lpg=PA77&dq=carter+ women%27s+business+initiative&source=bl&ots=dxdEBnNLnt&sig=L -f3SVOb9k-P-9EpYu_nPi5OaxY&hl= en&sa=X&ved= 0ahUKEwjr86HChqXRAhX o6IMKHcr4Dd0Q6AEIODAF#v=onepage&q=carter%20women’s%20busi ness%20initiative&f= false.
46. Women’s Business Ownership Act of 1988, Pub. L. 100-533, 100 Cong. Rec. H 5050, House, October 25, 1988, https://www.congress.gov/bill/100th-congress /house-bill/5050.
47. The only race-based preferences that could be justified were those in cases of proven discrimination by a particular institution. The remedy had to address that institution’s particular discrimination and no more. For example, if a given police department could prove that it had discriminated against black officers, it could devise a program to hire more black officers. However, a department could not decide to hire more black officers in order to respond to a general history of injustice in criminal enforcement.
48. Wil Haywood, Showdown: Thurgood Marshall and the Supreme Court Nomination That Changed America (New York: Knopf, 2015), 5.
49. Regents of the University of California v. Bakke, 438 US 265, 395-396 (1978).
50. City of Richmond v. J. A. Croson Co., 488 U.S. 469, 505-506 (1989).
51. Jason Sokol, “Which Martin Luther King Are We Celebrating Today?," New York Times, January 16, 2017, https://www.nytimes.com/2017/01/16/opinion/which -martin-luther-king-are-we-celebrating-today.html?mwrsm=Facebook.
52. Martin Luther King Jr., Where Do We Go from Here: Chaos or Community? (Boston: Beacon Press, 1968).
53. Specifically, it requires banking regulators to (1) preserve the number of minority depository institutions; (2) preserve the minority character in cases of merger or acquisition; (3) provide technical assistance to prevent insolvency of institutions not now insolvent; (4) promote and encourage the creation of new minority deposit institutions; and (5) provide training, technical assistance, and education programs. FIRREA, 12 U.S.C. 308 (2013).
54. Richard Nixon, Executive Order 11458, “Prescribing Arrangements for Developing and Coordinating a National Program for Minority Business Enterprise," March 5, 1969, http://www.presidency.ucsb.edu/ws/?pid=60475.
55. Jonathan J. Bean, Big Government and Affirmative Action (Lexington: University Press of Kentucky, 2001), 71.
56. Subsection (1)(A) holds that if a bank is privately owned, the 51 percent ownership applies to individuals and (1)(B) holds that it applies to 51 percent majority stock ownership. FIRREA, 12 U.S.C. 308(b)(1)(A)-(B) (2013).
57. FIRREA, 12 U.S.C. 308(b)(1)(C) (2013).
58. General Accounting Office, Report to Congress, “Minority Banks, Regulators Need to Better Assess Effectiveness of Support Efforts," GAO-07-6, October, 04 2006, http://www.gao.gov/products/GAO-07-6.
59. Kathryn J. Edin and H. Luke Shaefer, $2 A Day: Living on Almost Nothing in America (New York: Houghton Mifflin Harcourt, 2016), 17.
60. “Text of President Clinton’s Announcement on Welfare Legislation," New
York Times, August 1, 1996, http://www.nytimes.com/1996/08/01/us/text-of-president -clinton-s-announcement-on-welfare-legislation.html.
61. Initiatives included Empowerment Zones, Enterprise Communities, expansion of the Low-Income Housing Tax Credit, and the Community Development Financial Institution Fund. “Background on the Clinton-Gore Administration’s Community Development Record," November 4, 1999, https://clinton4.nara.gov /WH/New/New_Markets_Nov/factsheets/comdevl.html.
62. Cited in Dr. Julia S. Rubin and Gregory M. Stankiewicz, “Evaluating the Impact of Federal Community Economic Development Policies on Targeted Populations: The Case of the New Markets Initiatives of 2000,” Paper presented at the annual meeting of the Board of Governors of the Federal Reserve Board, Chicago, IL, July 2003.
63. “We must stop trying to cure the inner city’s problems by perpetually increasing social investment and hoping for economic activity to follow. Instead, an economic model must begin with the premise that inner city businesses should be profitable and positioned to compete on a regional, national, and even international scale.” M. E. Porter, “The Competitive Advantage of the Inner City,” Harvard Business Review 73(3) (May-June 1995): 55-71.
64. The Ninety-First American Assembly, Community Capitalism: Rediscovering the Markets of America’s Urban Neighborhoods (New York: Columbia University Press, 1997), 3.
65. According to Clinton administration official Gene Sperling, the legislation was meant to create “incentives that would encourage the private sector to find profits and create opportunities.” Ibid.
66. Tammy Draut, David Callahan, and Corinna Hawkes, “Crossing Divides: New Common Ground on Poverty and Economic Security,” Demos, September 1, 2002, 3.
67. S. Shepard, “Investment Proposed for Impoverished Areas,” Atlanta Journal and Constitution, January 16, 1999, 6A. Alice O’Connor, “Swimming against the Tide: A Brief History of Federal Policy in Poor Communities,” in Urban Problems and Community Development, ed. Ronald F. Ferguson andWilliam T. Dickens (Washington DC: Brookings Institution, 1999), 44-45.
68. Bill Clinton, Proclamation 6713, 108 Stat. 5617, August 9, 1994, http://www.gpo .gov/fdsys/pkg/STATUTE-108/pdf/STATUTE-108-Pg5617.pdf.
69. Bill Clinton, “Remarks by the President on New Markets Initiative,” May 11, 1999, https://clinton4.nara.gov/WH/New/html/19990511.html.
70. Riegle Community Development and Regulatory Improvement Act of 1994, Pub. L. 103-325, 108 Stat. 2160 (codified as amended in scattered sections of 12 U.S.C.) (1994).
71. James Post and Fiona Wilson, “Too Good to Fail,” Stanford Social Innovation Review, Fall 2011, http://www.ssireview.org/articles/entry/too_good_to_fail.
72. Lois J. D. Wacquant and William Julius Wilson, “Poverty, Joblessness, and the Social Transformation of the Inner City,” Welfare Policy for the 1990s, ed. Phoebe H. Cottingham and David T. Ellwood (Cambridge, MA: Harvard University Press, 1989), 92.
73. David Moberg, “The Left Bank,” Chicago Reader, 1994, http://www.chicagoreader .com/chicago/the-left-bank/Content?oid=884620.
74. Robert A. Solomon, “The Fall (and Rise?) of Community Banking: The Continued Importance of Local Institutions,” Irvine Law Review 2 (2012): 955, http://papers . ssrn.com/sol3/papers. cfm?abstract_id=2201901.
75. Post and Wilson, “Too Good to Fail.”
76. Katharine Esty, “Lessons from Muhammad Yunus and the Grameen Bank: Leading Long-Term Organizational Change Successfully,” OD Practitioner 43 (2011), http://c.ymcdn.com/sites/www.odnetwork.org/resource/resmgr /364.pdf.
77. Post and Wilson, “Too Good to Fail.”
78. Mehrsa Baradaran, How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy (Cambridge, MA: Harvard University Press, 2015), 164.
79. Richard Douthwaite, Short Circuit: Strengthening Local Economies for Security in an Unstable World (Foxhole, UK: Green Books, 1996), 153; see also Sharon Stangenes, “South Shore Bank Thrust into Spotlight,” Chicago Tribune, November 15, 1992, 7, discussing Bill Clinton’s advocacy of South Shore Bank during his 1992 presidential campaign.
80. Jann S. Wenner, “The Rolling Stone Interview: Bill Clinton,” September 17, 1992, http://www.jannswenner.com/archives/bill_clinton.aspx.
81. “[The CDFI Fund of $382 million proposed by Clinton is] significantly less ambitious than Mr. Clinton’s campaign proposal to use $850 million of federal money to establish 100 community development banks around the country modeled after Chicago’s successful South Shore Bank.” “Banking on the Inner City,” Washington Post, July 19, 1993.
82. 12 U.S.C. §§ 4701(b), 4702(5)(A)(i)-(iii) (2006).
83. Community Development Banking and Financial Institutions Act of 1993, 140 Cong. Rec. S 3132, Senate, March 17, 1994.
84. House Subcommittees on Policy Research and Insurance and on Economic Stabilization, Traditional and Non-Traditional Lenders’ Role in Economic Development (Washington DC: Government Printing Office, 1992), 21.
85. Ibid., 1.
86. Ibid., 4-5 (emphasis added).
87. Lawrence H. Summers, U.S. Secretary of Treasury, “Building Emerging Markets in America’s Inner Cities,” Remarks to the National Council for Urban Economic Development, March 2, 1998, http://www.treasury.gov/press-center/press -releases/Pages/rr2262.aspx.
88. “Surviving the Recession: How Microlenders Are Coping with Changing Demand, Risk and Funding,” Field Trendlines Series 1 (July 2010), http://www .fieldus.org/publications/TrendlinesMicrofinance.pdf; Robert Barba, “Deal Shows ShoreBank Was Savvy to the End,” American Banker, August 24, 2010, 1; Lehn Benjamin et al., “Community Development Financial Institutions: Current Issues and Future Prospects,” Journal of Urban Affairs 26 (2004): 189.
89. Cited in D. Pappas, “A New Approach to a Familiar Problem: The New Market Tax Credit,” Journal of Affordable Housing and Community Development Law 10(4) (2001): 323.
90. New Markets Tax Credit Coalition, “New Markets Tax Credit Fact Sheet,” http:// nmtccoalition.org/fact-sheet. The legislation gave Treasury the power to administer and interpret the tax credits, but left the venture capital portion in the jurisdiction of the SBA, which caused confusing fragmentation. The significance of this allocation of responsibility was also part of the message. Treasury and SBA were more business-friendly than HUD, whose mission, ostensibly, was more community-oriented.
91. Federal Reserve Bank of Minneapolis, “Mass CDFI Recertification Push Winnows List, Ensures Compliance,” http://www.minneapolisfed.org/publications _papers/pub_display.cfm?id=5289.
92. “By our estimates, less than 2% of the $450 billion in NMTCs issued over the past [12] years has gone to minority banks,” said Doyle Mitchell, CEO of Industrial Bank ofWashington, DC, and immediate past Chairman of the NBA. Carolyn M. Brown, “Black Banks Shut Out of New Federal Tax Credit Program,” Black Enterprise, July 15, 2015, http://www.blackenterprise.com/small-business/minority -banks-shut-out-of-new-federal-tax-credit-program/2.
93. According to one observer, the result of the grants has been to “take profits out of the slum when the real objective should have been to build profits into it.” T. L. Cross, Black Capitalism: Strategy for Business in the Ghetto (New York: Ath-eneum, 1969), 16.
94. “Civil Rights Chief Faults CRA as Toothless Legislation,” American Banker, May 21, 1992, https://www.americanbanker.com/news/civil-rights-chief -faults-cra-as-toothless-legislation (“regulators are not enforcing the law aggressively”).
95. Warren L. Dennis, The Community Re-Investment Act of1977: Its Legislative History and Its Impact on Applications for Changes in Structure Made by Depository Institutions to the Four Federal Financial Supervisory Agencies (Lafayette, IN: Credit Research Center, Krannert Graduate School of Management, Purdue University, 1978).
96. FDIC, “Community Reinvestment Act (CRA) Performance Ratings," http://www2 . fdic.gov/ crapes / crafaq_v4. asp.
97. Richard Scott Carnell, Jonathan R. Macey, and Geoffrey P Miller, The Law of Financial Institutions, 5th ed. (New York: Aspen, 2
013), 385; Charles W. Calomiris, Charles M. Kahn, and Stanley D. Longhofer, “Housing-Finance Intervention and Private Incentives: Helping Minorities and the Poor," Journal of Money, Credit, and Banking26(3) (August 1994): 654-656.
98. Financial Services Modernization Act of 1999, 145 Cong. Rec. S 4736, Senate, May 5, 1999, https://www.congress.gov/congressional-record/1999/05/05 /senate-section/article/S4736-2.
99. Jeffrey Marshall, “Lenders Cry Foul over Fair Lending Prosecutions," American Banker, October 1, 1994, http://www.americanbanker.com/issues/159_115 /-47003-1.html.
100. Banking law scholars Jonathan Macey and Geoffrey Miller claimed that the bill “promotes the concentration of assets in geographically non-diversified locations, encourages banks to make unprofitable and risky investment and product line decisions, and penalizes banks that seek to reduce costs by consolidating services or closing or relocating branches." Jonathan R. Macey and Geoffrey P. Miller, “The Community Reinvestment Act: An Economic Analysis," Yale Law School Faculty Scholarship Series, 1993, 295.
101. House Subcommittee on Oversight and Investigations or the Committee on Financial Services, Preserving and Expanding Minority Banks, 110th Cong. 465 (Washington DC: U.S. Government Printing Office, 2007), https://www.gpo .gov/fdsys/pkg/CHRG-110hhrg39916/html/CHRG-110hhrg39916.htm.
102. OneUnited Bank, Carver Bank, and Broadway Bank have all had noncompliance ratings. See Federal Financial Institutions Examination Council, “CRA Rating Search," https://www.ffiec.gov/craratings/default.aspx.
103. See Carnell et al., Law of Financial Institutions, 328; Michael S. Barr, “Banking the Poor," Yale Journal on Regulation 21 (2004): 121, 603. “CRA’s broad standards and ‘enforcement’ mechanisms . . . have long been derided by both proponents and detractors of CRA. Community advocates urge stricter rules and harsher consequences of failure. Bankers lament the lack of clear rules or safe harbors and the intrusive role of the public." Calomiris et al., “Housing-Finance Intervention and Private Incentives," 634, 673 (stating that “the vagueness of the CRA has led to arbitrary enforcement").
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