Business across the nation are going “woke”.
Since riots broke out following the death of George Floyd back in May, many corporate and economic institutions have joined in the “struggle” to fight against perceived “structural racism” and inequality.
Tyler Durden of Zero Hedge noted that the Federal Reserve has taken on the mantle of fighting climate change. But the Fed hasn’t stopped there in its political fights. America’s central bank has also assumed the protagonist role in fighting racial inequality.
Now, some of America’s premier banks are joining in this virtual signaling. Bank of America is one of the most significant examples of banks making an attempt to fight the so-called scourge of “racial inequality.”
On September 22, 2020, Bank of America issued a $2 billion bond with the purpose of promoting racial quality, economic opportunity, and environmental sustainability. Basically, some of the principal hobby horses of the modern-day Left.
Tyler Durden of Zero Hedge noted that this initiative is the “company’s eighth environmental, social and governance (ESG) themed bond, bringing its total issuance in the category to $9.85 billion, the bank said in a statement.”
The bond offering features a “social portion” which will be directed towards helping reduce “inequalities for Black and Hispanic-Latino borrowers and communities” which includes:
- Mortgage lending, construction loans and other financing and investments relating to single or multi-family housing or affordable housing projects;
- Financing for medical professionals to create or expand medical, veterinary and dental practices;
- Supply chain finance loans to be offered directly to minority-owned business enterprises;
- Deposits and equity investments in Black and Hispanic-Latino Minority Depository Institutions that are also Community Development Financial Institutions;
- Equity investments in Black and Hispanic-Latino owned or operated businesses
“Our focus on sustainable finance is one of the ways we drive responsible growth. By addressing these critically important issues through ESG-themed securities, we are offering a way for fixed income investors to be part of social and environmental change, and drive solutions through the debt capital markets,” Vice chairman Anne Finucane commented. “Our communities and the environment are inextricably linked, and Bank of America cares deeply about both and continues to explore innovative ways to enable investors to use their investments to help address these societal challenges.”
“We want to be an example for other issuers,” Karen Fang, BOA’s head of global sustainable finance, while being interviewed by Bloomberg. “It doesn’t matter if it’s a bull year or a bear year, we need to be committed to these causes.”
It’s amusing the levels that virtue signalers will stoop to in order to appease the radical left. If corporate entities were serious about inequality the would be taking on central banking. The loose monetary policies of central banks favor politically connected corporations, bankers, and other institutions who receive newly printed money first. On the other hand, the everyday person — of all races and creeds — gets the short end of the stick. This doesn’t register with many “experts”, academics, financial professionals, and business people.
One has to wonder if this virtue signaling is a cynical ploy concocted by elites to divert attention away from the disastrous policies central banks have implemented which has resulted in the devastation of the middle class and created distortions throughout the economy.
Regardless, this kind of pandering is annoying and divisive. More importantly, it’s completely useless when trying to solve key issues of our tine. Let’s be honest, most political leaders want problems to go unresolved while people remain distracted by whatever manufactured outrage the ruling class puts forward.