HBCU Money™ Business Book Feature – Is the US Trade Deficit Sustainable?


The global financial crisis of 1997-98 and the widening US trade deficit have precipitated fresh inquiry into a set of perennial questions about global integration and the US economy. How has global integration affected US producers and workers, and overall growth and inflation? Is a chronic and widening deficit sustainable, or will the dollar crash, perhaps taking the economy with it? If the problem was one of “twin deficits,” as many thought, why has the trade deficit continued to grow even as the budget deficit narrowed to zero? If US companies are so competitive, why does the trade deficit persist? Is the trade deficit a result of protectionism abroad? Will it lead to protectionism at home? What role do international capital markets have?

Each chapter presents relevant data and a simple analytical framework as the basis for concise discussions of these major issues. The final section of the book provides an outlook for the deficit and suggests alternative policy courses for dealing with it. This book is designed for policymakers and others who are interested in the US role in the world economy. It is also suitable for courses in international economics, business, and international affairs.

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The Finance & Tech Week In Review – 3/18/17


Every Saturday the HBCU Money staff picks ten articles they were intrigued by and think you will enjoy for some weekend reading impacting finance and tech.

What might an aging population mean for wealth inequality? / St. Louis Fed  bit.ly/2mDC6wG

The benefits of being bilingual – it’s more than just useful / WEF  wef.ch/2mBM2rd

Over the past year, average student loan debt in the 10th District has increased 6% / KC Fed ow.ly/yAqI308T1px

Simple living and conscious buying come with the territory for tiny home owners. / Practical Money pmsfl.us/2nnUfQS

If the housing bubble bursts, is the #US ready? / WEF wef.ch/2m0T9dq

Is it time to rethink gravity? / New Scientist ow.ly/LFXO309VNmf

The brain needs a moment to move on from mistakes. / Science News  ow.ly/1z8y309Wqcr

7 tips for developing a powerful data disaster plan / NetworkWorld  ow.ly/6TNg309WnU8

TRAPPIST-1 worlds are close enough for life to hop between them / New Scientist  bit.ly/2mJzE6g

DYK? More than 40,000 schools across the U.S. participate in #FarmtoSchool programs. / USDA ow.ly/6WCe309Rjwr

 

State Bank of Texas Acquires Seaway Bank & Trust: Black-Owned Banks Reduced To 20 Nationwide


The beginning of the year has not proven kind to African American owned banks in the past three years. To begin 2015, two African American owned banks closed their doors, followed by 2016 where North Milwaukee closed, and now Seaway Bank & Trust will exist in name only. Its deposits and assets were acquired in January 2017 by Sushil Patel, the president of the State Bank of Texas and part of the family that owns the acquiring bank. In an interview, Mr. Patel states on the potential dynamic of their ownership in the midst of the #BankBlack movement, “I’m not a black bank,” he says in an interview. “I’m not a white bank, but I’m definitely not a black bank.”

This means that within the last seven months as of January, $420 million in assets have been wiped from African American owned bank balance sheets. An amount that is equal to ten percent of all remaining African American owned bank assets. For perspective, US banks in total have approximately $15.3 trillion in assets. The loss of $1.5 trillion is an amount twice the initial size of the US bank bailout from the Great Recession. In other words, this hurts and it hurts bad.

For the full FDIC press release on Seaway Bank & Trust’s closure, click here.

HBCU Money’s 2017 African American Owned Bank Directory


(Founders of Merchants & Farmers Bank in Durham, North Carolina)

All banks are listed by state. In order to be listed in our directory the bank must have at least 51 percent African American ownership. You can click on the bank name to go directly to their website.

OTHER KEY FINDINGS:

  • Key losses were the closure of North Milwaukee State Bank and Seaway Bank & Trust.
  • AAOBs are in 17 states and territories. Key states absent are Florida, Mississippi, New York, and Ohio.
  • Alabama, Georgia, and Tennessee, each have two AAOBs.
  • 2016 Median AAOBs Aseets: $107 631 000 ($107 551 000)*
  • 2016 Average AAOBs Assets: $209 073 000 ($210 297 000)*
  • African American bank assets saw a 9.6 percent decrease or net loss of approximately $445.1 million in assets in 2016, primarily from the closure of the two aforementioned banks.
  • AAOBs control 0.03 percent of America’s $15.7 trillion Bank Owned Assets.
  • AAOBs control 2 percent of FDIC designated Minority-Owned Bank Assets, which is down from 2.3 percent in 2016.
  • There has not been an AAOB started in 16 years.
  • Only 8 of 2016’s 20 AAOBs saw increases in assets.
  • For comparison, Asian American Owned Banks have approximately $46.1 billion in assets spread over 68 institutions. They control 6.0 percent of Asian America’s buying power.

There are 20 African American owned banks (AAOBs) with assets totaling approximately $4.2 billion in assets or approximately 0.38 percent of African America’s $1.1 trillion in buying power. A 12 percent decrease from 2016.

ALABAMA

ALAMERICA BANK

Location: Birmingham, Alabama

Founded: January 28, 2000

FDIC Region: Atlanta

Assets: $36 266 000

Asset Change (2016): Up 2.2%

COMMONWEALTH NATIONAL BANK

Location: Mobile, Alabama

Founded: February 19, 1976

FDIC Region: Atlanta

Assets: $55 863 000

Asset Change (2016): Down 1.1%

CALIFORNIA

BROADWAY FEDERAL BANK FSB

Location: Los Angeles, California

Founded: February 26, 1947

FDIC Region: San Francisco

Assets: $413 295 000

Asset Change (2016): Up 2.6%

DISTRICT OF COLUMBIA

INDUSTRIAL BANK

Location: Washington, DC

Founded: August 18, 1934

FDIC Region: New York

Assets: $388 526 000

Asset Change (2016): Down 0.1%

GEORGIA

CARVER STATE BANK

Location: Savannah, Georgia

Founded: January 1, 1927

FDIC Region: Atlanta

Assets: $39 739 000

Asset Change (2016): Down 5.8%

CITIZENS TRUST BANK

Location: Atlanta, Georgia

Founded: June 18, 1921

FDIC Region: Atlanta

Assets: $405 911 000

Asset Change (2016): Up 4.6%

ILLINOIS

ILLINOIS SERVICE FEDERAL SAVINGS & LOAN

Location: Chicago, Illinois

Founded: January 01, 1934

FDIC Region: Chicago

Assets: $105 403 000

Asset Change (2016): Up 4.1%

 

LOUISIANA

LIBERTY BANK & TRUST COMPANY

Location: New Orleans, Louisiana

Founded: November 16, 1972

FDIC Region: Dallas

Assets: $611 640 000

Asset Change (2016): Up 1.2%

MARYLAND

HARBOR BANK OF MARYLAND

Location: Baltimore, Maryland

Founded: September 13, 1982

FDIC Region: New York

Assets: $248 503 000

Asset Change (2016): Down 12.9%

MASSACHUSETTS

ONEUNITED BANK

Location: Boston, Massachusetts

Founded: August 02, 1982

FDIC Region: New York

Assets: $646 088 000

Asset Change (2016): Down 0.4%

MICHIGAN

FIRST INDEPENDENCE BANK

Location: Detroit, Michigan

Founded: May 14, 1970

FDIC Region: Chicago

Assets: $236 098 000

Asset Change (2016): Up 8.9%

NEW JERSEY

CITY NB OF NEW JERSEY

Location: Newark, New Jersey

Founded: June 11, 1973

FDIC Region: New York

Assets: $223 040 000

Asset Change (2016): Down 10.8%

NORTH CAROLINA

MECHANICS & FARMERS BANK

Location: Durham, North Carolina

Founded: March 01, 1908

FDIC Region: Atlanta

Assets: $309 977 000

Asset Change (2016): Up 4.0%

PENNSYLVANIA

UNITED BANK OF PHILADELPHIA

Location: Philadelphia, Pennsylvania

Founded: March 23, 1992

FDIC Region: New York

Assets: $55 969 000

Asset Change (2016): Down 5.1%

SOUTH CAROLINA

SOUTH CAROLINA COMMUNITY BANK

Location: Columbia, South Carolina

Founded: March 26, 1999

FDIC Region: Atlanta

Assets: $51 323 000

Asset Change (2016): Down 3.2%

TENNESSEE

CITIZENS SAVINGS B&T COMPANY

Location: Nashville, Tennessee

Founded: January 4, 1904

FDIC Region: Dallas

Assets: $109 858 000

Asset Change (2016): Up 5.6%

TRI-STATE BANK OF MEMPHIS

Location: Memphis, Tennessee

Founded: December 16, 1946

FDIC Region: Dallas

Assets: $102 444 000

Asset Change (2016): Down 7.7%

TEXAS

UNITY NB OF HOUSTON

Location: Houston, Texas

Founded: August 01, 1985

FDIC Region: Dallas

Assets: $84 206 000

Asset Change (2016): Up 1.1%

VIRGINIA

FIRST STATE BANK

Location: Danville, Virginia

Founded: September 08, 1919

FDIC Region: Atlanta

Assets: $32 884 000

Asset Change (2016): Down 12.6%

WISCONSIN

COLUMBIA SAVINGS & LOAN ASSOCIATION 

Location: Milwaukee, Wisconsin

Founded: January 1, 1924

FDIC Region: Chicago

Assets: $24 424 000

Asset Change (2016): Up 3.1%

Unemployment Rate By HBCU State – January 2017


STATES WITH RISING UNEMPLOYMENT: 12

STATES WITH DECLINING UNEMPLOYMENT: 10

STATES WITH UNCHANGED UNEMPLOYMENT: 2

LOWEST: MASSACHUSETTS – 3.2%

HIGHEST – ALABAMA – 6.4%

STATE – UNEMPLOYMENT RATE (PREVIOUS)*

ALABAMA –  6.4% (6.2%)

ARKANSAS – 3.8% (3.9%)

CALIFORNIA – 5.1% (5.2%)

DELAWARE – 4.4% (4.3%)

DISTRICT OF COLUMBIA – 5.7% (5.8%)

FLORIDA – 5.0% (4.9%)

GEORGIA – 5.5% (5.4%)

ILLINOIS – 5.7% (5.7%)

KENTUCKY – 5.0% (4.8%)

LOUISIANA – 5.9% (6.1%)

MARYLAND – 4.2% (4.2%)

MASSACHUSETTS – 3.2% (2.8%)

MICHIGAN – 5.2% (5.0%)

MISSISSIPPI – 5.5% (5.6%)

MISSOURI –  4.2% (4.4%)

NEW YORK – 4.6% (4.9%)

NORTH CAROLINA – 5.3% (5.1%)

OHIO – 5.0% (4.9%)

OKLAHOMA – 4.7% (5.0%)

PENNSYLVANIA – 5.2% (5.6%)

SOUTH CAROLINA – 4.4% (4.3%)

TENNESSEE – 5.4% (4.9%)

TEXAS – 4.8% (4.6%)

VIRGINIA – 4.0% (4.1%)

*Previous month in parentheses.