Monthly Archives: May 2012

HBCU Money™Business Book Feature – Succeeding Against the Odds: The Autobiography of a Great American Businessman


One of America’s wealthiest entrepreneurs, John H. Johnson rose from the welfare rolls of the Depression to become the most successful Black businessman in American history; the founder of Ebony, Jet, and EM magazines; and a member of the Forbes 400. Like the man himself, this autobiography is brash, inspirational, and truly unforgettable.

HBCU Money™ Histronomics: Federal Reserve Act


Powers of Federal Reserve Banks

1. Receipt of Deposits and Collections

Any Federal reserve bank may receive from any of its member banks, or other depository institutions, and from the United States, deposits of current funds in lawful money, national-bank notes, Federal reserve notes, or checks, and drafts, payable upon presentation, or other items, and also, for collection, maturing notes and bills; or, solely for purposes of exchange or of collection, may receive from other Federal reserve banks deposits of current funds in lawful money, national-bank notes, or checks upon other Federal reserve banks, and checks and drafts, payable upon presentation within its district, or other items, and maturing notes and bills payable within its district; or, solely for the purposes of exchange or of collection, may receive from any nonmember bank or trust company or other depository institution deposits of current funds in lawful money, national-bank notes, Federal reserve notes, checks and drafts payable upon presentation or other items, or maturing notes and bills: Provided, Such nonmember bank or trust company or other depository institution maintains with the Federal reserve bank of its district a balance in such amount as the Board determines taking into account items in transit, services provided by the Federal Reserve Bank, and other factors as the Board may deem appropriate; Provided further, That nothing in this or any other section of this Act shall be construed as prohibiting a member or nonmember bank or other depository institution from making reasonable charges, to be determined and regulated by the Board of Governors of the Federal Reserve System, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise; but no such charges shall be made against the Federal reserve banks.

[12 USC 342. As amended by act of Sept. 7, 1916 (39 Stat. 752), which completely revised this section; June 21, 1917 (40 Stat. 234); and March 31, 1980 (94 Stat. 139). With respect to the receipt by Reserve Banks of checks and drafts on deposit, see also section 16.]

2. Discount of Commercial, Agricultural, and Industrial Paper

Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclusively, any Federal reserve bank may discount notes, drafts, and bills of exchange arising out of actual commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes, the Board of Governors of the Federal Reserve System to have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills of exchange, secured by staple agricultural products, or other goods, wares, or merchandise from being eligible for such discount, and the notes, drafts, and bills of exchange of factors issued as such making advances exclusively to producers of staple agricultural products in their raw state shall be eligible for such discount; but such definition shall not include notes, drafts, or bills covering merely investments or issued or drawn for the purpose of carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of the government of the United States. Notes, drafts, and bills admitted to discount under the terms of this paragraph must have a maturity at the time of discount of not more than 90 days, exclusive of grace.

[12 USC 343. As amended by act of Sept. 7, 1916 (39 Stat. 752), which completely revised this section; and by act of March 4, 1923 (42 Stat. 1478). As used in this paragraph the phrase “bonds and notes of Government of the United States” includes Treasury bills or certificates of indebtedness. (See act of June 17, 1929, amending section 5 of Second Liberty Bond Act of Sept. 24, 1917). As to eligibility for discount under this paragraph of notes representing loans to finance building construction, see this act, section 24).]

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3. Discounts for Individuals, Partnerships, and Corporations

  1. In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the said board may determine, at rates established in accordance with the provisions of section 14, subdivision (d), of this Act, to discount for any participant in any program or facility with broad-based eligibility, notes, drafts, and bills of exchange when such notes, drafts, and bills of exchange are indorsed or otherwise secured to the satisfaction of the Federal Reserve bank: Provided, That before discounting any such note, draft, or bill of exchange, the Federal reserve bank shall obtain evidence that such participant in any program or facility with broad-based eligibility is unable to secure adequate credit accommodations from other banking institutions. All such discounts for any participant in any program or facility with broad-based eligibility shall be subject to such limitations, restrictions, and regulations as the Board of Governors of the Federal Reserve System may prescribe.
    1. As soon as is practicable after the date of enactment of this subparagraph, the Board shall establish, by regulation, in consultation with the Secretary of the Treasury, the policies and procedures governing emergency lending under this paragraph. Such policies and procedures shall be designed to ensure that any emergency lending program or facility is for the purpose of providing liquidity to the financial system, and not to aid a failing financial company, and that the security for emergency loans is sufficient to protect taxpayers from losses and that any such program is terminated in a timely and orderly fashion. The policies and procedures established by the Board shall require that a Federal reserve bank assign, consistent with sound risk management practices and to ensure protection for the taxpayer, a lendable value to all collateral for a loan executed by a Federal reserve bank under this paragraph in determining whether the loan is secured satisfactorily for purposes of this paragraph.
    2. The Board shall establish procedures to prohibit borrowing from programs and facilities by borrowers that are insolvent. Such procedures may include a certification from the chief executive officer (or other authorized officer) of the borrower, at the time the borrower initially borrows under the program or facility (with a duty by the borrower to update the certification if the information in the certification materially changes), that the borrower is not insolvent. A borrower shall be considered insolvent for purposes of this subparagraph, if the borrower is in bankruptcy, resolution under title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or any other Federal or State insolvency proceeding.
    3. A program or facility that is structured to remove assets from the balance sheet of a single and specific company, or that is established for the purpose of assisting a single and specific company avoid bankruptcy, resolution under title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or any other Federal or State insolvency proceeding, shall not be considered a program or facility with broad-based eligibility.
    4. The Board may not establish any program or facility under this paragraph without the prior approval of the Secretary of the Treasury.
  2. The Board shall provide to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives—
    1. not later than 7 days after the Board authorizes any loan or other financial assistance under this paragraph, a report that includes—
      1. the justification for the exercise of authority to provide such assistance;
      2. the identity of the recipients of such assistance;
      3. the date and amount of the assistance, and form in which the assistance was provided; and
      4. the material terms of the assistance, including—
        • aa. duration;
        • bb. collateral pledged and the value thereof;
        • cc. all interest, fees, and other revenue or items of value to be received in exchange for the assistance;
        • dd. any requirements imposed on the recipient with respect to employee compensation, distribution of dividends, or any other corporate decision in exchange for the assistance; and
        • ee. the expected costs to the taxpayers of such assistance; and
    2. once every 30 days, with respect to any outstanding loan or other financial assistance under this paragraph, written updates on—
      1. the value of collateral;
      2. the amount of interest, fees, and other revenue or items of value received in exchange for the assistance; and
      3. the expected or final cost to the taxpayers of such assistance.
  3. The information required to be submitted to Congress under subparagraph (C) related to—
    1. the identity of the participants in an emergency lending program or facility commenced under this paragraph;
    2. the amounts borrowed by each participant in any such program or facility;
    3. identifying details concerning the assets or collateral held by, under, or in connection with such a program or facility, shall be kept confidential, upon the written request of the Chairman of the Board, in which case such information shall be made available only to the Chairpersons or Ranking Members of the Committees described in subparagraph (C).
  4. If an entity to which a Federal reserve bank has provided a loan under this paragraph becomes a covered financial company, as defined in section 201 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, at any time while such loan is outstanding, and the Federal reserve bank incurs a realized net loss on the loan, then the Federal reserve bank shall have a claim equal to the amount of the net realized loss against the covered entity, with the same priority as an obligation to the Secretary of the Treasury under section 210(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

[12 USC 343. As added by act of July 21, 1932 (47 Stat. 715); and amended by acts of Aug. 23, 1935 (49 Stat. 714); Dec. 19, 1991 (105 Stat. 2386); and July 21, 2010 (124 Stat. 2113). As enacted by Public Law 111-203 (124. Stat. 2115), “any reference in any provision of Federal law to the third undesignated paragraph of section 13 of the Federal Reserve Act [FRA] (12 USC 343) shall be deemed to be a reference to section 13(3) of the FRA.”]

4. Discount or Purchase of Sight Drafts

Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice, and protest by such bank as to its own indorsement exclusively, and subject to regulations and limitations to be prescribed by the Board of Governors of the Federal Reserve System, any Federal reserve bank may discount or purchase bills of exchange payable at sight or on demand which grow out of the domestic shipment or the exportation of nonperishable, readily marketable agricultural and other staples and are secured by bills of lading or other shipping documents conveying or securing title to such staples: Provided, That all such bills of exchange shall be forwarded promptly for collection, and demand for payment shall be made with reasonable promptness after the arrival of such staples at their destination: Provided further, that no such bill shall in any event be held by or for the account of a Federal reserve bank for a period in excess of ninety days. In discounting such bills Federal reserve banks may compute the interest to be deducted on the basis of the estimated life of each bill and adjust the discount after payment of such bills to conform to the actual life thereof.

[12 USC 344. As added by act of March 4, 1923 (42 Stat. 1479); and amended by act of May 29, 1928 (45 Stat. 975).]

5. Limitation on Discount of Paper of One Borrower

The aggregate of notes, drafts, and bills upon which any person, copartnership, association, or corporation is liable as maker, acceptor, indorser, drawer, or guarantor, rediscounted for any member bank, shall at no time exceed the amount for which such person, copartnership, association, or corporation may lawfully become liable to a national banking association under the terms of section 5200 of the Revised Statutes, as amended: Provided, however, That nothing in this paragraph shall be construed to change the character or class of paper now eligible for rediscount by Federal reserve banks.

[12 USC 345. As reenacted without change by act of March 3, 1915 (38 Stat. 958); and amended by act of Sept. 7, 1916 (39 Stat. 752), which completely revised this section; and by act of April 12, 1930 (46 Stat. 162).]

6. Discount of Acceptances

Any Federal reserve bank may discount acceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than 90 days’ sight, exclusive of days of grace, and which are indorsed by at least one member bank: Provided, That such acceptances if drawn for an agricultural purpose and secured at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable staples may be discounted with a maturity at the time of discount of not more than six months’ sight exclusive of days of grace.

[12 USC 346. As amended by act of March 3, 1915 (38 Stat. 958); by act of Sept. 7, 1916 (39 Stat. 752), which completely revised this section; and by act of March 4, 1923 (42 Stat. 1479).]

7. Banker’s Acceptances

  1. Any member bank and any Federal or State branch or agency of a foreign bank subject to reserve requirements under section 7 of the International Banking Act of 1978 (hereinafter in this paragraph referred to as “institutions”), may accept drafts or bills of exchange drawn upon it having not more than six months’ sight to run, exclusive of days of grace–
    1. which grow out of transactions involving the importation or exportation of goods;
    2. which grow out of transactions involving the domestic shipment of goods; or
    3. which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples.
  2. Except as provided in subparagraph (C), no institution shall accept such bills, or be obligated for a participation share in such bills, in an amount equal at any time in the aggregate to more than 150 per centum of its paid up and unimpaired capital stock and surplus or, in the case of a United States branch or agency of a foreign bank, its dollar equivalent as determined by the Board under subparagraph (H).
  3. The Board, under such conditions as it may prescribe, may authorize, by regulation or order, any institution to accept such bills, or be obligated for a participation share in such bills, in an amount not exceeding at any time in the aggregate 200 per centum of its paid up and unimpaired capital stock and surplus or, in the case of a United States branch or agency of a foreign bank, its dollar equivalent as determined by the Board under subparagraph (H).
  4. Notwithstanding subparagraphs (B) and (C), with respect to any institution, the aggregate acceptances, including obligations for a participation share in such acceptances, growing out of domestic transactions shall not exceed 50 per centum of the aggregate of all acceptances, including obligations for a participation share in such acceptances, authorized for such institution under this paragraph.
  5. No institution shall accept bills, or be obligated for a participation share in such bills, whether in a foreign or domestic transaction, for any one person, partnership, corporation, association or other entity in an amount equal at any time in the aggregate to more than 10 per centum of its paid up and unimpaired capital stock and surplus, or, in the case of a United States branch or agency of a foreign bank, its dollar equivalent as determined by the Board under subparagraph (H), unless the institution is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance.
  6. With respect to an institution which issues an acceptance, the limitations contained in this paragraph shall not apply to that portion of an acceptance which is issued by such institution and which is covered by a participation agreement sold to another institution.
  7. In order to carry out the purposes of this paragraph, the Board may define any of the terms used in this paragraph, and, with respect to institutions which do not have capital or capital stock, the Board shall define an equivalent measure to which the limitations contained in this paragraph shall apply.
  8. Any limitation or restriction in this paragraph based on paid-up and unimpaired capital stock and surplus of an institution shall be deemed to refer, with respect to a United States branch or agency of a foreign bank, to the dollar equivalent of the paid-up capital stock and surplus of the foreign bank, as determined by the Board, and if the foreign bank has more than one United States branch or agency, the business transacted by all such branches and agencies shall be aggregated in determining compliance with the limitation or restriction.

[Formerly 12 USC 372, as amended by act of March 3, 1915 (38 Stat. 958); by act of Sept. 7, 1916 (39 Stat. 752), which completely revised this section; and by acts of June 21, 1917 (40 Stat. 235) and Oct. 8, 1982 (96 Stat. 1239). Omitted from the U.S. Code.]

8. Advances to Member Banks on Promissory Notes

Any Federal reserve bank may make advances for periods not exceeding fifteen days to its member banks on their promissory notes secured by the deposit or pledge of bonds, notes, certificates of indebtedness, or Treasury bills of the United States, or by the deposit or pledge of debentures or other such obligations of Federal intermediate credit banks which are eligible for purchase by Federal reserve banks under section 13a of this Act, or by the deposit or pledge of bonds issued under the pro visions of subsection (c) of section 4 of the Home Owners’ Loan Act of 1933, as amended; and any Federal reserve bank may make advances for periods not exceeding ninety days to its member banks on their promissory notes secured by such notes, drafts, bills of exchange, or bankers’ acceptances as are eligible for rediscount or for purchase by Federal reserve banks under the provisions of this Act, or secured by such obligations as are eligible for purchase under section 14(b) of this Act. All such advances shall be made at rates to be established by such Federal reserve banks, such rates to be subject to the review and determination of the Board of Governors of the Federal Reserve System. If any member bank to which any such advance has been made shall, during the life or continuance of such advance, and despite an official warning of the reserve bank of the district or of the Board of Governors of the Federal Reserve System to the contrary, increase its outstanding loans secured by collateral in the form of stocks, bonds, debentures, or other such obligations, or loans made to members of any organized stock exchange, investment house, or dealer in securities, upon any obligation, note, or bill, secured or unsecured, for the purpose of purchasing and/or carrying stocks, bonds, or other investment securities (except obligations of the United States) such advance shall be deemed immediately due and payable, and such member bank shall be ineligible as a borrower at the reserve bank of the district under the provisions of this paragraph for such period as the Board of Governors of the Federal Reserve System shall determine: Provided, That no temporary carrying or clearance loans made solely for the purpose of facilitating the purchase or delivery of securities offered for public subscription shall be included in the loans referred to in this paragraph.

[12 USC 347. As added by act of Sept. 7, 1916 (39 Stat. 753), which completely revised this section; and amended by acts of May 19, 1932 (47 Stat. 160); May 12, 1933 (48 Stat. 46); June 16, 1933 (48 Stat. 180); Jan. 31, 1934 (48 Stat. 348); April 27, 1934 (48 Stat. 646); Oct. 4, 1961 (75 Stat. 773); and Sept. 21, 1968 (82 Stat. 856).]

9. Aggregate Liabilities of National Banks

Repealed by act of Oct. 15, 1982 (96 Stat. 1510).

10. Regulation by Board of Governors of Discounts, Purchases and Sales

The discount and rediscount and the purchase and sale by any Federal reserve bank of any bills receivable and of domestic and foreign bills of exchange, and of acceptances authorized by this Act, shall be subject to such restrictions, limitations, and regulations as may be imposed by the Board of Governors of the Federal Reserve System.

[Omitted from U.S. Code. As amended by act of Sept. 7, 1916 (39 Stat. 753), which completely revised this section.]

11. National Banks as Insurance Agents or Real Estate Loan Brokers

That in addition to the powers now vested by law in national banking associations organized under the laws of the United States any such association located and doing business in any place the population of which does not exceed five thousand inhabitants, as shown by the last preceding decennial census, may, under such rules and regulations as may be prescribed by the Comptroller of the Currency, act as the agent for any fire, life, or other insurance company authorized by the authorities of the State in which said bank is located to do business in said State, by soliciting and selling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent; and may also act as the broker or agent for others in making or procuring loans on real estate located within one hundred miles of the place in which said bank may be located, receiving for such services a reasonable fee or commission: Provided, however, That no such bank shall in any case guarantee either the principal or interest of any such loans or assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal: And provided further, That the bank shall not guarantee the truth of any statement made by an assured in filing his application for insurance.

[Omitted from U.S. Code. As added by act of Sept. 7, 1916 (39 Stat. 753), which completely revised this section.]

12. Bank Acceptances to Create Dollar Exchange

Any member bank may accept drafts or bills of exchange drawn upon it having not more than three months’ sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Board of Governors of the Federal Reserve System by banks or bankers in foreign countries or dependencies or insular possessions of the United States for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies, or insular possessions. Such drafts or bills may be acquired by Federal reserve banks in such amounts and subject to such regulations, restrictions, and limitations as may be prescribed by the Board of Governors of the Federal Reserve System: Provided, however, That no member bank shall accept such drafts or bills of exchange referred to 1 this paragraph for any one bank to an amount exceeding in the aggregate ten per centum of the paid-up and unimpaired capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security: Provided further, That no member bank shall accept such drafts or bills in an amount exceeding at any time the aggregate of one-half of its paid-up and unimpaired capital and surplus.

[Formerly 12 USC 373, as added by act of Sept. 7, 1916 (39 Stat. 754), which completely revised this section. Not codified to the Federal Reserve Act. Omitted from the U.S. Code.]

13. Advances to Individuals, Partnerships, and Corporations on Obligations of United States

Subject to such limitations, restrictions and regulations as the Board of Governors of the Federal Reserve System may prescribe, any Federal reserve bank may make advances to any individual, partnership or corporation on the promissory notes of such individual, partnership or corporation secured by direct obligations of the United States or by any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, any agency of the United States. Such advances shall be made for periods not exceeding 90 days and shall bear interest at rates fixed from time to time by the Federal reserve bank, subject to the review and determination of the Board of Governors of the Federal Reserve System.

[12 USC 347c. As added by act of March 9, 1933 (48 Stat. 7) and amended by act of Sept. 21, 1968 (82 Stat. 856).]

14. Receipt of Deposits from, Discount Paper Endorsed by, and Advances to Foreign Banks

Subject to such restrictions, limitations, and regulations as may be imposed by the Board of Governors of the Federal Reserve System, each Federal Reserve bank may receive deposits from, discount paper endorsed by, and make advances to any branch or agency of a foreign bank in the same manner and to the same extent that it may exercise such powers with respect to a member bank if such branch or agency is maintaining reserves with such Reserve bank pursuant to section 7 of the International Banking Act of 1978. In exercising any such powers with respect to any such branch or agency, each Federal Reserve bank shall give due regard to account balances being maintained by such branch or agency with such Reserve bank and the proportion of the assets of such branch or agency being held as reserves under section 7 of the International Banking Act of 1978. For the purposes of this paragraph, the terms “branch”, “agency”, and “foreign bank” shall have the same meanings assigned to them in section 1 of the International Banking Act of 1978.

[12 USC 347d. As added by act of Sept. 17, 1978 (92 Stat. 621).]

1 So in original. Probably should read “referred to in this paragraph.”

Source: Federal Reserve

HBCU Super Conferences And Profitable Move To Soccer Are A Must


By William A. Foster, IV

“A state without some means of change is without the means of its conservation.” – Edmund Burke

Something we should be clear on. There is no benefit for European American owned media companies to showcase HBCU sports or events. Nor their companies in general to provide more than token sponsorship which we continuously chase. It is not profitable for them socially or economically. The reality is HBCUs are Division 1-AA and Division II schools. HBCUs or not – only the Division 1-A six power conferences (SEC, Big 12, Big Ten, Pac-12, Big East, ACC) will ever be on European American owned channels. We know that even if all the best African American athletes returned to HBCUs they would still not be on television. The reality is it is less about the players on the field and more about the people in the stands. Even in pre-desegregation when HBCUs had the better talent they were not placed on television. You can say this was because of outright racism or you can look at the economics of it then and now. The demographics start with that at almost all of these HWCUs in the six power conferences are predominantly European American. By predominantly I’m speaking of 80% or more. They also have always been able to bring in 50,000 plus at football stadiums and 10,000 plus at basketball consistently. They have larger student population and alumni bases. Something one could argue we could have had by now but a mixture of desegregation and heavy domestic recruitment has limited that growth. The current median net worth of European America is approximately $98,000 versus African America’s approximately $2,200. Given that reality, who would you feature on television? Let me help you even further. In 2007, the buying power of European Americans in California was $1.1 trillion and the buying power for all of African America was approximately $850 billion according to the University of Georgia’s Terry School of Business. That’s just the economics of it. Unfortunately, we sold off BET to Viacom, we are only a minority stake in TVOne, and OWN, while 50% co-owned by Oprah Winfrey, clearly is a channel not focused on catering to the African American demographic.

As such we need to focus on taking a different approach. First, what is clear is that we need to move first in creating super conferences. We can do this by a realignment which is badly needed regardless. Right now there are five HBCU conferences – we need to add a sixth and maybe a seventh. Currently, in the five HBCU conferences there are a total of 55 teams. That means roughly only 50% of HBCUs are in an HBCU conference. Schools like Central State University and Wilberforce University both located in Ohio, Langston University in Oklahoma, and Texas College in Texas are left to fend for themselves in non-HBCU conferences. Why they have not been extended an invite in football hotbeds is both the short sightedness of our conferences; as well in part due to the geographic nature of them which is why I’m suggesting the realignment that is more geographically and financially friendly. It would also do us well to include schools that are not traditional HBCUs like Roxbury Community College in Massachusetts, Medgar Evers in New York, Chicago State in Illinois, and a school without an undergraduate but would be worth the investment to build one in Charles Drew University in California. This would give us a coast to coast presence in every city with a dominant African American presence and allow for the establishment of seven HBCU conferences with fifteen schools in each conference.

Given that football and basketball are still the dominant revenue sports, at the moment, we could then have a twelve team playoff in football to determine the HBCU national football champion and a sixteen or thirty-two team HBCU basketball tournament. The events would be focused in major African American populated cities so that we’d be able to attract a large general African American population who might want to be a part of the event even if they are not attached to a certain HBCU. The cities would be (in order of largest African American populations) New York City, Chicago, Philadelphia, Detroit, Houston, Memphis, Baltimore, Los Angeles, Washington DC, and Dallas. All of which have African American populations 300,000 and above. There of course would be allowances for cities like New Orleans and Atlanta who have a geographical strategic advantages along with a strong cultural connection to HBCUs and African America as a whole to host events which would be approved by the conferences. Ultimately, HBCUs will make the majority of their money with major events not television money. An event planning company owned by the seven conferences will coordinate the HBCU football playoffs and basketball tournament. HBCUs with public access channels and television studios will produce, air, and stream online the events. So while the television money isn’t there the accumulation of social capital would be there. The student-athletes would be on television unlike their Division 1-AA and Division II counterparts and HBCUs would find themselves in front of more African American children which would lay the foundation for improving the paltry HBCU attendance number as it relates to percentage of African Americans who go to college choosing HBCUs. Currently, only 10-12 percent of African Americans who are college eligible are choosing HBCUs which has long-term implications on number of alumni and potential donors.

All of this said, as it relates to football and basketball, it will be a move towards a real investment in a strong soccer infrastructure now not later that can create a paradigm shift in HBCU sport financials and establish an immense global presence in the African Diaspora especially in Africa, Latin America, and Europe which constitutes a population of approximately a billion rabid soccer fans. The African Diaspora’s 4 wealthiest, all based in Africa, are worth a combined $28.1 billion. With Africa being the fastest growing continent economically there is an immense opportunity for recruitment of students, research, donors, sponsorship, and an African Diaspora who was in love with the Ghana Black Stars in the last World Cup. There were even a surprisingly large number of African Americans watching the team from Ghana. The move to soccer would do us well as African Americans as well given the realities of football both endangering African American men’s health and the enormous infrastructure cost that college football requires. Football is an American sport, quite possibly one who is witnessing its apex in American society, and demographics of globalization as well as youth sports, which show soccer has more children participants than football and basketball combined, indicate a shift has already occurred towards soccer. Pro soccer franchises are second only to NFL franchises in terms of average value and that is without a strong presence in America, yet. Forming dominant college soccer franchises lends us the opportunity to not only tap the African American consumer but the African Diaspora consumer.

It is clear the times of us being passive and taking a wait and see what our counterparts are doing has left us in dire straits far too often. We would do well to be out ahead of the curve for once instead of chasing it.

HBCU Money™ B-School: Value at Risk – VaR


A technique used to estimate the probability of portfolio losses based on the statistical analysis of historical price trends and volatilities.

VaR is commonly used by banks, security firms and companies that are involved in trading energy and other commodities. VaR is able to measure risk while it happens and is an important consideration when firms make trading or hedging decisions.
Learn more terms at http://www.investopedia.com/

HBCU Money™ Business Book Feature – DarkMarket: Cyberthieves, Cybercrime, AND YOU


The benefits of living in a digital, globalized society are enormous; so too are the dangers. The world has become a law enforcer’s nightmare and every criminal’s dream. We bank online; shop online; date, learn, work and live online. But have the institutions that keep us safe on the streets learned to protect us in the burgeoning digital world? Have we become complacent about our personal security—sharing our thoughts, beliefs and the details of our daily lives with anyone who might care to relieve us of them?

In this fascinating and compelling book, Misha Glenny, author of the international best seller McMafia, explores the three fundamental threats facing us in the twenty-first century: cybercrime, cyberwarfare and cyberindustrial espionage. Governments and the private sector are losing billions of dollars each year fighting an ever-morphing, often invisible and often supersmart new breed of criminal: the hacker.

Glenny has traveled and trawled the world. By exploring the rise and fall of the criminal website DarkMarket he has uncovered the most vivid, alarming and illuminating stories. Whether JiLsi or Matrix, Iceman, Master Splynter or Lord Cyric; whether Detective Sergeant Chris Dawson in Scunthorpe, England, or Agent Keith Mularski in Pittsburgh, Pennsylvania, Glenny has tracked down and interviewed all the players—the criminals, the geeks, the police, the security experts and the victims—and he places everyone and everything in a rich brew of politics, economics and history.

The result is simply unputdownable. DarkMarket is authoritative and completely engrossing. It’s a must-read for everyone who uses a computer: the essential crime book for our times.