Monthly Archives: March 2016

Federal Reserve Chairwoman Janet Yellen’s March 2016 Press Conference (Video)

Posted on March 30, 2016 by | Leave a comment

Excerpt from March Press Conference with Chairwoman Janet Yellen:

“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen. However, global economic and financial developments continue to pose risks. Inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of declines in energy and import prices dissipate and the labor market strengthens further. The Committee continues to monitor inflation developments closely.”

Full Press Conference & FOMC Statement:

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Posted in Central Banks

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The HBCU Money™ Weekly Market Watch

Posted on March 11, 2016 by | Leave a comment

Our Money Matters /\ March 11, 2016

A weekly snapshot of African American owned public companies and HBCU Money™ tracked African stock exchanges.

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $6.65 (0.00% UNCH)

M&F Bancorp (MFBP) $3.00 (0.00% UNCH)

Radio One (ROIA) $1.54 (6.94% UP)

African ETFs

Global X MSCI Nigeria (NGE) $6.39 (2.54% UP)

Market Vectors Africa (AFK) $18.77 (1.57% UP)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  316.68 (1.12% DN)

Botswana Stock Exchange (BSE)  10 440.28 (0.00% UNCH)

Ghana Stock Exchange (GSE)  1 954.49 (2.03% DN)*

Nairobi Stock Exchange (NSE)  144.97 (N/A)

Johannesburg Stock Exchange (JSE) 51 739.83 (0.40% UP)

International Stock Exchanges

New York Stock Exchange (NYSE) 10 101.50 (1.85% UP)

London Stock Exchange (LSE)  3 367.52 (1.61% UP)

Tokyo Stock Exchange (TOPIX)  1 359.32 (0.53% UP)

Commodities

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HBCU Money’s 2016 African American Owned Bank Directory

Posted on March 8, 2016 by | 28 comments

For the most current African American Owned Bank Directory visit the 2022 link by clicking here.

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.

bank_men

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

OTHER KEY FINDINGS:

  • AAOBs are in 17 states and territories. Key states absent are Florida, Mississippi, New York, and Ohio.
  • Alabama, Georgia, Illinois, Tennessee, and Wisconsin each have two AAOBs.
  • 2016 Median AAOBs Aseets: $107 551 000 ($113 470 000)*
  • 2016 Average AAOBs Assets: $210 292 000 ($233 583 000)*
  • African American bank assets saw a 1.2 percent decrease or net loss of approximately $57 million in assets in 2015.
  • AAOBs control 0.03 percent of America’s $15.7 trillion Bank Owned Assets.
  • AAOBs control 2.3 percent of FDIC designated Minority-Owned Bank Assets, which is down from 2.6 percent in 2015.
  • There has not been an AAOB started in 16 years.
  • Only 8 of 2016’s 22 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.

*Previous year in parentheses

There are 22 African American owned banks (AAOBs) with assets totaling approximately $4.6 billion in assets or approximately 0.43 percent of African America’s $1.1 trillion in buying power.

ALABAMA

ALAMERICA BANK

Location: Birmingham, Alabama

Founded: January 28, 2000

FDIC Region: Atlanta

Assets: $35 476 000

Asset Change (2015): Down 13.4%

COMMONWEALTH NATIONAL BANK

Location: Mobile, Alabama

Founded: February 19, 1976

FDIC Region: Atlanta

Assets: $56 501 000

Asset Change (2015): Down 3.8%

CALIFORNIA

BROADWAY FEDERAL BANK FSB

Location: Los Angeles, California

Founded: February 26, 1947

FDIC Region: San Francisco

Assets: $402 902 000

Asset Change (2015): Up 16.6%

DISTRICT OF COLUMBIA

INDUSTRIAL BANK

Location: Washington, DC

Founded: August 18, 1934

FDIC Region: New York

Assets: $388 951 000

Asset Change (2015): Up 6.5%

GEORGIA

CARVER STATE BANK

Location: Savannah, Georgia

Founded: January 1, 1927

FDIC Region: Atlanta

Assets: $42 174 000

Asset Change (2015): Down 2.5%

CITIZENS TRUST BANK

Location: Atlanta, Georgia

Founded: June 18, 1921

FDIC Region: Atlanta

Assets: $387 897 000

Asset Change (2015): Down 3.2%

ILLINOIS

ILLINOIS SERVICE FEDERAL SAVINGS & LOAN

Location: Chicago, Illinois

Founded: January 01, 1934

FDIC Region: Chicago

Assets: $101 291 000

Asset Change (2015): Down 10.7%

SEAWAY BANK & TRUST COMPANY

Location: Chicago, Illinois

Founded: January 02, 1965

FDIC Region: Chicago

Assets: $369 544 000

Asset Change (2015): Down 29.3%

LOUISIANA

LIBERTY BANK & TRUST COMPANY

Location: New Orleans, Louisiana

Founded: November 16, 1972

FDIC Region: Dallas

Assets: $604 163 000

Asset Change (2015): Up 9.4%

MARYLAND

HARBOR BANK OF MARYLAND

Location: Baltimore, Maryland

Founded: September 13, 1982

FDIC Region: New York

Assets: $285 246 000

Asset Change (2015): Up 22.1%

MASSACHUSETTS

ONEUNITED BANK

Location: Boston, Massachusetts

Founded: August 02, 1982

FDIC Region: New York

Assets: $648 615 000

Asset Change (2015): Up 4.6%

MICHIGAN

FIRST INDEPENDENCE BANK

Location: Detroit, Michigan

Founded: May 14, 1970

FDIC Region: Chicago

Assets: $216 821 000

Asset Change (2015): Down 12.3%

NEW JERSEY

CITY NB OF NEW JERSEY

Location: Newark, New Jersey

Founded: June 11, 1973

FDIC Region: New York

Assets: $250 095 000

Asset Change (2015): Down 12.9%

NORTH CAROLINA

MECHANICS & FARMERS BANK

Location: Durham, North Carolina

Founded: March 01, 1908

FDIC Region: Atlanta

Assets: $298 014 000

Asset Change (2015): Up 3.0%

PENNSYLVANIA

UNITED BANK OF PHILADELPHIA

Location: Philadelphia, Pennsylvania

Founded: March 23, 1992

FDIC Region: New York

Assets: $59 001 000

Asset Change (2015): Down 2.5%

SOUTH CAROLINA

SOUTH CAROLINA COMMUNITY BANK

Location: Columbia, South Carolina

Founded: March 26, 1999

FDIC Region: Atlanta

Assets: $52 995 000

Asset Change (2015): Down 14.2%

TENNESSEE

CITIZENS SAVINGS B&T COMPANY

Location: Nashville, Tennessee

Founded: January 4, 1904

FDIC Region: Dallas

Assets: $104 060 000

Asset Change (2015): Up 5.1%

TRI-STATE BANK OF MEMPHIS

Location: Memphis, Tennessee

Founded: December 16, 1946

FDIC Region: Dallas

Assets: $111 042 000

Asset Change (2015): Down 12.3%

TEXAS

UNITY NB OF HOUSTON

Location: Houston, Texas

Founded: August 01, 1985

FDIC Region: Dallas

Assets: $83 327 000

Asset Change (2015): Up 10.3%

VIRGINIA

FIRST STATE BANK

Location: Danville, Virginia

Founded: September 08, 1919

FDIC Region: Atlanta

Assets: $37 612 000

Asset Change (2015): Down 4.1%

WISCONSIN

COLUMBIA SAVINGS & LOAN ASSOCIATION 

Location: Milwaukee, Wisconsin

Founded: January 1, 1924

FDIC Region: Chicago

Assets: $23 684 000

Asset Change (2015): Down 2.7%

NORTH MILWAUKEE STATE BANK

Location: Milwaukee, Wisconsin

Founded: February 12, 1971

FDIC Region: Chicago

Assets: $67 115 000

Asset Change (2015): Down 13.0%

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African America’s February Jobs Report – 8.8%

Posted on March 7, 2016 by | Leave a comment

jobs

Overall Unemployment: 4.9% (5.0%)

African America Unemployment: 8.8% (8.8%)

Latino America Unemployment: 5.4% (5.9%)

European America Unemployment: 4.3% (4.3%)

Asian America Unemployment: 3.8% (3.7%)

Previous month in parentheses.

Analysis: Overall unemployment went unchanged in the month of February from the previous month. Latino America was the only group to experience a decline, while Asian America saw a slight uptick. African and European America saw no change.

African American Male Unemployment: 8.6% (8.4%)

African American Female Unemployment: 7.9% (7.9%)

African American Teenage Unemployment: 23.3% (25.2%)

African American Male Participation: 67.5% (67.1%)

African American Female Participation: 62.0% (62.3%)

African American Teenage Participation: 28.8% (28.9%)

Previous month in parentheses.

Analysis:African American males had a 20 basis point increase in their unemployment rate and a 40 basis point increase in their participation rate. African American females had no change in their unemployment rate and a 30 basis point decrease in their participation rate. African American teenagers  unemployment rate declined 1900 basis points and participation rate experienced an decrease of 10 basis points.

CONCLUSION: The overall economy added 242 000 jobs in February. African America added 30 000 jobs in February. The African American labor force is at a five month high. However, participation rate over the past five months remains virtually unchanged meaning that African America’s employment situation is basically doggy paddling in the middle of the economic ocean, still. Just how much optimism can be put into this current economy after the Federal Reserve raised rates for the first time in a decade and uncertainty of how companies will respond is tough to get a pulse on. Many believe the more expensive debt even by only 25 basis points could squeeze the public sector where African America is overly concentrated in employment. Oil and commodities continued collapse and instability is continuing to give jitters to the market.  There is definitely a resiliency within the African American labor force to some of the current economic pressures, but just how long that can last remains to be seen. African American needs an increase of 759 000 jobs to match the country’s unemployment rate.

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Posted in Economics

HBCU Money™ Business Book Feature – Misbehaving: The Making of Behavioral Economics

Posted on March 6, 2016 by | Leave a comment

Misbehaving9780393080940

Shortlisted for the Financial Times & McKinsey Business Book of the Year Award.

Get ready to change the way you think about economics.

Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans―predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth―and change the way we think about economics, ourselves, and our world.

Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio, selling basketball tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by economists. In other words, we misbehave. More importantly, our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make better decisions in our lives, our businesses, and our governments.

Coupling recent discoveries in human psychology with a practical understanding of incentives and market behavior, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioral economic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV game shows, the NFL draft, and businesses like Uber.

Laced with antic stories of Thaler’s spirited battles with the bastions of traditional economic thinking,Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policy makers are both profound and entertaining.

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