#NNPA BlackPress

OP-ED: Congress Is Right: Federal Reserve’s Reg II Will Hurt Minority Communities in America

NNPA NEWSWIRE — The Fed is taking every effort to promote income equality and workplace diversity and inclusion, but Regulation II would undercut its great work in this respect and cause potential harm to millions of minority families. Now that a congressional coalition has drawn the Fed’s attention to this concern, the central bank should respond by taking a closer, harder look at its Regulation II proposal. It is the only right and just thing to do.
The post OP-ED: Congress Is Right: Federal Reserve’s Reg II Will Hurt Minority Communities in America first appeared on BlackPressUSA.

Published

12 months ago

March 11, 2024

Oakland Post

By Dr. Benjamin F. Chavis, Jr., National Newspaper Publishers Association President and CEO

I am pleased to congratulate Rep. Nikema Williams (D-Ga.) who led a coalition of lawmakers who wrote to the Federal Reserve urging the central bank to withdraw Regulation II — its new proposal to reduce the cap on the debit card swipe fees merchants must pay to debit card processors — out of concern that it will hurt minority communities’ credit access.

I sympathize with the feelings of these congressional members. Having dedicated my life to advancing civil rights and promoting economic advancement for African Americans, I fear that this proposal, while well-intentioned, will create regressive outcomes that will ultimately hurt the very people it is intended to help.

While lowering the current cap on debit card swipe fees may appear like a reasonable measure to take in what has proven to be a lackluster economy for many merchants, my experiences — from coordinating youth activities with Rev. Martin Luther King to serving on the national board of directors for the NAACP — have underscored the importance of scrutinizing policies for their broader implications. When doing so with Regulation II, I — like the congressional coalition — concluded that lowering the swipe fees would hurt the same small financial institutions that minority communities depend on for credit access, which would thus widen the nationwide racial wealth gap and banking disparities.

Economic history tells this story well.

While reluctant to do so at the time, the Federal Reserve first limited swipe fees on debit card transactions on 2011. Studies, including one from the Richmond Federal Reserve, indicate that most retailers did not pass their savings onto consumers — a significant portion even raised prices. Meanwhile, as Main Street continues to struggle with the policy, Federal Reserve studies have found that large corporations have reaped nearly $8 billion annually since this rule was enacted.

Although large corporations benefited from not having to pay as much in swipe fees, this price control hit the small financial institutions that had to subsidize this giveaway for them hard. It gave many of them no choice but to reduce fee-free checking from 75 percent to 40 percent.

The Federal Reserve now estimates that six million Americans are “unbanked,” and many more are “underbanked ” — meaning they must use alternative financial products like check cashing services instead of traditional checking and savings accounts to make ends meet. The debit card cap has contributed significantly to this crisis.

Many financial institutions have also raised customer fees in response to interchange fee caps, with Rule II poised to intensify these challenges. Regulation II will increase them even further. According to Nick Bourke, former Director of Consumer Finance at The Pew Charitable Trusts, it may bring up to $2 billion in additional consumer costs. This escalation of fees threatens to sideline even more minority communities from the banking system, impeding their access to essential credit services required for entrepreneurship and homeownership.

The Board of Governors at the Federal Reserve are committed to advancing racial equity. By proposing Regulation II — are not intentionally doing the bidding of large corporations; however, they may be being misled by these companies’ advocacy efforts.

The Fed is taking every effort to promote income equality and workplace diversity and inclusion, but Regulation II would undercut its great work in this respect and cause potential harm to millions of minority families. Now that a congressional coalition has drawn the Fed’s attention to this concern, the central bank should respond by taking a closer, harder look at its Regulation II proposal. It is the only right and just thing to do.

Benjamin F. Chavis, Jr., an African American civil rights leader, is the President and CEO of the National Newspaper Publishers Association (NNPA). He is a former Executive Director and CEO of the National Association for the Advancement of Colored People (NAACP) and a former NC statewide youth assistant to Martin Luther King, Jr. and the Southern Christian Leadership Conference (SCLC).

The post OP-ED: Congress Is Right: Federal Reserve’s Reg II Will Hurt Minority Communities in America first appeared on BlackPressUSA.

Oakland Post

Posts by Oakland Post

Up Next

The U.S. Senate Border Bill Split

Don't Miss

Housing and Urban Development Secretary Marcia Fudge Announces Retirement

Oakland Post

Click to comment

#NNPA BlackPress

Target Takes a Hit: $12.4 Billion Wiped Out as Boycotts Grow

Target Corporation’s stock plummeted by approximately $27.27 per share by the end of February, erasing about $12.4 billion in market value. The drop came on February 28, the designated economic blackout day, and coincided with mounting backlash over the retailer’s decision to abandon its diversity, equity, and inclusion (DEI) commitments. The National Newspaper Publishers Association […]

Published

5 days ago

March 2, 2025

Stacy Brown

The National Newspaper Publishers Association (NNPA) has taken action through its Public Education and Selective Buying Campaign. NNPA President and CEO Dr. Benjamin F. Chavis Jr. said, “Black consumers helped build Target into a retail giant, and now they are making their voices heard. If corporations believe they can roll back diversity commitments without consequence, they are mistaken.”

Reverend Jamal Bryant, pastor of New Birth Missionary Baptist Church in Georgia, has led calls for a “40-Day Target Fast,” urging Black consumers to withhold their spending at the retailer. “Black people spend $12 million a day at Target,” Bryant said. “If we withhold our dollars, we can make a statement that cannot be ignored.”

The NAACP also issued a Black Consumer Advisory in response to Target’s DEI rollback, warning Black consumers about corporate retreat from diversity initiatives. The advisory urges them to support businesses that remain committed to investing in Black communities.

Target is also facing legal battles. Shareholders have filed lawsuits challenging the company’s DEI policies, arguing that the commitments hurt financial performance. Meanwhile, conservative groups have sued over Target’s diversity efforts, claiming they discriminated against white employees and other groups.

“Consumers have the power to demand change, and Target is learning that lesson the hard way,” Chavis said.

Stacy Brown

Posts by Stacy Brown

#NNPA BlackPress

BREAKING Groundbreaking Singer Angie Stone Dies in Car Accident at 63

By Stacy M. Brown BlackPressUSA Senior National Correspondent @StacyBrownMedia The music and entertainment world reacted in shock and sorrow after the tragic death of Angie Stone, the pioneering singer-songwriter and hip-hop trailblazer who was killed in a car accident early Saturday morning in Montgomery, Alabama. She was 63. Stone’s publicist, Deborah R. Champagne, confirmed the […]

Published

6 days ago

March 1, 2025

Stacy Brown

By Stacy M. Brown

BlackPressUSA Senior National Correspondent

@StacyBrownMedia

The music and entertainment world reacted in shock and sorrow after the tragic death of Angie Stone, the pioneering singer-songwriter and hip-hop trailblazer who was killed in a car accident early Saturday morning in Montgomery, Alabama. She was 63.

Stone’s publicist, Deborah R. Champagne, confirmed the devastating news, stating that her family is heartbroken. “A number of her loved ones had just spoken to her last night,” Champagne told TMZ.

Born Angela Brown, Stone first rose to prominence as a member of The Sequence, hip-hop’s first all-female rap group. Their 1979 hit Funk You Up became one of the earliest rap records to break into the mainstream, later sampled in Bruno Mars’ Uptown Funk and Dr. Dre’s Keep Their Heads Ringin’. After her years with The Sequence, Stone launched a solo career in the late 1990s, earning Grammy nominations and releasing celebrated R&B hits like Brotha, No More Rain, and Wish I Didn’t Miss You.

Stone’s career spanned decades, seamlessly blending hip-hop, soul, and R&B. Her debut solo album, Black Diamond, achieved gold status. She earned multiple Grammy nominations, including Best Female R&B Vocal Performance for U-Haul and Best R&B Performance by a Duo or Group with Joe for More Than a Woman and with Betty Wright for Baby.

Several of Stone’s peers offered tributes following the devastating news.

Chuck D, the legendary Public Enemy frontman and Rock & Roll Hall of Fame inductee, called Stone a foundational figure. “Angie Stone [was] a powerful pioneer whenever I thought of her,” he told Black Press USA. “A foundation of modern soul and hip-hop and women empowerment that she’s still uncredited for. A terrible loss.”

Rocky Bucano, executive director of the Hip Hop Museum, described Stone as a groundbreaking force. “As a member of The Sequence, Angie B helped pave the way for generations of women in hip-hop,” Bucano said in an email to Black Press USA. “Her impact on hip-hop culture is immeasurable, and her presence will be deeply missed. Rest in power, Angie Stone. Your voice and influence will never fade.”

DJ Ralph McDaniels also told Black Press USA that Stone’s artistry mainly was unmatched. “Peaceful journey to our sister Angie Stone,” he said. “Her voice was unique and direct from hip-hop’s female group Sequence to her solo soul songs.”

Dr. Mario Dickens of Mario Dickens Ministries also offered condolences. “We are saddened to hear of the passing of one of this era’s greatest memorable voices,” he said. “We pray for her loved ones and fans,” said Dickens, who extended his company’s memorial printing services to Stone’s family at no cost.

Stacy Brown

Posts by Stacy Brown

#NNPA BlackPress

NAACP Legend and Freedom Fighter Hazel Dukes Passes

“She was a warrior in the truest sense of the word and activist extraordinaire.” Those words are from Reverend Al Sharpton who is celebrating the life and activism of the iconic Dr. Hazel Nell Dukes, civil rights activist and leader within the ranks of the New York and National Board of the NAACP. Dukes 92 […]

Published

6 days ago

March 1, 2025

Oakland Post

Just two weeks ago, Dukes was wheelchair bound and present to perform her duty as NAACP Election Supervisory Chair certifying the elections of the rights groups’ board members.

Dr. Ben Chavis, elected in 1993, was the 7th Executive Director and CEO of the NAACP and spoke on the life of Dukes saying, “The transformative leadership legacy of freedom fighter Hazel Dukes will now be enshrined with the greatest honor and respect as a leader of the NAACP in America and throughout the world.”

This morning the Chair of the Board of the NAACP Leon W. Russell told Black Press USA that Dr. Dukes led the NAACP New York Conference for 50 years acknowledging, “Her work has helped ensure that the 116-year-old NAACP could remain relevant and continue its work throughout the years. She has been consistent in her work and her support as a member and a leader.”

Sharpton says she has known her for almost 50 years since he was a teen. “There never was an issue that she was not out front. We’ve gone to jail together and the White House together.”

Sharpton expects to offer comments at Duke’s funeral service. He recalls she was “authentic, committed, and concerned,” The rights leader and TV host also says, “We will never have another Hazel Dukes. But thank God we had this one.”

The NAACP Board was notified of the passing of Dr. Dukes through the following correspondence this morning:

Passing of a Loved One. To God Be The Glory!

Colleagues, it is with a heavy heart and a profound sense of sadness that I inform you of that our sister, Momma Dukes, went to be with the ancestors at 6:20 AM today. Her transition was officially recorded and announced at 6:38 AM. Please lift her up in prayer and continue to pray for her son Ronald and all of her extended family.

It is always hard to send a message like this but as Hazel would say, she is in God’s hands now.

Dr. Hazel Nell Dukes, President of the NAACP New York State Conference and Member of the NAACP National Board of Directors was bold and courageous. She was a true warrior for civil rights and social justice. Her voice and her influence at our table will be missed, but we will all continue to be influenced by that same voice as we continue to fight for that same cause. Hazel was one of the giants on whose shoulders we will continue to stand as we continue to do God’s work here on Earth.

I will keep you informed as arrangements are announced and finalized. Please know that Hazel passed peacefully surrounded by many of the people who loved her and clergy who knew and pastored to her.

May our sister Hazel rest in power.

With a heavy heart.

Leon W. Russell

Chairman

NAACP National Board of Directors