Investments in Black-owned banks 5 years after George Floyd's murder

Summary

Marketplace Morning Report: Investments in Black-owned Banks 5 Years After George Floyd's Murder

Release Date: May 22, 2025
Host: David Brancaccio

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1. OpenAI’s Strategic Shift into Hardware Investments

Timestamp: 01:07 - 02:27

Marketplace's Sabri Benishore introduces a significant development in the tech industry: OpenAI, renowned for its AI services like ChatGPT, is making a substantial $5 billion investment in hardware. This move marks a pivotal shift from purely software-based AI services to the creation of AI-focused physical products.

Key Highlights:

• Acquisition of Johnny Ive’s Startup: OpenAI is acquiring Ive's gadget startup, IO, signaling a deepened commitment to integrating AI into tangible devices. Jony Ive, the legendary designer behind Apple's iconic products like the iPhone and iMac, collaborates with Sam Altman to unveil this new venture.

• Future Product Tease: In a joint announcement, Ive and Altman hinted at a forthcoming ChatGPT-centric product, aiming to minimize reliance on gadgets from major players like Google and Apple.

Notable Quote:

Jony Ive: "A smartphone has been the same for decades and is now serving up AI tools. [...] We are excited to bring AI into a new form factor that changes how users interact with technology."
[01:50]

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2. The Resurgence of Labor Unions in America

Timestamp: 02:27 - 04:12

Marketplace’s Mitchell Hartman delves into the evolving landscape of labor unions in the United States. Despite historically low union representation, recent years have witnessed a significant uptick in union organization and approval.

Key Highlights:

• Rising Approval Ratings: According to Gallup data cited by Lydia Saad, Director of Social Research, union approval has climbed to nearly 70%, a resurgence not seen since the mid-20th century.

• Public Opinion Shift: Labor economist Aaron Sojourner from the Upjohn Institute highlights a growing favorability gap where Americans now prefer labor unions over big businesses by approximately 15 percentage points. This shift is attributed to movements like Occupy Wall Street, Bernie Sanders’ campaigns, and the labor challenges accentuated by the COVID-19 pandemic.

Notable Quote:

Aaron Sojourner: "The favorability gap started widening after 2012 with the rise of Occupy Wall Street, Bernie Sanders' presidential campaign, and the stresses workers faced during the pandemic."
[03:30]

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3. Five Years Later: Impact of Investments in Black-owned Banks

Timestamp: 05:12 - 09:15

In the heart of Columbia, South Carolina, Marketplace's Sabri Benishore examines the long-term effects of substantial investments made by major banks into Black-owned financial institutions following the tragic murder of George Floyd in 2020.

Case Study: Optus Bank

• Background: Optus Bank, led by President Benita Levesque and Vice Chairman Dominik Martin, is South Carolina’s only Black-owned bank. Facing systemic disadvantages like limited access to credit, Optus received a pivotal $40 million investment from major banks including JPMorgan Chase, Citibank, Bank of America, and Wells Fargo.

• Transformation: Prior to the investment, Optus Bank had a lending cap of approximately $500,000. Post-investment, this limit surged to over $12 million, enabling the bank to support larger loans for small businesses in underserved communities.

• Success Story - The Friendly Caterer:
  Sandra Sims, owner of The Friendly Caterer located in Columbia Airport, secured a $900,000 loan from Optus to upgrade her kitchen equipment and expand her business by opening three franchises within the airport. This expansion led to a tripling of sales and an increase in staff from 26 to 58 employees.

Notable Quotes:

Benita, Optus Bank President: "Without that equity capital, we would never have been able to meet the needs of a small business like Friendly Caterer."
[07:10]

Dominik Martin, Optus Bank Vice Chairman: "It's the airport, you know what I'm saying? Airport's not going anywhere. And the security of the business was based on our performance."
[08:14]

Benita, Optus Bank President: "It is the coolest piece of technology we have, enabling us to serve our community better."
[08:33]

Impact Assessment:

• Economic Growth: The infusion of capital has empowered Optus Bank to provide more substantial loans, fostering the growth of local businesses and contributing to economic resilience in the community.

• Community Development: Increased lending capacity has not only supported individual businesses but also stimulated broader economic activities within Columbia, reinforcing the bank’s mission to uplift underserved populations.

Conclusion: Five years after the unfortunate event that highlighted systemic racial injustices, strategic investments in Black-owned banks like Optus have demonstrated tangible benefits. These investments have not only enhanced the financial capabilities of these institutions but have also catalyzed significant economic and social advancements within their communities.

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Final Thoughts

This episode of Marketplace Morning Report underscores the importance of strategic investments—whether in technology, labor, or financial institutions—to drive meaningful change. From OpenAI’s venture into AI hardware, the revival of labor unions, to the impactful support of Black-owned banks, each segment highlights the pivotal roles these sectors play in shaping a resilient and equitable economy.

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For more insights and detailed reporting, listen to the full episode of Marketplace Morning Report.

Transcript

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[Sabri Benishore]

OpenAI is investing in Hardware From Marketplace, I'm Sabri Benishore in for David Brancaccio. We think of artificial intelligence as like a service that you use in any old app or search. But OpenAI, maker of ChatGPT, is reportedly dropping $5 billion to buy a gadget startup focused on creating a new AI AI focused physical product. The startup was founded by Johnny I've that's the guy who helped create the iPhone and imac marketplaces. Nova Sappho has more.

[Jony Ive]

You may remember Apple device launch videos of a bygone era featuring the soothing voice of designer Jony I've.

[WhatsApp Representative]

An aluminum.

[Sabri Benishore]

Body and formed sheet of glass describe a singular shape.

[Jony Ive]

Well, that shape, a smartphone has been the same for decades and is now serving up AI tools. In a new video, I've and Sam Altman announced that OpenAI is buying I've's gadget startup IO and teasing a new ChatGPT focused product to come. Jonny recently gave me one of the.

[Mitchell Hartman]

Prototypes of the device for the first.

[Jony Ive]

Time to take home and I think.

[Sabri Benishore]

It is the coolest piece of technology.

[Jony Ive]

When we'll see this technology. Altman didn't say, but the aim is to reduce ChatGPT's need for the physical gadgets of other companies such as Google and Apple. I'm Nova Safa for Marketplace.

[Sabri Benishore]

Fewer than 10% of American workers are currently represented by unions, but unions have become particularly visible in recent years, organizing drives against some of the country's most high profile companies, from Starbucks to Amazon. Unions have also been receiving higher approval ratings. Marketplace's Mitchell Hartman reports.

[Mitchell Hartman]

Gallup has been tracking Americans attitudes towards organized labor since the 1930s, says Director of social research Lydia Saad. And back then there was high public approval. Over 70% approval started falling in the 70s and 80s, times of economic malaise. Unions aren't quite as popular. Record downturn in 2009 with the recession and the bailout of the big three auto companies. But since then it's been on a long, slow climb back to near record high levels, with 70% of Americans now approving of unions. Meanwhile, according to new public opinion analysis by labor economist Aaron Sojourner at the Upjohn Institute, Americans favor labor unions now over big business more than ever, about a 15 point difference. Sojourner says the favorability gap started widening after 2012 with the rise of Occupy Wall Street, Bernie Sanders presidential campaign and the stresses workers faced during the pandemic. Hi, I'm Mitchell Hartman for Marketplace.

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[Sabri Benishore]

It's been five years since George Floyd was murdered by a white police officer in Minneapolis. In the years since big banks including JP Morgan Chase said Citibank bank, bank of America and Wells Fargo announced plans to invest millions of dollars in small black owned banks across the country. That investment was meant to let those banks make more loans to small businesses in underserved communities. Marketplace's Justin Ho recently visited one of those small banks to see how that investment worked out in its community in Columbia, South Carolina.

[Benita, Optus Bank President]

Optis bank in downtown Columbia calls itself South Carolina's only black owned bank. The the bank's president, Benita, left, says its goal is to lend to small business owners and other borrowers who face Systemic disadvantages that leave them without the things they need to have good credit.

[Dominik Miartin, Optus Bank Vice Chairman]

They may not have equity in a house or a money market account or a savings account.

[Benita, Optus Bank President]

And that last one, historically has meant that the bank hasn't had a whole lot of money to lend out without deposits.

[Dominik Miartin, Optus Bank Vice Chairman]

It makes it very difficult for us to have the capacity to make loans, you know, to our communities, to our small businesses.

[Benita, Optus Bank President]

So difficult that it wouldn't have been able to help if, say, a local business wanted to borrow close to a million dollars to upgrade its equipment.

[Sabri Benishore]

Before the pandemic, the legal lending limit of Optus bank was somewhere around $500,000.

[Benita, Optus Bank President]

That's Dominik Miartin, Optisbank's vice chairman. The bank received about $40 million worth of investment, much of it from four big banks. JPMorgan Chase, which declined comment for this story. Wells Fargo, which declined comment, and Citibank and Bank of America, which didn't respond to requests for comment. Their investment meant Optus could make more loans and bigger ones. So that half million dollar loan limit.

[Sabri Benishore]

Today, it's over 12 million.

[Benita, Optus Bank President]

So when a local restaurant called the Friendly Caterer wanted to borrow $900,000 a few years ago, Optus bank could.

[Sabri Benishore]

That's when the power of the capital is. Without that equity capital, we would never have been able to meet the needs of a small business like Friendly Caterer.

[Benita, Optus Bank President]

The restaurant is located inside the Columbia Airport. On the menu, candied yams, green beans, Mac and cheese, and fried chicken. Tanisha Mackey works behind the counter.

[Dominik Miartin, Optus Bank Vice Chairman]

You see that? You get that crisp. You hear that? Crisp, Crisp, yeah. Fried chicken.

[Benita, Optus Bank President]

The Friendly Caterer opened up about a year and a half ago. Sandra Sims is the owner. She's been running restaurants for almost three decades. Simms took me back into the kitchen to show me all of the new equipment that the loan let her buy.

[Dominik Miartin, Optus Bank Vice Chairman]

Convection oven, a regular oven, an oven top, fryers, coolers. All of this stuff had to be purchased and was brand new.

[Benita, Optus Bank President]

Sims also used the loan to open three franchises in the airport. A Jimmy John's, a Dunkin Donuts, and a Samuel Adams Bar. Borrowing 900 grand was tricky, especially since Sim's collateral was mostly her equipment. But her track record was solid, and so was her business plan for the restaurants.

[Dominik Miartin, Optus Bank Vice Chairman]

It's the airport, you know what I'm saying? Airport's not going anywhere. And the security of the business was based on our performance.

[Benita, Optus Bank President]

Sims says she's more than doubled her staff from 26 employees to 58. Her sales have more than tripled, and none of this would have been possible without the loan she received from Optus bank.

[Dominik Miartin, Optus Bank Vice Chairman]

And for it to take a George Floyd to do it. His name will live forever.

[Benita, Optus Bank President]

Sim says her goal is to pay off her loan within the next five years. In Columbia, South Carolina, I'm Justin Ho for Marketplace.

[Sabri Benishore]

And in New York, I'm Sabri Benishore with the Marketplace Morning Report from APM American Public Media.

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