Unlocking The Gates: A land transaction opens up a community

Summary

Marketplace Morning Report: Unlocking The Gates - A Land Transaction Opens Up a Community

Release Date: February 12, 2025
Host: David Brancaccio
Podcast: Marketplace Morning Report
Description: In less than 10 minutes, Marketplace’s David Brancaccio delivers the latest business and economic stories to start your day, including a global markets update from the BBC World Service.

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Federal Agencies Merger Under the Trump Administration

Duration: 00:01 - 00:58

The episode begins with David Brancaccio addressing potential changes within the Trump administration concerning federal agencies that regulate banking. According to the Wall Street Journal, there are considerations to combine and reduce the number of these agencies. This includes the Federal Deposit Insurance Corporation (FDIC), which safeguards customer deposits in case of bank failures.

Notable Quote:

"They are the Federal Deposit Insurance Corporation, which protects customer funds in the event a bank fails."
- Unknown Financial Analyst [00:24]

The discussion highlights other key agencies involved, such as the Consumer Financial Protection Bureau (CFPB), which enforces regulations to curb unfair banking practices, and the Office of the Comptroller of the Currency (OCC), which alongside the Federal Reserve, supervises banks to maintain financial system stability.

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Market Updates and Inflation Data

Duration: 00:58 - 01:34

Brancaccio provides a quick update on the stock market, noting that both S&P and Dow futures are down by 0.1%. The primary economic highlight of the day is the Consumer Price Index (CPI) for January. Expectations are for a slight decrease in year-over-year inflation to 2.8%, though this remains above the target set by interest rate policymakers.

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Marketplace Newsletter Promotion

Duration: 01:34 - 01:57

A brief segment promotes the Marketplace newsletter, emphasizing its role in providing clear and insightful economic analysis every Friday. This section encourages listeners to subscribe for comprehensive explanations of market movements and economic trends without the clutter of jargon.

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Unlocking The Gates: A Landmark Land Transaction in Minnesota

Duration: 01:57 - 06:55

Introduction to the Series: David Brancaccio introduces the key topic of the episode: access to homeownership in America. This is the first installment of the "Unlocking the Gates" series, focusing on a pivotal land transaction in a Minnesota suburb that played a significant role in combating housing discrimination.

Lee Hawkins' Story: Lee Hawkins, Marketplace's special correspondent, shares a personal connection to the story. He recounts how his family moved to Maplewood, a predominantly white suburb, in 1975, thanks to the strategic efforts of James and Francis Hughes. In 1946, they secured 10 acres of land at $8,000 from a white farmer, aiming for economic justice and creating opportunities for Black families.

Notable Quotes:

"This is the house that I grew up in... Maplewood was more than 90% white."
- Lee Hawkins [02:26]

"It was just after the war there was a tremendous shortage of housing... they just refused to sell."
- Ann Marie Rogers [03:11]

By the 1960s, Maplewood had evolved into one of the few thriving Black suburban communities in the United States. Carolyn Hughes Smith, the granddaughter of James Hughes, elaborates on her grandfather's vision for wealth-building through real estate. She recalls how her grandfather navigated legal and financial barriers to successfully acquire land, ensuring that Black families could establish generational wealth.

Personal Accounts: Davita Torick, the great-granddaughter of Frank Torick (the white farmer who sold the land), expresses astonishment upon learning about her family's inadvertent role in this transformative transaction.

Notable Quotes:

"When I received your email, it was quite shocking that somehow I could be a part of this amazing story of generational wealth."
- Davita Torick [05:43]

Jason Johnson, another friend from Minnesota, shares his grandmother's resilience in securing the house despite facing discriminatory financial demands. Her ability to provide savings bonds and secure the purchase legally was a pivotal moment that prevented legal repercussions against her family.

"She was really smart... she was able to show up that day with all her savings bonds and everything and had the money to get it."
- Jason Johnson [06:20]

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Conclusion and Upcoming Episodes

Duration: 06:55 - End

David Brancaccio wraps up the episode by teasing more installments of Lee Hawkins' "Unlocking the Gates" series, which will delve deeper into housing access and economic opportunity. Listeners are encouraged to visit Marketplace Online for the entire series.

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Final Thoughts:

This episode of the Marketplace Morning Report offers a compelling exploration of how strategic land transactions can dismantle housing discrimination and foster economic empowerment within marginalized communities. Through personal narratives and expert insights, the series underscores the enduring impact of accessible homeownership on generational wealth.

For those interested in the intersection of economics, housing, and social justice, "Unlocking The Gates" provides both historical context and contemporary relevance, making it an essential listen for understanding the nuanced challenges and triumphs in the quest for equitable housing.

Transcript

[David Brancaccio]

A Midwestern land deal that once dealt a blow to housing discrimination. I'm David Brancaccio in New York. First, there's news today the Trump administration is thinking about combining and shrinking federal agencies that regulate banking. That's according to the Wall Street Journal. Among parts that could become involved, one that manages the insurance on your bank deposits the fdic.

[Unknown Financial Analyst]

They are the Federal Deposit Insurance Corporation, which protects customer funds in the event a bank fails. We saw the AGENC in action during the mid sized bank failures in 2023 the Consumer Financial Protection Bureau, a watchdog that has been a thorn on the side of banks and credit issuers for actions such as limiting overdraft and other fees and the Office of the Comptroller of the Currency, which is an independent bureau inside the Treasury Department. It, along with the Federal Reserve, supervises banks and ensures the safety of the overall financial system.

[David Brancaccio]

Novo thank you. Markets S and P and Dow futures are both down 0.1%. The big economic datum of the day will be inflation. The Consumer Price index covering January. The headline figure is supposed to come down a notch with year over year inflation dropping slightly to 2.8%, which is still higher than the guardians of interest rates want. We shall see.

[Marketplace Newsletter Host]

If you want to be savvy about the economy, the Marketplace newsletter is just what you need. Every Friday you'll get explainers and analysis that make sense of everything from the moving markets to grocery prices. No jargon, no hype, just smart takes delivered to your inbox. Sign up [e-mail] subscribe.

[David Brancaccio]

Lets talk about a key marketplace matter. Who got access to buying a house in America, a foundation of many families, generational wealth or lack thereof. Today, the first in a series called Unlocking the Gates on Housing and Economic Opportunity with Marketplaces special correspondent Lee Hawkins. We start with a secret nighttime business deal which unlocked the gates in one Minnesota suburb for dozens of black families seeking better schools and safer neighborhoods, including Lee's own family.

[Lee Hawkins]

This is the house that I grew up in. My parents moved my two sisters and me in 1975 when I was just 4 years old. Maplewood, a suburb of 25,000 people at the time, was more than 90% white. I recently learned that we were able to move here because of some shrewd moves by the couple who lived in the big house behind ours, James and Francis Hughes. In 1946, they found a white farmer willing to sell them 10 acres of land for $8,000, according to an interview with Frances. Economic justice was their goal.

[Ann Marie Rogers]

It was just after the war there was a tremendous shortage of housing. And a great deal of new development was going on to try to fix that. But my dear Negroes couldn't even buy a lot in these developments. They didn't even need deed restrictions to turn us away. They just refused to sell.

[Lee Hawkins]

By the 1960s, the neighborhood had grown into a thriving black suburban community, One of the few of its kind in America.

[Carolyn Hughes Smith]

In the 50s, Mr. Hughes decided he was gonna let go of the farming. And it coincided with 94 going through the Rondo community and displacing, you know.

[Lee Hawkins]

Those people, that is Mrs. Ann Marie Rogers. Like so many other black communities across the country, Rondo was destroyed to make way for a highway. It was a forced removal. Was like a big brother to me. He took some bass guitar lessons from my dad and even end up later playing bass for Janet Jackson. Since his family moved to Maplewood several years before mine, I called him to see what he remembered. It was a pretty tight knit group of people. Every week I think they would meet, actually. It just felt like they seemed to be having a lot of fun. And I think there was an investment club, too. Mr. Hughes's granddaughter, Carolyn Hughes Smith, told us more about his vision for wealth building. But before he became a historical figure, he was just grandpa.

[Carolyn Hughes Smith]

The things that I really remember about him is he could whistle. Not whistle, but he could sing like a bird, you know, always just chirping.

[Lee Hawkins]

She was aware of some of the difficulty he faced in completing that transaction that forever changed Maplewood.

[Carolyn Hughes Smith]

What I heard later, of course, was that my grandpa was able to find someone that actually sold the land to him out there. And it, you know, and that's where it all started, really.

[Lee Hawkins]

That someone was Frank Torick. His great granddaughter, Davita Torick, is a California based psychotherapist. When I tracked her down, she was astonished to hear the long buried story.

[Ann Marie Rogers]

When I received your email, it was quite shocking like that somehow I could be a part of this amazing story of generational wealth.

[Lee Hawkins]

Here's Jason Johnson, another childhood friend with a Minnesota musical connection. His aunt, Cynthia Johnson, was the lead singer of Lip Sync, whose hit song Funky Town became a defining anthem of its time. I now know the bigger star was his grandmother.

[Jason Johnson]

They had told her that, well, you have to have so much money down by tomorrow for you to get this house. But my grandmother was. She was really smart and her father was really smart, so he had her have savings, bonds. So what she told him was, if you have it in writing, then I'll do my best to come up with the money. I don't know if I'll be able to. She was able to show up that day with all her savings bonds and everything and had the money to get it. And they were so mad that when she had got the house, they were so mad that. But nothing that they could do legally because she had it on paper.

[David Brancaccio]

We'll have more of Lee Hawkins series on access to housing this week here. And all of his Unlocking the Gates series will accumulate at Marketplace Online in New York. I'm David Brancaccio with the Marketplace morning Report from apm, American Public Media.