After weathering a turbulent 2020, the art market bounced back with a massive recovery last year that seems to be continuing into 2022 with online art sales accounting for 20% of total sales. Recently, an Andy Warhol painting sold at auction for $195 million, the highest price ever for a 20th-century artwork, second only to Jean-Michel Basquiat’s “Untitled” which sold for $110.5 million that was created in 1982. Art markets are thriving despite inflation being at a 40-year high, ailing stocks, and a very shaky cryptocurrency market. Could 2022 be the year for Black art sales to thrive?

‍Why This Matters: The recent run-up in inflation rates around the world has intensified the search for hedges and art can serve as an inflation hedge in almost any environment, according to The Washington Post. Experts have found that the accumulation of art is an excellent way to diversify one’s portfolio. Unlike bonds, art is a tangible investment that is legible to all and, in general, reliable when it comes to dividends.

By CultureBanx Team

• Wells Fargo’s 47% approval rate gave it the worst record among major lenders when considering refinancing for Black homeowners
• African American homeowners were approved 71% of the time by all other mortgage lenders

Wells Fargo (WFC -1.01%), the nation's third largest bank by assets, is stifling Black homeownership by rejecting refinance applications sent in by Black homeowners, while approving almost three-quarters of those sent in by white applicants. A Bloomberg analysis found that Wells Fargo’s 47% approval rate gave it the worst record among major lenders when considering refinancing for Black homeowners. Homeownership is still one of the main avenues for all Americans to build wealth, though the national rate of Black homeowners stands at 41%. With nearly $200 billion lost in wealth and equity since the Great Recession, African Americans are at risk to have all median wealth extinguished by 2053, and Wells Fargo gamesmanship with mortgage applications will only make things worse.

‍Why This Matters: For Black America the pursuit of the American Dream through homeownership has never wavered with adults in this demographic, between the ages of 26 and 39, sparking a nationwide rise in the overall rate. U.S. Census data shows this group raised the homeownership rate for all Black Americans by more than 2% during the first three quarters of 2020.

By Keyanna Harper

• Black-owned businesses have brought over $200B to the U.S. economy annually
• Consumer spending in the Black community is projected to reach $1.7T by 2030

A changing tide for Black entrepreneurs is on the rise as their companies have brought over $200 billion to the U.S. economy annually. With no signs of slowing down, these Black-owned businesses are changing the landscape of business owners across the country while further tapping into the economic power of this community that’s set to expand from $910 billion in consumer spending in 2019 to a projected $1.7 trillion by 2030.

‍Why This Matters: Entrepreneurs starting up their enterprises and establishing networks within other organizations will be able to provide more jobs once they're properly capitalized.. Currently, there are 9.2 million Minority-owned firms in the U.S. and 1.02 million have paid employees, which is excellent for Black communities.

By CultureBanx Team

• The Biden administration is leaning toward forgiving $10K in student loans per borrower
• Canceling up to $50,000 of student loan debt per borrower would immediately increase the wealth of Black Americans by 40%

The Biden administration is leaning toward forgiving $10,000 in student loans per borrower, according to reports. Students of color typically rack up hundreds of thousands of dollars in student loan debt, meaning they are unable to focus on other financial goals like buying a home, paying off credit card debt, and saving for retirement. Eliminating this debt will start to narrow the racial wealth gap for young families, with 86.6% of Black students taking out federal loans to attend four-year colleges.

‍Why This Matters: It is definitely possible to initiate a positive long-term impact on racial wealth gap by tackling the inequities that hang on to the students’ college debt.‍ The Roosevelt Institute brief shows that canceling up to $50,000 of student loan debt per borrower would immediately increase the wealth of Black Americans by 40%. More than 40 million Americans are in debt for their education, and about 25% of those borrowers are in delinquency or default.

By CultureBanx Team

• Ex-Credit Suisse CEO Tidjane Thiam SPAC Freedom Acquisition I has parted ways with Pimco
• Thiam already raised $345 million through a 2021 IPO of Freedom Acquisition I on the NYSE

Blank-check SPAC Freedom Acquisition I Corp, helmed by former Credit Suisse CEO Tidjane Thiam has parted ways with Pimco, which offloaded its stake to Next G, an affiliate of Zeng’s advisory firm China Bridge Capital. It’s very rare for a SPAC’s early backers to walk away from the investment after it starts trading, especially with the strong leadership that someone like Thiam, an Ivory Coast native, brings to the company.

‍Why This Matters: Freedom Acquisition I priced its $345 million IPO on February 25 last year and aims to combine with a scalable fintech target with distinct business strengths and differentiations, focusing on businesses that are technology-enabled and demonstrate growth and scalability potential. One of Pimco’s private funds was part of its sponsor group and committed to buying shares in the IPO.