The Reparations Finance Lab will be looking at the following products,
which present a high-level overview of the Lab’s aspirations and ideas.
DEBT RESTRUCTURING AND THE USE OF REPARATIVE DEBT STRUCTURES
We will explore the development of a market for Reparations bonds in the same way that we have Green Bond and Social Impact Bonds.
There is extensive research on how Municipal Bonds have been used to harm Black communities. There is a need for reparative funding to address the crisis of environmental and social infrastructure needs in Black communities such as Flint, Michigan.
INSURANCE AND PENSIONS
Many insurance companies had their birth in Slave Policies that were written on the life of the enslaved with the beneficiary being the enslaver. As well, many companies employed discriminatory and punitive underwriting standards for Black individuals and communities. There is much reparative work to be done in this industry.
Mortgages are some of the most egregious and obvious examples of the way in which the financial markets have harmed Black people. From Redlining to Subprime mortgages, the capital market has a responsibility to develop equitable real estate programs for Black households.
BLENDED FINANCE USING GOVERNMENT GUARANTEES AND PRIVATE CAPITAL
The Capital markets can play two roles here. One is advocacy and the other is to prototype partnerships with governments to deliver targeted economic repair.
USING INNOVATIVE TECHNOLOGIES - BLOCKCHAIN and DeFI TO DELIVER EQUITY, CREDIT, AND ACCESS TO THE CAPITAL MARKETS TO THE BLACK COMMUNITY
As financial product innovation is rising, it is important for us to eliminate bad practices in race-based lending, unfair valuation practices, and more, which can influence a growing number of algorithmic products. Simultaneously, we must support firms that take a stand to truly grow in the face of changing market environments, including the push for sustainability and community support.
Fintech, cryptocurrency, AI, and other technological innovations are disruptive to traditional capital allocation processes. We will seek partners to intentionally use these processes in our work.
ARTS AND CULTURE
American arts and culture generate as much as $1 trillion each year, much of which is derived from the undervalued and exploited talents of Black entertainers, artists and performers. A disciplined strategy is to support the development of new creative talent, as well as equitable payment arrangements, protection of intellectual property with equity participation being driven far downstream into the creative ecosystem is necessary. As well, there must be reparative action to return stolen creative expressions to the communities and creators and a means to compensate the estates of those whose work was stolen and exploited.