Goldman Sachs announced the launch of One Million Black Women, a $10 billion investing initiative focused on narrowing opportunity gaps for one million Black women. Creative Investment Research issued an initial impact analysis, finding the program C- and D+ for impact and utility. In reviewing the program, Creative Investment Research focus on potential program effectiveness. They also review possible social impact.
As with bank issued Community Reinvestment Act (CRA) commitments, Goldman’s pledge is subject to change depending on business and economic conditions, is not legally binding, and can be modified or cancelled at any point.
Other findings include:
– The role and power of the Advisory Board is unclear.
– The Advisory Board is comprised of individuals having limited track records for positive impact on the Black community beyond the symbolic.
– External funding sources are likely one of the many government and Federal Reserve liquidity programs.
– Goldman released an economic study titled “Blackwomenomics.”
– Ethical Concerns are critical.
These factors reduce the likely impact of the effort.
Investment Advice for Black Women
To maximize social and financial impact, Creative Investment Research suggest the firm give each woman $10,000 in Bitcoin today, as Creative Investment Research suggested in 2017 to several groups of Black women. (A $10,000 investment made then would now be worth $520,000.)
This is a far more honest, ethical and potentially impactful strategy.
For the full summary analysis check here.