U.S. companies should consider slavery reparations,
Vista Equity CEO says
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[August 12, 2020] By
Jessica DiNapoli
(Reuters) - The COVID-19 pandemic has hit
Black Americans especially hard after decades of social and economic
injustices, but it also presents an opportunity for systemic change,
said financier Robert Smith, the wealthiest African-American according
to Forbes.
In a video interview with Reuters, the CEO of private equity firm Vista
Equity Partners said companies that profited from the Transatlantic
slave trade should consider making reparations to African-Americans.
"I think that's going to be a political decision that's going to have to
be made and decided upon. But I think corporations have to also think
about, well, what is the right thing to do?" Smith said in a video
interview.
Corporations "can bring their expertise and capital to repair the
communities that they are directly associated with in the industries in
which they cover," he added. "I think that has to be a very, a very
thoughtful approach. But I think action needs to be taken."
The death of George Floyd in May reignited protests in the United States
and globally against racism and police brutality. Floyd, an
African-American man, died after a Minneapolis police officer knelt on
his neck for more than eight minutes.
"People are saying now, what can I do to make real systemic change and
eliminate and eradicate racism in America?" said Smith. "That is an
outgrowth of the protest and the realization that this racism is unjust
and can't stand."
Smith said he was pushing U.S. lawmakers to make more aid available to
Black communities. The average small business has two months of working
capital, whereas Black businesses have just two weeks, he said.
"How do we restore, repair and regenerate the economic activity in these
communities utilizing the force of the U.S. government and business and
partnerships?" Smith said.
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Robert Smith, Founder, Chairman and CEO, Vista Equity Partners,
speaks at the Milken Institute's 21st Global Conference in Beverly
Hills, California, U.S. May 1, 2018. REUTERS/Lucy Nicholson/File
Photo
Smith said he has been focused on getting capital to community development
financial institutions and minority depository institutions, that serve Black
and economically disadvantaged communities.
Roughly 70% of the African-American community does not have access to a bank
branch, he said, leaving many reliant on the financial institutions specifically
targeting minorities and economically disadvantaged areas.
Smith, who grew up during the late 1960s Civil Rights era and now runs a buyout
firm that focuses on investing in software companies, said he sees a more
broad-based coalition of support for equality for Black people.
"The allies weren't as widespread," when he was growing up, Smith said.
"Employees of companies are also going to hold the leaders accountable to do
something about it. We have a chance for systemic change."
Smith, the first African-American to sign Warren Buffett and Bill and Melinda
Gates' 'Giving Pledge', has supported Black people extensively in his
philanthropic efforts. Last year, he pledged to pay off the student loan debt of
the class of 2019 at the historically Black Morehouse College.
(Reporting by Jessica DiNapoli in New York; Editing by Greg Roumeliotis and
David Gregorio)
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