Business and Racial Inequality: A Discussion

Some have embraced the opportunity to think bigger:

• Mr. Smith of Vista Equity called on U.S. companies to invest 2 percent of their annual profits in Black-focused lenders. Such a move, he said, would give these banks and other financial institutions the cash to help Black communities grow in the long term.

• Separately, Netflix devised a plan to deposit up to 2 percent of its cash holdings, or $100 million, with Black-focused financial institutions. Though conceived independently of Mr. Smith, the idea is the same: “You need capital to build more capital,” Professor Baradaran of U.C. Irvine, an adviser on the plan, said. The move addressed racial inequality not through charity but via a routine commercial aspect of Netflix’s business, a crucial distinction.


• The S.E.C. is investigating Kodak’s disclosure of a large government loan that sent its shares soaring, boosting the value of executives’ stock option grants. (WSJ)

• Argentina reached a deal with creditors, including BlackRock and Greylock Capital Management, to restructure $65 billion in debt. (NYT)

• People news: After three years of mixed results, Ford replaced its C.E.O., Jim Hackett, with its C.O.O., Jim Farley; Apple’s long-serving marketing chief, Phil Schiller, is stepping down, to be replaced by the product marketing head, Greg Joswiak; and the advertising group Publicis cut ties with Tom Goodwin, its head of futures and insight, because his Twitter posts about the coronavirus were “not aligned” with company values. (NYT)

Politics and policy

• Senator Mitch McConnell, Republican of Kentucky and the majority leader, signaled that he might be open to extended $600-per-week unemployment assistance payments, a sticking point in negotiations. (NYT)

• U.S. prosecutors are reportedly seeking $13 billion in penalties against the OxyContin producer Purdue Pharma. (Reuters)