While redlining was outlawed by the Fair Housing Act of 1968 and Community Reinvestment Act of 1977, similar racial discriminatory practices continue and achieve the same effect as redlining — further racial segregation and inequality. One common practice is known as steering. Real estate agents will steer people to neighborhoods predominantly populated by people of similar ethnic background. Whites are steered to “better”, white neighborhoods, while blacks and Latinos are steered toward neighborhoods with more black and Latinos, which tend to be poorer. Another racial discriminatory practice, which led to the financial crash and current depression, is predatory lending. Rather than deny financial services, financial institutions targeted the black community, and other nonwhite communities, to sell them risky, high-priced subprime mortgage loans. Because of this, the practice is also known as “reverse redlining”. Subprime loans are typically made to people with poor credit histories and, hence, come with higher interest rates. According to a 2009 NAACP “Discrimination and Mortgage Lending in America” report, “even when income and credit risk are equal, African Americans are up to 34 percent more likely to receive higher-rate and subprime loans” than whites. This predatory lending perpetuated a decade-long housing bubble from the late-1990s to late-2000s.

Wells Fargo is one of many financial institutions that engaged in predatory lending in black communities. As the New York Times reported in June 2009, Wells Fargo “saw the black community as fertile ground for subprime mortgages, as working-class blacks were hungry to be a part of the nation’s home-owning mania.” Revealing the big bank’s true racism, loan officers at Wells Fargo commonly referred to African-Americans as “mud people” and subprime loans as “ghetto loans”. Wells Fargo has been sued by individuals and groups, such as the NAACP, for its racial discriminatory practices. In late-November 2011, a regretful former regional vice president of Chase Home Finance in southern Florida (a subsidiary of JP Morgan Chase, whose roots lie in slavery), James Theckston, admitted the predatory lending practices of big banks to New York Times columnist Nick Kristof. In fact, predatory lending was incentivized since lenders earned higher commissions from subprime loans than normal prime loans. In his column, Kristof notes:

“One memory particularly troubles Theckston. He says that some account executives earned a commission seven times higher from subprime loans, rather than prime mortgages. Sothey looked for less savvy borrowers — those with less education, without previous mortgage experience, or without fluent English — and nudged them toward subprime loans. 

These less savvy borrowers were disproportionately blacks and Latinos, he said, and they ended paying a higher rate so that they were more likely to lose their homes. Senior executives seemed aware of this racial mismatch, he recalled, and frantically tried to cover it up.”

So not only did big banks intentionally push black people and other people of color to buy subprime loans but they were well aware of the racism behind their actions. Moreover, the banks did not care if people lost their homes because of these risky, high-priced subprime mortgages.

The reason why subprime mortgage loans were aggressively pushed on to millions of people was so they could be bundled up into mortgage-backed securities. In 1999, the Glass-Steagall Act, which separated commercial from investment banking, was repealed under Clinton. This made it easier for subprime mortgage loans to be bundled into securities and sold on Wall Street for massive profits. When the housing bubble burst in 2007, that led to the financial crash in September 2008 and the current economic depression. Wall Street got bailed out but the people got stuck with massive poverty and unemployment. Millions of people lost their homes and many are on the edge of foreclosure. Black and Latino households were hit the hardest. As the Center for Responsible Lending points out, around 25% of all black and Latino borrowers lost their home to foreclosure or are close to foreclosure, compared to under 12% of all white borrowers. Home equity makes up the largest portion of overall wealth in black and Latino communities. Because of the collapse of the housing bubble and resulting foreclosures, black and Latino communities have experienced a dramatic wealth decrease in their communities. According to a recent Pew Research Center report, in 2005, median net worth (or total household wealth) of white households was $134,992, for Latinos it was $18,359, and $12,124 for blacks. In 2009, median net worth for white households dropped 16% to $113,149, Latino households experienced a 66% drop to $6,325, while black households experienced a 53% drop to $5,677. Pew rightly attributes this drop to the bursting of the housing bubble and recession that followed from it.

Wall Street, since its founding as a slave market, continues to play a substantial role in oppressing African-Americans and other working-class people. To fully understand racial inequality, it is important to know Wall Street’s historical roots in the trans-Atlantic slave trade. With this knowledge, we can combat the oppression of African-Americans by challenging the greed and oligarchy of Wall Street. Fortunately, there is already a movement doing just that — Occupy Wall Street.

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Historical sources:

• David McNally, Another World Is Possible: Globalization & Anti-Capitalism, (Winnipeg: Arbeiter Ring Publishing, 2006), Ch. 4, pp. 137 – 204
• Howard Zinn, A People’s History of the United States: 1492 – Present, (New York: HarperCollins Publishers Inc., 2003), Ch, 2, pp. 23 – 39
• Lerone Bennett, Jr., Before the Mayflower: A History of Black America, (New York: Johnson Publishing Company, Inc., 1982)
• James W. Loewen, Lies My Teacher Told Me: Everything Your American History Textbook Got Wrong, (New York: Simon & Schuster Inc., 1995)
• See also Douglas Massey & Nancy Denton, American Apartheid: Segregation and the Making of the Underclass (Harvard University Press, 1993) for history of racial segregation in the U.S.

http://www.africanburialground.gov/ABG_History.htm

African American history in New York City began in the Dutch colonies. The first Africans arrived in New Amsterdam as enslaved men in 1625 and 1626; the first enslaved women in 1628. They worked as farmers and builders and in the fur trade of the Dutch West India Company. Some helped build the wall intended to keep settlers safe from the native population at the location of today’s Wall Street. In 1644, the Company granted “conditional freedom” to the enslaved on condition that they make an annual fixed payment of farm produce. The children of the “conditionally freed” people, born and unborn, remained the property of the Company. Most of the families received grants to lands they had been farming before becoming “free.” At the time the area was generally undesirable swamp land. Today most of the area is in Greenwich Village. The Dutch continued to expand and to import enslaved Africans to meet growing labor needs. Between 1649 and 1659 they imported hundreds of men, women and children. In New Amsterdam, the first sales tax, an import tax of 10%, was imposed to discourage merchants from selling “human cargo” outside of the colony. Though not comprehensive, Dutch records do note that there were Africans who had never been enslaved who were living on the “free Negro lots” which today are located on land between from Astor Place and Prince Street.

In 1665, the Dutch surrendered New Amsterdam/New Netherlands to the British. For most European settlers, little changed in what became New York. For African New Yorkers, both enslaved and freed, British occupation meant severe change. Under Dutch rule, some Africans had gained half or full freedom. Even if enslaved, they had legal and social rights. One example is that no master could whip an enslaved African without the permission of the Dutch Common Council. This and other rules changed under the British rule. In a move toward commercial efficiency, the British formed the Royal African Company to import slaves directly from Africa to New York. “From the start of the English occupation the creation of a commercially profitable slave system became a joint project of both government and private interests. Unlike the Dutch West India Company which used slavery to implement colonial policy, the Royal African Company used the colony to implement slavery.” (Historian Edgar J. McManus) New York’s first slave market during the British period was established at Wall Street and the East River in 1709. In the early 1700’s there were 800 African men, women, and children in the city; about 15% of the total population. Local and state documents did not distinguish between free and enslaved Africans until 1756. Before then the term “slave” was used to describe all Africans and their decedents. They were all looked upon as valuable sources of labor.

The British enacted numerous laws that restricted where Africans could be employed and how they could be freed. Laws were passed to prevent free Africans from aiding runaway slaves. The New York “Slave Codes” grew so numerous that they are seen as a major cause of the 1712 slave revolt. In the revolt, enslaved Africans and natives gathered in an orchard on Maiden Lane with hatchets, guns, knives, and hoes and set out to burn and destroy property in the area. Nine whites were killed during the revolt. Twenty-one enslaved Africans were executed and six were reported to have committed suicide. After the revolt more laws were passed that prohibited Africans and natives from carrying weapons and entering military service. There were strict curfews and laws against gathering of more than two or three enslaved people. The revolt emphasized the growing fear that European New Yorkers had of the growing African population. At this time, Europeans in New York outnumbered people of African descent five to one, but the city contained the largest absolute number of enslaved Africans of any English colonial settlement except Charleston, South Carolina, and held the largest proportion of enslaved Africans of any northern settlement. By the first decade of the 1700’s, forty percent of New York’s households contained at least one enslaved African; again, the largest proportion of any northern settlement.

Metal Branding Irons with Owners’ Initials

FREE MARKET
http://maap.columbia.edu/place/22.html

In 1711, New York was growing quickly, and the growing needs of the city were often supplied by slave labor. Nearly 1,000 out of about 6,400 New Yorkers were black, and at least 40 percent of the white households included a slave. In these homes, enslaved workers cooked, washed, sewed, hauled water, emptied the chamber pots, swept out the fireplaces and the chimneys, and cared for the children. Along the East River they built, loaded, and unloaded, the ships. They cleared the land uptown, and then planted and harvested the crops. And up and down the narrow streets they pedaled their master’s goods and even supplied the city’s first fast foods—fresh oysters and steaming hot corn on the cob. As the number of slaves imported into the city soared, barrel makers, butchers, carpenters, blacksmiths, and tin workers began to purchase young enslaved men in order to teach them their trades. Typically, when a slave owner ran out of work, they hired their slaves out at half the rate of free labor. Often the slaves themselves were sent out to find work. In a time when fear of a slave uprising was ever-present, the sight of so many enslaved men walking the streets looking to be hired caused alarm. Fearful white citizens began to complain. They demanded a market where slaves could be hired, bought, and sold. Finally, on December 13, 1711, the City Council passed a law “that all Negro and Indian slaves that are let out to hire…be hired at the Market house at the Wall Street Slip…” This market, known as the Meal Market (because grains were sold there), was located at the foot of Wall Street on the East River. It was the city’s first slave market.

SLAVE STATES
http://www.inthesetimes.com/article/2457/the_northern_slave_trade/

The hidden history of slavery in New York calls myths of American morality into question
by Phyllis Eckhaus / January 6, 2006

Americans excel at ego-boosting myths of exceptionalism: It’s our ingenuity, energy and can-do attitude that explain our rise from frontier to world power. But what if slavery were the real secret of our success? We like to condemn slavery as an exotic evil perpetrated by plantation Southerners, but two new books and a museum exhibit provide nightmarish reminders that slavery was the norm in the early years of this country, and that up through the eve of the Civil War, Northern bankers, brokers and entrepreneurs were among slavery’s staunchest defenders. In Complicity, a team of Hartford Courant journalists investigates this history, producing 10 stories that explore how deeply the fortunes of New York and New England were tied to the slave trade. “Slavery in New York,” an exhibit at the New York Historical Society through March 5, reveals New York as a city substantially built by slaves. The companion book of the same name, elegantly designed and illustrated, anchors the exhibit in a series of scholarly essays. Together, these works echo and amplify each other, providing a kind of surround-sound opportunity for an anguished identity crisis: If our supposedly freedom-loving forebears were not “good guys,” what were they? And what are we?

From the get-go, Americans were profiteers, and plundering the New World was backbreaking work. Writing in 1645 to John Winthrop, governor of the Massachusetts Bay Colony, his brother-in-law Emanuel Downing complained, “I do not see how we can thrive until we get a stock of slaves sufficient to do all our business.” Further south, in New Amsterdam, slaves built Wall Street’s wall and cleared what became Harlem and Route 1. When a new shipload of slaves proved insufficiently hardy, Director General Peter Stuyvesant expressed his displeasure to the Dutch West India Company, insisting that the company supply the best slaves to Christian and company enterprises, while unloading the feeble on “Spaniards and unbelieving Jews.” For much of the 17th and 18th centuries, New York boasted the largest urban slave population in mainland North America. Slaves made up one-fifth the population. And white New Yorkers lived in terror of slave revolt. An alleged 1741 plot led to the jailing and torture of scores of slaves, 30 of whom were executed, 17 by burning at the stake. For slaves, the Revolutionary War was a liberating experience–but only if they fought for the British, who promised them freedom. Though George Washington sought to reclaim the colonists’ slaves, British General Guy Carleton oversaw the evacuation of more than 3,000 black Loyalists, who fled New York for Nova Scotia and other British outposts.

New York slowly and reluctantly abolished slavery; federal census figures showed slaves in the state until 1850. But the death of slavery in New York scarcely impeded the city’s business in the slave trade. In the peak years of 1859 and 1860, two slave ships bound for Africa left New York harbor every month. Although the trade was technically illegal, no one cared: A slave bought for $50 in Africa could be sold for $1,000 in Cuba, a profit margin so high that loss of slave life was easily absorbed. For every hundred slaves purchased in Africa, perhaps 48 survived the trip to the New World. By the end of the voyage, the ships that held the packed, shackled and naked human cargo were so filthy that it was cheaper to burn some vessels than decontaminate them. Law-abiding Northerners made money off slavery through the cotton trade. “King Cotton” was to antebellum America what oil is to the Middle East. Whole New England textile cities sprang up to manufacture cloth from cotton picked and processed by millions of slaves. In 1861, the United States produced more than 2 billion pounds of cotton, exporting much of it to Great Britain via New York. No wonder then that as the South began to talk secession, so too did New York Mayor Fernando Wood, who proposed that Manhattan become an independent island nation, its cotton trade intact.

How do we reconcile these facts with our mythology of the Civil War and our convenient conviction that the evils of slavery were contained within the South? Obviously, we can’t. Slavery was such a huge and gruesome enterprise, supported by so many, that it explodes inflated notions of American character. Instead, we might appropriately draw parallels between antebellum America and Nazi Germany. This is not to assert that ordinary Americans were “evil,” but rather that our insistent sorting of the world into “good guys” and “evildoers” distorts reality. Today, progressives are justly suspicious of the high-flown “freedom” rhetoric our government deploys to advance American empire. But we need always to be skeptical of reductive, righteous narratives. Far from promoting morality, such fictions allow us to hide our worst impulses from ourselves.