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Wealth patterns among the top 5 percent of African-Americans

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A comprehensive study on wealth creation and wealth management among the nation’s wealthiest African Americans reveals more conservative approaches to financial decision-making.

(PRNewswire) – The top 5 percent of African Americans invest a greater proportion of their wealth in lower-volatility assets – such as insurance, savings bonds and CDs – when measured against a white comparison group, according to a new study published this week.

The research sponsored by Credit Suisse’s New Markets business also shows proportionally higher investments in real estate, and proportionally lower investments in business assets. Conducted in collaboration with Brandeis University’s Institute on Assets and Social Policy (IASP), the study seeks to advance financial opportunity among women, African-Americans and the LGBT community.

"This study identifies distinctive investing behaviors within the African-American community and a number of potential drivers of these behaviors," said Pamela Thomas-Graham, Credit Suisse's chief marketing and talent officer and head of New Markets.

"The findings may also reflect what we know from adjacent data, which is that African-Americans are generally under-served by banking institutions. The Commerce Department, for example, has published data showing that minority business owners receive loans less frequently, at significantly smaller sizes, and at worse rates than non-minority business owners."

Highlights of the report include:

  • The top 5 percent of African Americans take a relatively conservative approach to decision-making on matters of wealth creation and wealth management. For example:
  • The investment portfolios of the top 5 percent of African Americans are three times more heavily weighted towards CDs, savings bonds and insurance than the investment portfolios of the study's white comparison group, and are nearly one-half less weighted towards stocks, bonds and mutual funds.
  • The top 5 percent of African Americans invest 9 percent of their non-financial assets in business assets, defined as the total value of business(es) in which a household has either an active or non-active interest. The study's white comparison group invests 37 percent of their non-financial assets in business assets.
  • The top 5 percent of African Americans invest 41 percent of non-financial assets in real estate outside their primary home, relative to 22 percent for the study's white comparison group.
  • "Wealth mobility" – the degree to which a population maintains wealth over time or moves into wealth over time – is relatively low among African-Americans and may be a driver of more conservative financial decision-making. IASP's research shows that around 57 percent of high-income African-American families in 1984 were still in the top segment of income in 2009, but 8 percent had fallen into the low-income segment. For high-income white American families, 73 percent remained in the high income segment and only 1 percent fell into the low income segment. This analysis is a new analysis of the 1984-2009 data.
  • Education is a key driver of wealth among the top 5 percent of African-Americans. Almost 69 percent of African-Americans at the 95th percentile of net worth have a college degree, compared with 64 percent for the study's white comparison group.

 

"The numbers in our report provide rich and detailed insights," said Stefano Natella, global head of Equity Research and one of the study's authors.

"Wealth at the top of the African-American community, what drives it and how it compares to specific control groups has not been studied with this comprehensiveness in some time."

View the full report

(For more information: www.credit-suisse.com.)

Key figures in the Ferguson, Missouri shooting

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With indications that a decision is near on whether to indict the policeman who killed teenager Michael Brown, here is a snapshot of high-profile figures in the race-tinged drama.

FERGUSON, Mo. (AP) – A look at some of the key figures in the case of Michael Brown, the African American 18-year-old who was fatally shot by a white police officer in August — a death that has stirred weeks of sometimes violent unrest in the St. Louis suburb.

MICHAEL BROWN

Michael Brown graduated from Normandy High School last spring and was preparing to attend Vatterott College, where he planned to study to become a heating and air conditioning technician. Friends say he eventually wanted to go into business for himself.

Relatives and friends described Brown, who grew up in a tough neighborhood, as a quiet, gentle giant who stood around 6-foot-3 and weighed nearly 300 pounds. He was unarmed on the day he was killed.

Police said later that he was a suspect in the "strong-arm" robbery of a convenience store moments before the shooting. A family attorney said Brown may have made mistakes but did not deserve to die.

"He was just looking forward to getting on with his life," said his grandmother, Desuirea Harris. "He was on his way."

OFFICER DARREN WILSON

Some descriptions of Ferguson police officer Darren Wilson are similar to those of Brown. Both men have been described as gentle and quiet. Police Chief Thomas Jackson said Wilson had no previous complaints against him and a good career record.

"He's devastated," the chief said after naming Wilson as the shooter back in August. "He never intended for this to happen. He is, and has been, an excellent police officer."

Wilson began his career in nearby Jennings before moving to the Ferguson job several years ago. He was placed on paid administrative leave after the shooting.

POLICE CHIEF THOMAS JACKSON

Thomas Jackson was a police veteran long before he came to Ferguson. He spent more than 30 years with the St. Louis County Police Department, at one point serving as commander of a drug task force. Before that he was a SWAT team supervisor, undercover detective and hostage negotiator.

He heads a department with 53 officers, only three of them black, in a town where nearly 70 percent of the 21,000 residents are African American.

"I'm constantly trying to recruit African-Americans and other minorities," Jackson has said. "But it's an uphill battle. The minority makeup of this police department is not where I want it to be."

Some of Jackson's actions in the wake of the shooting have drawn criticism, including his decision to announce that Brown was a suspect in the convenience-store robbery, a move that stirred anger in Ferguson's African-American community.

ST. LOUIS COUNTY PROSECUTOR BOB MCCULLOCH

Since his election in 1991, Bob McCulloch has been the top prosecutor in St. Louis County. A Democrat with a reputation for being tough on crime, he comes from a law-enforcement family. He was 12 years old when his father, a police officer, was shot and killed by a black suspect in 1964.

Some critics, including St. Louis County Executive Charlie Dooley, questioned McCulloch's ability to be objective in the Ferguson case. They wondered if losing his father in such circumstances creates a built-in bias.

MISSOURI STATE HIGHWAY PATROL CAPT. RON JOHNSON

During a 27-year career, Capt. Ron Johnson climbed from patrolman to chief of the 11-county division of the Missouri State Highway Patrol that includes St. Louis and its suburbs.

Back in August, Gov. Jay Nixon appointed Johnson to take command of security in Ferguson. That decision came after complaints that authorities were too heavy handed with protesters, when St. Louis County police were in charge.

Johnson's calm but commanding presence drew high praise from many observers. When Johnson, who is African American, walked down the streets of Ferguson with protesters, many demonstrators shook his hand or posed for photos with him. He reminded locals of his Ferguson roots and suggested that he, too, had lessons to learn from the case.

"We all ought to be thanking the Browns for Michael, because Michael's going to make it better for our sons, so they can be better black men," he said during public remarks in August.

He also apologized to Brown's family.

"I wear this uniform, and I should stand up here and say that I'm sorry," he said.

MISSOURI GOV. JAY NIXON

Events in Ferguson could have a significant effect on the political future of Gov. Jay Nixon, a 58-year-old Democrat.

His experience in confronting crime includes overseeing Missouri's long record of executions. During Nixon's four terms as attorney general and two terms as governor, Missouri has put 66 convicted killers to death, a total few states can match.

Nixon drew some criticism in the days immediately after the shooting for keeping a low profile, but he soon moved to the forefront, putting state police in charge of security and then calling in the National Guard to help quell the violence.

ATTORNEY BENJAMIN CRUMP

Benjamin Crump became a national figure when he represented the family of Trayvon Martin, the Florida teenager fatally shot by a neighborhood-watch organizer in 2012. Now he's back in the spotlight, representing Brown's family in another racially charged death.

Crump, 44, was born in North Carolina, one of nine children. Now based in Tallahassee, Florida, he seems to fight back his own emotions as he talks about the loss suffered by Brown's parents. To him, the issue is simple.

"I don't want to sugarcoat it," Crump said in August. Brown "was executed in broad daylight."

ATTORNEY GENERAL ERIC HOLDER

Almost from the outset, Attorney General Eric Holder showed a strong interest in Michael Brown's death. 

Two days after the shooting, Holder said the case deserved a full review and dispatched a Justice Department team to Ferguson to try to calm tensions. The department soon launched its own civil-right investigation.

Holder ordered a federal medical examiner to perform a third autopsy on Brown and called the Brown family to express his condolences. He said aggressively pursuing these types of investigations is "critical for preserving trust between law enforcement and the communities they serve."

Bill Cosby performs and gets standing ovation

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The show Friday night in Melbourne, Fla., might have seemed destined for disaster but what the embattled comedian got was an adoring audience.

by Matt Sedensky

Associated Press

MELBOURNE, Fla. — The protesters didn’t show, the would-be hecklers didn’t take the bait, the weeks of headlines about sexual assaults disappeared and Bill Cosby, for 90 minutes at least, regained the revered status he long enjoyed.

The show Friday night in Melbourne, Florida, might have seemed destined for disaster for the comedian, enveloped in growing accusations of rape and sexual assault that have derailed his career comeback and crumbled his tour schedule. What he got, though, was an adoring audience that laughed so hard they slapped their knees, shouted love at the stage and rose to their feet as he came and went.

“I think people went in there with him as Bill Cosby from the TV show,” said Travis Weberling, 40, of Melbourne, “not the guy they heard about on the news.”

The 2,000-seat theater beefed up security and announcements before Cosby took the stage warned a disturbance was possible — radio hosts had even offered cash and prizes to anyone who made it happen. Reporters swarmed the venue. But, in the end, just one protester stood outside, holding a sign that read, “Rape is no joke.”

What remained to be seen was whether the evening marked a turning point for a beloved television father, or simply a momentary reprieve. It did nothing to immediately change the fact that Cosby’s projects have been nixed and stalled, performances have been canceled across the country and women continue to come forward accusing him of serious crimes.

Cosby has never been charged in connection with any of the allegations.

“I know people are tired of me not saying anything, but a guy doesn’t have to answer to innuendos,” Cosby told the Florida Today newspaper before the show. “People should fact check.”

Cosby’s lawyer, Martin Singer, said the accusations had “escalated far past the point of absurdity,” dismissing them as “fantastical,” ”unsubstantiated” and “uncorroborated.”

“When will it end?” he asked. “It is long past time for this media vilification of Mr. Cosby to stop.”

And, throughout the audience, his fans agreed.

They talked of watching him on TV as a child, and of his albums becoming familiar friends when the moved to unfamiliar, faraway towns. They brushed off the accusations, howling at everything he uttered.

When he took the stage at the Maxwell C. King Center For The Performing Arts, they stood and hollered, and he returned a thumbs-up. Only a smattering of empty seats were seen. Cosby wore cargo pants and a shirt that said “Hello Friend” and never once ventured in the realm of controversy. His 90-minute set wandered from a childhood fear of God to the loss of freedom in marriage to the rocket-speed Spanish of a piñata-store worker.

He sat for much at the start of the show, then grew increasingly physical, impersonating jujitsu and gymnastics poses, laying on the floor in stocking feet and thrusting a fist upward in a gesture of battling the everyday oppression of living with a wife. And when it was over, he said “good night,” walking off as the audience again stood.

The most impassioned of his fans breathed a sigh of relief. Judith Stone traveled from Madison, West Virginia, for the show, deeming it “absolutely fantastic” and grateful no one interrupted.

“I think he will leave with a very positive attitude,” she said.

Elsewhere, audiences will not have the chance to see Cosby. Performances in Oklahoma, Nevada, Illinois, Arizona, South Carolina and Washington were called off. David Fischer, director of The Broadway Center in Tacoma, Washington, said an April appearance was called off because it conflicts with the organization’s mission strengthen the community “building empathy, furthering education and sharing joy.”

Projects on NBC and Netflix have been canceled, and TV Land decided not to air reruns of “The Cosby Show.”Cosby’s producers said at least 28 other shows remain on his schedule through May 2015.

Tom Werner, who co-founded the Carsey-Werner Company which produced “The Cosby Show,” defended Cosby in a statement to the Boston Globe.

“The Bill we knew was a brilliant and wonderful collaborator on a show that changed the landscape of television,” Werner and partner Marcy Carsey said in the statement. “These recent news reports are beyond our knowledge or comprehension.”

And, even in a crowd of Cosby faithful, there was some worry there was more to come.

“This very well may be Bill Cosby’s last show,” said Marcus Utt, 25, of Melbourne.

Some of the women accusing Cosby are going public again after initially coming forward around 2005, when Andrea Constand filed a lawsuit alleging that she was sexually assaulted by him.

Tamara Green, a California attorney, also said Cosby tried to sexually assault her in her Los Angeles apartment around 1970, when she was a model and an aspiring actress. She said Cosby gave her two pills that made her almost lose consciousness, took her to her apartment, undressed her and then took his clothes off as she fought off his advances.

Another woman, Joan Tarshis, said Cosby gave her drug-laced drinks twice in 1969, forcing her to perform a sex act the first time and raping her the second time. She said she told no one about this for decades, and only decided to go public when she read a Nov. 13 column in The Washington Post by Barbara Bowman, who alleges she was drugged and raped by Cosby when she was 17.

And, offering a familiar narrative, another woman, Therese Serignese, said she was drugged and raped by Cosby in 1976.

(Contributors include Frazier Moore, Mark Kennedy, David Bauder and Alexandra Otto in New York, Michael Virtanen in Albany, New York, and Anthony McCartney in Los Angeles.)

(To see related video: http://thegrio.com/2014/11/22/cosby-performs/.)

Grizzlies dump Celtics with Leuer big off the bench

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Recuperating from a lineup-altering stomach virus, Memphis romps over Boston.

by Kelley D. Evans

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Nineteen points won’t cure a stomach virus, but they can feel mighty good to a player who returns after an illness to score a season high.

“We are still feeling a little run down, but it’s just a matter when you step between the lines you can’t make any excuses. You just have to go play.”

Those are the words of Grizzlies reserve forward Jon Leuer, one of seven Memphis players on the injury/illness report released before Friday night’s game against the Boston Celtics at the FedExForum. Five of those players had missed Wednesday’s game against the Eastern Conference-leading Raptors in Toronto.

With two players – starter Tony Allen and reserve Quincy Pondexter – still not well enough to take the court against the Celtics, the Grizzlies got a key contribution from Leuer in the 117-100 drubbing of Boston.

Coming off the bench near the end of the first quarter, Leuer subbed for Marc Gasol and when his night was done he had matched the third-highest scoring output of his career.

“I know he’s sick and he was playing his tail off,” said Grizzlies head coach Dave Joerger. “He made some shots, which was good to see, but he can barely keep his head up right now.”

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Leuer’s initial stint in the game extended into the second quarter. He hit two long jump shots, something he’s had trouble doing since the end of the preseason. Then he added a couple of layups and a dunk.

“It’s always nice to see the ball go in, especially when you knock your first couple of shots down,” Leuer said.  “The basket just seems to get bigger from there. I knew if I kept playing hard and kept making the right decisions that things would start to happen.”

 

The Grizzlies’ win extended the regular season home winning streak. They have not lost in the FedExForum since falling to the Washington Wizards during a February 11th game last season.

The Celtics tied their winning hopes to getting the Grizzlies to play at their up-tempo pace. Instead, Memphis forced Boston (4-7) to contend with an inside-out game that the Celtics could not handle.

Gasol led all scorers with 32 points, his third 30-point game of the season. He found the performance of teammates more noteworthy.

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“The guys that played tonight weren’t 100 percent themselves,” Gasol said.  “They gave us what they had. That is what I care about. You come in and you give me what you got, that’s plenty for me.  I couldn’t ask anything more.”

Zach Randolph recorded his 99th career double double with 16 points and 16 rebounds.

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Center Kelly Olynyk, who led Boston with 18 points, spoke to the challenge of defending Gasol.

“He is one of the best five men in this league from a physical standpoint, from a skill standpoint, both ends of the floor offensively and defensively. He is a tough match up for anybody. He played real well tonight.”

The Grizzlies have another day for recuperation before confronting the Los Angeles Clippers at FedExForum on Sunday.

“We’re going to get some fluid in these guys, get their feet up and get ready for Sunday,” Joerger said.

(Follow Kelley D. Evans on Twitter  @KelleySthrnGrl.)

Kam’s Kapsules: OPENING THIS WEEK (November 21, 2014)

Weekly Previews That Make Choosing a Film Fun         

by Kam Williams

Special to The New Tri-State Defender

For movies opening November 21, 2014

BIG BUDGET FILMS

“The Hunger Games: Mockingjay – Part 1” (PG-13 for intense violence, disturbing images and mature themes) Third installment in the vaunted sci-fi franchise, based on Suzanne Collins’ best-selling series of young adult novels, finds intrepid heroine Katniss Everdeen (Jennifer Lawrence) reluctantly serving as a symbol of courage and hope for a nation in revolt. Ensemble cast includes Josh Hutcherson, Julianne Moore, Woody Harrelson, Jeffrey Wright, Donald Sutherland, Stanley Tucci, Liam Hemsworth, Elizabeth Banks and the late Philip Seymour Hoffman.

INDEPENDENT & FOREIGN FILMS 

“All Relative” (Unrated) Romantic dramedy, set in NYC, about a couple (Sara Paxton and Jonathan Sadowski) whose budding relationship becomes imperiled by the arrival of her folks for a weekend visit. With Connie Nielsen, Al Thompson, Liz Fye and David Aron Baker.  

“Bad Hair” (Unrated) Coming-of-age drama, set in Caracas, Venezuela, where a 9 year-old (Samuel Lange Zambrano) becomes so obsessed with straightening his kinky hair that his mother starts to wonder whether he might be gay. Supporting cast includes Beto Benites, Nelly Ramos and Maria Emilia Sulbaran. (In Spanish with subtitles)

“Extraterrestrial” (Unrated) Not a remake of E.T., but a horror flick about a young couple (Brittany Allen and Freddie Stroma) whose romantic getaway to a cabin in the woods is rudely interrupted when a UFO crash lands nearby. With Melanie Papalia, Jesse Moss and Anja Savcic.  

“Food Chains” (Unrated) Forest Whitaker narrates this politically progressive documentary chronicling the exploitation of farm workers by supermarkets. Featuring commentary by Robert Kennedy, Jr., Eve Ensler, Eva Longoria, Kerry Kennedy and Eric Schlosser. 

“A Girl Walks Home Alone at Night” (Unrated) Horror flick, set in an Iranian ghost town whose denizens are being stalked by a lonely vampire (Sheila Vand). With Arash Marandi, Marshall Manesh and Mozhan Marno. (In Persian with subtitles)

“Happy Valley” (Unrated) Pedophilia at Penn State is the subject of this shocking documentary examining why legendary football coach Joe Paterno looked the other way for years while his defensive coordinator Jerry Sandusky was raping young boys right in the locker room.

“Little Hope Was Arson” (Unrated) Bible Belt documentary about the 2010 reign of terror in East Texas when 10 churches were burned to the ground by God-hating arsonists in just one month. 

“Pulp” (Unrated) Rockumentary chronicling the reunion of the British group Pulp for the first time in 25 years in order to stage a farewell concert in Sheffield, England.

“Reach Me” (PG-13 for sexuality, profanity, violence, drug use and smoking) Serendipitous drama about the positive effect a motivational book has on a variety of readers in need of help confronting their fears. Ensemble includes Sly Stallone, Nelly, Lauren Cohan, Terry Crews, Danny Aiello, Kyra Sedgwick, Tom Sizemore, Omari Hardwick, Thomas Jane and Danny Trejo. 

“The Sleepwalker” (Unrated) Psychological thriller about the sibling rivalry which re-erupts violently when a woman (Gitte Witt) renovating a country home with her husband (Christopher Witt) gets a surprise visit from her sister (Stephanie Ellis) and future brother-in-law (Brady Corbet). 

“Stones in the Sun” (Unrated) Author Edwidge Danticat stars in this American Dream drama about a family driven from Haiti to New York where they are forced to confront the skeletons in their closet. Co-starring Michele Marcelin, Diana Masi and Thierry Saintine. (In Creole, English, French and Haitian)

“V/H/S: Viral” (R for profanity, sexuality, graphic violence, gore and drug use) Third installment in the found-footage horror series revolves around fame-obsessed teens who get more than they bargained for when they unwittingly become the latest Internet sensation. Co-starring Justin Welborn, Emmy Argo, Amanda Baker and Rim Basma.