just money banking as if society mattered
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Welcome and Navigation
Welcome to Just Money
current section
Welcome to Just Money: Banking as if Society Mattered
As of today, we are a diverse community of participants fromover 120 countries around the world! Together we explore how bankscan act as forces for positive social, ecological, and economic
development for all. We call this Just Banking.
The global financial crisis of 2007/ demonstrated the elemental rolebanks play in our global economic system and our society as a whole.
!hile the crisis highlighted the ways failing ban"s can undermine society#swell$being, in this course, we#ll explore how banks operate that usefinance as a tool to address social and ecological challenges
This course will introduce you to different models of just banks, andexplore how they finance social and green businesses and connect tobroader movements to address the societal challenges we face. %ou willalso learn what it ta"es to run an organi&ation that operates along the triplebottom line, translating a mission and values into day$to$day operations.
'an"ing, at its core, is about collectively moving capital into the futurewe envision. (o, we will also connect with )uestions about what thatfuture should look like and how it can be achieved. 'y the end of this
course you#ll understand what just banking is, what these ban"s do, and howthey address social and ecological challenges. 'ut most importantly, you#ll
gain the tools to change the world with your own money and your ownvoice.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/173678b89d0a48b5a616cf2f33922fd6/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/173678b89d0a48b5a616cf2f33922fd6/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/173678b89d0a48b5a616cf2f33922fd6/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/173678b89d0a48b5a616cf2f33922fd6/
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To support this journey, we will blend the online material with:
*. An eco-system of placebased learning communities
we call "#ubs"
2. Online peer coaching groups, and
+. Real-time live classroom sessions throughout the
course.
!ell explain how this all wor"s in -ust a moment. 'ut first, lets begin withthe basics $ how to navigate this course.
$lick the right arrow below to continue to the ne%t page
'A( A1AT3 T4(
f this is your !rst ed" course - welcome# The information below will help youna$igate this site. f you%re already familiar with ed", just s&ip ahead.
Right now you are in Welcome ' (a$igation, in a section titled )Welcometo *ust +oney). n ed", sections contain course content, such as $ideos,interacti$e uestions, and more.
ortions of the section ed" calls these unitsare arranged in a learningseuence, $isible at the top of your screen. The top of your screen shouldloo& something li&e this:
The active unit within a learning se)uence will be highlighted. The units arearranged in order from left to right. 4lease note, some sections may onlyhave one unit.
5ets go ahead and move on to the next unit. %ou can either select the nextunit in the learning se)uence, or select the right arrow below.
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6TT (TAT68
This is an orientation wee". 4lease use the time to become familiar with thestructure and features of this class. At the end of this wee", you shouldhave answers to the following )uestions9
*. !here do find the course material:
2. ;ow does ed< wor":
+. ;ow =and why> do use the 4resencing nstitute website:
?. ;ow can prepare myself to get the most out of this class:
@. !ho are the other students:
Welcome & 'avigation re)uires about +0 minutes to complete, so pleaseplan accordingly.
This is the last page in this section. To continue, clic" the next section onthe left side of your page titledWhere to (ind $ourse $ontent.
Where to (ind $ourse $ontent
!;66 T3 8 3B(6 3T6T
The online elements of this class exist on two related websites9 ed< and
the 4resencing nstitute.
ed)
The ed< platform is where you will find the videos, live sessions, guest
faculty, interviews, and readings. This is where you will learn the core
concepts of Just Money .
*resencing +nstitute
The features on the 4resencing nstitute Just Money site give you the
opportunity to make your learning e%perience uniue. +f you want to
connect to other participants and connect the concepts to your
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/a00ff37d73cf43b8a0cf2bdd8be6751d/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/a00ff37d73cf43b8a0cf2bdd8be6751d/
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work, you should use both platforms. The 4resencing nstitute site
offers features that allow you to co$create a deeper learning experience
through #ubs, $oaching $ircles, and -iscussion .oards.
!ell provide the lin" to the 4resencing nstitute Just Money site in the
sections that follow. lic" the next section =4resencing nstitute !ebsite> on
the left side of your screen to continue.
*resencing +nstitute Website
46(6 (TTBT6 !6'(T6
Just Money: Banking as if Society Mattered , was created as a joint e/ortbetween the MIT Community Innovators Lab (CoLab) and
the Presencing Institute (PI). The resencing nstitute, co-founded by
0r. 1atrin1aeufer, is an awareness-based action-research community that
speciali2es in building social technologies and facilitating spaces for social
change.
The Just Money site hosts features that allow you to co-create $arious
learning e3periences with your fellow participants in this course. 4lic& ahead
to the ne3t section 54reate a ro!le6 to !nd a lin& to the Just Money site.
$reate a *rofile
6AT6 A 4356
The lin" at the bottom of this page will ta"e you to the 4 Just
Money website. The first thing you will do there is create an account.
3n the homepage, loo" for this box and clic" Create AccountC or log in
using acboo", oogle, 5in"edn, or Twitter9
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/50432004dd184b8e9a0f40aa83f5a531/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/c5cd30cc87844c98a1f5a10eb3f66cb3/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/50432004dd184b8e9a0f40aa83f5a531/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/c5cd30cc87844c98a1f5a10eb3f66cb3/
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After creating your account, or signing in using your pre$existing aceboo",
oogle, Twitter, or 5in"edn account information, complete the intention$
setting )uestions by clic"ing9
;ere is the lin" to the 4 Just Money website =we suggest you boo"mar"
it>9 https:77uschool.presencing.com7just-money
*articipant -irectory
4AT4AT 86T3%
After you have created a profile, you will be able to search the Just
Money articipant 0irectory =you must be logged in to access>. n the
directory you can9
• ind out who the other participants are
• (ee who else is currently online
• (ort by country and more
https://uschool.presencing.com/just-moneyhttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/394b110276024cf4bb1e18fac0ceb397/https://uschool.presencing.com/participants/just-moneyhttps://uschool.presencing.com/just-moneyhttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/394b110276024cf4bb1e18fac0ceb397/https://uschool.presencing.com/participants/just-money
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• (end each other direct messages
-iscussion .oard
8(B((3 '3A8
!e have set up our own discussion forum with more social features to help
you connect and collaborate.
As with other features, the discussion board is separate from ed< and sits on
the 4resencing nstitute website. %ou will need to log into the 4 site in
order to participate.
4lease note9 f you have ta"en other ed< courses $ we will not be using the
ed< discussion forum.
Access the discussion board here =you must be logged in for access>.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/99589f1c330b47c188a97a7578118598/https://uschool.presencing.com/discussion-board/just-moneyhttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/99589f1c330b47c188a97a7578118598/https://uschool.presencing.com/discussion-board/just-money
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/ive essions
516 (6((3(
4re$recorded videos are a great teaching tool and weve been wor"ing hard
to create a set of videos to facilitate your learning in this course. 6achwee", we will release pre$recorded videos and assignments that will help you
put the Dust Eoney ideas into practice.
n addition, during Week 2 and Week , there will A5(3 be a /+3
classroom session facilitated by 8r. 4hil Thompson and 8r. Fatrin Faeufer
that will bring you and your classmates from around the world together in
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/f0cd8ade433740b09a511a4784d354db/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/f0cd8ade433740b09a511a4784d354db/
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real time. These live sessions will be an important element in using this
E33 to activate a global, action$based community. f you are unable to
-oin, the session will be recorded and available for viewing on$demand.
chedule
Live Session 1: April 27th from !"##$%"## &TC
Live Session 2: May 'th from !"##$%"## &TC
BT means oordinated Bniversal Time. hec" your time in BT here.
#ubs
;B'(
As part of this class, we invite you to create a place to learn together with
other people. !e call these places ;ubs.
reating a ;ub is actually )uite simple. A ;ub is any space where Just
Money participants gather together to watch the live sessions and, if you
choose, engage in dialogue and reflective exercises in small groups before
and afterward. ;ubs complement the online/digital part of the course with a
place$based, in$person component. !e say its simple because you start by
having a conversation after each of the live sessions $ something anyone can
organi&e.
There are at least three different ways to form a ;ub, described below. or
more detailed information, download the Just Money 8ub 8ost 9uide.
+f you are hosting a hub and would li"e to connect to other hub hostsaround the world, please email9 -ustmoneyGpresencing.com
1TBA5 (4A6 3 ;B'(
http://www.timeanddate.com/worldclock/timezone/utchttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/d17ec4156e5a4951aff96f7ce846461b/https://courses.edx.org/asset-v1:MITx+11.405x+1T2016+type@asset+block/Just_Banking_Hub_Guide.pdfhttp://www.timeanddate.com/worldclock/timezone/utchttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/d17ec4156e5a4951aff96f7ce846461b/https://courses.edx.org/asset-v1:MITx+11.405x+1T2016+type@asset+block/Just_Banking_Hub_Guide.pdf
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3n the 4 Dust Eoney site, you can search, 4oin, and create online spaces
for your hub members to interact9 https:77uschool.presencing.com7hubs7just-
money
56 3 68(
orm a hub with a small group in your home or another suitable location.
nvite your friends or use the 4articipant 8irectory to find other inance 5abparticipants in your area and arrange a space to meet.
31AT3 ;B'
https://uschool.presencing.com/hubs/just-moneyhttps://uschool.presencing.com/hubs/just-moneyhttps://uschool.presencing.com/hubs/just-moneyhttps://uschool.presencing.com/hubs/just-money
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onvene a group of sta"eholders who want to change a system in which
they wor". f you are ta"ing the Dust Eoney course with others in your
organi&ation, use the course as a @ wee" innovation period to co$create and
accelerate new ideas.
$oaching $ircles
3A; 56(
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/a624a0236f7446ec9eaca222417b3eab/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/a624a0236f7446ec9eaca222417b3eab/
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oaching ircles are probably the single most effective method you will
have in this course for moving concept into practice.
!hat is a oaching ircle:
A coaching circle is a group of 56 Just Money participants who will meet
virtually =or in person, if possible> for about 60 minutes each week to
discuss some of the core )uestions raised in this course. The goal is to dive
deeper into the course materials and to support each other in connecting
the course content to their work and life.
;ow 8o orm a oaching ircle:
ts possible that you might find others in your ;ub who could form your
coaching circle. 'ut, for most participants, who dont "now anyone else
ta"ing this course, we will show you how to meet other Just
Money participants and create or -oin a coaching circle. 7ll coaching
groups will be selfselected %ou can start a new group, or browse
groups that are still in need of members. !hen browsing groups, youll be
able to search by preferred meeting time, preferred language, other groupmembers interests, and more. ;eres a preview of what the coaching circle
selection page loo"s li"e9
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(hould Doin a oaching ircle:
or a coaching circle to be effective, each member needs to be committed to
meet each wee". (ee if one of the following applies to you9
*. f youre definitely interested in participating in a coaching
circle on a wee"ly basis, sign up next wee".
2. f youve -oined Just Money and only intend to browse thecourse material $ were happy that youre here $ but you should not -oin a
coaching circle.
+. f youre not sure whether you want to -oin a coaching
circle, its better to wait and create or -oin a group later in the course than to
-oin a group and not participate or to -oin a group and then drop out.
?. f youre definitely interested but "now in advance that you
wont be available to -oin a coaching circle during a particular wee", youshould still -oin, but we recommend you bring this up in advance in your
circle. Ea"e sure that you can fully -oin all other sessions.
AH
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#ow do + 4oin a coaching circle8 At the end of !ee" *, you will see a
tutorial explaining how to create or -oin a coaching circle
+9m not going to 4oin a coaching circle $an + still participate in the
class8 %es, absolutely. t wont be the full experience, but you can stillparticipate and earn a certificate.
+9m participating in a #ub $an + form a coaching circle with people
in my hub instead of 4oining one virtually8 Absolutely. f you choose to
do this, we encourage you to A5(3 create an online space on the 4resencing
nstitute website where members of your coaching circle can share written
assignments and thoughts with each other. !ell explain how to reserve a
coaching circle next wee".
When does my coaching circle meet8 That is entirely up to your group to
decide. !hen loo"ing for a group, you can sort by the day and time you are
most li"ely to be available. %our coaching circle should always meet before
the next wee" of the course goes live. ew wee"s go live on Tuesdays.
'avigating ed)
T;6 68< 45AT3E
d" allows people from anywhere in the world to learn at their own pace, in
their own location, and according to their own interests and
bac&ground. This sub-section contains a brief tutorial that e3plains how to
na$igate the ed" learning en$ironment.
f you ha$e ne$er ta&en an ed" course before, we recommend that you
spend a few minutes re$iewing this section. t will help you get familiar with
how things wor& and may sa$e you time in the long run.
1863( 3 68<
The functionality of the ed< video player should be familiar to most nternet
users, but the ed< video player does have some extra features. hec" out
the video below to learn more.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/34299f8c500a49578e76ebebafd18cbb/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/34299f8c500a49578e76ebebafd18cbb/
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Bsing the ed< 1ideo 4layer
*. ;tart of transcript. ;&ip to the end.
2. 55A (;69 ;i, welcome to 6dx.
+. m 5ila isher, an 6dx fellow helping to put
?. together these courses.
@. As you "now, our courses are entirely online.
I. (o before we start learning about the sub-ects that
7. brought you here, lets learn about the tools that you will
. use to navigate through the course material.
J. 5ets start with what is on your screen right now.
*0. %ou are watching a video of me tal"ing.
**. %ou have several tools associated with these videos.
*2. (ome of them are standard video buttons, li"e the play
*+. 4ause 'utton on the bottom left.
*?. 5i"e most video players, you can see how far you are into
*@. this particular video segment and how long the entire video
*I. segment is.
*7. (omething that you might not be used to
*. is the speed option.
*J. !hile you are going through the videos, you can speed up
20. or slow down the video player with these buttons.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/34299f8c500a49578e76ebebafd18cbb/?child=first#transcript-end-35112fd0388146f8bc8558e4898e83b9https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/34299f8c500a49578e76ebebafd18cbb/?child=first#transcript-end-35112fd0388146f8bc8558e4898e83b9
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2*. o ahead and try that now.
22. Ea"e me tal" faster and slower.
2+. f you ever get frustrated by the pace of speech, you can
2?. ad-ust it this way.
2@. Another great feature is the transcript on the side.
2I. This will follow along with everything that am saying as
27. am saying it, so you can read along if you li"e.
2. %ou can also clic" on any of the words, and you will notice
2J. that the video -umps to that word.
+0. The video slider at the bottom of the video will let you
+*. navigate through the video )uic"ly.
+2. f you ever find the transcript distracting, you
++. can toggle the captioning button in order to ma"e it go
+?. away or reappear.
+@. ow that you "now about the video player, want to point
+I. out the se)uence navigator.
+7. ight now youre in a lecture se)uence, which interweaves
+. many videos and practice exercises.
+J. %ou can see how far you are in a particular se)uence by
?0. observing which tab youre on.
?*. %ou can navigate directly to any video or exercise by
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?2. clic"ing on the appropriate tab.
?+. %ou can also progress to the next element by pressing the
??. Arrow button, or by clic"ing on the next tab.
?@. Try that now.
?I. The tutorial will continue in the next video.
?7.
1863 45A%6 6ATB6(
%ou can control each videos speed, volume, screen si:e, and captions;
%ou can play or pause the video whenever you li"e9
Also, when transcripts are enabled, the transcript appears alongside the
video. (elect any word on the transcript to -ump to that point.
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%ou can watch the video lectures at any time of the day or wee" that is
convenient for you.
8B6 8AT6( A8 A86(
Assignments may be graded, meaning they count towards your final
course grade. Assignments may also have due dates, or the last
possible time you can submit an assignment. 3nce the due date has
passed, you cannot receive credit for any incomplete portion of the
assignment.
(ome graded assignments do not have due dates, and some assignments
with due dates are not graded. f an assignment has a due date, the due
date appears under the learning se)uence name in the course accordion. f
an assignment is graded, the name of the assignment appears under the
name of the learning se)uence, and a blue alarm cloc" appears next to the
learning se)uence name in the course accordion.
The image below shows three different assignments. The last assignment is
graded and has a due date. Bnless otherwise specified, the time &one for
assignment due dates is universal coordinated time =BT>, the international
time standard.
To determine what time assignments are due, you can loo" up your time
&one K convert it to BT here.
=nfortunately, ed) cannot offer any e%tensions on late assignments
f no due date is displayed, the assignment can be completed at any time.
http://www.timeanddate.com/worldclock/timezone/utchttp://www.timeanddate.com/worldclock/timezone/utc
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B55 68< 86E3
The units you just re$iewed are part of a more
comprehensi$e ed" demo. We chose them because they are the most
rele$ant to our course and we wanted to gi$e you a uic& o$er$iew to helpyou get started. f you want a more detailed o$er$iew of ed", we encourage
you to ta&e the full ed" demo here. t ta&es about ptional; ed) Mobile 7pp
68< E3'56 A44
ed< has a mobile appL
+nstalling the Mobile 7pp 7ndroid; To install the ed< mobile app for
Android devices, use the following lin" to access the 9oogle lay store.
+nstalling the Mobile 7pp i>; To install the ed< mobile app for i3(
=i4hone>, use the following lin" to access the iTunes store.
https://www.edx.org/course/demox-edx-demox-1https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/8459e3eeb1b3486b9c903b40b8acde43/https://play.google.com/store/apps/details?id=org.edx.mobile&hl=enhttps://itunes.apple.com/us/app/edx/id945480667?mt=8https://www.edx.org/course/demox-edx-demox-1https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/ec1f3eaff6af4a62aebe96f827e9e0ab/8459e3eeb1b3486b9c903b40b8acde43/https://play.google.com/store/apps/details?id=org.edx.mobile&hl=enhttps://itunes.apple.com/us/app/edx/id945480667?mt=8
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Week 0: Orientation Week
>verview
!66F 09 36TAT3 !66F!elcome to **.?0@x 3rientationL This wee", we will be introducing you tothe information and tools you will need to complete this course successfully.
;ere is an overview of the specific actions you will need to complete thiswee"9
• Watch the about video for 1150% Just Money; .anking as if
ociety Mattered
• $reate a profile on the 4 Just Money website
• $omplete the entrance survey
+ntroduction to Just Money
T38BT3 T3 DB(T E36%9 'AF A( (36T% EATT668
n this video, you will meet the instructors, who will introduce the content
and discuss the core purpose of the course.
ntroduction to **.?0@x
*. ;tart of transcript. ;&ip to the end.
2.
+. The global crisis of 2007$200 demonstrated
?. the fundamental role the ban"s play
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/26474aa851d3439b9903bbfa0afc630b/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/26474aa851d3439b9903bbfa0afc630b/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/3db7cb93955d4e62a33bd4839e121ac4/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/3db7cb93955d4e62a33bd4839e121ac4/?child=first#transcript-end-a2d51983624e41dbb1ed78fe426e6e18https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/26474aa851d3439b9903bbfa0afc630b/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/26474aa851d3439b9903bbfa0afc630b/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/3db7cb93955d4e62a33bd4839e121ac4/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/3db7cb93955d4e62a33bd4839e121ac4/?child=first#transcript-end-a2d51983624e41dbb1ed78fe426e6e18
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@. in our global economic system and in our society as a whole.
I. !ithout functioning ban"s, people lose their -obs,
7. businesses shutter, and our economies threaten to collapse.
. !hile the crisis highlighted the ways in which failing ban"s can
J. undermine our economy and our society,
*0. in this course, Dust Eoney$$ 'an"ing as if (ociety Eattered,
**. well explore how ban"s can play a positive role using finance
*2. as a tool to improve our environment,
*+. increase the economic well$being of community residents,
*?. and create a better society for all.
*@. As intermediaries between borrowers and lenders,
*I. ban"s are in a uni)ue position in the economy and in society.
*7. (ome ban"s leverage this position
*. to improve the environment and to address
*J. social and economic ine)ualities.
20. !e call this -ust ban"ing.
2*. 3ver the past *0 years, weve wor"ed with ban"s
22. that fund social and ecological pro-ects
2? and that bring financial services and often the ultimate
2?. into education to those who have been excluded.
2@. !eve traveled around the world and spo"e
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2I. to ban"ers of -ust ban"s to bring you
27. stories and examples of ban"s that are trying
2. to have a positive impact.
2J. This course will introduce you to different models of -ust
+0. ban"ing and how they finance social and ecological
+*. businesses and movements.
+2. %ou will learn what it ta"es to operate along the triple bottom
++. line.
+?. ;ow do you combine the profitability with the mission:
+@. !hat does it ta"e to translate values into mission,
+I. into day$to$day operations:
+7. ;owever, this course is more than a technical exploration
+. of -ust ban"ing.
+J. 'an"ing, at its core, is about collectively moving capital
?0. into the future we envision.
?*. (o whether youre interested in environmental change,
?2. social -ustice, ine)uality, or even the community
?+. you live in, its important for all of us, not only ban"ers,
??. to understand how to use ban"ing as a tool for change.
?@. !e designed this course for a wide range of participants,
?I. and it does not re)uire a bac"ground in finance.
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?7. 3ur participants include undergraduate and graduate
?. students, finance professional, cowor"ers from -ust ban"ing
?J. institutions, and lifelong learners interested
@0. in economic and social change.
@*. n this course, you will also have the opportunity
@2. to connect with your fellow participants
@+. through in$person learning communities exploring
@?. new pertinent and deepening your understanding of how
@@. the material here own experience.
@I. 'y the end of this course, you will
@7. understand what -ust ban"ing is, what -ust ban"s do,
@. and how -ust ban"s improve the environment and society.
@J. 'ut most importantly, youll learn
I0. to use your own voice and your own money to change the world.
I*. (o -oin us in **.?0@x Dust Eoney$$
I2. 'an"ing as if (ociety Eattered.
I+.
I?.
6A !T; T;( E33
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This video will introduce you to some of the "ey ways to engage with this
E33.
6ngaging with this E33
*. ;tart of transcript. ;&ip to the end.
2.
+. !elcome to this class, Dust Eoney9
?. 'an"ing as a (ociety Eattered.
@. And in this short clip we want to explain
I. what options you have, how to use this class material.
7. (o first, an online class differs
. from a class where you sit$in a classroom together.
J. An online class is really driven by your interest.
*0. (o you as" yourself, what clip, what material,
**. has spar"ed my interest.
*2. And you -ust follow this interest.
*+. 'ut this program differs from some other online programs
*?. because we offer you, or they invite you to,
*@. several additional forms of learning.
*I. (o one is we outline different practices
*7. that you can do by yourself, to explore the material
*. from different perspective.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/3db7cb93955d4e62a33bd4839e121ac4/?child=first#transcript-end-dcbc3fd3a1b648e5921269b48246851fhttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/3db7cb93955d4e62a33bd4839e121ac4/?child=first#transcript-end-dcbc3fd3a1b648e5921269b48246851f
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*J. 'ut you also have the opportunity
20. to meet other participants of the class.
2*. And to form small coaching, or discussion circles,
22. that we provide instructions for,
2+. and where you can explore the theme of -ust money
2?. from different angles.
2@. Another form of engagement is that you actually
2I. meet people face to face.
27. !e call this hubs.
2. And you find a lin" how to either -oin a hub,
2J. or how to organi&e a hub, also on this website.
+0. And lastly, want to mention that this program differs
+*. from other programs because it provides also live sessions.
+2. !e have two live sessions that will be streamed from ET.
++. And where you can also send )uestions to us
+?. that we will try to respond to.
+@. (o en-oy.
+I.
+7.
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yllabus
3B T6T3
6nable participants to understand and use finance as a tool for economic,
social, and environmental change through ban"ing.
3B A443A;
!e believe that learning is the most profound when it is done with others
and connected to our lived experience. n this course, we invite you to
engage with your fellow participants through live sessions, hubs, and
coaching circles to deepen your understanding of the content and how it may
affect our individual and collective actions.
!66F *9 'AF A( (36T% EATT668
$ore concepts
• 8ow ban&s operate
• The role of ban&s in our economies
•
ssues with the mainstream ban&ing system
• ntroduction to *ust >an&ing
oices from the iel*
• >rian Argrett 54ity ?irst >an& of 046
@uest (aculty
• (imon Dohnson =ET (loan (chool of Eanagement>
• 3tto (charmer =ET (loan (chool of Eanagement>
*ractices
• eflective Dournaling
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/255edd45c0074a4a9da5c67f9f54f619/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/255edd45c0074a4a9da5c67f9f54f619/
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• Join a $oaching $ircle; ;ign up for a coaching circle,
learn the method, and ha$e a call or meeting with your group to introduce
yoursel$es
!66F 29 !;66 836( %3B E36% (5664 AT;T:
/ive ession $ April 27th from *@900 M *I900 BT
$ore $oncepts
• !hat is -ust ban"ing:
• Transparency9 !hat does my money do:
• !hat is the impact of -ust ban"ing:
oices from the (ield
• Amy 0omini 50omini ;ocial n$estments6
• *ean-@ouis >ancel 54redit 4ooperatif6
• William A2aro/ 5ancity 4redit Bnion6
• 0arrin Williams 5;outhern >ancorp6
• 4esare itali 5>anca tica6
• +iguel Torres Recinos 5;A4 Apoyo ntegral, 4lient6
• +arion 4uny 54redit 4ooperatif6
• And more...
Practices
• Watch Cst @i$e ;ession
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• eflective Dournaling
• 4oaching 4ircle DC
• espond to 5ending ase
!66F +9 6T;F E36% A8 86'T
$ore $oncepts
• !hat is money:
• !hat ma"es some debt good and other debt bad:
• Asset$based development
• 6conomic 8emocracy
oices from the (ield
• Asier Ansorena 5nstituto >anco almas6
• *orman (une2 ' (ic& u$iene 5>ron3 4ooperati$e
0e$elopment nitiati$e6
Practices
• eflective -ournaling
• oaching circle N2
!66F ?9 'A5A 43TA'5T% A8 AE((3
$ore $oncepts
• 8ow are lending decisions madeE
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• s there a tradeo/ between pro!t and missionE
• I Anchors of ntention in a ban"9 ulture, 3wnership,
4eople, 5eadership K overnance, 4olicies K 4rocesses, Accountability
oices from the (ield
• Tamara rooman 5ancity 4redit Bnion6
• ;am +oore 5>endigo and Adelaide >an&6
• 4ecilia elasco 5>anco ?ie6
• *uan ablo +e2a 5;A4 Apoyo ntegral6
Practices
• ReFecti$e *ournaling
• 4oaching 4ircle D<
!66F @9 'AF 3 T;6 BTB6
/ive ession $ Eay *th from *@900 M *I900 BT
$ore $oncepts
• mpact of new technologies and regulations on the ban&ing
sector
• !hat is the future of ban"ing:
• !hat "ind of ban"ing does our future need:
@uest (aculty
• ;imon *ohnson 5+T ;loan ;chool of +anagement6
• eter ;enge 5+T ;loan ;chool of +anagement6
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oices from the iel*
• eter >lom 5Triodos >an&6
• And more...
Practices
• Watch Gnd @i$e ;ession
• ReFecti$e *ournaling
• 4oaching 4ircle DH
@rading
A8
6ach wee", there will be three types of activities you can do to earn credit.
*. !atch the videos =@0O>
2. 4articipate in a coaching circle =2@O>
+. Dournaling and 4ractice =2@O>
!ee" 0 =this wee"> is orientation and will not be gradedWeek 1Week ; 3ach one of the weeks is worth 20A of youroverall grade
There are no graded tests, exams, or )ui&&es. %ou will be expected tocomplete a reflective -ournaling exercise each wee", beginning in !ee" *.This course is pass/fail. %ou will need a I0O overall grade to pass and earn
a certificate. Additionally, our grading system is completely based on the
honor code. At the end of each wee" you will find a section called
Pertificate Trac"Q. n this section you will indicate what wor" you completed
during the wee".
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/6951c4b6e8424befa57888ebd0ddf06f/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/6951c4b6e8424befa57888ebd0ddf06f/
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$reate a *rofile
6AT6 A 4356
The lin& at the bottom of this page will ta&e you to the Just Money website.
The !rst thing you will do there is create an account.
3n the homepage, loo" for this box and clic" Create AccountC or log in
using acboo", oogle, 5in"edn, or Twitter9
After creating your account, or signing in using your pre$existing aceboo",
oogle, Twitter, or 5in"edn account information, complete the intention$
setting )uestions by clic"ing9
;ere is the lin" to the 4 Just Money website =we suggest you boo"mar"
it>9 https:77uschool.presencing.com7just-money
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/17de6018ead04af2adbb3c945227dd87/https://uschool.presencing.com/just-moneyhttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/17de6018ead04af2adbb3c945227dd87/https://uschool.presencing.com/just-money
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Meet the Beam
E66T T;6 3B(6 T6AE
This course was built with generous collaboration of -ust ban"ing
practitioners from around the world. The course team listed below includes
those who are most visible in the videos and online platforms M but many
more contributed greatly to the creation of this course.
-r *hil Bhompson
8r. 4hil Thompson is an urban planner and political scientist. ;e received a
'.A. in (ociology from ;arvard Bniversity in *J77, a E.B.4 from
;unter ollege in *JI, and a 4h8 in 4olitic (cience from the ity Bniversity
of ew %or" raduate enter in *JJ0. 4hil wor"ed as 8eputy eneralEanager of the ew %or" ;ousing Authority, and as 8irector of the Eayor#s
3ffice of ;ousing oordination. 4hil is a fre)uent advisor to trade unions in
their efforts to wor" with immigrant and community groups across the
Bnited (tates.
-r Catrin Caeufer
8r. Fatrin Faeufer is a (enior esearch ellow at the ET ommunity
nnovators 5ab =o5ab> in ET#s 8epartment of Brban (tudies and 4lanning,
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/e943f65d561d44cc821c7aeecf67d4b6/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/e943f65d561d44cc821c7aeecf67d4b6/
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and 4resident at the 4resencing nstitute. ;er research focuses on
leadership, social transformation, and socially responsible ban"ing. Faeufer#s
dissertation on (ocially esponsible 'an"ing was published as a boo". (he
has consulted with mid$si&ed as well as global companies, non$profit
organi&ations, the !orld 'an", and with the Bnited ations 8evelopment4rogram in ew %or". (he is also a co$founding member of the 4resencing
nstitute.
Lily +teponaitis
@ily ;teponaitis is a ost-9raduate ?ellow at the +T 4ommunity nno$ators
@ab. 8er wor& focuses on ban&s that use capital as a tool to build economic
democracy and support social and en$ironmental wellbeing. ;he recei$ed
her >.A. in 9eography and conomics from the Bni$ersity of (orth 4arolina
at 4hapel 8ill and her +.A. in 4ity lanning from the +assachusetts nstitute
of Technology.
Celvy .ird
Kelvy Bird is a visual facilitator specializing in systemic mapping of content within
collaborative and multi-stakeholder environments. In addition to drawing the images,
icons, maps, and slides that feature prominently throughout the U.ab, she works with
the !resencing Institute to cultivate spaces of co-creation, e"ploring the role of art in
social transformation. #ou can find out more about Kelvy$s work here.
http://www.kelvybird.com/http://www.kelvybird.com/
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.en4amine ri*erich
After graduating from 68;6, a rance$based 'usiness (chool, where she
obtained a Easters 8egree in Arts and 3 Eanagement, 'en-amine went
on an around$the$world trip to explore social economy issuesR she wor"ed
with 3s in Africa, Asia and (outh and entral America, carrying out
communication and consulting assignments in microfinance and fair trade.
'ac" in rance, she wor"ed in corporate sponsoring, where she was in
charge of both internal and external communication and philanthropy
pro-ects. n 200J she moved to the nternational Affairs 8epartment where
she managed financial and commercial operations with 6uropean sustainable
ban"s during @ years. (he now wor"s as an investment officer in private
e)uity for the social and solidarity$based economy in rance.
Janina Da4ic
Danina Sa-ic gained international experience while wor"ing for the B in ew
%or" and the erman 6mbassy in 4rague. (he has been connected to values$based ban"ing for *0 years and currently serves as Advisor to the 63 and
A'1 'oard member Thomas Dorberg at 5( 'an" in ermany. ;er
responsibilities for the A'1 (ecretariat include development of the A'1#s
6uropean hapter and the ;uman apital action trac", with a special focus
on the A'1 5eadership Academy. Danina is married, has three children and
lives in ;erne.
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Jeffry .os
*e/ry >o3 is the 0irector, eople nno$ation ' mpact at ancity 4redit Bnion.
8e and his team are charged with understanding what is needed for
ancityIs people and leaders to acti$ate our $alues-based business model at
scale, and to design inno$ati$e programs to meet those needs. *e/ has beena 9lobal Alliance for >an&ing on alues alues Ambassador since G=CG. O$er
the past two years he has co-designed and facilitated the alues
Ambassador program, and leads the alues Ambassador networ& acti$ities
between meetings. 8e holds an +>A in ;ustainable >usiness from the
>ainbridge 9raduate nstitute 5;eattle, B;A6, and an honours degree in
>iology and conomics from JueenIs Bni$ersity 51ingston, 4A(6.
,uan Pablo Me-a
*uan ablo +e2a is the 4O 59erente 9eneral6 of ;A4 Apoyo ntegral, ;.A., l
;al$ador since *une G=CC. 8e holds a >A in conomics from the Bni$ersity of
irginia, an nternational 0iplome dIadministration ubliue from the cole
(ationale dIAdministration, aris, ?rance and an +>A from (4A, 4osta Rica.
rior to joining (T9RA@ and the world of +icro!nance, he pioneered the
concept of ri$ate label credit card issuing in l ;al$ador while wor&ing for a
local retail entity. 8e then wor&ed in the !eld of 4onsumer ?inance for the
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>an& of (o$a ;cotia. At ntegral he has led the implementation of important
restructuring and redirectioning of o$erall ;trategy. (T9RA@ also has
+icro!nance operations in 9uatemala.
$alvin Bhompson
4al$in Thompson is an Bndergraduate student at 0u&e Bni$ersity who wasraised in the 9reater >oston Area. n a yearlong lea$e of absence from 0u&e
he has wor&ed for two start-ups, and now interns for (e3t ;hift @@4 in
4ambridge, +A and contributes to the *ust +oney +OO4 as a consultant to
the resencing nstitute. 8is interest in *ust >an&ing stems from a desire to
re-imagine urban de$elopment as well as the speci!c tools that go into
progressi$e de$elopment.
7ngela .aldini
Angela 'aldini is pro-ect manager for several events hosted by the
4resencing nstitute. (he has wor"ed as a social wor"er in Austria and
ermany, as a pro-ect manager in concert promotion, and spends her free
time supporting the 'erlin$based collective 'urger6nergie 'erlin that aims to
buy bac" and run the electric power grid of 'erlin.
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Julie 7rts
Dulie Arts is a co$facilitator for the B.5ab, supporting and cultivating the
emerging networ" of global hubs and a Theory B practitioner wor"ing with
the 4resenting nstitute. 3utside of B.5ab, her recent wor" has focused on
improving )uality of life for people with disabilities in
'elgium, developing innovative solutions for water )uality in The
etherlands and a limate hange 5eadership lab in 'urundi.
3ntrance urvey
ET< 6TA6 (B16%
4lease ta"e a moment to complete this survey for ETx to help us
understand how you intend to participate in this course. t should ta"e
about *0 minutes to complete.
Week 1: Banking as if Society Mattered
>verview
current section
!66F * 31616!
n Wee& C, we introduce what ban&s are, how they wor&, and what role theyplay in our economies. >uilding on that foundation, we will e3plore how theiruniue position as intermediaries in our economies can lead to crises - liðe global !nancial crisis of G==K7=L - or to producti$e social, economic, anden$ironmental change.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/a4af0775512b446fb702b4632056019d/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/c7f5e19ecc1041a5aff9d47a927dcc21/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/c7f5e19ecc1041a5aff9d47a927dcc21/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/637e307c1bf2401a908c567fe606eaad/a4af0775512b446fb702b4632056019d/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/c7f5e19ecc1041a5aff9d47a927dcc21/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/c7f5e19ecc1041a5aff9d47a927dcc21/
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;ere is an overview of what else you can expect this wee"9 Core Concepts
• 8ow ban&s operate
• The role of ban&s in our economies
• ssues with the mainstream ban&ing system
• ntroduction to *ust ban&ing
oices from the iel*
• >rian Argrett 54ity ?irst >an& of 046
.uest aculty
• ;imon *ohnson 5+T ;loan ;chool of +anagement6
• Otto ;charmer 5+T ;loan ;chool of +anagement6
Practices
• /e0ective 1ournaling
• Coaching Circle" @earn the method, !nd and join a circleM
get to &now your group
• ubs" ?ind a hub, start a hub, connect to others in the
course
Time Commitment This 3ee4
• i*eos: Watching all of the $ideos will ta&e you at
least 7# minutes
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• /e0ective ,ournaling: Nou should budget around 5#
minutes to do the reFecti$e journaling e3ercise, post to the discussion
board, and respond to other participant%s posts.
• Coaching Circle: f you plan to join a coaching circle, you
will need 6# minutes or so to !nd a group, introduce yoursel$es, and plan a
time to do your !rst case clinic in Wee& G
• 8tra Material: lease lea$e adeuate time for any e8tra
rea*ing you may want to do and 1oining a hub
njoy the wee
T38BT3 T3 !66F *
The video below introduces the content of !ee" *.
ntroduction to !ee" *
*. ;tart of transcript. ;&ip to the end.
2.
+. !elcome to Dust Eoney$$ 'an"ing as if (ociety Eattered.
?. This course is about money and ban"ing,
@. and how both can address and perhaps solve
I. some of the most pressing social and ecological problems
7. in the world today.
. This course was developed by a group of researchers
J. here at ET ommunity nnovators 5ab that
*0. includes 4hil Thompson, 5ily (teponaitis, myself$$ Fatrin
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/c7f5e19ecc1041a5aff9d47a927dcc21/?child=last#transcript-end-d8ef5375a17e44aa939df2a756d3e16ahttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/c7f5e19ecc1041a5aff9d47a927dcc21/?child=last#transcript-end-d8ef5375a17e44aa939df2a756d3e16a
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**. Faeufer, a group of fellows, the Eel Fing ellow group of 20*@,
*2. and a wide networ" of community ban"s,
*+. social ban"s, green ban"s, especially the lobal
*?. Alliance for 'an"ing on 1alues.
*@. And the purpose of this course is to introduce you
*I. to a different type of ban"ing.
*7. And some of you may say9 have no clue about finance,
*. dont "now anything about ban"ing.
*J. 'ut in a way, we are all ban"ers.
20. !e all deal with money.
2*. !e all ma"e financial decisions.
22. And the purpose of this course is
2+. to open up this blac" box of what ban"ing is
2?. and as" the )uestion, what impact can ban"ing have:
2@. s it -ust the negative impact or is there potential
2I. in ban"ing in general:
27. (o why do we want to open this blac" box:
2. ts because ban"s are crucial intermediaries...
2J. And ban"s actually ma"e decisions about which ideas
+0. and which ventures to fund.
+*. And in that way, they actually are
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+2. critical in shaping the future of our economy
++. and of our well$being for all of society.
+?. Eany people thin" of ban"s as speculative, as profit$ma"ing,
+@. and thats about it.
+I. ;owever, the other side of ban"ing,
+7. and what we want to address in Dust 'an"ing,
+. are ways in which ban"s can ta"e into account not only profit,
+J. but also the world we live in, the ecology,
?0. and social problems, and intentionally support ideas
?*. in ventures that address people, the planet, and profitability.
?2. !hich is another way of saying economic sustainability,
?+. together.
??. (o -ust ban"ing is a form of ban"ing
?@. that uses finance as a tool to address the challenges
?I. that 4hil outlined.
?7. And in this first wee" of the course,
?. you will learn about the challenges
?J. we have right now with our current economic system,
@0. the challenges we have with ban"ing
@*. and what the positive impact of -ust ban"ing can be.
@2. (o this is a five$wee" course.
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@+. And in this first wee", we loo" at the ban"ing
@?. sector in general and the role of -ust ban"ing in there.
@@. n each wee", in this wee", we will introduce some concepts.
@I. !hats the definition of -ust ban"ing:
@7. ;ow does it differ from conventional ban"ing:
@. !e will introduce real$life examplesR
@J. tal" to people who run -ust ban"s.
I0. And we also offer you the opportunity
I*. to connect to other participants of this course,
I2. either live in hubs or through coaching groups.
I+. !elcome to wee" one.
65
I@.
oices (rom the treet
%3B 136(
'efore we get started, we want to "now how you perceive ban"s. n each of
the boxes below, write a word that you thin" of when you thin" of
ban"s. These can be concrete things, feelings, or perceptions. !hatever
comes to mind.
4ress (ave to reveal the answers your classmates have entered.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/48f5a41fd24b46fbb1d24391e0c69622/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/48f5a41fd24b46fbb1d24391e0c69622/
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%our words9ban4 is a 9nancial institutions :ho isgetting or collecting *eposits from the surplus unitof the society by o;ering interest an* len*s thatprocure* money to the *e9cit unit of the society by
charging interest from them an* meets itsoperational cost< employee cost< establishment costan* gives bene9ts to the o:ner an* stac4 hol*er ofthe ban4s= =
Total number of words9 HCL<
136( 3E T;6 (T66T
!e went out on the streets of ambridge and ET to as" people the same
)uestion9 !hat do you thin" of when you thin" of ban"s:
This is what people had to say9
1oices from the (treet
*. ;tart of transcript. ;&ip to the end.
2. EB( 45A%U
+.
?. !hen thin" of ban"s:
@. Bm, money.
I. 'an"s.
7. 'an"s.
. !ow.
J. Bm, huh.
*0. 'an"s.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/48f5a41fd24b46fbb1d24391e0c69622/?child=first#transcript-end-d5c3e343ed664a16868c8a7a198506behttps://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/48f5a41fd24b46fbb1d24391e0c69622/?child=first#transcript-end-d5c3e343ed664a16868c8a7a198506be
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**. Eoney.
*2. (ervice.
*+.
*?. !hat is the word:
*@. ncompetence:
*I.
*7. omplexity.
*. 'lac" box.
*J. !ell, thin" of traditional ban"s.
20. thin" of ban"s where you put your money, and its safe.
2*. 'an".
22. Eoney.
2+. nvestment.
2?.
2@. (aving.
2I.
27. 8ifficult to deal with.
2. 3$65(; (466;U
2J.
+0. thin" of high fees that are charged to the public, which
+*. thin" that they should not be charged for having
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+2. your own money in the ban".
++. !hen thin" of ban"s, probably mainly the financial crisis
+?. and in some ways, definitely that there
+@. is a level of mistrust and of some things happening behind
+I. closed doors.
+7. And yeah, the areas that theyre investing in,
+. which "eeps popping up, especially
+J. with the whole divestment movement,
?0. is probably the one thing that thin" of most.
?*.
?2.
What is .anking8
!;AT ( 'AF:
Eany of us ta"ing this course have a ban" account, use a credit or debit
card, have ta"en out a loan, or we may even wor" at a ban" or in the
financial industry. 8espite the fact that we interact with money and some
form of ban"ing on a daily basis, how well do we really understand the
basics of ban"ing:
The following video will help illustrate what ban"s are before we ta"e a
deeper dive into !ee" *.
!hat is 'an"ing:
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/5e610be91f55416da57a413fe42e3783/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/5e610be91f55416da57a413fe42e3783/
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*. ;tart of transcript. ;&ip to the end.
2.
+. rom a young age, many of us are taught
?. the value of saving money.
@. !e are encouraged to put what little we earn
I. in a piggy ban" or a shoebox and to save it for a rainy day.
7. As we get older, some of us open ban" accounts
. and do the same thing, but on a larger scale.
J. !hen choosing our ban", we thin" about a number of things.
*0. !hich ban" gives me the best rates:
**. Are there any fees:
*2. s there a branch nearby:
*+. egardless of which ban" we choose,
*?. we feel safe "nowing that the ban" will ta"e our money
*@. and loc" it away in their vaults, right:
*I. ot exactly.
*7. 'an"s are allowed to ta"e a portion of the money you
*. deposit and use it to ma"e more money by spending it
*J. in the economy.
20. The remaining portion of your money,
2*. they must hold in the central ban" or as currency.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/5e610be91f55416da57a413fe42e3783/?child=first#transcript-end-eb17820e95414100941b055764d1a4d8https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/5e610be91f55416da57a413fe42e3783/?child=first#transcript-end-eb17820e95414100941b055764d1a4d8
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22. This is called the fractional reserve rate.
2+. or example, if you deposit V*00 in a ban" that
2?. has a *O fractional reserve rate,
2@. the ban" can ta"e VJJ of your money to invest or loan out
2I. to other clients.
27. %our money can then be used by an entrepreneur
2. to start a business or by a family to purchase a house.
2J. The full amount of the deposit is available for the depositor
+0. to withdraw at the same time that the ban"
+*. has loaned out VJJ to whoever got the money as a loan.
+2. !hen you ta"e a step bac", you see that there is suddenly
++. V*JJ circulating in our economy instead of your initial V*00.
+?. This is how ban"s create money.
+@. !hile the fractional reserve policy
+I. stimulates economic activity, it also presents a ris".
+7. !hat if everyone who deposits their money in a ban"
+. decides they want to withdraw it at the same time:
+J. 'ecause the ban" only has *O of the depositor money in reserve,
?0. they would not be able to pay every depositor bac" in full.
?*. This is called a run on the ban".
?2. !hen ban"s run into trouble li"e this,
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?+. they can borrow from the central ban" to repay client deposits,
??. or the fractional reserve rate can
?@. be ad-usted to help mitigate ris" moving forward.
?I. n the end, it is the amount of trust ban"s
?7. are able to instill in their depositors that ensures
?. there isnt a run on the ban"s.
?J. n general, this lending and investment activity
@0. is also how ban"s ma"e their money.
@*. The money they ma"e through interest on these transactions
@2. is used to pay the interest on your account.
@+. The difference between the return on investment
@?. and the interest you receive is the net interest income
@@. for the ban".
@I. These loans and investments can ta"e many forms.
@7. As a customer, you usually dont "now
@. what your ban" does with your money,
@J. except for what you can learn from websites
I0. or annual reports.
I*. %our money could become a personal loan for purchases,
I2. li"e cars, mortgages, or home renovations.
I+. 3r it could help an entrepreneur grow a business
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I?. by purchasing new machinery.
I@. t could also finance more controversial activities,
II. such as the weapons industry or nuclear energy.
I7. 'an"s can give out your deposits to finance loans,
I. but they also have a wide range of investment options
IJ. in something called the financial economy.
70. !e see hedge funds, stoc"s, bonds.
7*. !ithin this range of investment options,
72. there are investments that are more closely connected
7+. to the real economy, and some that
7?. dont connect to a physical transaction
7@. but aim to ma"e profits by speculating on price changes.
7I. !hy is that a problem:
77. The more speculative a financial product becomes, the more ris"y
7. it is.
7J. n the 2007 to 200 financial crisis,
0. we all witnessed how ban"s were pulled down
*. by their speculative investments.
2. overnments -umped in to save failing ban"s,
+. because without a functioning ban"ing system,
?. our modern economy would collapse.
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@. !ithin this general framewor", there
I. are several varieties of ban"s.
7. There are retail ban"s, commercial ban"s,
. investment ban"s, and central ban"s,
J. all speciali&ing in different types of transactions
J0. and client groups.
J*. 8espite these different speciali&ations,
J2. what all ban"s have in common is that they
J+. are regulated by local, national,
J?. and international authorities.
J@. The goal of this regulation is to provide oversight and manage
JI. the ris"s ban"s are ta"ing with your money
J7. when its out of the vault and circulating in the economy.
J. 6ven more important is that proper oversight gives us
JJ. the confidence to trust ban"s to ma"e
*00. good decisions with our money.
*0*. This trust is what "eeps our economies running.
*02.
*0+.
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Bhe $risis of (inance
AA5SAT3 3 T;6 53'A5 633E%
(ince the *J0s, the si&e of the financial sector has grown rapidly relative tothe overall economy. !hat does this mean and how does it affect us:
inanciali&ation
*. ;tart of transcript. ;&ip to the end.
2.
+. (o this animated video has described,
?. thin", really well, the importance of the role
@. that ban"s hold in our economic system.
I. 'an"s sit at this connecting point between the deposit
7. side and the loan side, so theyre intermediaries
. in our economic system.
J. And in that role, they decide our futureR
*0. because they actually decide what gets financed.
**. They decide where capital flows.
*2. And with that, they decide the future of our society
*+. as a whole.
*?. %eah, and so this is a very powerful position
*@. in the economy.
*I. And this has actually been growing, especially
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/?child=first#transcript-end-ce1c6bd9bc674a6eb1cef92b90201a92https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/?child=first#transcript-end-ce1c6bd9bc674a6eb1cef92b90201a92
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*7. since the *J0s.
*. Theres been a massive financiali&ation
*J. of the global economy, which is essentially
20. the growth in the si&e and the importance
2*. of the financial sector, relative to the real economy
22. and relative to the overall economy.
2+. And for a long time, the political consensus
2?. seemed to be that this was actually a good thing,
2@. that growth in this sector would then sort of tric"le down
2I. to the rest of the economy.
27. t would create -obs.
2. t would be good for the real economy.
2J. (o this is the mental model of whats
+0. good for !all (treet is good for the rest of the economy.
+*. 'ut what weve seen with the financial crisis
+2. is that this is not true.
++. (o one negative side effect of the growth
+?. and the speculative sphere, where basically money ma"es
+@. money, is that its high$ris".
+I. And a crisis creates a downward spiral
+7. for the rest of the real economy.
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+. !hat is not often discussed is that there
+J. are other negative side effects of this growth,
?0. of the speculative financial economy in relationship
?*. to the real economy.
?2. And one negative side effect is that there are expectations
?+. for the return of a business.
??. (o if you are operating in the speculative financial economy,
?@. you have chances to create returns of *@O, 20O, 2@OR
?I. And to create these returns in the real economy
?7. is almost impossible.
?. (o small$ and medium$si&e companies
?J. operate on a return of 7O, O, or *0O.
@0. 'ut they operate well.
@*. They employ people.
@2. They create products.
@+. They offer services.
@?. 'ut now they compete with a return of *0O, *@O, 20O
@@. in the speculative financial economy,
@I. and thats a real issue.
@7. And the other issue is that the growth in the financial sector
@. is not mirrored by a growth in the real economy.
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@J. (o theres this other disconnect.
I0. ight.
I*. (o we ended up, leading up to the global financial crisis,
I2. with ban"s that were essentially seen as too big to fail.
I+. (o when they started to collapse,
I?. we, as taxpayers around the world,
I@. were essentially obliged to bail them out.
II. And so in the B(, that was about V700 billion
I7. worth of taxpayer money to bail out these ban"s,
I. because the fear was if they collapsed,
IJ. the whole global economy would collapse with them.
70. !hich basically means that this high ris" ta"ing was rewarded.
7*. And those who too" the ris" didnt
72. have to ta"e also the negative effects of the ris".
7+.
7?.
B6(T AB5T%9 (E3 D3;(3
n this video we will hear from 8r. (imon Dohnson, 4rofessor of
6ntrepreneurship at the ET (loan (chool of Eanagement and author of the
best selling boo"9 P*+ 'an"ers9 The !all (treet Ta"eover and the ext
inancial EeltdownQ.
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nterview with (imon Dohnson
*. ;tart of transcript. ;&ip to the end.
2. EB( 45A%U
+.
?. Ey name is (imon Dohnson.
@. m a professor of entrepreneurship at ETs (loan
I. (chool of Eanagement.
7.
. !ell, on the global level, obviously, we
J. had a big crisis in 200 that had
*0. massive negative implications in Bnited (tates,
**. in 6urope, and in other countries.
*2. !eve struggled to recover.
*+. The Bnited (tates shows some sign of recovery.
*?. 6urope is still )uite, )uite problematic.
*@. And the ban"s are very cyclical.
*I. They go up and they go down with the broader economy.
*7. And they drive fluctuations in the broader economy.
*. (o to be honest, the picture is mixed.
*J. And some of our biggest ban"s, they
20. might loo" 3F on the surface.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/?child=first#transcript-end-0b9c887d648943dc9cd4d5d60bdd6124https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/?child=first#transcript-end-0b9c887d648943dc9cd4d5d60bdd6124
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2*. 'ut thin" beneath that surface, lur"ing,
22. are some pretty serious systematic problems.
2+.
2?. !ell, the biggest challenges are that some of the ban"s
2@. are extremely large at this point.
2I. And its not possible for them to fail.
27. o government in its right mind would let them go ban"rupt.
2. (o then they have an exemption from failure.
2J. And that, of course, means that their creditors
+0. dont face the ris" of failure.
+*. They have a lower cost of borrowing.
+2. They can run a more opa)ue business model.
++. And they are encouraged to ta"e a lot of ris".
+?. !hen things go well, the people running these bigger ban"s
+@. get the upside.
+I. !hen things go badly, the downside ris"
+7. is pushed onto the rest of society.
+. ts a form of externality.
+J. They dont care about the downside
?0. because they dont feel the downside.
?*. 'ut we feel the downside.
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?2. n society, we feel it as citi&ens.
?+. !e feel it as taxpayers.
??. And we feel it as people who could lose our -obs.
?@.
?I. The biggest negative systematic effects
?7. are obviously crises, big crises li"e the one
?. we experienced in 200.
?J. f you thin" that weve fixed those underlying problems,
@0. then there is nothing to worry about.
@*. 'ut dont thin" we fixed them.
@2. And spent a lot of time studying
@+. the details of various policies, trying
@?. to address the issues of ris" in ban"s and in global mega ban"s
@@. in particular.
@I. (o this problem is still with us.
@7. And therefore, there is a ris" of another debilitating crisis,
@. or maybe a crisis thats worse and has
@J. more negative implications.
I0.
I*. !ell, the ban"s are a very powerful lobby$$ the big ban"s.
I2. And they have a lot of friends in high places.
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I+. Eany of those friends used to wor" for the ban".
I?. And after theyve finished wor"ing in government,
I@. they go bac" to wor" for the ban".
II. (o there is a circle of people who
I7. are convinced that the big ban"s are good for the society
I. and good for all of our economies.
IJ. 'ut that circle of people is really largely seeing the world
70. through somewhat self$interested glasses.
7*.
72. !ell, loo".
7+. m a professor of entrepreneurship at ET.
7?. li"e ris"$ta"ing.
7@. li"e people who create new businesses.
7I. And dont thin" its for me to -udge that this is a good idea
77. and this is a bad idea.
7. (o with regard to the real economy,
7J. the non$financial economy, m happy to see
0. lots of innovation, lots of new ideas tried out.
*. !ith finance, m also in favor of new things.
2. m also in favor of innovation.
+. thin" weve learned the hard way
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?. that we have to worry about unintended conse)uence
@. in the way that systemic ris" can be created inadvertently.
I. And big negative spillovers have negative effects
7. on the rest of the financial system
. and the rest of the economy.
J. (o want us to have that caveat and that concern more clearly
J0. in mind for the financial sector.
J*.
J2. !ell, if were tal"ing about powers
J+. in the sense of regulations and rules that could be made,
J?. would limit the si&e of the largest ban"s in the Bnited
J@. (tates.
JI. !e dont have a history of big ban"s.
J7. !e dont need ban"s at their current scale.
J. They pose a big ris" to the system.
JJ. would also re)uire that ban"s here and in other countries
*00. fund themselves more with e)uity and relatively less with debt.
*0*. (ometimes these are called capital re)uirements.
*02. 'ut it very simply means how you fund yourself.
*0+. 'an"s have, unfortunately, developed a taste
*0?. for funding themselves with a little bit of e)uity
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*0@. and a huge amount of debt.
*0I. (o if things go badly, they become insolvent.
*07. And thats exactly the cornerstone
*0. of what we call financial crisis.
*0J. (o thin" that structure of incentives
**0. really needs to change.
***. And it needs change profoundly.
**2. And of course, not many people agree with me
**+. who wor" in those big ban"s.
**?.
**@. 5oo", thin" ban"s and also other companies absolutely
**I. can and should ta"e on a wide range of issues.
**7. thin" the way to do is to explain
**. to your customers and your investors what youre doing
**J. and why and let them choose with you to invest
*20. in certain things, to build certain things,
*2*. and to avoid other "inds of activities.
*22. thin" increasingly, thats what people are going to want.
*2+. ot -ust the people running the ban"s,
*2?. but their customers and the people providing them
*2@. with funding are going to want to be aware
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*2I. all the impact of everything they do.
*27.
*2. (o the ndependent ommunity 'an"ers of America
*2J. were "ind enough to name me one of their Eain (treet ;eroes.
*+0. ts really a great honor.
*+*. And was thrilled to receive it.
*+2. certainly tal" to them, and certainly
*++. have a good relationship with them.
*+?. dont wor" for anyone except ET
*+@. and one independent thin" tan" in !ashington.
*+I. (o ma"e up my own mind, and m
*+7. saying what believe to be right from a social public
*+. policy perspective.
*+J. n that perspective, thin" there
*?0. is a bright future for smaller community ban"s
*?*. because theyre connected to the customers.
*?2. And the customers believe in them.
*?+. And they believe in what many of those community ban"s
*??. are doing.
*?@. thin" there is much more suspicion and hesitation
*?I. to trust the larger global ban"s, in part,
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*?7. because consumers and investors have been trampled
*?. on by those ban"s in the past.
*?J. And the chances they are going to be dealt
*@0. with more fairly or better in any way going forward
*@*. is extremely slim.
*@2.
*@+.
3%tra Material
f you are interested in learning more, find lin"s to more material from
(imon Dohnson below9
The >uiet Coup; Dohnson, (imon. =200J> The Juiet 4oup. The Atlantic .
%ou may also be interested in reading his blog CThe ?aseline +cenarioC
6xcerpt from C5 ?an4ers" The 3all +treet Ta4eover an* the @e8t inancial
Melt*o:n.C
.iography
(imon Dohnson is the onald A. Furt& =*J@?> 4rofessor of 6ntrepreneurship at the
ET (loan (chool of Eanagement, where he is also head of the lobal 6conomics
and Eanagement group, a member of the 6xecutive 4ersonnel ommittee, and
chair of the (loan ellows E'A 4rogram ommittee. ;e cofounded and currently
leads the popular lobal 6ntrepreneurship 5ab =5A'> course, wor"ing with startup
companies around the world.
Read +ore
T;6 53'A5 AA5 ((
http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/https://baselinescenario.com/https://13bankers.com/excerpt/https://13bankers.com/excerpt/http://mitsloan.mit.edu/faculty-and-research/faculty-directory/detail/?id=41226http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/https://baselinescenario.com/https://13bankers.com/excerpt/https://13bankers.com/excerpt/http://mitsloan.mit.edu/faculty-and-research/faculty-directory/detail/?id=41226
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There are few places in the world that werent affected by the 2007/0
lobal inancial risis. Ear"ets crashed, people lost their homes, their -obs,
and much more. This video ta"es a closer loo" into what led to the crisis.
To download the image created in this video, press the C8ownload ;andoutsCbutton under the video player.
The lobal inancial risis
*. ;tart of transcript. ;&ip to the end.
2. EB( 45A%U
+.
?. A 4ulit&er 4ri&e$winning report on the financial crisis
@. by the ational 4ublic adio in the B(
I. drew the source of the crisis bac"
7. to something they referred to as the global pool of money.
. That is, all the money that people around the world
J. are saving and loo"ing to invest, technically "nown
*0. as the fixed income securities.
**. 'etween the year 2000 and 200I, these global savings
*2. grew dramatically from about V+I trillion in 2000,
*+. to V70 trillion in 200I.
*?. The issue was that despite the fact
*@. that the global pool of money doubled in nearly six years,
*I. the number of safe investment options did not.
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/?child=first#transcript-end-72fa221e5529485c998df2165cf68d08https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/94dc7ffe4ec04d1f81b10827620a1100/?child=first#transcript-end-72fa221e5529485c998df2165cf68d08
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*7. n the hunt for new investments, residential mortgages in the B(
*. became a particular favorite of the global investment industry.
*J. !hile the federal interest rate was hovering around *O,
20. homeowners were paying @O to JO.
2*. The problem for the investors would
22. be getting involved with the individual homeowners, which
2+. would be too much wor" for their return.
2?. !hat ended up happening is they devised
2@. a system in which smaller ban"s sold the mortgages to !all
2I. (treet ban"s, which then bundled the mortgages into pac"ages
27. and the shares of the monthly income from the pac"ages
2. were sold to investors.
2J. These were called mortgage$bac"ed securities.
+0. ssues started to arise when -ust about everyone who
+*. wanted a mortgage and would normally )ualify for one
+2. already had one, but the investors still wanted more.
++. This led the ban"s to loosen the standards
+?. on whom they would lend to.
+@. t eventually reached the point that, in some instances,
+I. all that was needed to )ualify for a mortgage
+7. was a stated income and money in the ban".
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+. o proof of income or assets were needed.
+J. o one was really worried about the ris",
?0. because no one was holding on to the mortgage
?*. for very long before selling it.
?2. (mall ban"s were ta"ing out loans
?+. from larger ban"s to buy mortgages
??. and selling them to !all (treet ban"s.
?@. These ban"s were often highly leveraged, often 20 to *,
?I. which means they were able to borrow up to 20 times
?7. the cash that they actually had.
?. !hen the bubble burst, housing prices began to plummet
?J. and nobody wanted to buy these mortgages anymore.
@0. The whole system came crashing down,
@*. which affected not only !all (treet, but also the people who
@2. had ta"en out the mortgages and the entire global economic
@+. system.
@?.
@@.
7 #istory of 3%clusion
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/dedce0e55580473894a314938c9f03bc/https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/dedce0e55580473894a314938c9f03bc/
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6
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*@. (o today, over two billion adults in the world
*I. dont have ban" accounts.
*7. Thats almost half of the adult population.
*. And even more dont have access to financial services.
*J. And this "ind of exclusion creates a lot
20. of negative effects on these individuals
2*. and on these communities.
22. %eah, and so tal"ing about exclusion on the global scale
2+. can seem very abstract.
2?. 'ut we actually see the effects of this exclusion
2@. from the ban"ing sector, which has been going on
2I. throughout history, in 'oston, which is where we are today.
27. !e can see it in how the city has developed.
2. (o in the B(, there has been a practice
2J. called redlining that has existed for a long time.
+0. And that was started in *J+@ by the ederal ;ome 5oan 'an"
+*. 'oard, which commissioned maps of over 200 cities.
+2. And they drew lines around neighborhoods
++. based on how ris"y they saw the investment.
+?. (o certain neighborhoods were outlined in blue,
+@. and that was a good investment.
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+I. And certain neighborhoods were outlined in red,
+7. and that was seen as too ris"y.
+. And so the thing was that these lines were
+J. drawn on racial boundaries.
?0. (o blue neighborhoods were often white.
?*. ed neighborhoods were often blac" or minority
?2. neighborhoods.
?+. And what happened is this essentially
??. became a self$fulfilling prophecy, where
?@. these neighborhoods that were redlined, because they couldnt
?I. access finance, they couldnt get mortgages or really develop
?7. their communities, it led to a really steep decline
?. in a lot of these urban neighborhoods.
?J. (o exclusion sounds li"e an abstract word,
@0. but it has very concrete effect on the individual,
@*. on the community, on the family.
@2. And in our economic system, where money and finance plays
@+. such an essential role, being excluded
@?. from financial services basically
@@. excludes this individual from society as a whole.
@I. And what happens in these neighborhoods
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@7. is that then predatory lenders step in.
@. (o this open mar"et is used by financial institutions that
@J. use the vulnerability and the difficulty of the situation
I0. to sell products that are basically
I*. toxic for the recipients of these products.
I2. !e saw that in the crisis with the subprime mortgage products
I+. that were toxic.
I?. And so exclusion has a lot of long$term effects
I@. on these communities.
II. And what we want to emphasi&e is that access
I7. to finance and access to ban"ing is
I. absolutely essential for developing well$being
IJ. in a community.
70.
7*.
136( 3E T;6 6589 'A A6TT
n this $ideo, we will hear from >rian Argrett, resident and 4O of 4ity ?irst
>an& of 04 about how his ban& wor&s to build wealth euitably in a
neighborhood of Washington 0.4. that was long e3cluded from the ban&ing
sector.
nterview with 'rian Argrett
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*. ;tart of transcript. ;&ip to the end.
2.
+. m 'rian Argrett, 63, 4resident and 63
?. of ity irst 'an" of 8, which is in !ashington 8.
@.
I. The way ity irst was founded completely
7. impacts and sets the course for what we do today.
. (o whats unusual about the ban" is that it really came out
J. of activism, so to spea".
*0. 3r out of community engagement, in the sense
**. that it was founded by individuals
*2. who saw, in !ashington 8, that there were neighborhoods that,
*+. essentially, where capital is not flowing.
*?. !here there have been large scale disinvestment.
*@. !here really the ban"ing community was not interested.
*I. And they came together to fashion
*7. a solution of how to assist in having capital flow.
*. They chose the ban"ing model, obviously
*J. because of the benefits of leverage through deposits.
20. (o that you would raise a certain amount of capital.
2*. And then you can also raise additional funds
https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/dedce0e55580473894a314938c9f03bc/?child=first#transcript-end-88f6d3850cc442a580bba475be4784d9https://courses.edx.org/courses/course-v1:MITx+11.405x+1T2016/courseware/eea0c1ed761043ac930861458327e600/dedce0e55580473894a314938c9f03bc/?child=first#transcript-end-88f6d3850cc442a580bba475be4784d9
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8/16/2019 Just Money
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