When I read about the predatory lending allegations against Tavis Smiley and Wells Fargo, I wasn't surprised. Not because I feel that Tavis is some kind of crook, but because economic downturns are usually when everyone's dirty laundry gets aired out. The high flying 2000s were a decade of extravagance, overspending, easy money and troubled relationships. The party was bound to end. Smiley's party has ended with Wells Fargo, as the company has been accused of using Tavis Smiley and financial expert Kelvin Boston to convince African Americans to sign on to loans that turned out to be predatory. Neither Boston nor Smiley is willing to disclose the amount they were paid for the service, but I'm sure it wasn't chump change.
I've been open and honest in my critiques of Tavis Smiley in the past, but I give credit where it's due. I've always felt that Tavis Smiley is a man who works out of a sincere respect and appreciation for the black community. He is not out to hoodwink, swindle or hurt us, at least not deliberately. At worst, Smiley is guilty of being caught in a situation that he may not have fully understood.
Although I agree with the black community's decision to hold Tavis Smiley accountable for his actions, I want us to be cautious of going overboard in our judgments. Here are 5 things I want to say about Tavis Smiley:
1) Don't throw Tavis under the bus. African Americans can be tough on our public figures. After Smiley's repeated calls for accountability against President Obama, many failed to appreciate the value of scrutinizing our elected officials. While Tavis' close relationship with Hillary Clinton undermined the credibility of his challenges to Obama, the truth is that accountability is very important when dealing with any politician. One must respect Tavis for having the willingness to say things that are unpopular, which even Obama himself doesn't always have the courage to do.
2) Beware of corporate sponsors bearing gifts. One of the greatest barriers to social progress for African Americans has been our inability to properly assess those who sponsor our activities. Any corporation that comes along with a signed check can usually find a place at our table. Would you want your teenage daughter taking money from any boy who offered it to her? Probably not, because you know that the the boy might be expecting "repayment" at the end of the night. The same is true for corporate sponsors, who are paying you to present the kind of image they want the public to see.
Tavis Smiley Pics
WASHINGTON - AUGUST 23: (EDITORIAL USE ONLY, TABLOIDS OUT) In this handout photo provided by NBC Universal, (L-R) Tavis Smiley, host of PRI's "The Tavis Smiley Show", and Joe Scarborough, host of MSNBC's "Morning Joe", appear on "Meet the Press" with moderator David Gregory at NBC studios August 23, 2009 in Washington, DC. Tavis Smiley and Joe Scarborough discussed health care legislation. (Photo by William B. Plowman/NBC NewsWire via Getty Images) *** Local Caption *** Joe Scarborough;Tavis Smiley;David Gregory
Getty Images
WASHINGTON - AUGUST 23: (EDITORIAL USE ONLY, TABLOIDS OUT) In this handout photo provided by NBC Universal, Joe Scarborough, host of MSNBC's "Morning Joe", appears on "Meet the Press" at NBC studios August 23, 2009 in Washington, DC. Tavis Smiley and Joe Scarborough discussed health care legislation. (Photo by William B. Plowman/NBC NewsWire via Getty Images) *** Local Caption *** Joe Scarborough
Getty Images
WASHINGTON - AUGUST 23: (EDITORIAL USE ONLY, TABLOIDS OUT) In this handout photo provided by NBC Universal, Tavis Smiley (L), host of PRI's "The Tavis Smiley Show", and Joe Scarborough, host of MSNBC's "Morning Joe", appear on "Meet the Press" at NBC studios August 23, 2009 in Washington, DC. Tavis Smiley and Joe Scarborough discussed health care legislation. (Photo by William B. Plowman/NBC NewsWire via Getty Images) *** Local Caption *** Joe Scarborough;Tavis Smiley
Getty Images
WASHINGTON - AUGUST 23: (EDITORIAL USE ONLY, TABLOIDS OUT) In this handout photo provided by NBC Universal, (L-R) Tavis Smiley, host of PRI's "The Tavis Smiley Show", and Joe Scarborough, host of MSNBC's "Morning Joe", appear on "Meet the Press" with moderator David Gregory at NBC studios August 23, 2009 in Washington, DC. Tavis Smiley and Joe Scarborough discussed health care legislation. (Photo by William B. Plowman/NBC NewsWire via Getty Images) *** Local Caption *** David Gregory;Joe Scarborough;Tavis Smiley
Getty Images
WASHINGTON - AUGUST 23: (EDITORIAL USE ONLY, TABLOIDS OUT) In this handout photo provided by NBC Universal, Tavis Smiley, host of PRI's "The Tavis Smiley Show", appears on "Meet the Press" at NBC studios August 23, 2009 in Washington, DC. Tavis Smiley and Joe Scarborough discussed health care legislation. (Photo by William B. Plowman/NBC NewsWire via Getty Images) *** Local Caption *** Tavis Smiley
Getty Images
WASHINGTON - AUGUST 23: (EDITORIAL USE ONLY, TABLOIDS OUT) In this handout photo provided by NBC Universal, Joe Scarborough (L), host of MSNBC's "Morning Joe", appears on "Meet the Press" with moderator David Gregory at NBC studios August 23, 2009 in Washington, DC. Tavis Smiley and Joe Scarborough discussed health care legislation. (Photo by William B. Plowman/NBC NewsWire via Getty Images) *** Local Caption *** Joe Scarborough;David Gregory
Getty Images
Journalist Tavis Smiley, actor Sidney Poitier and professor Cornel West arrive at "Crowns" Los Angeles Opening Night at The Ebony Repertory Theatre on May 8, 2009 in Los Angeles, California. "Crowns" Los Angeles Opening Night The Ebony Repertory Theatre Los Angeles, CA United States May 8, 2009 Photo by Tiffany Rose/WireImage.com To license this image (57391960), contact WireImage.com
Tiffany Rose/WireImage.com
NEW YORK - MAY 05: Authors Tavis Smiley (L) and Dr. Cornell West attend Time's 100 Most Influential People in the World Gala at the Frederick P. Rose Hall at Jazz at Lincoln Center on May 5, 2009 in New York City. (Photo by Stephen Lovekin/Getty Images) *** Local Caption *** Tavis Smiley;Cornell West
Getty Images
WASHINGTON - MARCH 15: (AFP OUT) Steve Liesman, Senior Economics Reporter at CNBC, speaks during a live taping of 'Meet the Press' at NBC studios March 15, 2009 in Washington, DC. Dr. Christina Romer, Chair of the White House Council of Economic Advisers, Rep. Eric Cantor (R-VA), House Republican Whip, David Frum, Columnist and former speechwriter for President George W. Bush, Katty Kay, Washington Correspondent for BBC World News America, Steve Liesman, Senior Economics Reporter at CNBC, Tavis Smiley, host of PBS's Tavis Smiley and PRI's The Tavis Smiley Show, appeared on the show to speak about politics and the US economy. (Photo by Brendan Smialowski/Getty Images for Meet the Press) *** Local Caption *** Steve Liesman
Getty Images for Meet the Press
WASHINGTON - MARCH 15: (AFP OUT) Katty Kay, Washington Correspondent for BBC World News America, speaks during a live taping of 'Meet the Press' at NBC studios March 15, 2009 in Washington, DC. Dr. Christina Romer, Chair of the White House Council of Economic Advisers, Rep. Eric Cantor (R-VA), House Republican Whip, David Frum, Columnist and former speechwriter for President George W. Bush, Katty Kay, Washington Correspondent for BBC World News America, Steve Liesman, Senior Economics Reporter at CNBC, Tavis Smiley, host of PBS's Tavis Smiley and PRI's The Tavis Smiley Show, appeared on the show to speak about politics and the US economy. (Photo by Brendan Smialowski/Getty Images for Meet the Press) *** Local Caption *** Katty Kay
Getty Images for Meet the Press
3) The revolution will NOT be brought to you by Walmart. Rarely, if ever, can true black activism be achieved via funding provided by companies run by the descendants of our historical oppressors. This is due to the inherent conflict of interest between capitalist entities and the plight of the poor. African Americans are disproportionately poor and working class. Therefore, unfettered capitalism is designed to destroy us (although compassionate capitalism can fuel economic growth). So, while one can certainly understand why Smiley would be happy to take corporate money for his State of the Black Union event every year, the truth of the matter is that the honest activism of such a function can only go so far.
4) A critical line must be drawn between financing and influence. There's a reason that the New York Times doesn't let it's advertisers decide which stories are going to appear on the front page. This is because the natural power that comes with financial support must be tempered by a commitment to conscientious objectives. If Wells Fargo needs to be called out for its predatory lending practices, that is not going to happen with the Wells Fargo logo placed behind the speaker's head. There should be independent oversight of all funding sources for The State of the Black Union, The State of Black America, as well as events held by the NAACP and Urban League every year. Influence is bought behind the scenes all the time, and good black leadership should be as transparent as possible.
5) We should keep supporting Tavis. Tavis Smiley's annual event, The State of the Black Union, is one of the most celebrated in the black community. With a renewed commitment to conscientious corporate sponsorship, The State of the Black Union can regain its status as a respected and appreciated forum for black education. But in order for this to happen, we must make sure we know where the money is coming from, where it is going and what strings are attached. Without properly vetting the sources of your financial support, you are setting yourself up for corruption.
Dr. Boyce Watkins is a Finance Professor at Syracuse University, a leading African American speaker and author of the forthcoming book, "Black American Money." To have Dr. Boyce commentary delivered to your email, please click here. 
Comments: (26)
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By: Mocha Brown on 9/21/2009 10:11AM
Dr. Watkins I so adore your level-headed insight into this issue. Thank you so much for being objective when you could've taken the easy way out and assassinated Tavis' character as I so ofter see these days especially on the internet.
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By: Evelyn Warner on 9/21/2009 7:14PM
The history of the treatment of Black people by oppresors(Wells Fargo ,is only one)has been to finance our programs at the same time continue to mess over us.WHAT HAVE WE DONE ABOUT wELLS fARGO.Tavis does make loans nor does he own a bank.
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By: Sammy on 9/21/2009 8:09PM
Has the corporate appointed black leader, Travis Smiley, made his rounds on white teevee shows to blame the President yet?
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By: Gerren Young on 9/22/2009 1:30AM
Respectfully, I will have to disagree with respect to giving Tavis
some sort of pass. He knew what he was doing was wrong. Has he come
out and apologize for misleading the black community? I think not. I
find it funny how some folks think there is never a problem until
something blows up. The fact is, if all those adjustable rate
mortages were not sold and marketed by Tavis and Well Fargo, most
black folks would not be in the situation they are on now. I do
believe us black folks need to read what we are getting ourselves
involved in with respect to signing contracts for homes and more
importantly, we should NOT be buying or obligating ourselves to
something we know we can not afford.
However, Tavis knew this and he encouraged it. All folks needed was a
damn check to verify that they were working and were giving a loan. I do NOT believe Mr Tavis
had folks best interest at hand.
While I think Tavis has a great personality, I disagree with the way
he handle things within the black community. This has nothing to do with the way he conducts his interviews and him being critical of elected officials. This has to do with him being misleading to the community.
Gerren Young
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By: Latice Wilson on 9/22/2009 1:50PM
Tavis should be held accountable for his misdeeds as well as anyone else. In my opinion, Tavis has always appeared to be a person who performed in turn for his best interest. He proved it over and over again in his commentaries during the presidential campaign. He was very biased in what I thought was supposed to have been informative commentaries on the Tom Joyner Morning Show. His underline messages led me to believe he could be bought by the highest bidder.I wish the the outcome in his present situation will be one that is reflective and most helpful to him in his future endeavors.
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By: Gail Dennis on 9/23/2009 7:32AM
Caveat emptor- "Let the buyer beware". Generally caveat emptor is the property law doctrine that controls the sale of real property after the date of closing. With this in mind, we should be careful how we assign blame.
A person, like Mr. Smiley, who endorses a product in good faith usually does so based on what the producer of said product discloses. Now we are fairly sure that Wells Fargo was quick to profit from the positive image Mr. Smiley has in the community. Therefore we can be very certain that they did not explain their mortgage practices to him.
I firmly believe he is a man of integrity and would not have knowingly decieved anyone. Nonetheless, having being made aware of the deceptive practices of the company he endorsed, he should profer an apology to those people who used the services based on his endorsed.
However, there is a valuable lesson for all of us: know what you are buying, before you buy.
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By: pcblst on 9/23/2009 8:28AM
I don't know much about economics, but if a friend had asked me about buying a home I would not have recommended an adjustable rate mortgage. With all the education Mr. Smiley has he should have known better.
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By: george sherrell on 9/23/2009 11:38AM
I sincerely hope that Mr. Smiley is as the image that he has garnered over the years suggest. It is very hard to determine how an individual, such as Tavis is by a few incidents, it takes a series of happenings, along with some real and honest evaulations to decide exactly the character of such a person as Mr. Tavis Smiley. I hope he stands the tests of time.
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By: Woodrow Slaughter on 9/23/2009 1:05PM
Tavis Smiley should have known better and deserves whatever cimes of this.We really should stop making excuses for people who get caught.
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By: jessup1218 on 9/26/2009 8:07AM
The State of the Black Union has evolved into one big pity party and blame session. No one ever talks about why black kids would rather have an arrest record than a transcript.
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