Black-owned Banks Struggling to Keep Doors Open
by Heather Faison
Originally posted 5/30/2007
Independence Federal Savings Bank, one of the nation's oldest Black-owned financial institutions, based in Washington, D. C., was taken over in an aggressive buyout by a White developer last week, sending a chilling message to the already diminishing Black financial industry.
“This was quite a loss and unfortunately when one Black bank closes there is a big sore, but when one bank from a majority-own closes it is not as devastating,” said Norma Hart, President of the National Banker’s Association.
Less than two decades ago there were nearly 50 Black-owned banks. But, according to the Federal Reserve there were only 31 certified operations in 2006.
That number decreased when the takeover of Independence Federal Savings in Washington, DC, by developer Morton A. Bender, was finalized. After a ruthless five year battle during which Bender held up the bank in multibillion-dollar lawsuits, federal regulators allowed him to acquire 51 percent of the company’s stock which gave him control of the bank’s executive board.
“That’s really a sad day; especially since the owner believed in the community and had he still been alive I believe that would not have happened,” said Hart.
Black-owned banking institutions have opened doors of financial opportunities to African Americans since the Jim Crow era when White-owned banks denied service. Whether it was helping a small business get off the ground or a family move into their first home, these institutions have a legacy of service to communities and neighborhoods and are fighting to maintain ownership and keep their doors open.
The Consolidated Bank & Trust Company of Richmond, Va. was founded in 1903 by Maggie L. Walker, an African-American who was the first female Bank President in the United States. Consolidated had been the oldest continually operating Black-owned bank in the nation until two years ago, when the struggling bank merged with Abigail Adams National Bancorp, Inc., the parent company of The Adams National Bank.
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Destee
by Heather Faison
Originally posted 5/30/2007
Independence Federal Savings Bank, one of the nation's oldest Black-owned financial institutions, based in Washington, D. C., was taken over in an aggressive buyout by a White developer last week, sending a chilling message to the already diminishing Black financial industry.
“This was quite a loss and unfortunately when one Black bank closes there is a big sore, but when one bank from a majority-own closes it is not as devastating,” said Norma Hart, President of the National Banker’s Association.
Less than two decades ago there were nearly 50 Black-owned banks. But, according to the Federal Reserve there were only 31 certified operations in 2006.
That number decreased when the takeover of Independence Federal Savings in Washington, DC, by developer Morton A. Bender, was finalized. After a ruthless five year battle during which Bender held up the bank in multibillion-dollar lawsuits, federal regulators allowed him to acquire 51 percent of the company’s stock which gave him control of the bank’s executive board.
“That’s really a sad day; especially since the owner believed in the community and had he still been alive I believe that would not have happened,” said Hart.
Black-owned banking institutions have opened doors of financial opportunities to African Americans since the Jim Crow era when White-owned banks denied service. Whether it was helping a small business get off the ground or a family move into their first home, these institutions have a legacy of service to communities and neighborhoods and are fighting to maintain ownership and keep their doors open.
The Consolidated Bank & Trust Company of Richmond, Va. was founded in 1903 by Maggie L. Walker, an African-American who was the first female Bank President in the United States. Consolidated had been the oldest continually operating Black-owned bank in the nation until two years ago, when the struggling bank merged with Abigail Adams National Bancorp, Inc., the parent company of The Adams National Bank.
Click Here To Read Entire Article
Destee