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"A few last items about Carver Federal"

According to a new article in Crain's NY Business: "1. Before the financial crisis, there were 36 banks that had been founded and run by African-Americans, according to Creative Investment Research in Washington. There are now 25."

The article goes on to state that:

"The reason: Most of these banks are small and lack the base of capital needed to absorb real estate-related losses clobbering small banks everywhere. Because there are so many small, ailing banks, it's all the harder for minority-owned banks to raise new capital. The competition for new capital is incredibly fierce."

While we think the articles published by Crain's on Carver have been very good, we actually disagree with this reasoning. The answer is far simpler: racial discrimination and greed. (See: http://twisri.blogspot.com/2008/11/what-we-said.html)

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