Showing posts with label American Express Company. Show all posts
Showing posts with label American Express Company. Show all posts

Wednesday, June 29, 2011

Carver Federal Raises $55 million

In a stunning development, Carver Federal today revealed they have raised $55 million in new equity capital. This amount exceeds, by almost three times, "regulatory capital requirements set by the Office of Thrift Supervision (OTS)."

According to the bank, investors include:

The Goldman Sachs Group, Inc., $15 million.
Morgan Stanley, $15 million.
Citigroup Inc., $10 million.
The Prudential Insurance Company of America, $10 million.
American Express Company, $2 million.
First Republic Bank, $2 million.
National Community Investment Fund, $1 million.

Prudential and American Express (full disclosure: former clients) have a 20 year track record of making these types of investments. National Community Investment Fund is a Creative Investment clone, and a bad one at that (we started seven years before they did.)

Which brings us to Goldman, who today "notified the New York State Department of Labor that the investment bank (might) lay off 230 employees." We'll see if they actually lay off people, but the investment in Carver is bound to cause some negative feedback, at least among those 230 people.

Goldman, you'll recall, has a history of investing in black-owned financial institutions: In May, 2009, Goldman Sachs Group Inc. invested $1 billion in a money-market fund managed by (African-American) Williams Capital.

Of course, Goldman has been fined $619.3 million by the SEC for various infractions.

That's 47 times the $15 million invested in Carver.