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Showing posts with the label black banks

Black communities need more help from the Federal Reserve Board

An estimated  $7 billion in corporate  pledges have been made to facilitate efforts that support racial justice, and help activities  that seek immediate solutions  to the crisis affecting Black people. We are very familiar with these types of promises, having launched the first website focusing on financial support for minority communities in 1995 and a new website to monitor such corporate pledges. Yet it appears that only $188 million of that $7 billion is money someone can reasonably expect to get their hands on. Further, in certain sections of the Black community, there is concern about the effectiveness of the traditional organizations identified as recipients of the pledges. And there appears to be less  concern with newer, trending  organizations. Our recent survey of  customers banking at black-owned banks  suggests most consumers who do not use Black banks are concerned about their financial stability, and have not been able to leverage financial resources from th

Black Bank Survey

We are conducting a customer satisfaction survey on Black Banks To participate, see:  https://www.surveymonkey.com/r/YQZXZY7 Questions include: 1. How frequently do you utilize Black-owned Banks? 2. What is your overall satisfaction level when dealing with Black-owned banks? (5 starts - highest). 3. Have you had success in getting  loans, etc. from Black-owned Banks? 4. Are/were you worried about the financial stability of Black-owned banks? 5 .   Do you believe that Black-owned banks prioritize your needs? For a list of Black banks, see: https://www.minoritybank.com/research/blackbanks.html See: The country’s last black-owned banks are in a fight for their survival. https://www.washingtonpost.com/news/wonk/wp/2015/02/13/the-countrys-last-black-owned-banks-are-in-a-fight-for-their-survival/ 2011 - Crisis - The Current State of #BlackBanks  https://www.prlog.org/11541435-crisis-the-current-state-of-black-banking.html  2016 - Creative Investment released an analysis

Is capital haul too much of a good thing for Black-run banks? By John Reosti, American Banker Newspaper, June 24, 2020

An effort encouraging investors to buy stock in Black-run banks could create new challenges for the leaders of those companies. The Buying Black movement, which took root last week, led to sharp increases in the shares of companies such as Broadway Financial in Los Angeles, Carver Bancorp in New York and M&F Bancorp in Durham, N.C. An influx of new investors could increase pressure to improve shareholder returns, while any strategic effort designed to generate higher profits could also draw a backlash. At the same time, markets are fickle — most shares in Black-run banks have fallen significantly in recent days as some existing shareholders cashed out. Indeed, Broadway's biggest investor — who had been pushing for the company's sale — abruptly sold all of its stock after the value of its holdings soared. Leaders of Black-run banks contend that what they need more than capital is more partnerships with bigger banks to extend their reach to underserved custo

New Bill Could Help Black Banks Raise Capital, Cut Costs, and Attract Black Investors

Article by Jeff McKinney in Black Enterprise describes HR 41, "the Rescue Act for Black and Community Banks . The bill–initiated in January 2019–aims to, along with other measures, bring regulatory relief for black banks from Congress, boost wealth-building for black consumers and businesses, and help save black banks from failing." See: https://www.blackenterprise.com/new-bill-black-banks-black-investors/

Bill to Support Black and Community Banks

New federal banking legislation," H.R.41 - RESCUE Act for Black and Community Banks" was introduced by Congressman Bobby Rush (D-Il) on January 3, 2019. We worked, along with the Financial Services Innovation Coalition (FSIC), to draft this new legislation, which contains many of the ideas we have been working on for some time. Recently, FSIC sponsored a letter of support. To add your name, please see: https://lnkd.in/ejv9Ef6   hashtag The bill is designed to take a focused approach to saving and expanding the number of Black-owned banks operating in the US. This legislation is designed to meet the needs of the Black community, not just serve bankers. Our contributions were part of a collaborative effort in the overall national interest. The bill, which has just started the legislative approval process, contains the following provisions: 1. Establishes in the Office of the Comptroller of the Currency the "Office of Black and Community Banks". 2. Seeks to partial

The Problem with OneUnited and #BankBlack

 According to the New York Times, "WASHINGTON — Top banking regulators were taken aback..when a California congresswoman helped set up a meeting in which the chief executive of a bank with financial ties to her family asked them for up to $50 million in special bailout funds, Treasury officials said. Representative Maxine Waters, Democrat of California, requested the September meeting on behalf of executives at OneUnited, one of the nation’s largest black-owned banks. Ms. Water’s husband, Sidney Williams, had served on the bank’s board of directors until early last year and has owned at least $250,000 in stock in the institution. Treasury officials said the session with nearly a dozen senior banking regulators had been intended to allow minority-owned banks and their trade association to discuss the losses they had incurred from the federal takeover of Fannie Mae and Freddie Mac. But Kevin Cohee, OneUnited’s chief executive, instead seized the opportunity to plead for s

Crisis - The Current State of Black Banking

Our Webinar will cover: 1. History: Black Banking in the 80's, 90's and 00's. 2. Rationale: Why Black banks? 3. Customers: The Demographics of Black Banking. 4. Market: The Market for Black Banks. 5. Crisis: The Financial Crisis and Black Banks. 6. Opportunities: The OMWI initiative and Black Banks. 7. What to do now: Why campaigns to get minorities and other consumers in the urban areas to bank with minority banks have not worked. What will work. 8. Future: Which Black Banks will survive and why? 9. Next Steps. WHEN Wednesday, August 24, 2016 from 4:00 PM to 6:00 PM (EDT To RSVP:  Crisis: State of Black Banking

African American-owned bank get $1M deposit

This article is a direct copy of one I submitted to the Post. It adds some additional quotes, but otherwise is a copy. See my blog posting below. http://www.washingtonpost.com/business/capitalbusiness/industrial-bank-dcs-last-african-american-owned-bank-receives-1m-investment/2013/10/04/de5ab232-27bc-11e3-b3e9-d97fb087acd6_story.html Related articles CBCF makes a $5 million deposit in Black banks Congressional Black Caucus Foundation Makes Historic Deposit In Black-Owned Banks Washington, DC's Last Black-Owned Bank Receives $1 Million Investment from the Congressional Black Caucus Foundation

On Black Banks

I saw an article recently on Black banks in the US that was filled with inaccuracies. It was a public relations piece for the banking industry, so I thought I would post something based on my 20 years of research experience in the sector. 1. What is the historical significance of Black banks? They were created at a time when discrimination against Black people   was legal in the US. They served as the only financial service   providers to the community. 2. Do Black banks have the same level of significance to the Black  community today? Why or why not? No. They are too small to serve the community in any meaningful way. For example, they cannot serve as a line of defense against predatory lending . The result: b anks like Wells Fargo are free to target black communities for shoddy loans :  http://www.washingtonpost.com/ business/economy/former-wells- fargo-loan-officer-testifies- in-baltimore-mortgage-lawsuit/ 2012/06/12/gJQA6EGtXV_story. html Some Black banks were trying to help:

Federal agency orders Ideal Federal Bank to find a buyer

From the Baltimore Sun, March 11, 2010 by Jamie Smith Hopkins "Ideal Federal Savings Bank has until March 31 to find a buyer, a deadline set by the Office of Thrift Supervision after the federal agency determined the small Baltimore institution was undercapitalized. The bank — which opened in 1920 to combat rampant discrimination in lending — is one of the oldest continuously operated black-owned businesses in the country, according to Creative Investment Research, an analyst of minority and women-owned banks." See: http://articles.baltimoresun.com/2010-03-11/business/bal-idea-bank-0311_1_federal-agency-women-owned-creative-investment-research

FDIC revises rules on private equity investments

According to the New York Times , "The Federal Insurance Deposit Corporation imposed(new rules governing investments by) private equity firms seeking to buy failed institutions, although they eased more onerous proposals in hopes of luring them to the table." The new rules are designed to address concerns that "private equity buyers might engage in aggressive practices that could put its deposit insurance fund at risk." "The rules..require private equity-controlled banks to pour enough capital into a failed bank so that it has a cushion of at least 10 percent of its assets for three years. The F.D.I.C. dropped a requirement that private equity firms supply additional capital in the event of a severe downturn, required private equity firms not sell an acquired bank for at least three years, imposed restrictions barring the acquired bank from lending to companies affiliated with the private equity buyer, and exempted private equity firms from complying with the

Black Banks Are Feeling the Pinch

Black Banks Are Feeling the Pinch Recession pushes profits to nine-year lows By Jeffrey McKinney - June 08, 2009 Profits at the nation’s black owned banks last year plunged to a nine-year low, newly released data shows. The annual statistics, compiled last month by William Michael Cunningham, senior investment adviser at Creative Investment Research Inc. , a Washington D.C. firm specializing in minority banking, illustrated a major decline as some black owned banks suffered big losses tied to securities-related investments. See: http://www.blackenterprise.com/be-100s/be100s-news/2009/06/08/black-banks-feeling-the-pinch