Summary of recent news articles on black-owned banks 08/31/16-09/11/16

Black-owned Banks See Surge in Deposits. By Akilah Johnson, The Boston Globe. September 10, 2016.

The #bankblack movement has brought OneUnited Bank more than $10 million in deposits in less than a month. Black-owned banks across the country have struggled in recent years to keep pace with a changing world. William Michael Cunningham thinks having another #bankblack event with a failing black-owned bank won’t make a long-term difference. “The question becomes: How do you harness and channel the spending of the $1.1 trillion black buying power so you’re actually benefiting from it?” says Darnell Williams.

What’s Next if Payday Loans Go Away? By Tara Jeffries, Morning Consult. September 7, 2016.

The proposed Consumer Financial Protection Bureau regulation aims to prevent borrowers from being stifled by high interest rates and monthly payments. Stronger regulation of payday lending could increase the use of financial technology such as online marketplace lending, said William Michael Cunningham. He also suggested, “CFPB should take some of that fine money that they’re getting from these financial institutions and create a fund to create responsible depository institutions serving some of these communities.”

How U.S. Backed Banks Robbed Ex-Slaves of $66 Million. By Admin, Huewire. September 1, 2016.

The Freedmen’s Savings and Trust Company was established and run by white men in 1865 for ex-slaves. Due to fraud, mismanagement, and discriminatory lending, the bank closed in 1874, and 61,144 black depositors were robbed of the modern equivalent of $66 million. The failure of the bank left many African Americans distrustful of the white banking community. And it’s still harder for African Americans to get mortgages or small business loans compared to whites with the same variables. Usher and Booker T. Washington call on people to bank black. “Empowerment starts with ownership,” said Usher.

The Rise and Fall of Black Wall Street. By Alexia Fernández Campbell, The Atlantic. August 31, 2016.

The Jackson Ward neighborhood of Richmond, once dubbed America’s “Black Wall Street”, was one of the most prosperous black communities in the United States at the turn of the 20th century. Richmond is where the first black banks opened. The first black bank, the St. Luke Penny Savings Bank opened here. But due to troubled loans and lack of capital, the bank was taken over in 2011, renamed as Premier Bank, and lost its African American majority ownership. The bank still mainly serves black community and gained preference of black entrepreneurs.