Harlem’s Carver Federal Savings Struggles To Survive

May 2, 2015

carver-bankHarlem’s Carver Federal Savings, the largest African-American bank in the nation, is in a struggle for survival — hit by troubles that have knocked out most of the once-thriving black banks across the country.

The 67-year-old bank, a neighborhood staple for decades, is trying to regain business and turn itself around under new chief executive Michael Pugh,Crain’s New York reported.

Three-quarters of the country’s 91 African-American banks have closed since 1987, according to Crain’s. The last to go was Atlanta’s Capital City Bank & Trust, which regulators shut down.

Once a lifeline for black customers who couldn’t get mortgages and loans elsewhere, the banks have struggled as more options became available. The banks also were hit hard by the financial crisis.

At Carver, officials faced pressure from regulators to loosen a historically conservative approach to lending and ended up investing in risky construction loans and losing $60 million from 2011 to 2012.

After a rescue by the federal government and big Wall Street institutions, the bank is attempting to draw back customers to open accounts and make more small-business loans.

“All of us want Carver to prosper, and all of us know its history of serving the community when no one else would,” Greater Harlem Chamber of Commerce president Lloyd Williams told Crain’s. “But if they’re going to survive, they’re going to have to earn it.”

By submitting this form, you are consenting to receive marketing emails from: Harlem World Magazine, 2521 1/2 west 42nd street, Los Angeles, CA, 90008, https://www.harlemworldmagazine.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact


We're your source for local coverage, we count on your support. SPONSOR US!
Your support is crucial in maintaining a healthy democracy and quality journalism. With your contribution, we can continue to provide engaging news and free access to all.
accepted credit cards

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles