However...........

........a lot of Black Banks, United national in particular are in serious financial trouble.

Just last summer, United Bank's founder was ousted, and they had to make a deal with the Feds to maintain their FDIC insurance: Their problems were Under Capitalization (not enough funds om deposit) sky high defaults on loans, etc. They've had to close some Branches, raise fees (which just caused people to pull their money out)

Basically, United Bank forgot that it was a Business and tried to act like a social welfare organization and got itself in trouble. It's sad really, it was trying to help the people in Poor Black Communities and philly and got itself in trouble.

But if United National Bank folds, where will the people of those communities (the ones who paid their loans and had decent deposits) go then?

Even the Black Banks that aren't in bad economic shape, aren't really strong enough to really help the community. When Carver National Bank (which also has had severe economic trouble recently) is ranked as the #1 Blank Bank by Black enterprise, simply because it has more assets and capital then the rest...that indicates a problem for the industry as a whole.

Even if you're not "under capitalized" and are profitable. A Bank with around 20 million in capital and 200 million in assets isn't a very economically strong Bank. It sounds like a lot, but in the overall scheme of things, it really isn't.

So what's the problem? Well, it's hard to build a profitable Bank that can really help the community, when your customers are living in poverty.


What's the solution? Open Branches in White Neighboorhoods! I keep my loot for my side business in a small community Bank, I think they have 5 Branches, maybe 7. But they have 10 BILLION dollars in assets and about 1 Billion in capital.

That's roughly 50 times the assets of the average Bank in the Black Enterprise top 10.

Case In Point: Black Investment Banks are doing very well, because they focus on Affluent Blacks & Whites!

Of course, someone is bound to say: "White folks won't go to a Black Bank" To which my response is: "How many Black people know if their local Bank is Black owned? AND often assume it's white owned if they get turned down for a loan" How would the Average White guy know that a Bank was Black owned, if it opened up in his neighboorhood?

Here is the way I look at it:

Black Banks have better customer service then White Ones, that's a fact.

Everyone here in Suburbia, since I've been old enough to talk...has been complaining about the service at our local "White Banks".

If I had control over a Black Bank, I would simply start a separate company (owned by the Black Bank) that would start a new Bank in the suburbs, and I would put some White boys in charge. Then simply start opening up Branches and and focus on good customer service.

THEN, use the money generated by the White Branches and put it in the Community. The risk isn't as Great, because the White Branches are maintaining your solvency.

Damn, I'm shocked that no other Black Banks have thought of this.


ARGHHH!



M2