Freedom National Bank has been facing criticism and racism allegations. The bank has been accused of discriminatory lending practices, with some borrowers claiming they were denied loans or offered unfavorable terms due to their racial background.
The bank's lending practices have been under scrutiny for years, with some critics arguing that they disproportionately affect communities of color.
Freedom National Bank has a long history, dating back to 1964 when it was founded by a group of African American entrepreneurs.
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Freedom National Bank
Freedom National Bank was an African-American owned bank in Harlem (New York City) founded in 1964 and shut down in 1990.
Its main office was located at 275 West 125th Street.
The bank served Harlem's Black community and was one of the largest Black owned banks in the U.S.
Freedom National depositors accused the FDIC of racism, claiming they acted hastily and didn't give community leaders enough time to try and save the bank.
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Several witnesses testified at a Congressional hearing that the FDIC used a racist double standard in its dealings with large white-owned institutions and smaller minority-owned banks.
The Rev. Wyatt Tee Walker, of the Canaan Baptist Church, lost $641,000 when Freedom National closed its doors.
Church leaders and agency heads argued that the FDIC's actions undermined confidence in the banking system, especially for minorities.
Rep. Charles Schumer, a Brooklyn Democrat, expressed concern about the jarring contrasts between how the federal government dealt with larger national bank failures and how it moved to close down Freedom.
Only 15 of the 360 banks that were forced to liquidate in the last two years were forced to pay off depositors, and three of those were black-owned, including Freedom National.
The FDIC and U.S Office of Currency "arbitrarily closed and discriminated" against Freedom National, according to Grace Harewood, of the Fort Greene Senior Citizens Council in Brooklyn.
The federal government is holding onto close to $157,000 in funds collected as donations from parishioners towards a new building, said the Rev. Philius Nicolas, of the Evangelical Crusade of Fishers of Men in Brooklyn.
Schumer said he would be proposing legislation in the next session of Congress that would require banks to let depositors know when their accounts exceed the amount insured by the government.
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Racism and Accusations
Freedom National depositors accused the FDIC of racism, claiming a double standard in its dealings with large white-owned institutions and smaller minority-owned banks.
The Rev. Wyatt Tee Walker, a member of the bank's board of directors, said they were not asking for welfare, but demanding what was rightfully theirs - their money that the FDIC had confiscated.
Several witnesses, including Walker, testified that the FDIC acted hastily in closing down Freedom National, and didn't give community leaders enough time to try and save the bank.
Rep. Charles Schumer expressed concern about the jarring contrasts between how the federal government dealt with larger national bank failures and how it moved to close down Freedom National.
Only 15 of the 360 banks that were forced to liquidate in the last two years were forced to pay off depositors, and three of those were black-owned, including Freedom National.
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