Harlem bank avoids collapse through Wall Street investment

New York /
Jun.June 30, 2011 09:38 AM

Carver Federal Savings, the nation’s largest bank founded and run by African Americans, has avoided collapse by raising $55 million in new capital, Crain’s reported. The bank had recently moved into large commercial real estate lending, veering away from its tested strategy of lending to one- to four-family homes — the move backfired. Earlier this year, faltering under a load of delinquent real estate loans, the bank was ordered by regulators to raise additional cash.

The new investors include Goldman Sachs and Morgan Stanley, which have agreed to invest $15 million each, while Citigroup and Prudential Financial have agreed to put in $10 million, according to an announcement from Carver’s parent company, Carver Bancorp.

“I haven’t had a day this good in some time,” said Deborah Wright, the bank’s CEO.

Earlier this year, 12.3 percent of the bank’s loan portfolio was more than 90 days delinquent. The industry average is 4.9 percent, according to Federal Deposit Insurance data. [Crain’s]


Related Articles

arrow_forward_ios
Sugar Hill Capital’s David Schwartz with 121 West 116th Street (TerraCRG, Google Maps, Getty)
Uptown landlord Sugar Hill Capital faces another foreclosure
Uptown landlord Sugar Hill Capital faces another foreclosure
From left: Bruce Teitelbaum and Kristin Richardson Jordan along with the site of a rejected housing development on 145th Street and Lenox Avenue in Harlem (Getty, Google Maps)
Pol who sank Harlem housing project rallies against truck lot on property
Pol who sank Harlem housing project rallies against truck lot on property
Slate Property Group’s David Schwartz, Martin Nausbaum; RiseBoro Community Partnership’s Scott Short and rendering of 326 Rockaway Avenue (Getty, Google Maps, Slate Property Group, RiseBoro Community Partnership)
Slate, RiseBoro land $122M to build Brownsville affordable project
Slate, RiseBoro land $122M to build Brownsville affordable project
Bruce Teitelbaum and Kristin Richardson Jordan with a rendering of the truck depot sign scheduled for installation Thursday at the site of a rejected housing development in Harlem. (Getty)
Bruce wasn’t bluffing: Truck depot opening at scuttled housing site
Bruce wasn’t bluffing: Truck depot opening at scuttled housing site
Former NY Lt. Gov. Brian Benjamin (Illustration by Kevin Cifuentes for The Real Deal with Getty Images)
Former Lt. Gov. Brian Benjamin skates on developer-linked fraud charges
Former Lt. Gov. Brian Benjamin skates on developer-linked fraud charges
BRC's Julie Salamon with 1721 Amsterdam Avenue (Bowery Residents’ Committee, Google Maps)
Nonprofit plans 200-unit Harlem supportive housing project
Nonprofit plans 200-unit Harlem supportive housing project
From left: Assemblyperson Inez Dickens and Councilperson Kristin Richardson Jordan
Pol who killed Harlem project could face primary challenge
Pol who killed Harlem project could face primary challenge
Tishman Speyer, Goldman Sachs plan 2K units in Jersey City
Tishman Speyer, Goldman Sachs plan 2K units in Jersey City
Tishman Speyer, Goldman Sachs plan 2K units in Jersey City
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...