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The Freedom National Bank closes its doors amid controversy over federal regulation standards.
1990 (Nov 5)
The Freedom National Bank closed its doors amid controversy over federal regulation standards. Established in New York City's Harlem section in 1964, Freedom National quickly became a symbol of Black American pride. With total assets of $120.6 million in 1990, it was ranked among the nation's top five Black American banks by Black Enterprise magazine. The financial institution was a depository for many prominent Black American celebrities and was the bank for numerous Black American organizations and businesses. Representative Charles B. Rangel of New York, citing unfair treatment, called for a probe by the House Banking Committee. He charged that regulators used a double standard in procedures used to close the financial institution. Several major customers stood to lose a significant amount of uninsured deposits unless the Federal Deposit Insurance Corporation (FDIC) agreed to repay at least 50 percent of all deposit accounts in excess of the insured limit of $100,000. The United Negro College Fund and the Fort Greene Senior Citizen Council were among the larger depositors. The two organizations had more than $11 million in uninsured deposits in Freedom National.
References:
- • Hornsby, Alton. Chronology of African-American History: Significant Events and People from 1619 to the Present. Detroit: Gale Research, 1995.