How much money was lost in the Freedmans bank?
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DepositorsUSD In Deposits
In order to unearth the important history of the Freedman’s Bank, Operation HOPE, the National Archives, and the U.S. Department of Treasury have come together to shed new light on the involvement of black Americans in the highest ranks of the U.S. Financial System. Here you can find rare photos taken from the U.S. Department of Treasury which show that history. “The 18th Congressional District of Houston, Texas has a long historic Freedman’s legacy and I am proud to see that the U.S. Treasury Annex will be renamed the Freedman’s Building. This is a historic decision by President Obama and his Administration and I support this monumental act to preserve American history. None of this would have been possible without the leadership and persistence of John Hope Bryant and Operation HOPE whose mission continues the objective of the historic Freedman’s Bank – to provide financial freedom and access to capital for everyone.” 18th District Texas “The U.S. Treasury Department has taken an important step forward by deciding to rename the Treasury Annex building to acknowledge the truth of America’s history. By changing the name to Freedman’s Bank Building the department is recognizing the importance of historical attempts to address the great economic divide and wealth inequality gaps of African-Americans following emancipation in 1865. At this time of deepening wealth and income inequality gaps in America, this is a critical time to recognize the truth of the legacy of slavery and the systemic institutional inequality that still exists and must be addressed today.” Marian Wright Edelman President, President of the Children’s Defense Fund “We applaud the decision to rename the Treasury Annex as the Freedman’s Bank Building, as it will serve as a reminder of the progress in our industry and an encouragement to continue the practice of inclusion,” Bill Rogers Chairman and CEO, SunTrust Banks, Inc. “The Freedmen’s Bank served as an important part of the Reconstruction effort, as Lincoln’s vision included the need for newly freed slaves to learn about money. Today, as the Treasury Department renames the Treasury Annex Building the Freedmen’s Bank Building, we must acknowledge that money, banking and credit, and access to it on fair terms , are integral to today’s civil rights agenda. The National Urban League, as the civil rights community’s economic empowerment champion, congratulates Treasury Secretary Lew on this important step.” Marc Morial President, The Urban League “In 1992, following the Los Angeles Riots, I, alongside other private sector leaders, led an effort called Rebuild L.A. During this period it became clear to me the effects that lack of access to basic services, like mainstream banking, can have on an individual, and the potentially devastating effects when access is lacking for an entire community. The Freedman’s Bank stands for equal access, and furthermore, represents a commitment by those in leadership to not only provide the access, but to also provide the education and opportunity for those who are under-served to become full participants in America’s democratic and capitalist society. Operation HOPE, founded by John Hope Bryant at the same time I engaged with Rebuild L.A., continues to pursue the dream of economic equality and I am proud to call myself a friend and supporter of John and Operation HOPE, and extend my appreciation for HOPE’s role in the renaming of The Freedman’s Bank building.” Peter Ueberroth Managing Director, Contrarian Group “South Africa and the United States may be continents apart, but we share the same God inspired desire for all people to be free, to be who they want to be. Freedom of expression, ability, and aspirations too. We did not have a (President) Lincoln in South Africa, but we did have a Mandela, and we successfully re-imagined a new country, and a new Constitution here, which sought to set the best in all people free — to be. This is the essence of what it appears Lincoln desired too, when he dreamed up the Freedman’s Bank, in 1865. The same essence that inspired the great Abolitionist Frederick Douglass to run the bank after Lincoln’s untimely death. In times like these, it is good to see leaders doing good, for no other reason than it is so. Good for all of the people. For this reason I take time to highly commend the US Treasury Department and Treasury Secretary Jack Lew, for taking this important step of renaming their Treasury Annex Building, directly across from the White House and the main Treasury building in Washington, DC, to the Freedman’s Bank Building. This simple but important historical gesture, has the potential to give dignity and context to countless children — that will now hear this story as their story, as they are told the story of America itself. There is untold power, in being told — in knowing — that we are all ONE. We all have the same worth, and the same value. Commendations all. Arch.” Archbishop Desmond Tutu South African Civil Rights Activist “As a former Treasury
official, I’m delighted to see Sec. Lew recognize the historical significance of the Freedman’s Savings and Trust by renaming the Treasury Annex building in its honor. When visiting Washington, Americans will now be reminded of this extraordinary financial institution and its important role in 1865 of helping African Americans become part of the American dream. This principle of including all
Americans in our country’s financial system is as important today as it was 150 years Rob NIchols President & CEO, American Bankers Association What happened to the money in the Freedman's bank?The bank failed in 1874, weighed down by speculative loans issued by the bank's white officials throughout its existence. Historians believe that the bank's failure not only destroyed the savings of many African Americans, but also their trust in financial institutions.
Why did the Freedman's savings bank fail?When a financial panic hit the country in 1873, most of the Freedman's Bank's investments lost value or became worthless. The bank was doomed. Several branches were hit by bank runs, during which crowds of depositors demanded their money.
Was the Freedmen's bank successful?The group worked to create a savings bank for former slaves, African American veterans, and their families. In 1865, they succeeded. The Freedman's Savings and Trust Company, often called “the Freedman's Bank,” opened for business.
What contributed most to the collapse of the Freedmen's bank in 1874?An 1870 amendment to the bank's charter changed its loan and investment policy, allowing it to speculate in stocks, bonds, real estate, and unsecured loans. By early 1874 the bank was on the verge of collapse owing to overexpansion, mismanagement, abuse, and fraud.
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