Reading with Rachelle
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December 21 2024
Ep. 7: The Lasting Impact of the Freedman's Bank
After the Civil War ended, as more and more formerly enslaved Black Americans began making money, they had nowhere to keep it—until the Freedman's Savings and Trust Company was established in 1865. At its peak, the bank had over 100,000 accounts and $50 million ($1.4 billion today) in deposits. However, the bank's administrators and trustees soon began misusing the depositors' funds, loaning it out to white borrowers—requiring no application and, oftentimes, no collateral—to fund risky ventures,...