Wachovia, PNC, Citizens Bank, Bank of America, and Mellon Bank Disclose past ties to slavery
/By Kwame Abasi Patterson
Councilman says banks should pay reparations
Recent filings with the City Treasurer's office have revealed that five out of nine city depositories have ties to slavery.
On Wednesday, all city depositories submitted filings to the treasurer's office in response to an annual request for information by the City Council.
As part of the request, Wachovia, PNC, Citizens Bank, Bank of America, and Mellon, which is partly owned by Citizens, have all disclosed ties to slavery through predecessor institutions, according to Councilman W. Wilson Goode Jr.
Two of the city's depositories, Advanced and Commerce, did not disclose any ties as they were both formed after slavery with no predecessor institutions. United Bank was also formed after the time of slavery with no predecessor institutions. However, United and Republic First Bank did not respond regarding disclosure.
Brian Goerke, PNC spokesman, said the Pennsylvania-based bank has conducted research through a reputable independent company that found there was no evidence that any of PNC's predecessor institutions profited from slavery or owned slaves.
He added PNC would not publicly release its report and did not comment on whether PNC had absolutely had no connection with slavery, though Goode said the disclosure statement does indicate ties.
Each bank was required to submit the historical data on May 31 as part of a Council mandate that required city depositories provide the city with community reinvestment goals, fair lending strategic plans and slavery disclosure.
In a recent press release, officials from Citizens Financial Group said through a recent independent study they have discovered that they had no direct involvement in the slave trade or direct ownership of slaves.
However, their research determined some of the predecessor banks' directors might have had connections to slavery as private individuals and as part owners of ships involved in the slave trade or the traffic of goods produced by slaves, such as molasses, or as plantation owners.
Their research, according to Citizens officials, identified one case where partial ownership of slaves was assumed for a period as a result of foreclosure and showed links with customers or partners who fought for the abolition of slavery.
"This was a disgraceful era in our nation's history and while our research has found no direct involvement in slavery, it is important that we acknowledge and understand the past," said Lawrence Fish, chairman and CEO of Citizens Financial Group. "We believe our priority is to make a difference for today's African-American communities and I am pleased Citizens and Charter One are deepening their commitments even further."
Bank of America also released a report last year that found two of its 63 predecessor companies engaged in financial transactions that involved slaves.
In 1863, one of its predecessor institutions issued a loan to a person who listed slaves as collateral and in 1840 another predecessor bank agreed to accept slaves as collateral on a loan to the U.S. Secretary of State, but the bank never made the loan.
Kenneth Lewis, chief executive officer for Bank of America, said the bank regrets any actions its predecessors may have taken that supported or tolerated the institution of slavery in America.
In addition, Bank of America pledged to donate $5 million to institutions and programs related to African-American history, while Citizens announced last week a $5 million pledge to support local economic and educational initiatives for African-American communities.
Last year, Wachovia officials, who were first to disclose as a Philadelphia depository, also said two of its historical predecessors owned slaves and accepted them as payment. Officials from the North Carolina-based banking institutions offered an apology and pledged to make certain investments in the African-American community.
The push for disclosure began in Chicago and carried into Philadelphia with legislation introduced by Councilwoman Blondell Reynolds Brown in 2004.
It was a two-prong process, according to David Ford, chief of staff for Brown.
Her original bill, which was passed by Council and singed by Mayor John Street last year, requires any bank depository doing business with the city to disclose whether it had connections to slavery in its past.
The intent, according to the councilwoman, was for the banks to do the research, as many African Americans believe awareness and information could help in the healing process.
"And we see a year later the discovery that 'yes,' local city depositories indeed had ties to slavery," she said.
Councilman Goode subsequently added a bill asking for some form of reparation from the institutions that disclosed ties.
"It was my understanding that probably most, if not all, of our city depositories would disclose slavery ties," he said. "As a result of the follow-up legislation I did to Councilwoman Brown's bill, it became a requirement."
Now, the question is how these institutions are addressing current discrimination in their banking practices, Goode said.
He commended Citizens Bank for providing, along with its disclosure statement, progressive plans to improve community reinvestment goals and strategic fair lending plans for Black Philadelphians.
"(Disclosure) just allows us to do more work on making sure African Americans are included," said Pamela Crawley, Citizens Bank senior vice president and director of Public Affairs.
But Ari Merretazon, co-chairman of the Case Against Wachovia Committee, for the National Coalition for Reparations for Blacks in America, said simple disclosure is not enough.
"It's not just disclosure we want," he said. "It's full disclosure."
Merretazon, whose group N'COBRA has filed a complaint with the city against Wachovia for not providing full disclosure, said the banks are misrepresenting their amount of predecessors in order to avoid proper reparations.
"Once they provide full disclosure, we can develop a win-win reparations logical model for this country," he said.
Brown said, for now, the disclosures of the five banks are victories for city. But the next step is to give back to the descendents of slaves.
"Those who have gained, if you will, there are responsible, reasonable opportunities for those institutions to make a contribution and give back," she said.
So far, officials from city depositories have said they don't plan to provide any "reparations" for the roles their companies' may or may not have played in slavery.
The nine banks' disclosure statements are available to the public in both Goode's and Brown's city hall offices.
