By Olivia Scheck
DNAinfo Reporter/Producer
MANHATTAN — An historic Harlem bank averted possible disaster this week by securing a $55 million cash injection from a group of Wall Street investors, a statement by the company announced Wednesday.
Carver Federal Savings Bank, the largest African- and Caribbean-American operated bank in the country, had been carrying $74 million in overdue loans due to the struggling commercial real estate market.
As a result the 63-year-old bank, with its headquarters on West 125th Street near Malcolm X Boulevard, was ordered by federal regulators to raise additional cash or face possible closure.
The $55 million raised from some of Wall Street’s largest firms actually exceeded the amount required by federal regulators, according to the company statement.
Goldman Sachs and Morgan Stanley each invested $15 million in the bank, citing the company's commitment to lending capital in low-income communities in Wednesday’s statement. Citigroup and Prudential Insurance Company invested $10 million each.
A group of community leaders, including Rep. Charles Rangel, held a breakfast meeting in April to brainstorm ways to save the faltering bank, according to Crain's New York Business, though it was not clear what role the meeting playe in securing the investments.
Carver Chairman and CEO Deborah Wright thanked the investors "for their vote of confidence in the value of our franchise and its importance to New York City's urban communities."
