Executives Working to Create Black-Owned Holding Company

Firm would make capital available to minority banks

to buy bad mortgage-related assets, but was changed last month to invest money into banks in a move to help revive the economy and spur bank lending.

As of mid-December, the Treasury has invested nearly $168 billion
into primarily mainstream banks.

Cunningham said the effort for MBF was launched in 2007, but the fund has not been able to raise a lot of capital. He said its application to TARP reflects a changed market environment.

“What we’re saying is if [the Treasury] not going to invest in the black-owned banks, than do it through us,” Cunningham said.

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