MIAMI – A group of 70 black South Florida churches that partners with banks to increase the financial strength of parishioners announced last week that the J. P. Morgan Chase bank, formerly Washington Mutual bank, has discontinued its relationship with the church group.
A Chase spokeswoman said the bank has not severed its ties with the church coalition, but has decided instead not to honor agreements that Washington Mutual forged with community groups.
In a carefully worded June 19 news release titled the “Juneteenth Press Statement” that implied more than it stated, the Collective Banking Group of Miami-Dade and Vicinity, Inc. (CBG) thanked Washington Mutual for its “relationship of professional respect for the bank and our community.”
Juneteenth is the oldest known celebration commemorating the end of slavery in the United States, a celebration that came in 1865, two years after the signing of the Emancipation Proclamation.
The Rev. Dr. R. Joaquin Willis, pastor of the Church of the Open Door in Liberty City, is chairman and president of the CBG. He made it clear that the group is not calling for any action against J. P. Morgan Chase.
“The message to the membership is support the banks that are in partnership with us,’’ Willis told the South Florida Times. “[J. P. Morgan Chase is] not in partnership with us.’’
The Church of the Open Door has withdrawn its money from the bank. The church estimates that it was depositing about $500,000 a year into the bank.
Willis said he has not yet determined whether the 15 to 20 other CBG churches that bank with Chase have followed suit.
“We are asking people not to protest JP Morgan Chase. What we’re really asking them to do is to support the direction of the CBG and that means invest money in these five other partner banks,” Willis said of the group’s formal partnership agreements with CitiBank, Bank of America, Great Florida Bank, OneUnited Bank and Wachovia.
The local CBG is a branch of the national, Maryland-based CBG. The group comprises churches throughout Miami-Dade, Broward and Palm Beach counties. The exact amount of deposits made by this group annually was unavailable, but Willis suggested that a very conservative estimate is $105 million.
The national group was formed in 1993 after Greater Mt. Nebo AME, one of Maryland’s most prominent black churches, could not get a $50,000 loan despite having repaid, in good standing, $200,000 to the very bank from which it sought assistance. The bank reconsidered after the Rev. Jonathan Weaver, pastor of the church, informed the bank that the 750-member congregation would consider banking elsewhere.
Today, the national CBG has more than 150 churches, representing more than 200,000 people. More than $300 million in loans have been generated by the CBG, including transactions by member churches, parishioners, community development corporations and businesses.
Amid the nation’s massive banking catastrophe, Washington Mutual’s failure is considered the largest in the country’s history. After it was seized by federal regulators last fall, it was sold to J. P. Morgan Chase for $1.9 billion.
With new ownership apparently comes new policy.
According to Chase spokeswoman Nancy Norris, the CBG decision rests on the bank’s policy that forbids the signing of community agreements.
Norris told the South Florida Times that the New York-based bank has not cut its ties with the CBG.
“We did not sever ties. That’s kind of a strong way of doing it. We understand that Washington Mutual had signed some kind of an agreement with the CBG. Chase doesn’t sign those [kinds] of agreements with community groups,” the spokeswoman said.
Norris said Chase expects to continue working with the CBG, but on its own terms.
“We’ve met with them several times, and we’ve told them about Chase’s priorities, we’ve educated them about the kind of services we offer. On what our grant process is and how to apply for a grant,” she explained.
Willis, however, said the relationship between the CBG and its banking partners begins with a formal agreement.
“One of our requirements is that you enter into a partnership agreement,’’ Willis said. “They didn’t want to enter into that agreement. Those that are partnering with us are working in the spirit of the partnership. And that’s community reinvestment. We do economic empowerment seminars. They (Chase) are not necessarily of the belief that they should support those types of seminars.”
Of their participation in economic empowerment seminars, Norris said, “I’m not ruling anything out; it doesn’t mean we won’t be involved in the future.”
Willis said the Miami CBG doesn’t rule out a future partnership with Chase, recalling a similar experience with the national CBG.
“There was a little bank called Nations Bank [that] decided they didn’t want to work with [the national CBG]. Two and a half years later they became Bank of America, they looked at the decision and said we made the wrong decision here and they came back and got on board and nationally, they’ve been on board ever since,” he explained.
Whether Chase reconsiders or not, the group plans no protest and is moving forward without the bank, Willis said.
“This is a body of Christ. We’re a forgiving people. We’re a loving people. All we’re trying to do now is make sure that God’s people are not taken advantage of. That’s why our position is collaboration. Not protesting. We’re not here to protest. We’re here to empower and we are not going to let anybody disempower us.”
Stating that he views the experience with Chase as a valuable lesson, Willis said the group’s focus is to become self-sufficient.
“We’re going to continue as a group to reinvent ourselves gradually. We’re going to be investing in other properties and other things to generate our own income. We’re not going to depend on the banks. We’ve got to depend on ourselves,” he said.
Pictured above is the Rev. Dr. R. Joaquin Willis.