subject: Ghost Of Humane Bank Is Haunting A New Faceless Bank [print this page] Park National Bank in Maywood, suburbs of Chicago was operated by Michael E. Kelley who was concerned about the high rate of foreclosures in this area - the residents mainly being Afro-Americans. His bank had a humane face. He bought the foreclosed units and after repairing these sold them at cost price to needy families. But the recession led to his fall and the bank was taken over by a faceless bank US Bank - the fifth largest in the country. This has led to public ire who wants the new administration to continue with the good work done by Kelley.
But the bank administrators have their constraints. They have branches all over the country and they cannot do one thing here in Maywood and not do it elsewhere. Ricahrd Harnack of the US Bank noted that things worked smoothly in California where they had 400 branches because there they "didn't have the ghost of Mike Kelly to deal with."
It is insulting to refer to Kelley as the ghost as he is well and kicking in his 66th years. He loves his privacy but continues to be generous. Kelley took charge of the First Bank of Oak Park in 1981 and developed it to become an enterprise having assets worth $19 billion - mainly from the underperforming and failed assets of other banks. Finally he came to own 9 banks, under FBOP Corporation in Illinois, Arizona, California and Texas. His was the biggest private holding bank in the country and prior to 2008 it noted 25 running years of reaping profits.
His banks have won a name for their generosity and caring for areas where the income is low - especially in Chicago. It promised $27 million loan sans interest for the building of Jesuit Preparatory School at Austin - a Black neighbourhood. The bank also contributed to creating a savings centre for communities in the western part of Chicago where banking service charges were low. Financial advice was provided to people who were in general shy of banking. $20 million was set aside for house owners at risk from foreclosures. Altogether his banks donated to charitable causes $36.7 million in 2007 and 2008. FBOP added another $17 million during this period. Another $583 million was provided by the banks under FBOP as loans for community development including providing for affordable houses and development inside the city.
Rev Marshall Hatch, of Community Banking Coalition said, "This was the finest community bank in America. The loss of the bank is incalculable for our side of town."
