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NATIVE CULTURE

The Truth about Black Banks and the Racial Wealth Gap

PBS Origins | June 24, 2026



Black-owned banks were going to close the racial wealth gap—so what happened? Harini Bhat dives into the history books to explore the financial struggles faced by Black Americans from segregation to redlining and examines the role Black banks have played in the economic empowerment of the communities they serve.

Editorial Note: Before Reconstruction, there was the Freedmen’s Savings Bank disaster. The Freedmen’s Savings Bank was established under President Lincoln in 1865 to be a savings bank for almost 4 million newly freed African American depositors. The bank was eventually mismanaged and lost millions of dollars in savings, setting the Black community back by a decade or more. The earliest Black banks like the Alabama Penny Savings Bank and St. Luke’s Penny Savings Bank were established decades later.

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IN THE MARGINS is a new series that covers the history they didn’t teach in school, exploring obscure, yet captivating tales that offer unique insights into their time and place.

IN THE MARGINS is produced by Alabama Public Television, PBS Utah, and WHYY for PBS. This program was produced by Alabama Public Television, which is solely responsible for its content.

0:00 What is the racial wealth gap?
1:20 Black Banking Barriers
1:41 Discriminatory Lending & Alabama Penny Savings Bank
5:00 Housing Discrimination & St. Luke’s Penny Savings Bank
8:33 Economic Segregation & Black Wall Street / Mechanic & Farmer’s Bank
11:41 How do we close the racial wealth gap?

Citation: Baradaran, M. (2017). The Color of Money: Black Banks and the Racial Wealth Gap. First edition. Cambridge: Belknap Press of Harvard University Press.

#racialwealthgap #BlackWallStreet #blackhistory #americanhistory #history #money #finance #banking #hamilton #InTheMargins

Written by PBS Origins

Comments

This post currently has 20 comments.

  1. @youremakingprogress144

    June 24, 2026 at 7:31 am

    Many people love to say that poor people just need to work harder. When they're confronted with evidence like this that poverty is an intentional and unnecessary part of the system created specifically to disempower specific groups, all they can do is insist that the evidence they just saw doesn't exist.

  2. @maxpayne6695

    June 24, 2026 at 7:31 am

    Black peiple have as much money as Whites and Asians. Economically they are a powerhouse. It’s a matter of investments, generational wealth, government manipulation regarding where wealth could be concentrated and where it could be snuffed out, priority spending and financial illiteracy that plagues the community thanks yes to institutionalized racism, dirty political machinations, organized religion and the criminal justice system and capitalism run amok unfettered in its purest form morally bankrupting generations.

  3. @BeulahOkonkwo-i2b

    June 24, 2026 at 7:31 am

    Do we need an immigrant to tell us about our history ? I think not ! Afro Descendants need to do your own due diligence to study and become experts on your own history . These non- Afro Descendants are not invested in our communities. They have always studied us for profit . So don't be fooled by this reporting into thinking they care about us.

  4. @KarenHeard-ur3js

    June 24, 2026 at 7:31 am

    Is this a ballroom or a fortress? It’s a fortress. Trump has no intention of giving up power when his term is up. His private military ICE will make sure of that. January 6th was nothing compared to the next insurrection. He won’t leave and there is nothing anyone can do to make him leave. He has the keys and the nuclear codes.

  5. @MarioGamadeFrança

    June 24, 2026 at 7:31 am

    WHY arent we talking about….the INTELIGENCE GAP ?!?….you know, the BASIC IQ Gap ??…you know, where the Askenazi Jews are the NUMBER ONE?…the ASIANS from JAPAN…KOREA…CHINA…are the SECOND?…and then the EUROPEANS are THIRD?….and where Aboriginals from Australia, Papuans from New Guinea, Sub Saharan Africans are DEAD LAST?….different people create different Cultures and different Cultures create different Societies…different Societes create different OUTCOMES….

  6. @MarioGamadeFrança

    June 24, 2026 at 7:31 am

    WHAT THE HOLY FU%& ?!….there are Millions of BLACKS in the United States TODAY than can easilly afford and PAY to Build and SUSTAIN PRIVATE BANKS….for BLACKS ONLY (…who cares?…)?!?….in fact, its probably GOOD BUSINESS too?….like NIKE SAID….JUST DO IT? and stop blaming everybody else for YOUR failures?

  7. @rizmacadillac

    June 24, 2026 at 7:31 am

    I've been warned by my White family about worrying about these issues too awfully much. I can observe that there are a lot of White Poor in America or Low income so Take Wealthy Whites out of the equation and see what the differences are between White and Black. I basically try to mind my own business in this day and age. When I was younger I was exposed to the Race issue and I was actually agitated at the time and the subject bothered me. But a US Senator gave a speech about the race issue and all he talked about was "busing" schoolkids. Some large towns (I walked to school in my town because there were no bus rides) had separate Black and White Schools. One bus loaded up with Black kids to take them to Black school while another White Bus delivered kids to White only schools. The Senator did not talk globally about this issue and try to "save the world", he spoke only about the segregation in Education. I might point out that I have been in environments even today where Whites and Blacks work separately some time. Not exclusively usually but there are times when Whites, Blacks, Hispanics, Women and Men are mostly separate from one another in Business or wherever. At least I've seen this. And I don't complain.

  8. @rizmacadillac

    June 24, 2026 at 7:31 am

    I was more or less harassed when I was a young white male over the issue of race, discrimination and such. I wasn't very popular when some whites were "laid off" because the court forced them to hire blacks instead. I probably suffered socially and personally because I did not understand why I was being harassed over this issue and because I was not socially advanced. I didn't have many friends and so I got labeled… though I don't want to talk about how or how serious the labeling was. Some of my ideas came from school and I valued Education. So did my family. What troubles me is that a lot of what you cover here has changed some. And when i decided to work after college I was assigned to a Black supervisor and to a Black Government Section where Blacks basically said they hated me and did not like having me around. I contracted to work for a time with a company that often cycled employees over a couple of years. Basically they paid a white crew or black crew or Hispanic Crew their minimum for anywhere from 2 – 3 years and got work from this crew before laying most all of them off in favor of a new group… including one all girl crew as I recall. So I've seen "separate but equal" if that's the right term in this environment as well. There seemed to be some cultural differences when I was exposed to the groups. Blacks and Hispanics were friendly enough but didn't want me around. The girls made fun of me because I was older and they were wishing one of the young studs were around them instead of me. So I basically accept that people don't like one another. In addition to color of skin there may be cultural differences that employers see which I do not see. Maybe they just want their privacy. The groups I mean. Politically, I had been approached by some politicians from one of the two parties but basically they wanted to turn me into someone even more isolated and along than i was by introducing me to a new form of Business Organization. Why go to College and work for something new if I can work for existing American infrastructure and make a contribution to a successful trillion dollar national empire? I keep quiet about this. I don't really know what is going on with this issue because somehow I managed to have everyone attacking me. I mean, I clearly cannot ignore myself in this controversy and I'd rather be treated like I'm White than as if I as a "light colored" black.

  9. @MrRoberthafetz

    June 24, 2026 at 7:31 am

    The difficulties experienced by blacks has one main cause. 73% out of wedlock births and no father in the family. This is the foundation of poverty crime and adverse childhood experiences.

    It takes two parents and incomes to raise healthy well developed children into adults. Thats been proven by developmental psychology and data that ties high crime rates with blacks and single mothers.

  10. @newme1813

    June 24, 2026 at 7:31 am

    For those of us who know and understand the system, this is not a real statement/question!
    We are connected to His spirit, and we are waiting on Him!
    WHILE we are waiting, we get used BY the system and its cohorts! 👀

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