Black bank rebuilds.

Author:Scott, Matthew S.
Position:Broadway Federal Savings and Loan Association
 
FREE EXCERPT

The BE 100s company hardest hit by the Los Angeles riots is the Broadway Federal Savings and Loan Association. With his banking headquarters burned to the ground, CEO Paul C. Hudson is confronting the irony that his 45-year-old financial institution is taking on a major role in the effort to rebuild South Central Los Angeles, even as it is part of what needs to be rebuilt.

Only a small amount of money was lost in the fire that gutted the building. Hudson says Broadway's headquarters was insured for $3 million. He has already hired Jollivette Construction Co., a black women-owned firm, to coordinate the construction of the new building. And to restore service to his customers, a $200,000 modular branch, donated by Home Savings of America, was constructed across the street.

Broadway, ranked No. 13 on the 1992 BE FINANCIALS LIST with assets of $93.5 million, was an anchor in the depressed South Central community. The savings and loan has been one of few financial institutions to remain in South Central, providing home mortgage loans to blacks and other minorities when other institutions would not.

But some way the strategic torching of Broadway during the riot may be unofficial referendum against the bank. Hudson disagrees. "We were a symbol of the government and of financial wealth, and that's why we were torched." James H. Johnson Jr., director of the UCLA Center for the Study of Urban...

To continue reading

FREE SIGN UP