Seaway Bank and Trust Co., one of Chicago’s largest Black-owned banks, was closed Friday, Jan. 27, and sold to the State Bank of Texas in Dallas. Surprisingly, the bank’s abrupt closure has gone largely unnoticed by major news sites — namely, the Black-owned ones.
Seaway Bank was ultimately closed due to “operations of an unsafe and unsound nature that resulted in inadequate capital to protect its depositors,” the FDIC said in a written statement issued to Atlanta Black Star. The Black-owned institution was founded in 1965 in response to the racist and discriminatory lending practices of major banks and soon opened branch locations across Chicago, the south and west suburbs and O’Hare International Airport, according to the Chicago Sun-Times.
The FDIC confirmed that all 10 of the bank’s locations would immediately operate under the ownership of the State Bank of Texas, which was founded by Indian-American businessman Chan Patel. The corporation assured Seaway Bank’s former depositors that their funds would not be affected by the transition. (Atlanta Black Star)