First Illegal Loan: How Freedman's Bank's Own Actuary Betrayed Its Mission

Описание: Two days before accepting his position as actuary at Freedman's Bank, D.L. Eaton borrowed $1,000 from the institution - a completely illegal act that would mark the beginning of the bank's corruption. While he paid back the loan within weeks, this decision had far-reaching consequences for a bank created to serve the formerly emancipated.

The bank's rules were clear: it could only invest one-third of its deposits in the safest securities available. It wasn't supposed to make any loans at all. As a pure savings bank, its mission was simple and conservative - protect and grow the savings of recently emancipated individuals during the Reconstruction Era.

In this clip, historian Justene Hill Edwards breaks down this pivotal moment in the bank's history. She explains how this first unauthorized loan, taken by the very person meant to evaluate the bank's risks, started to chip away at the institution's foundational purpose. Though seemingly small compared to later events, this $1,000 loan marked a significant shift away from the bank's original benevolent mission, setting a precedent that would contribute to its eventual downfall. Hill Edwards discusses this story as part of her broader research detailed in her book about the rise and betrayal of Freedman's Bank.