Bank that Linked Business with Philanthropy

For decades Oak Park and River Forest, in the suburbs of Chicago Midwest has been on the curve of good days. The river and woods separates them from more affluent neighbourhoods but some of the charms are common – stately heritage buildings and tree lined avenues. Maywood however is dominated by Afro-American residents with the houses comprising of modest bungalows and framed buildings that had been constructed by the workers of factories. Long ago their work has vanished. Many shops are empty and there are more churches than bustling business outlets.

For over ten years Michael E. Keely a banker residing in River Forest owns Park National Bank in Chicago and some other eight banks in other areas. He suddenly began to focus on Maywood and took some steps that were unconventional for bankers.

In 2003 a branch of his was set up in Maywood despite the slim purses of the majority of the residents. His bank purchased a redevelopment bond from the village and refinanced it at a reduced rate to save money for Maywood. In trying to boost up the falling value of property he took up the plan of purchasing houses that were in foreclosure, repair and then sell these at cost price.
Lennel Grace’s family has been living in Maywood for four generations. He referred to Keely as River Frost with a true feeling and link with the community. Grace said that Keely understood that all these communities were basically linked together.

But in the fall of 2009 the private banking kingdom of Kelly fell down and his role as a philanthropist banker came to an end. He had misjudged the situation and the onslaught of the financial crisis was too much for him to withstand. Federal regulators directed U.S. Bank to take over his nine banks.

The Federal regulators have closed 200 such banks in the last three years – some being small institutions catering to the community. Other banks have taken over their assets together with deposits and silently started operating the branches under new sign boards and very little hype.

Generally right across America the public have rued the vanishing of these local banks. They now worry that these other banks without faces will have little interest in the betterment of the community. Their only focus will be on reaping profits. Nowhere has this issue been more publicized that in the Chicago region where the Park National Bank of Kelly was noted for linking business with philanthropy.

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