Magazine article American Banker

Three Black-Owned Banks Team Up with la. Broker

Magazine article American Banker

Three Black-Owned Banks Team Up with la. Broker

Article excerpt

Three African-American-owned banks are getting into the brokerage business through a joint venture with Jackson, Shanklin & Sonia Investments, a New Orleans brokerage firm.

Liberty Bank and Trust Co. of New Orleans, Harbor Bankshares of Baltimore, and First Tuskegee (Ala.) Bank have jointly taken a 49% equity stake in the venture, to be called Jackson, Shanklin & Sonia Securities.

The venture will be based in New Orleans, like its parent, also a minority-owned company. The banks have taken equal stakes, and Jackson Shanklin controls the remaining 51%. The four companies declined to say how much they had invested.

The broker-dealer received National Association of Securities Dealers approval Oct. 1, and this week will begin selling investment products in First Tuskegee's three branches. Brokers are already in place in Liberty's eight branches. Jackson Shanklin employs 10 brokers but will add more as needed.

First Tuskegee and Liberty had not sold investments in their branches. Last year Liberty launched a mutual fund, the Liberty Freedom Fund, which it sells through Jackson, Shanklin & Sonia Investments.

Harbor sells equities, mutual funds, and annuities in its eight branches through the third-party marketing firm Invest Financial Corp. of Tampa. Gregg Baty, vice president of the banking company's financial services unit, said Harbor's relationship with Invest would continue for the time being.

"The goal is to demonstrate there can be strength in numbers," said Charles H. Jackson, president and chief executive of Jackson Shanklin. …

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