June 1874

The Freedman's Savings Bank closed June 29, 1874 after white trustees had made speculative loans and invested in risky ventures. Over 61,000 Black depositors lost $2.9 million — most never recovered any funds. Frederick Douglass, briefly appointed president to try to save it, called its collapse 'a bitter disappointment' that cost Black Americans both their savings and faith in federal institutions.

Mismanagement and speculative loans destroy the bank; some 61,000 Black depositors lose most of nearly $3 million in savings.