Amalgamated Bank

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about the bank in New York. For the bank in Chicago, see Amalgamated Bank of Chicago.
Amalgamated Bank
Type Private
Industry Banking
Founded 1923
Headquarters 275 Seventh Avenue, New York, New York, USA
Key people Gabriel Caprio, Interim CEO Keith Mestrich, President
Employees 501-1000 employees[1]
Website www.amalgamatedbank.com

Founded on April 14,1923 by the Amalgamated Clothing Workers of America,[2] Amalgamated Bank is the largest union-owned bank[3] and one of the only unionized banks in the United States. Amalgamated Bank is currently majority owned by Workers United, an SEIU Affiliate. As of June 30, 2013, Amalgamated Bank has over $3.5 billion in assets and has never received a government bailout.[4]

History[edit]

In 1927, Amalgamated Bank financed the Amalgamated Housing Cooperative, the first union-supported housing development in the United States, which is located in The Bronx. In 1957, it financed the construction of Park Reservoir Housing Cooperative in the Bronx, which was the first affordable housing development created under New York State's Mitchell-Lama Housing Program.[5] Amalgamated has a long history of helping union movements. It once opened its bank vaults on a Saturday in order to provide $300,000 in bail for striking workers. The National Association for the Advancement of Colored People (NAACP) received $800,000 to post a cash bond within 24 hours. In 1973, bank employees worked all weekend to keep striking Philadelphia teachers out of jail. In 1982, Amalgamated made a $200,000 loan to the striking National Football League Players Association despite that they did not even have an account at the bank.[6]

Products and Services[edit]

Headquartered in New York City, Amalgamated Bank has 24 branches including 20 across the 4 NYC boroughs and additional branches in Washington D.C, New Jersey, Nevada and California.[7]  There is also 24-hour access through online and mobile banking.Amalgamated Bank offers comprehensive financial services for individuals, small businesses and commercial clients. Products include: deposits, loans, investments, cash management, residential and commercial mortgages. Checking customers have access to over 40,000 surcharge-free ATMs across the U.S. through the Allpoint Network.Amalgamated Bank specializes in providing loans and banking services to political and advocacy groups, nonprofit organizations, labor unions and Middle Market companies. Some notable customers of the bank include:        

Institutional Asset Management and Custody Division[edit]

Through its Institutional Asset Management and Custody Division, Amalgamated Bank is one of the leading providers of investment and trust services to Taft-Hartley plans in the United States.  As of June 31, 2013 the bank oversees over $33 billion in investment advisory and custodial services.

Corporate Governance[edit]

Amalgamated Bank promotes sustainable, long-term shareholder value by advocating sound environmental, social and governance (“ESG”) practices at portfolio firms. Amalgamated Bank adheres to and is a signatory of the UN’s Principles for Responsible Investment. The bank engages in shareholder actions including, but not limited to regulatory advocacy, proxy voting, and litigation to improve firm performance, safeguard shareholder value and recover shareholder losses.Amalgamated Bank has a long history of shareholder activism:       

  • In the 1990s the bank urged that each Board be composed in majority of independent directors, long before this standard became a regulated requirement        
  • In 1994, the bank fought sweatshop abuses by urging companies to adopt and monitor Codes of Conduct        
  • In 1997, the bank started advocating full public reporting of all corporate political contributions, including “soft money” donations and later trade associations and 501(c)(4) organizations        
  • In 2000, the bank started challenging outsized severance packages by demanding limits to golden parachutes       
  • In 2001, the bank took legal action against Enron for massive accounting fraud, eventually recovering billions of dollars in losses for investors        
  • In  2004, the bank pioneered shareholder resolutions requiring companies to have clawback policies in order to recover ill-gotten executive pay        
  • In 2011, the bank spearheaded an initiative to urge oil companies to integrate environmental and safety performance as a condition for executives to be paid bonuses        
  • In 2013, the bank achieved the largest shareholder derivative settlement in Delaware, alleging failed board oversight in the wake of the hacking scandal at News Corp

Amalgamated Bank’s Purchasing Policy[edit]

Since its founding in 1923, Amalgamated Bank has been dedicated to supporting American workers and the American Labor Movement.  The bank strives to purchase as many products as possible that have been made by union workers in America. In addition, the bank aims to hire union contractors for its building and construction projects and to have its outside printing produced by union printers with the union label proudly displayed. The bank also does its best to fly on unionized airlines and stay at unionized hotels.[11]

External links[edit]

References[edit]

  1. ^ "Amalgamated Bank's Linkedin Profile". Retrieved 2011-12-28. 
  2. ^ Amalgamated Bank History At a Glance. Retrieved 2013-08-16
  3. ^ Amalgamated CEO Eager to Grow Nation's Biggest Union Owned Bank, American Banker, Retrieved 08-16-2013
  4. ^ Bailout Recipients, ProPublica, Retrieved 2013-08-16
  5. ^ Amalgamated History at a Glance, Amalgamated Bank, Retrieved 2013-10-21
  6. ^ Amalgamated Bank History, Funding Universe, Retrieved 2013-10-21
  7. ^ Amalgamated Bank About Us Page, Amalgamated Bank Website, Retrieved 2013-08-16
  8. ^ Democratic National Committee To Pull Funds From Bank Of America, Huffington Post, Retrieved 2013-18-16
  9. ^ Union-Based Bank Draws Democrats, Wall Street Journal, Retrieved 2013-08-16
  10. ^ Bank owned by a union, for unions, sets its sights on Washington, Washington Post, Retrieved 2013-08-16
  11. ^ Amalgamated Bank's Purchasing Policy - Amalgamated Bank Website, Retrieved 08-16-2013