Story by John R. Emshwiller, Synopsis by Creative Investment Research.
Founders National Bank of Los Angeles, the nation's 12th largest African-American bank, announced that Jheryl Busby, Magic Johnson and Janet Jackson have purchased a controlling interest in the bank. The three entertainment industry professionals bought a 51% interest in the bank. The new owners will pay $2.5 million for the bank, which has about $100 million in assets, said Carlton Jenkins, Chief Executive Officer.
As an initial goal, the purchasers seek to increase assets. They also stressed the business and financial merits of the transaction. "This is not a charity case," Magic Johnson said. "We made a smart business deal."
William Cunningham, president of Creative Investment Research in Washington, D.C., which focuses on minority-owned financial institutions, said "It's going to be very tough" for any minority-owned bank to grow quickly.
