Banking plan aids growth.
The New York-based Teachers Insurance and Annuity annuity: see insurance.
Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Association/College Retirement Equities Fund (TIAA/CREF) and Chicago-based Drexel National Bank have established a Minority Banking Program designed to stimulate the economic development of minority communities and businesses. It is hoped that involving the nation's largest pension fund--with more than $105 billion in assets--in urban renewal could start a trend that could speed the revitalization re·vi·tal·ize
tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es
To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. of America's urban centers.
James M. Shirley, president and chief operating officer Chief Operating Officer (COO)
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. at Drexel, ranked No. 8 on the 1992 BE FINANCIALS LIST with $123 million in assets, hopes TIAA/CREF's program, "will encourage other major organizations to originate o·rig·i·nate
1. To bring into being; create.
2. To come into being; start. meaningful reinvestment Reinvestment
Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.
1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. programs." Under its Treasury Tax and Loan Deposit Administrative Program, TIAA/CREF deposits approximately $125 million in federal tax withholdings from its employees' payroll and its retirement system annuities into an account at Drexel National Bank. Drexel, a subsidiary of Indecorp Inc., the nation's largest African-American multi-bank holding company, then distributes the funds to several minority-owned banks. Ten percent of the earnings from these deposits go toward the National Bankers Association (NBA NBA
1. National Basketball Association
2. National Boxing Association
NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= ) Scholarship Fund, which funds the education of personnel at NBA member financial institutions.
The second component of the Minority Banking Program is an Investment Deposit Program. TIAA/CREF has purchased $100,000 certificates of deposit from 14 minority-owned banks. They include Chicago-based Seaway National Bank (No. 3), Washington, D.C.-based Industrial Bank of Washington (No. 4), Dallas-based First Texas Bank (No. 12) and Boston-based Boston Bank of Commerce (No. 15), which are all ranked on the 1992 BE FINANCIALS LIST. Both components of the program strengthen the deposits of the participating banks, allowing them to invest in minority communities.
NBA director of special projects Everett Wallace, says TIAA/CREF's initiative is "the first step in the kinds of relations minority banks would like to develop with the pension fund community." Through major deposits, he says, pension funds could engage in commercial lending by allowing minority institutions to originate the loans. Pension funds could also invest by purchasing pooled mortgage loans or mortgage-backed securities Mortgage-backed securities (MSBs)
Securities backed by a pool of mortgage loans. directed at minority communities served by minority banks. "If more corporations and pension funds look at ways to help minority communities, we can have redevelopment going on in urban American cities," says Wallace.
"We can't pretend "Pretend" is a popular song, written in 1952 by Lew Douglas, Cliff Parman, and Frank Levere.
The best-known recording, by Nat King Cole was released by Capitol Records as catalog number 2346. that we will make a dramatic difference economically by ourselves," says Tom Jones, TIAA/CREF executive vice president of finance and planning. "But if more institutions do the same, cumulatively, it will have a positive effect."