Wachovia Corporation admits ties to slavery; apologizes

Jet, June 20, 2005

Two predecessor banks of Wachovia Corp. owned slaves before the Civil War, the nation's fourth-largest bank admitted as it made an apology to Black Americans.

"We are deeply saddened by these findings," Wachovia said in a statement. The Charlotte-based company said it contracted earlier this year with The History Factory, a historical research firm, to investigate the predecessor institutions that over the years have become part of what is now called Wachovia.

Wachovia said the research revealed two ancestral banks--the Bank of Charleston (SC) and the Georgia Railroad and Banking Co.-owned slaves.

The bank said incomplete records make it impossible to know how many slaves were owned by either institution, but that specific transactional records show the Georgia bank owned at least 162 slaves and the Bank of Charleston accepted at least 529 slaves as collateral on mortgaged properties or loans.

The Charleston bank acquired an undetermined number of these individuals when customers defaulted on their loans, Wachovia said.

"While we can in no way atone for the past, we can learn from it, and we can continue to promote a better understanding of the African-American story, including the unique struggles, triumphs and contributions of African-Americans, and their important role in America's past and present," the company said in a statement.

Earlier this year, another top bank, JPMorgan Chase & Co., acknowledged that two of its predecessor banks had received thousands of slaves as collateral prior to the Civil War (JET, Feb. 7).

The New York-based bank made the disclosure in a filing with the city of Chicago, which two years ago passed an ordinance requiring companies that do business with the city to research their history to determine any links to slavery.

Wachovia Corp. said it undertook its research because it is working with the city of Chicago to rejuvenate public housing there. "That partnership brought the need for the research to our attention," said spokeswoman Carrie Ruddy.

Ald. Dorothy Tillman of Chicago, who proposed the ordinance, called the disclosure "a victory for Blacks."

"On January 2, 2005, they said they had no knowledge of slavery ... when they knew they were on our radar they came back and admitted it," Tillman told JET. ".. this [ordinance] is working and gives us an opportunity to learn about our past and [gives us hope] for the future."

Similar ordinances have been passed in other cities, including Philadelphia, Richmond, VA, and Los Angeles.