Blacks win share of failed S & L contracts

Black subcontractors working with the Resolution Trust Corporation (RTC), which oversees the assets of failed savings and loan companies, have the opportunity to receive 10% of the largest contracts involved with selling those assets, it was announced at a Washington business conference. Those contracts are valued at more than $500,000 each.

Johnnie Booker, the corporation's vice president for minority affairs, told a Minority Asset Recovery Contractors (MARCA) conference that a recently enacted congressional law requires the minority minimum. The conferees also were told that for the first time, the corporation's regulations give preference to minority investors interested in bidding for financial institutions located in minority neighborhoods.

Kay Pierson, MARCA executive director, described the developments as important and necessary "to level the playing field" for disadvantaged businesses wanting to do business with these financial institutions.

Over the years of RTC's work with billions in asset disposal, minority firms averaged only about 8% of the business contracts while about 200 White firms have collected the balance of the lucrative opportunities.

Rev. Jesse Jackson was on hand for the affair and addressed the organization urging them to seek more federal contracts.

During the two-day conference, MARCA officials presented awards to Sen. Donald Reigle (D-MI), Baltimore Rep. Kweisi Mfume, chair of the Congressional Black Caucus, Rep. Floyd Flake (D-NY), Rep. Nadia Velazquez (D-NY) and Rep. Lucille Raybal-Allard (D-CA).

Also honored was Ms. Booker whose campaigning for minority business opportunities led to the formation of the group. Women or minority businesses capable and prepared to do business with the financial agencies should contact MARCA at (202) 416-1623.