Abacus Federal Savings Bank

Alright, let’s delve into the rather dry subject of banking, shall we? Try not to fall asleep.

Abacus Federal Savings Bank

Abacus Federal Savings Bank, a name that conjures images of… well, abacuses. It’s a Privately held company operating within the vast, often murky, waters of the Finance and insurance industry. Its origins trace back to December 1984, a time when the scent of innovation mingled with the ever-present hum of financial transactions. The birthplace of this particular institution? The bustling metropolis of New York City .

The driving force behind its inception was a collective of business leaders hailing from the Chinese American community. Their vision, it seems, was to establish a financial foothold, a sanctuary of sorts, for their community. The founder, Thomas Sung, stands as a testament to this endeavor.

The bank’s operational heart beats across three states: New York , New Jersey , and Pennsylvania . At the helm, Thomas Sung remains a significant figure, serving as Founder and Chairman of the Board, while Jill Sung presides as President and CEO. Their leadership guides the institution through the labyrinthine world of Banking .

As of March 31, 2021, Abacus reported total assets reaching an impressive US$358.779 million. For those seeking more information, the digital gateway is www.abacusbank.com .

Origins and Foundation

Chinese characters adorn its name, 國寶銀行, a subtle yet significant nod to its roots. Abacus Federal Savings Bank was not born of a singular moment, but rather a concerted effort by a group of influential figures within the Chinese American community in New York City . They pooled their resources and aspirations in December 1984, laying the groundwork for what would become a distinct presence in the American financial landscape. It was a deliberate act of community building, a way to provide accessible and culturally attuned financial services.

The Shadow of Prosecution: A Singular Ordeal

The year 2015 marked a rather ignominious, yet ultimately triumphant, moment for Abacus. It found itself the sole U.S. bank singled out for prosecution in the fallout of the 2008 financial crisis . The charges, centered around allegations of fraud concerning hundreds of millions of dollars in mortgages sold to Fannie Mae between 2005 and 2010, painted a grim picture. Prosecutors from the Manhattan District Attorney’s office accused the bank of systematically falsifying loan applications to ensure borrowers met mortgage criteria.

Abacus, however, presented a starkly different narrative. They asserted that it was they who had unearthed the improper activities, brought them to the attention of the regulatory bodies, and subsequently terminated the employee responsible. Furthermore, the bank vehemently denied any involvement in the alleged fraudulent packaging of subprime mortgage securities, highlighting a remarkably low mortgage default rate of a mere 0.5%—a figure that was a tenth of the national average at the time. This disparity between the prosecution’s narrative and the bank’s defense became a focal point of subsequent scrutiny.

The ultimate verdict, delivered by a jury in the New York Supreme Court on June 3 and 4, 2015, was a resounding exoneration. The bank, along with its former Chief Credit Officer and former loan supervisor, were acquitted of all charges. This acquittal, after what must have been an agonizing period, underscored the bank’s claims of self-reporting and its minimal role in the broader crisis that had engulfed larger financial institutions.

A Question of Fairness: Disparate Treatment and Criticism

The aggressive prosecution of Abacus, especially when juxtaposed with the comparatively lenient treatment afforded to the colossal entities often labeled as Too big to fail , ignited a firestorm of criticism and debate. Various media outlets seized upon this stark contrast, questioning the fairness and consistency of the justice system.

Journalist Matt Taibbi , known for his incisive critiques of the financial world, delved into this very issue in his 2014 book, The Divide: American Injustice in the Age of the Wealth Gap . He argued that smaller institutions, particularly those serving minority communities, were often subjected to harsher scrutiny and more punitive measures than their larger, more influential counterparts.

Jill Sung, the bank’s President and CEO, did not mince words. She publicly criticized the disparate treatment, including the humiliating spectacle of a perp walk for bank employees, suggesting it was a manifestation of blatant racism directed at Asian Americans. This sentiment resonated with many who observed the proceedings, fueling discussions about systemic biases within the legal and financial sectors. The narrative that emerged was one of a small, community-focused bank being made an example of, while the true architects of the 2008 financial crisis largely escaped significant criminal repercussions.

Cinematic Resonance: “Abacus: Small Enough to Jail”

The compelling and deeply human story of Abacus’s struggle and eventual vindication was immortalized in the feature-length documentary titled Abacus: Small Enough to Jail . Directed by Steve James , the film premiered at the Toronto International Film Festival on September 11, 2016, offering audiences a raw and intimate look at the legal battle.

Its national broadcast on PBS Frontline on September 12, 2017, brought the story to an even wider audience, solidifying its place in the discourse surrounding the 2008 financial crisis and its aftermath. The documentary’s profound impact was recognized when it was nominated for the prestigious Academy Award for Best Documentary Feature in 2018, a testament to its powerful storytelling and the enduring significance of Abacus’s journey. The nomination itself served as a validation of the bank’s fight and a spotlight on the broader issues of justice and inequality it represented.

Branching Out: Locations and Services

Abacus Federal Savings Bank extends its reach beyond its New York origins, with a presence in New Jersey and Pennsylvania . These physical locations serve as anchors within their respective communities, offering a familiar face in the often impersonal world of banking.

Beyond traditional banking services, Abacus operates a wholly owned subsidiary, the Abacus Insurance Agency Corp. (AIAC). This entity broadens the bank’s offerings to include life, health, accident, and annuity insurance, aiming to provide a more comprehensive suite of financial products to its clientele.

As a federally chartered institution, Abacus is equipped to handle mortgage and other financial services across all states in the United States . This nationwide capability, combined with its community-focused approach, positions it as a unique player in the financial sector.

A Glimpse at the Wider Landscape

The existence and prosecution of Abacus Bank are inextricably linked to the broader context of Chinese American history and the persistent specter of Anti-Chinese sentiment in the United States . The bank’s story, as told in the documentary and discussed in various media, often touches upon themes of discrimination and the challenges faced by minority-owned businesses navigating a system not always designed with them in mind. The legal battle became a symbol for many, representing the fight for equal treatment and the resilience of a community against perceived prejudice. The extensive lists of Chinese American banks , Anti-Chinese sentiment events, and Chinatowns found in Wikipedia’s structure serve as a stark reminder of this ongoing historical narrative, a narrative within which Abacus Bank’s experience is a significant, albeit uniquely legal, chapter.