September 25, 2009 – NEW YORK, NY
On Friday, September 25, Donald P. Cogsville, CEO of The Cogsville Group LLC, addressed a Washington D.C. forum exploring the barriers faced by minority-owned firms to participate in the government’s financial recovery programs. This spring the Obama administration announced a Financial Recovery Plan to restore the stability of the financial system through the federally financed purchase of up to $1 trillion of troubled loans and securities. The financing for private investors will come from the $700 billion federal bailout fund, with the government investing alongside and sharing in any profits. Many of these troubled assets are real estate loans made at inflated prices during the recent bubble, and few communities saw such irresponsible lending as Harlem. Properties that may be sold to new owners under the Financial Recovery Plan include such notable properties as Stuyvesant Town / Peter Cooper Village, Riverton Apartments, Schomberg Plaza and Delano Village.
Since the financial crisis began, Congresswoman Maxine Waters (D-CA) has held a series of meetings with Federal Reserve Chairman Bernanke, Treasury Secretary Geithner, and FDIC Chairman Bair about increasing minority participation. Over the past months, the administration has had some success creating roles for minority-owned firms in the Financial Recovery Program. In July, nine institutional investors were chosen by the federal government to purchase troubled securities and each firm established relationships with leading minority financial services businesses.
At Friday’s forum, Donald P. Cogsville, discussed his real estate investment firm’s experience with both the federal government and institutional investors along with other minority business leaders including Donna Sims Wilson of M.R. Beal & Company and Robert L. Johnson of RLJ Companies. In March, Mr. Cogsville met with Chairman Bair and FDIC representatives as part of a forum held by the Congressional Black Caucus. The Cogsville Group LLC has been reviewing potential investments in FDIC transactions and recently prepared a bid for a large pending federally assisted transaction with four large, established institutional partners.“Through equity investments in these government-assisted transactions, we hope to provide superior returns to our investors and at the same time demonstrate broader minority participation. We appreciate Congresswoman Waters efforts and have been pleased with the responsiveness of the federal agencies.” said Cogsville, “While the savings and loan crisis was a lost opportunity for minority business, this time the federal government is committed to opening up opportunities for minority firms.”