Dwelling House Savings & Loan President John Haines announced today that he has submitted a capitalization plan to meet the deadline imposed by federal bank regulators. The new financing is part of the 119 year old Savings & Loan's effort to fill a $1 million capital deficit left by cyber thieves who stole $3 million through electronic bank transfers. Haines says they've made progress in recovering some of the money from other financial institutions that unwittingly processed the fraudulent transfers. Haines says that new financing plan includes additional funds from Dollar Bank as well as from a group of Pittsburgh philanthropies: the Pittsburgh Foundation, Elsie Hillman Foundation, the Heinz Endowments and Richard King Mellon via a grant to the Poise Foundation.
Haines says he "wasn't surprised but rather overwhelmed" by the response of the foundation community. Haines refused to disclose details of the plan until F.D.I.C. officials respond to it..."What we can say at this point is that we are confident we have a way forward that will meet expectations of federal regulators in terms of recapitalization and recovery from a terrible criminal act."
Haines says the plan will "reinvigorate a historic Pittsburgh institution so that it continues its special mission of serving the African American community for decades to come."
Tuesday, June 30, 2009
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