First Women's Bank (New York)
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1975 |
| Founder | Madeline McWhinney Dale, Eileen Preiss, Betty Friedan, Jane Trahey, Geraldine Stutz, Muriel Fox, Sarah Kovner, Evelyn Lehman, Carol Greitzer, Carol Opton, Sheldon Goldstein, Philip Sills |
| Fate | Acquired in 1986; renamed First New York Bank for Business in 1989; closed in 1992 |
| Headquarters | New York City , United States |
Key people | Madeline McWhinney Dale (first president), Martin A. Simon (chairman after 1986) |
| Products | Banking services including 24-hour ATM, consumer financial library, investment, insurance and financial planning education |
The First Women's Bank of New York City holds the distinction of being the inaugural financial institution in New York State dedicated to addressing the banking needs of women, with majority ownership and management by women. Founded in 1975, it originated from efforts to overcome the obstacles women encountered when seeking credit and banking services. Its first president was Madeline McWhinney Dale, who previously served as an officer at the Federal Reserve.
Founding and early years
The establishment of the bank responded to the lack of adequate financial services for women by conventional banks. Spearheaded by influential feminists such as Eileen Preiss, vice chair of the New York State Democratic Committee, and Betty Friedan, a prominent leader in the women's liberation movement, the First Women's Bank and Trust Company was announced in early 1973 after extensive planning and obtaining regulatory approvals for more than a year. The founders sought to raise $4 million through stock offerings. The appointment of Madeline McWhinney Dale as president underscored the institution’s dedication to promoting women's participation in finance. The bank commenced operations in a space previously occupied by a restaurant at the Ritz Tower Hotel, located at 111 East 57th Street.
The founding team comprised notable business executives and public figures including Jane Trahey, president of Trahey Advertising Company; Geraldine Stutz, then president of Henri Bendel; Muriel Fox, vice president at Carl Byoir & Associates; Sarah Kovner, president of Arts, Letters & Politics; Wall Street attorney Evelyn Lehman; New York City Councilwoman Carol Greitzer; along with Carol Opton, Sheldon Goldstein, and Philip Sills. Their combined expertise influenced the bank’s strategic direction and operational framework.
Launching in late 1975 with $3 million in capital and a shareholder base of 7,000, the bank offered comprehensive services including a 24-hour ATM, a consumer-oriented financial library, and educational initiatives covering investments, insurance, and financial planning. Additional features included simplified application procedures, checkbooks with duplicate copies for various accounts, and a conference room available for use by women's groups.
Sale and closure
The institution ceased to be led by women following its acquisition in 1986, when investors installed Martin A. Simon as chairman. In 1989, it was renamed First New York Bank for Business. The bank was ultimately closed by federal regulators in 1992, with its federally insured deposits transferred to First Merchants Bank.
External links
- New York Historical Society Museum and Library Collections
- First Women's Bank and Economic Equality for Women, Consider the Source New York: Teaching with Historical Records
- Page Mailliard & Ken Anderson, "Women's Banks and Women's Access to Credit: Competition between Marketplace and Regulatory Solutions to Gender Discrimination," Loyola of Los Angeles Law Review Vol. 20, No. 3, (1987): 771-794.