#USA #New York #Dream Chasers #Carver Bancorp #Jeffrey Anderson

Dream Chasers Urges Change at Carver Bancorp

In a bold move, Dream Chasers Capital Group LLC has voiced its concerns regarding the performance of Carver Bancorp, Inc. In an open letter directed towards institutional shareholders, the firm is advocating for change within the Board of Directors. The letter highlights that the current leadership has overseen a decade of ineffective management and substantial financial losses, prompting the call for fresh perspectives and strategic direction.

Time for Change

According to Dream Chasers, there is a growing consensus among retail investors who feel disheartened by the significant drop in their investments. The firm is particularly advocating for the election of two nominees, Mr. Jeffrey “Jeff” Anderson and Mr. Jeffrey Bailey, during the upcoming Annual Meeting of Shareholders on December 12, 2024. Lewis, the CEO, asserts that both nominees possess the skills and experience needed to enhance profitability and steer Carver towards a more successful future.

A History of Underperformance

The letter outlines the troubling financial trajectory of Carver Bancorp, mentioning that over the past ten years, the bank has incurred nearly $25 million in losses, with only a solitary annual profit reported during that time. Shareholders have experienced a staggering 79% decline in total value, which underscores the urgent need for a shift in governance. Institutional Shareholder Services (ISS) backed up these claims, pointing to a pattern of underperformance that calls for a radical rethink of the bank's strategy and operational execution.

“A decade of losses raises a significant question: how much longer can the board continue with the same strategies that have seen such disappointing results?” asked Lewis. He noted that no other institution would tolerate this level of performance from their executives.

Institutional Support Encouraged

Dream Chasers is reaching out not only to retail investors but also to significant players in the financial industry, such as Bank of America, J.P. Morgan, and American Express. These institutions have historically supported Carver due to its commitment to serving lower- and middle-income communities in New York.

Lewis emphasizes that supporting the current Board members is counterproductive. He argued that institutional investors should align their interests with the proposed nominees who demonstrate a proven track record in financial services and community commitment. “If the National Community Investment Fund invested in Carver for its mission-aligned impact, it’s crucial they also demand accountability to ensure their investment leads to positive results,” he stated.

A Call to Action

The open letter serves as a rallying cry for shareholders disillusioned by Carver’s persistent financial struggles. Dream Chasers is encouraging all investors to support Anderson and Bailey as candidates for the Board in hopes of revitalizing the organization and restoring its reputation and profitability.

In conclusion, Dream Chasers Capital Group’s passionate plea for reformed leadership at Carver Bancorp reflects a broader sentiment among investors who are eager for change. As the December meeting approaches, it remains to be seen whether the call for action will resonate with shareholders and pave the way for a turnaround in Carver’s fortunes. The time for change is now, as the future of Carver Bancorp hangs in the balance.