Gulf Coast Rebuilding Challenge
Promontory Interfinancial Network is proud to have supported initiatives like the $1 Billion Gulf Coast Rebuilding Challenge, which encouraged participants to deposit money into community banks in the Gulf region in the wake of Hurricane Katrina. These community banks then used the deposits to address immediate lending needs, as well as longer-term projects in their local footprints.
Many corporations, such as General Motors, Home Depot, Bank of America, and Microsoft, as well as other participating depositors answered the challenge by placing funds through CDARS. CDARS enabled socially motivated investors to channel much-needed deposits to rebuilding communities while still earning CD returns and knowing their funds were eligible for FDIC insurance backed by the full faith and credit of the federal government. The project channeled capital into the Gulf Region and created a highly flexible source of liquidity for rebuilding the Gulf Coast. Who knew that simply depositing funds into fully FDIC-insured, interest-bearing CDs could make such a difference?!