The recent film The Banker tells the incredible true story of Bernard Garrett and Joe Morris, two African American entrepreneurs who broke barriers in the banking world in the 1950s and 1960s. Their journey from humble beginnings to millionaire bankers landed them in jail for a brief stint, though the full details are more complex. Here‘s a look at the real events behind The Banker and how long the bankers were incarcerated.
Who Were Bernard Garrett and Joe Morris?
Bernard Garrett was born in Louisiana in the early 1900s and worked as a janitor and shoe shiner before becoming a successful real estate investor in Los Angeles. Joe Morris was a salesman from Texas who partnered with Garrett on several business ventures.
Together, the two men hatched an ingenious plan to circumvent racial barriers in banking by recruiting a white man, Matt Steiner, to pose as the frontman owner of their bank while they secretly made all the decisions behind the scenes. This allowed them to approve loans for Black customers who were routinely denied by other banks due to racism.
How Did They Become Bankers?
In 1954, Garrett and Morris purchased two banks in Texas under Steiner‘s name – one in Garland and one in Houston. Steiner would visit each bank briefly, while Garrett and Morris did most of the actual work from afar. The "frontman" approach allowed the two Black businessmen to give loans to Black families, particularly helping them buy homes in white neighborhoods where they were previously excluded.
Their banks grew rapidly, and the duo replicated the model in California, with Garrett serving as president of a bank in Los Angeles. By the early 1960s, they had established real estate and media empires under Steiner‘s name worth over $40 million ($350 million today).
What Crimes Led to Their Conviction?
Garrett and Morris‘ ingenious business model drew suspicion from regulators and law enforcement. In 1963, Steiner was forced to sell the banks and leaked the scam to the FBI. In 1965, Garrett and Morris were convicted of misusing bank funds – specifically, they were accused of using accounts with Steiner‘s name to purchase assets like real estate for themselves.
Prosecutors claimed this constituted bank fraud, though Garrett and Morris argued they were using their own earned income that had simply passed through Steiner‘s accounts. Nonetheless, they were sentenced to 3 years in federal prison in 1965.
How Long Did They Serve in Jail?
Despite their 3 year sentence, Garrett and Morris ended up serving just 9 months in federal prison.
They were released early in 1966 and pardoned in 1967 by President Lyndon B. Johnson, who recognized the systemic racism they had fought against.
What Happened After Their Release?
After prison, Garrett and Morris continued their business activities, including real estate investing and low income housing projects. However, they never reached the same massive scale as their banking enterprises.
Morris passed away in 1982. Garrett died in 1999 at the age of 94. Their story left an incredible legacy and was eventually retold in the acclaimed 2020 film The Banker, bringing their historic achievements back into the spotlight.
Key Facts
- Bernard Garrett and Joe Morris built a multi-million dollar banking and real estate empire in the 1950s and 60s using a white "frontman" to circumvent racism.
- They were convicted in 1965 of misusing bank funds and sentenced to 3 years in prison.
- Garrett and Morris served just 9 months before being released and pardoned in 1967.
- Their story was portrayed in the 2020 Apple TV+ movie The Banker starring Samuel L. Jackson and Anthony Mackie.
Though their massive success was short-lived, Garrett and Morris‘ ingenious business methods helped pave the way for future African American entrepreneurs and bankers. Their brief 9 month incarceration could not overshadow their legacy of determination in the face of racism.
