gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
17e79b7617f01538
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Capital injected, Full suspension, Books examined
Receivership Details
Depositor recovery rate
100.0%
Date receivership started
1933-05-11
Share of assets assessed as good
29.4%
Share of assets assessed as doubtful
50.4%
Share of assets assessed as worthless
20.2%
Description
Known receivership (1933-05-11) confirms permanent closure after holiday-related suspension.
Events (5)
1.May 1, 1914Chartered
Source
historical_nic
2.February 11, 1933Run
Cause
Bank Specific Adverse Info
Cause Details
Large withdrawals and loss of confidence tied to allegations and depletion of working capital; heavy withdrawals by prominent depositors in days before state holiday.
Measures
Plans for reorganization and proposals to pay 50% of deposits; attempts to arrange loans/reconstruction financing.
Newspaper Excerpt
There had been no concealment ... on Feb. 11, 1933, the last day the First National open. ... $4,000,000 was removed from the two banks before the state-wide holiday was proclaimed February 14.
Source
newspapers
3.February 14, 1933Suspension
Cause
Government Action
Cause Details
Michigan state-wide banking holiday declared February 14, 1933, during which the banks remained closed.
Newspaper Excerpt
did not reopen after the Michigan banking holiday. ... the closing of the Guardian National Bank of Commerce which, with the First National Bank-Detroit, did not reopen after the Michigan banking holiday.
Source
newspapers
4.May 11, 1933Receivership
Source
historical_nic
5.May 11, 1933Receivership
Newspaper Excerpt
receiver of the institution reported today. ... receiver B. C. Schram of the First National Bank-Detroit ... petitioned in federal court for permission to sell the remaining assets of the bank ... (reports of receiver actions in later 1933–1942).
Source
newspapers
Newspaper Articles (25)
1.February 23, 1933Lincoln Journal StarLincoln, NE
Article Text
REPORT DETROIT ACTION
Reorganization Plans Two Banks Said Considered.
DETROIT. (AP). The Detroit News says that immediate payment of 50 percent of deposits in the First National-Detroit, and the Guardian National Bank of Commerce in Detroit is proposed under reorganization plans now being considered, contemplating the organization of two new national banks.
The Reconstruction Finance corporation, the News says, has been asked to advance in the neighborhood of $135,000,000 to place the plans in effect, and further said that aid is expected from the federal reserve bank and New York banks.
WASHINGTON. (AP). Senators Couzens and Vandenberg declined to discuss reports that the Reconstruction corporation had made a large loan to two Michigan banks. Neither would officials of the corporation comment.
2.February 28, 1933The Sedalia DemocratSedalia, MO
Article Text
MAY BRING CHANGE IN BANKING PLANS
By The Associated Press.
DETROIT, Feb. 28.—The Detroit News today said that complications have arisen in the plan for the establishment of two new banks in Detroit by Henry and Edsel Ford which will at least delay the project and may entail a change on the previously-announced program.
The complication, the News said, arises out of the amount which could be paid to depositors of the First National Bank, Detroit, due to refusal of New York bankers to grant a $20,000,000 loan to that institution.
The paper said it is not known yet whether Henry and Edsel Ford will go ahead with their plan for establishment of two new banks here on the basis of a smaller payment of deposits. It stated, however, that it was possible the plan may go through so far as the organization of a new bank out of the liquid assets of the Guardian National Bank of Commerce is concerned.
building. No official estimate of the damage has been made but it was expected to amount to several million marks.
The interior of the plenary hall, the members' seats, the president's tribune and public galleries were destroyed.
One fireman was temporarily overcome by smoke but none was injured.
BERLIN, Feb. 28.—Fire of incendiary origin swept the large ornate German Parliament building last night and did damage estimated at millions of marks. After two hours' work firemen had the flames under control at 10:45 P. M. but ruins still smouldered in the east wing. The gilded cupola above the Reichstag meeting hall was reduced almost to ruins.
Police arrested a man giving the surname of Van Der Luebbe, 24, who said he was a Dutch communist. Authorities had a report that ammunition had perhaps been placed in the burning heaps. All
3.March 21, 1933Hickory Daily RecordHickory, NC
Article Text
New Detroit Bank Formed With Capital; Aid
WASHINGTON, March formation bank, the National Bank Detroit, capital of twenty-five lions dollars was day by the Corporand Alfred Sloan, dent of the General Motors corSecretarv Woodin approved the The announcement was made treasury, where been for days solution Detroit banking problems. bank will take over part of the assets the First National bank and the Guardian National Bank Commerce Detroit and sume part the deposits. Half of the capital. will be form of subscription the common stock and has paid by General Motors Corporation. The balance has been supplied the United States government through the Reconstruction nance form subscription to the preferred
4.March 21, 1933The Niles Daily StarNiles, MI
Article Text
Reconstruction Finance Corporation to Supply
March tional bank of Detroit, with capital millions dollars nounced today. by the Reconstruction corporation and Alfred Sloan, president of the General Motors corpora- approved the
The announcement made the toward solution of De the new bank the assets First National bank and the Guardian National Bank of of Detroit and assume part of the deposits, Half of the capital. will be in form of subscription the
The balance has been supplied by the United States through the Reconstruction Finance corporation in the and the joint statement make available bank with ample The statement issued by Jesse Jones, of the Finance that and old and out of legal per cent of their net deposits will be immediately made the the two old This, statement said, will be made quisition the more liquid assets and the GuardNational Bank of Commerce.
Officials of the Grand Rapids Savings bank today attempting to fulfill details of financing program out(Continued
5.June 27, 1933The Atlanta ConstitutionAtlanta, GA
Article Text
For Closing of Detroit Banks
DETROIT. June standing Street to Henry Ford financially lay directly behind the closing of two national banks in troit tonight rested in the records of grand jury investigating the city's involved banking affairs. The charge. the most sensational in two made by Herbert R. Wilkin. Detroit banker. his knowledge affairs the closing the Guardian National Bank of Comwhich with the First National Bank Detroit. did not reopen after the Michigan banking holiday. Street believed it had chance. up Ford's in the Michigan banks declared Wilkin. deplete his working capital that he must deal with or broke think they realized that here the time to finish what they had started. But they were very sadly fooled. Previously in his testimony the ness had startled his hearers with the declaration that $4,000,000 was removed from the two banks before the state-wide holiday was proclaimed February 14. He said two such with drawals were those James Couzens, wife the Michigan senator. and the Second National bank of Texas. He also asserted that many checks had been cleared through the Detroit
Continued in Page 6, Column 8.
6.June 27, 1933Richmond Times-DispatchRichmond, VA
Article Text
Banker Alleges Wall St. "Plot" Against Ford
Heavy Withdrawals Were Made Before Holiday to Tie Up Deposits, Charge
DETROIT June 26-(P)-A witness' charge that long-standing Wall Street plot to "strangle" Henry Ford financially lay directly behind the closing of two national banks in Detroit tonight rested in the records of one-man grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, was made by Herbert R. Wilkin. Detroit banker, in detailing his knowledge of affairs leading up to the closing of the Guardian National Bank of Commerce which, with the First National Bank-Detroit, did not reopen after the Michigan banking holiday "Wall Street believed it had chance, by tying up Ford's deposits in the Michigan banks declared Wilkin to so deplete his working capital that he must deal with them
7.June 27, 1933The Lewiston Daily SunLewiston, ME
Article Text
WALL STREET TRIED TO BUST FORD
Banker Links Plot with Closing of Two Detroit National Banks
Tells of Huge Withdrawal by Wife of Sen. Couzens Before State Bank Holiday
Detroit, June 26-(P)-A witness charged today that Wall Street plot to "strangle" Henry Ford lay directly behind the ing National banks in Detroit. The testimony was before grand investigating the involved banking affairs. The charge. the most sensational in weeks open testimony made by Herbert Detroit banker, detailing his of leading the closing Guardian tional Bank with the First National troit, reopen after Michigan banking holiday. "Wall Street believed had tying Ford's deposits declared Wilkin, deplete his working capital that must them broke think they realized that here was the time to finish
8.July 7, 1933The ForumFargo, ND
Article Text
Detroit Bank Situation To Be Parley Subject
Detroit, July DeFree Press printed Thursday dispatch from Washington that President Roosevelt has in. structed the Reconstruction Finance corporation solve the banking Detroit and that the way will be paved at meeting Friday in for the of credit facilities throughout the entire "Out of this session, which will be devoted entirely to the Michigan ation," the Free Press said, definite for organization new banks in Detroit, or for the opening the closed First National bank and Guardian National bank of commerce, is expected to emerge."
9.July 12, 1933The Saginaw NewsSaginaw, MI
Article Text
BANK HOLIDAY LAID TO HOOVER REGIME
All Part of Pre-Arranged Plan, Witness Says, Charging Deceit.
DIDN'T TO DO from Page he told the grand jury on February 13. that the closing. It havoc don't think the knew what they were doing Parshall believes the the Michigan holiday was the result of "either incompetence on the part of officials the effort outside interest to of til Detroit banks. declared the First National Bank of the national banks solvent his and should be re-opened. "The re-opening would enable 39 state to resume normal he reserve deposits testified.
10.July 23, 1933The Saginaw NewsSaginaw, MI
Article Text
BANK CASE DELAYED
Court Hesitates to Impede Efforts to Reopen Institutions.
Associated Press. DETROIT July Judge Ernest A. 0 Brien in federal court until August hearing on the certain the companies of the closed national banks for an ing the ing against Technically the made the ground that Robert attorney for the receiver the First National not entered a formal the Judge he not want efforts the banks. Plans Under Way
Plans and the National Commerce for In grand last leading up holiday February 14 by William Numerous before the jury some two Finance week the banks are
11.August 2, 1933The Saginaw NewsSaginaw, MI
Article Text
BANKRUPTCY HEARING POSTPONED TO OCT.
(By A. O'Brien in federal court today postponed until October hearing petition ruptey filed against the Detroit fed. for the First National Bank The made permit William for Detroit Bankers time in which to prepare an swer.
COUZENS PAYS BIG TAX ON CLOSED BANK STOCK
DETROIT. Aug. States James Couzens today against stock name two closed national tothe bank Senator Couzens said although collection the assessments has been restrained court action, "the moral obligation pay check for favor Thomas, the First for the against 2.050 Detroit holding for the First National.
witness before the grand jury at a later date.
Later he returned to a criticism of the Detroit Bankers Co., holding company for the closed First National Bank-Detroit, and named Stair, a former president of the company, as one of three men of whom he declared "it is doubtful if they can escape indictment by the Federal government." The others he named as Peter J. Monaghan, attorney and former bank official, and Wilson W. Mills, former chairman of the board of the First National.
"When I say there will be federal indictments, I mean just that!" shouted Coughlin. "I don't say these men will be found guilty. All I want is that they be given a chance to clear themselves. The people of Detroit will not be subdued until some persons are tried and found guiltless!"
14.August 25, 1933Lansing State JournalLansing, MI
Article Text
On Witness In Banking
United States Senator Vandencalled the witness stand Friday in the one-man grand jury investigation closing First the Guardian National banks of Detroit.
15.August 30, 1933The Muskegon ChronicleMuskegon, MI
Article Text
INIQUITOUS ACTS IN BANKS DENIED
Two Detroit Bankers on Stand in Grand Jury Probe
Detroit Denials charges "iniquitous the and the Detroit Trust Co., made in recent testimony Couzens the Rev Fr. Charles Coughlin today from two er-witnesses before the one-man Detroit bank auditor for the es the priest who said 'someone has been after being read the statement Father Coughlin that counts the bank had been deliberately padded before the state banking holiday Feb. 14. Thomas Long. counsel for the and the denied made Couzens, the stand last check "kiting" and posits between the two which tended to show greater than actual Mc Gonagle said that Feb. 11. last day the First National open. was at least 000 available cash in case run. The bank's deposit liability the time The witness declared that there had been no concealment figures, as to the ment of the bank did not show the pledged acts, nearly from various parts the show that pledged assets did not appear among McGonagle also testified that the liquidity Jan. percent. and said the same on Feb approximately the last day the bank was His testimony was made in answer another charge of Father Coughdeclared the bank's liquidity 14 that Wilson W chairman the bank board. falsified when he testified the liquidity was approximately 25 witness also testified that the The bank had least cash government and bonds Feb. meet deMills had placed the figure which Father Coughlin as. serted was falsification.
16.August 30, 1933Reno Gazette-JournalReno, NV
Article Text
BANKERS DENY
Aug. charges "iniquitous in the closed First National Bank Detroit and the Detroit Trust made recent testimony by Senator and the Charles Coughlin, from two before the grand jury. McGowagle, auditor for the First National, questioned charges by militant priest who testified last week, said "someone has been misinformed" after being read the statement of Father Coughlin that accounts of the bank had been before the state banking holiday
17.August 30, 1933The Ludington Daily NewsLudington, MI
Article Text
Also Repudiates Statement That Holding Company Paid Outrageous Prices Stocks It Absorbed and Passed on to Widows and Low-Salaried Employes
Aug. nials of charges of in the closed First Nationand the Detroit Trust made in recent testimony by Senator James Couzens and Rev. Charles Coughlin, today from two bankerwitnesses before the Detroit bank jury. McGonagle auditor for the First National. questioned as to charges by the militant priest who testified last week, said "someone has been misinformed" after being read the statement of Father Coughlin been padded before the state banking holiday Feb. 14.
Denies Check 'Kiting' Thomas Long. counsel for the First National and the Detroit Trust Co., denied charges made by Senator Couzens, also the stand last week. of check "kiting" and reciprocal deposits between the two institutions which tended to show greater than actual McGonagle said that Feb. 11. 1933. the last day the First National open. there was at least available cash case run. The bank's deposit liability at the time was more than The witness declared that there had been no of questioned as to why the of the bank not show the amount pledged acts. presented nearly bank statements from various parts the country to show that pledged assets did not pear among Senator Couzens in his testimony had the Column
18.September 1, 1933The Flint JournalFlint, MI
Article Text
REORGANIZING GIVEN PRAISE
Never Saw Confidential Reports Sent to Washington and Read in Inquiry by Sen. Couzens, He States.
Sept. By Wilson W. Mills, former chairman the closed First National BankDetroit told the grand bank closings today that the federal in criticized officers of his institution as His testimony in response testimony by read federal aminer's report the statement that
19.October 3, 1933The Grand Rapids PressGrand Rapids, MI
Article Text
DETROIT BANK RECEIVERS TO CONSIDER HOME BONDS
Detroit, Oct. received here Monday by closed First National bank Detroit, and Schram, receiver of the National Bank Commerce, the the currency exchange mortgages for home loan corporation bonds. Previously the receivers had deThe for saction be submitted comptroller his approval. When receiver has completed to Washington detailed on the persons involved and receiver estimates he might realize on home bonds open market. the agrees to it must receive court approval.
20.October 7, 1933Lansing State JournalLansing, MI
Article Text
GROESBECK
Receiver of Guardian Group Acts Upon Authorization Of Judge Marschner
Oct. tion of sentiment for reorganization of Detroit's closed national banks sought Saturday in mass meeting of Guardian National Bank Commerce plans similar meeting First National depositors. Alex Groesbeck. receiver for the group, called of upon authorization by Circuit Judge Adolph Marschner William receiver for the Detroit Bankers holding for First telecompany from attorney. seek similar thorization of First National depositors. The petition to be filed Monday. Judge Marschner has not yet resumption the public into the closing of the which the he ganization of the Guardian National.
21.February 8, 1934The Kalamazoo GazetteKalamazoo, MI
Article Text
LINKS BALLANTYNE OUSTER TO SMART REMOVAL
Former Vice President Tells of 'Factions' in Detroit Bank.
BULLETIN Feb. senate banking committee Thursday summons for Arthur A. Ballantyne, of the treasury in the Hoover in the Detroit bank inquiry.
Feb. Testimony money going of First Bank of Detroit John out as president of Company given Thursday to the senate committee. vice president the he Ballantyne it true that there fac-
AUTHORITY WITHHELD
Mills president of the First the First National Bank, of the BankWilson testified he resigned vice president of Detroit largest holding company in Michigan, directors withheld from him the authority he former president of the BankDetroit criticized policies of the comptroller currency being for the dollars deposits the First National. COUZENS AGREES
In prepared statement Mills said that insolvent in should closed continued the holiday finished Senasion to say that the know does demn the rency the years The president reIterated his the DENIES ALS knew being Dec. and the day the and called a dropping off of deposits the maintained this "smart Mills obtained permission to read number his improving banking legislation Outstanding that bank that holding stock banks that from federal and banks should instruct tors periodically liquidate their loans.
EXPENSES REDUCED of Thursday that National Bank in Detroit in national bank the First National Bank ceivership been the number of by 60 per the December 28 were per
22.August 16, 1934The Indiana GazetteIndiana, PA
Article Text
BANK RECEIVER
C. Thomas, the first receiver closed Clymer later first receiver of the Pittsburgh, and more recently. ceiver of the First National Detroit, has to become vice president First Wisconsin Bank of waukee,
23.September 25, 1934The Grand Rapids PressGrand Rapids, MI
Article Text
JESSE JONES IN TO RUSH BANK PAYMENT?
Detroit, Sept. H. of the finance came Detroit hasten the First National summer Jones by RFC bank receiver, made contingent an agreelarger make full of of He also for. mation corporation shall follow what him to Dehad ferences scheduled Charles manager the and the depositors mittee.
24.June 26, 1941Detroit Evening TimesDetroit, MI
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Article Text
Auction $400,000 Property Approximately $400.000 in propcrty was sold at the auction of property held by the defunct First National Bank-Detroit, B. C. Schram. receiver of the institution reported today. The auction was held yesterday in the Arcadia Ballroom and 80 pieces of improved property and 44 pieces of unimproved were sold.
25.September 2, 1942Detroit Evening TimesDetroit, MI
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Article Text
Receiver B. C. Schram of the First National Bank-Detroit today had petitioned in federal court for permission to sell the remaining assets of the bank to a private liquidating corporation for $41,000,000.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
