Diamond National Bank (Pittsburg, PA)

View Charter #2236 on SPMC View balance sheet

Episode Information

Episode UID
223601595
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
22360 national
Charter Number
2236
Start Date
November 14, 1932
Location
Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
0839adb24b06b9b4

Response Measures

None

Receivership Details

Depositor recovery rate
75.0%
Date receivership started
1932-11-14
Share of assets assessed as good
22.0%
Share of assets assessed as doubtful
65.1%
Share of assets assessed as worthless
12.9%

Description

Known government appointment of a receiver; assets later taken by new Pitt National Bank.

Events (5)
1. March 23, 1875 Chartered
Source
historical_nic
2. November 14, 1932 Receivership
Source
historical_nic
3. November 14, 1932 Receivership
Newspaper Excerpt
R. Gordon was appointed receiver today of the Diamond National bank Pittsburgh which failed to open today. (news dated Nov 15 reports appointment; official receivership date recorded Nov 14.)
Source
newspapers
4. November 14, 1932 Suspension
Cause
Government Action
Cause Details
Bank closed/failed to open and was reported closed on Nov. 14; suspension followed by receiver appointment.
Newspaper Excerpt
The market opened irregularly lower on closing of the Diamond National Bank of Pittsburgh
Source
newspapers
5. June 12, 1933 Other
Newspaper Excerpt
Pitt National Bank ... will take over portions of the assets of the two closed institutions and will credit the depositors with proportional amounts. New bank to open Monday, June 12, 1933.
Source
newspapers

Newspaper Articles (14)
1. November 14, 1932 The St. Louis Star and Times St. Louis, MO

Article Text

NEW YORK, Nov. 14.—(By U. P.)—Bank closings, omission of the usual Coca Cola extra dividend and indications of another car loadings decline offset several favorable factors and sent the stock market down 1 to 4 points in dull turnover. Volume today amounted to 1,300,000 shares. The market opened irregularly lower on closing of the Diamond National Bank of Pittsburgh with deposits of around $10,000,000. The decline was extended in the early trading followed by a rally on favorable interpretation of the Hoover note to President-elect Roosevelt suggesting a conference between them on war debts. A sharp rise in wheat—it was up more than a cent a bushel at one time—furthered the morning rally. Buying power was lacking, however, and the market fluctuated aimlessly for a time in the early afternoon with moderate firmness shown in oil and motor shares. Then directors of Coca Cola eliminated the usual extra and that issue crashed 7 1/2 points, bringing a decline all around. Lowest prices of the day were recorded around the close, but there was no pickup in volume of operations. Following the closing of the Diamond National of Pittsburgh, six small banks in Oklahoma were closed and later a bank in Kenosha, Wis., closed. This new series of closings had an adverse effect on stock market sentiment which before the opening today was distinctly bullish in many quarters. Late in the day the grain market lost its snap. Wheat closed with gains of 1/8 to 1/4 cent a bushel. The December wheat position closed at 46, up 1/8 from the previous close, but off 1 1/8 cents a bushel from the high of the day. Cotton sagged off also and bonds turned soft with railroad issues depressed most. News from the automobile industry was more encouraging than most reports. Increased output of new models was responsible for holding the rate of steel operations at 21 per cent. In announcing this fact, the magazine Steel said: "This maintained steel rate, however, is contrary to the increasing listlessness of the market situation. Rolling of automotive material should hold up for several weeks, and tin plate mills continue to anticipate first quarter shipments, but the shrinkage from other consumers may prove decisive." On the favorable side of the news in addition to the war debt situation, were a rise in the National Fertilizer Association commodity index; a drop in business failures as reported by R. G. Dun & Company, further firmness in sterling, and a step up of output of several automobile models. Steel common was affected by the prospect of a drop in output. It touched 37 1/2, off 1 3/4 and closed at 38. Case closed at 43 7/8, off 3 3/8. It touched 46 1/2 when wheat was moving up early in the day. American Telephone & Telegraph at one time reached its previous close of 112 1/4. It closed at 110, off 2 1/4 points. Union Pacific, Delaware & Hudson, Lackawanna and Atchison were depressed 2 to more than 3 points in the rails where prices generally were lower. Allied Chemical lost more than 2 points as did Du Pont, American Tobacco B and Auburn Auto. Radio Corporation turned down after last week's rally.

2. November 15, 1932 The Tribune Scranton, PA

Article Text

NAME BANK RECEIVER PITTSBURGH R. Gordon was appointed receiver today of the Diamond National bank Pittsburgh which failed to open today.

3. November 15, 1932 The Morning Herald Uniontown, PA

Article Text

Scranton To WASHINGTON, Nov. of violating the Wright Unless are made necessary by death or resignation, the NAMED BANK RECEIVER to name Nov. not an in Robert R. Gordon today was appointpostmasters before 1934. ed receiver of the Diamond National The first major appointment will be Bank of Pittsburgh, which failed Scranton. open today. Gordon, receiver for the Dozens postmasters appoint- Exchange National Bank of Pitts ments smaller cities, boroughs burgh since that institution closed, hamlets, expire before any of the appointed by Acting Comptroller positions become vacant. Currency Awalt, in whose In second and third class offices, hands the Diamond National was placthe civil service commission holds ed by its and recommends three persons. Appointments to fourth SEEKS COAL STOVE class offices are on strict civil Ensign William McGowan of the basis.

4. December 9, 1932 The Producers News Plentywood, MT
Article from The Producers News, December 9, 1932

Click image to open full size in new tab

Article Text

New Bank Suspensions Nebraska: George W. Woods, Bank Commissioner, has announced: Bank of Raymond, Raymond, closed. South Dakota: E. A. Ruden, Supt. of Banks, has announced: First State Bank, Bowdle, closed. National banks suspending Nov. 18, as re- ported to the Comptroller of the Currency and made public Nov. 18, were: National banks suspending Nov .14, as reported to the Comptroller of the Currency and made public Nov. 14 were: Shawnee National Bank, Shawnee, Okla.; resources, $2,359,264; First National Bank of Allen, Okla., resources $119,771; First National Bank of McLoud, Okla.; resources, $130,272; Park National Bank of Sulphur, Okla.; resources, $213,651. Diamond National Bank of Pittsburgh, Pa.,; resources, $15,849,950. United States National Bank and Trust Co4 of Kenosha, Wis.; resources, $1,812,553. National banks suspending Nov. 21 and 22, as reported to the Comptroller of the Currency and made public Nov. 23, were: Nov. 21: Ayers National Bank, Jacksonville, 111., resources, $8,285,998. Nov. 22: First National Bank of Faulkton, S. Dak., resources $257,141.

5. December 9, 1932 The Producers News Plentywood, MT

Article Text

New Bank Suspensions Nebraska: George W. Woods, Bank Commissioner, has announced: Bank of Raymond, Raymond, closed. South Dakota: E. A. Ruden, Supt. of Banks, has announced: First State Bank, Bowdle, closed. National banks suspending Nov. 18, as reported to the Comptroller of the Currency and made public Nov. 18, were: National banks suspending Nov. 14, as reported to the Comptroller of the Currency and made public Nov. 14 were: Shawnee National Bank, Shawnee, Okla.; resources, $2,359,264; First National Bank of Allen, Okla., resources $119,771; First National Bank of McLoud, Okla.; resources, $130,272; Park National Bank of Sulphur, Okla.; resources, $213,651. Diamond National Bank of Pittsburgh, Pa.; resources, $15,849,950. United States National Bank and Trust Co. of Kenosha, Wis.; resources, $1,812,553. National banks suspending Nov. 21 and 22, as reported to the Comptroller of the Currency and made public Nov. 23, were: Nov. 21: Ayers National Bank, Jacksonville, Ill., resources, $8,285,998. Nov. 22: First National Bank of Faulkton, S. Dak., resources $257,141.

6. December 21, 1932 Latrobe Bulletin Latrobe, PA

Article Text

MAY MERGE TWO BANKS (Continued from Page One) same amount, it was said. According to tentative plans the new bank will be known as solidated National Bank of Pittsburgh and will operate in banking rooms of one of the two closed banks. Sixty per cent of cash deposits of the Monongahela Bank and 40 per cent of the Diamond depositors are expected to be made available with opening of the proposed bank Receivwill assume the remainder of the deposit liability of each bank, paying check are

7. December 21, 1932 The Daily Notes Canonsburg, PA

Article Text

PITTSBURGH, Dec. Depositors of two closed National Banks here have approved plans for merger of the institutions to create bank with deposits more than million dollars, revealed today. Plans for second merger, combining the new bank with bank operating in good financial condition, reported to be under consideration. The second merger approved would create an institution with deposits of more than said. The merger plan already proved by depositors calls for solidation of the Monongahela National Bank and Diamond National Bank. both of Pittsburgh, which closed recently. Completion the merger will await subscription new capital stock, which In addition the bank have surplus of $175,000 and undivided profits the same amount, was said. According to tentative plans the hew bank will be known as the Consolidated National Bank of Pittsburgh, and will operate banking rooms of one the two closed banks. Sixty percent of cash deposits of the Monongahela bank and the Diamond deposits are expected to be made available with opening of the proposed bank. Receivers will assume the remainder of the deposit liability of each bank, paying It check as assets liquidated, said.

8. December 21, 1932 The News-Herald Franklin, PA

Article Text

Approve Plans For Merger of 2 Closed Banks positors of two closed national banks here have approved plans for merger of the institutions to create a new bank with deposits of more than $10.000,000, it revealed today Plans for a second merger, combining the new bank with a bank now operating in good financial condition, are reported to be under consideration. The merger, if approved, would create an institution with deposits of more than $30,000,000. it was said. The merger plan already approved by depositors calls for consolidation of the Monongahela National bank and Diamond National bank, both of Pitts burgh. which closed recently. Completion of the merger will await subscrip tion of new capital stock. which is to total $700.000. In addition the bank will have surplus of $175.000 and undivided profits of the same amount. it was said. According to tentative plans, the new bank will be known as the Consolidat ed National Bank of Pittsburgh and will operate in banking rooms of one of the two closed banks. Sixty per cent. of cash deposits of the Monongahela bank and 40 per cent. of the Diamond deposits are expected to be made available with opening of the proposed bank. Receivers will assume the remainder of the deposit llability of each bank. paying It by check as assets are liquidated, it was said.

9. April 22, 1933 The Pittsburgh Press Pittsburgh, PA

Article Text

Mr. Kury since the end of the bank holiday have benefited to a great degree by the rising prices. The benefits which have accrued to the banks not yet licensed to do an unrestricted business will be manifest to the depositors in a very short time. The rise in values will speed the issuance of licenses and the money tied up will be available. But another situation presents itself to the depositors of some of the banks hereabouts which are in the process of liquidation. Although the assets of these banks will be swelled and the depositors will get some of their money at some future date, there is none available now. Due to procrastination and delayed plans for reorganization that have hampered distribution of dividends the available money is still tied up. The Diamond and Monongahela National Banks can be cited as outstanding examples which have worked considerable hardships on depositors. Both these institutions have more than $9,000,000 in cash or its equivalent on hand. In the case of the Monongahela it has been tied up for more than 18 months, the great majority of it remaining on deposit at an open bank. Diligent receivers in both institutions have done an excellent job of liquidation but their hands have been tied in the matter of getting this money back to the depositors. And why? Because the Comptroller of the Currency in Washington and his subordinates operating in this district have seen fit to hold the money as the nucleus for the organization of a new bank. Not alone has this money been denied those to whom it is rightfully due in the shortest possible time, but Pittsburgh business has been hampered by the impasse. If the money were turned into the channels of local trade it would supply a much-needed stimulant. Yesterday Leo Sack, Washington correspondent of The Press, wrote that parleys were under way in the capital which would rush the opening of the re-organized bank. The most constructive thing that can happen in face of the elapsed delay is an immediate opening of the reorganized banks. If that cannot be done the available money should be distributed to the depositors. They have had enough delay and procrastination. Some of these same depositors are in debt to banks where a percentage of their money is deposited under the receivers' names. They have had to pledge their receivers' certificates for loans. This means they are paying 6 per cent for the use of their own money.

10. April 26, 1933 Pittsburgh Sun-Telegraph Pittsburgh, PA

Article Text

DEPOSITS TO BE RELEASED BY NEW BANK 14,000 Will Obtain Access to Part Of Cash By GEORGE H. SNYDER More than 14,000 depositors in the closed Diamond National and Monongahela National banks will have access to portions of their cash soon through the opening of the Pitt National Bank of Application for charter for the new institution has been approved and the work of obtaining subscriptions for the stock has been completed. according to an announcement by the committees in charge of the organization work. The new bank will take over portions of the assets of the two closed institutions and will credit the depositors with proportional amounts. It is expected that Diamond will have access to about 45 per cent of their funds and that the Monongahela depositors will have access to about 60 per cent of theirs. USE DIAMOND SITE The new bank will conduct its business in the quarters of the former Diamond National Bank at Fifth and Liberty avenues. Assets not taken over by the new bank will remain in the hands of the receivers for liquidation. The committee announcement said the name of the new bank having been pre-empted and authority having been given by the Comptroller of the Currency, the corporate organization will be put through as rapidly as possible and the necessary arrangements concluded and court orders obtained to enable the new bank to take over the acceptable assets of the Diamond and Monongahela Na. tional banks and make ailable to depositors of those institutions, the proportion of their deposits transferred. SPEED SOUGHT The setting up of the organization to run the new bank and the opening of the books and accounts will be pushed as rapidly as possible While officers and directors have not been formally elected. the proposed board has been holding frequent meetings. As was previously announced, Charles Fisher will be president and A. Hughlin vice president. The total capital. surplus and undivided profits of the new bank will aggregate made up of cash subscriptions and. with acceptable assets taken over from the Diamond National Bank and the Monongahela National Bank at their current market values, the financial stability of the new bank assured.

11. April 26, 1933 Pittsburgh Post-Gazette Pittsburgh, PA

Article Text

New Bank to Open Soon In Downtown Pittsburgh (Continued From Page One) Fisher, who is to be president of the new bank, follows: "The name of the bank having been pre-empted and authority having been given by the comptroller of the currency to organize a new bank, the corporate organization will now be put through as rapidly as possible and the necessary agreements concluded and court orders secured to enable the new bank to take over the acceptable assets of the Diamond and Monongahela National banks and make available to the depositors of those institutions the proportion of their deposits so transferred. The setting up of the organization to run the new bank and the opening of the necessary books and accounts will be pushed as rapidly as possible. "Adverse financial conditions, the bank holiday and restrictions on withdrawals of deposits in a number of banks impeded and delayed the work of the committees in securing subscriptions for the capital stock of the new bank. The committees, public-spirited citizens, and persons formerly connected with the two closed banks have worked long and strenuously in making effective this constructive piece of bank rehabilitation. They have done so without compensation or prospect of compensation. The patience and co-operation of depositors in the two banks have been most helpful. The comptroller of the currency, F. C. Awalt, and the chief National bank examiner, William Taylor, gave valuable assistance. The subscriptions of public-spirited citizens to the stock of the new bank also greatly aided the undertaking. There have been many assurances of patronage and loyalty to the new bank from former depositors at the Diamond and Monongahela National banks and from other sources." Officers of the new bank cannot be formerly elected until a charter is obtained, but the proposed board has been meeting frequently for some time. It has already been announced that A. J. Huglin, former vice president of the Diamond National, will fill that post with the new institution.

12. May 24, 1933 The Pittsburgh Press Pittsburgh, PA

Article Text

ceive 65 per cent of their proved claims. The percentages to be paid to the depositors have been arrived at after a careful re-examination and appraisal of the assets of the respective institutions and represent dividends to the depositors of a considerably higher percentage than could have been made available to them by any other method. The respective receivers will turn over to the new bank selected assets of a sound value equivalent to the total amount of the dividends and will hold as additional security for the new bank their remaining assets for a specified period. The receivers will continue liquidation of these assets and the depositors of the old banks will be entitled to receive further dividends when and as they become "The Pitt National Bank has entered into a lease with the receiver of the Diamond National Bank covering the banking rooms at Fifth and Liberty Avenues. These rooms are now being altered and improved preparatory to their occupancy by the new bank. "The receivers are busily engaged in preparing dividend schedules and dividend orders to depositors, necessary to carry out the above plan. This is a huge task and will require considerable time. "Every effort is being made by the receivers and the officers of the new bank to expedite the necessary work and it is expected that the new bank will open business Monday, June 12, 1933. Depositors of the two old banks will be given an opportunity to present their divi-

13. May 24, 1933 The Pittsburgh Press Pittsburgh, PA

Article Text

BANK OPENING SET FOR JUNE 12 (Continued from Page 1) liquidation of the Diamond National and $4,423,866 from the Monongahela. These two sums also represent 65 per cent of the deposits in the Monongahela and 40 per cent of the Diamond deposits. After the court order was handed down the officers and directors of the Pitt National Bank issued the following statement: "The District Court of the United States for the Western District of Pennsylvania today approved agreements between the Pitt National Bank and the receivers of the Diamond National Bank and the Monongahela National Bank, respectively, whereby assets of those two banks will be taken over by the Pitt National Bank. They had previously been approved by the Comptroller of the Currency of the United States. These agreements were executed by the respective receivers and the officers of the Pitt National Bank today. "Under these agreements the depositors of the Diamond National Bank will be entitled to receive, by credit to them on the books of the new bank, upon presentation of proper dividend orders, 40 per cent of their proved claims and the depositors of the Monongahela National Bank will be entitled to re-

14. May 24, 1933 Pittsburgh Sun-Telegraph Pittsburgh, PA

Article Text

NEW PITT BANK OPENS JUNE The new Pitt National portions of the which takes over of the Diamond National assets and National banks, for business June 12 to be open signed by Federal Judge R M Gibson today cleared the for the sale certain the Bank to the Pitt National Bank and Robert R. Gordon, receiver ized the former Diamond lease Bank quarters to the Pitt National Bank. The receiver of the Monongahela National Bank was also thorized to make the necessary transfer Depositors of the Diamond Bank will be orders on the new for 40 per cent of their claims and deposiproven of the Monongahela Bank tors will receive orders for 65 per cent of their proven claims. depositors want cash for If the that will be available when the new bank plans approved by the United States Controller of The new bank will have capital and undivided profits of