gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
694a6db0d6238785
Response Measures
None
Events (1)
1.August 19, 1920Run
Cause
Rumor Or Misinformation
Cause Details
Depositors alarmed by indefinite reports that the bank was going to close and that the president had suffered losses related to the Ponzi/ Hanover Trust collapse.
Measures
Payments begun at usual opening hour; bank paid all comers and president publicly denied reports of closing.
Newspaper Excerpt
A run on the First State Bank, a private institution in the North End, ... was continued today.
Source
newspapers
Newspaper Articles (10)
1.August 19, 1920The Evening WorldNew York, NY
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Article Text
RUN CONTINUES ON BANK IN BOSTON The First State Pays All Comers and President Says It Won't Close. BOSTON, Aug 19.-A run on the first State Bank. a private institution in the North End, doing business principally with members of the Italian colony, was continued to-day. Payment was begun at the usual opening hour to a long line of claimants. President Nutile said he could produce three times as much money as was necessary to pay off the $1,000,000 of deposits and that the report that the bank was going to close was false. Attorney General Allen announced to-day that $15,000 of the funds of the Old Colony Foreign Exchange Company had been located in a bank in New York and that this brought the otal of the company's funds accounted for to $150,000. He estimated that this represented 60 per cent. of the amount received by the company from investors. Returns of note-holders in the Securities Exchange Company conducted by Charles Ponzi, had reached to-day a total of $4,200,000, this amount Including the fifty per cent. profit promised by Ponzl.
Run on Boston Bank. By The Associated Press. BOSTON, Aug. 19-Returns of note holders in the Security Exchange Company has reached teast of $4,200,000. This amount ing the fifty per cent profits promised. A run on the first state bank, a private institution doing business in the north end with the Italian col. oncy continued today. Depositors were alarmed by a report that the bank was to close. Payments were begun at the usual opening hour.
Bank Run Continues. BOSTON, Aug. 19.-The run on the First State bank, a private institution in the north end, doing business principally with members of the Italian colony, was continued today. The depositors were said to be alarmed by indefinite reports that the bank was going to close and that the president had suffered losses in the closing of the Hanover Trust Co., which was involved in the collapse of Charles Ponzi.
PONZI WAIVES EXAMINATION Discredited Financial Wizard Sent Back to Jail in Default of $23,000 Bonds-Rin on Another Bank. Boston, Aug. 19.-Charles Ponzi, discredited prophet of a high finance which instead of large profits ha3 turned into considerable losses in .11vestments of thousands of persons running into millions of dollars. was taken from the East Cambriage jail today and arraigned before a reueral commissioner on the charge that he used the mails to defraud. He waived examination and was sent back to ja 1 in default of $25,000 bonds. Trial was set for the September term of the federal court. A run on the First State bank. a private institution in the north end doing business principally with menibers of the Italan colony. was co.tinued today. Depositors were alarmed by reports that Presid nt Thomas Nutle had suffered losses in of the closing of the Hanover Trust Co., which was invived in the collapse 1 Ponzi. Nutli said he could produce three times as much money as was necessary to pay off the $1,000,000 deposits and that he had not been a stockholder in the Hanover Trust Co. for several months.
5.August 19, 1920The Log Cabin DemocratConway, AR
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Article Text
BANK RUN STARTS BY PONZI'S DUPES (By United Press) Boston. Aug. 19.-Early morning found a line of 75 depositors formed in front of the First State Bank building, waiting for the doors to be opened SO that their deposits could be withdrawn. In clearing up the financial tangle left by the collapse of Charles Ponzi's foreign exchange speculations, it was said that the First State Bank was involved, and depositors most easily frightened were first on the ground to withdraw their money.
6.August 27, 1920The Fayette FalconSomerville, TN
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Article Text
PONZI CRASH CAUSES RUN ON ANOTHER BANK Boston, Mass-A run on the First State Bank, a private institution In the North End, doing business principally with members of the Italian colony, was continued. Depositors were said to be alarmed by Indefinite reports that the bank was going to close and that President Thomas Nutlle had suffered losses in the closing of the Hanover Trust Company. which was involved in the collapse of Charles Ponzi. Payment was begun at the usual opening hour to a long line of claimants. President Nutile said he could produce three times as much money as was necessary to pay off the $1,000,000 of deposits and that the report that the bank was going to close was false.
7.September 3, 1920The Dickson County HeraldDickson, TN
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Article Text
PONZI CRASH CAUSES RUN ON ANOTHER BANK Boston, Mass. A run on the First State Bank, a private institution in the North End. doing business principally with members of the Italian colony. was continued Depositors were said to be alarmed by indefinite reports that the bank was going to close and that President Thomas Nutile had suffered losses in the closing of the Hanover Trust Company, which was 133coived in the collapse of Charles Ponzi. Payment was begun at the usual opening hour to * tong line of claimants. President Nutue said be could produce three times - much booney as was necessary to DAY of the 81 0000000 of deposits and that the report that the bank was going to cluse was fulse
8.September 3, 1920The Aberdeen WeeklyAberdeen, MS
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Article Text
PONZI CRASH CAUSES RUN ON ANOTHER BANK Boston Bank Depositors Are Alarmed Over Rumors of Failure of First State. Boston, Mass.-A run on the First State Bank, a private institution in the North End, doing business principally with members of the Italian colony, was continued. Depositors were said to be alarmed by indefinite reports that the bank was going to close and that President Thomas Nutile had suffered losses in the closing of the Hanover Trust Company, which was involved in the collapse of Charles Ponzi. Payment was begun at the usual opening hour to a long line of claimants. President Nutile said he could produce three times as much money as was necessary to pay off the $1,000,000 of deposits and that the report that the bank was going to close was false.
9.September 3, 1920The North Mississippi HeraldWater Valley, MS
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Article Text
PONZI CRASH CAUSES RUN ON ANOTHER BANK Boston Bank Depositors Are Alarmed Over Rumors of Failure of First State. Boston, Mass.-A run on the First State Bank, a private institution in the North End, doing business principally with members of the Italian colony, was continued. Depositors were said to be alarmed by indefinite reports that the bank was going to close and that President Thomas Nutile had suffered losses in the closing of the Hanover Trust Company, which was involved in the collapse of Charles Ponzi. Payment was begun at the usual opening hour to a long line of claimants. President Nutile said he could produce three times as much money as was necessary to pay off the $1,000,000 of deposits and that the report that the bank was going to close was false.
10.September 4, 1920The Concordia SentinelFerriday, Vidalia, LA
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Article Text
PONZI CRASH CAUSES RUN ON ANOTHER BANK Boston Bank Depositors Are Alarmed Over Rumors of Failure of First State. Boston, Mass.-A run on the First State Bank, a private institution in the North End, doing business principally with members of the Italian colony, was continued. Depositors were said to be alarmed by indefinite reports that the bank was going to close and that President Thomas Nutile had suffered losses in the closing of the Hanover Trust Company, which was involved in the collapse of Charles Ponzi. Payment was begun at the usual opening hour to a long line of claimants. Président Nutile said he could produce three times as much money as was necessary to pay off the $1,000,000 of deposits and that the report that the bank was going to close was false.
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.
