Central Fairfield Trust Company (Norwalk, CT)

Episode Information

Episode UID
51020471572
Episode Type
Run → Suspension → Closure
Bank Type
trust
Bank ID
5102047 routing
Routing Number
51-0204
Start Date
December 1, 1930
Location
Norwalk, Connecticut (41.118, -73.408)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d126e6007537acae

Response Measures

None

Description

Receivership was appointed within days of suspension after reorganization efforts failed.

Events (4)
1. December 1, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy shrinkage of commercial deposits leading to liquidity stress and large withdrawals.
Measures
Restraining order forbidding payments or receipt of deposits; bank examiners and commissioner involved.
Newspaper Excerpt
The bank's difficulties are due largely to the result of a heavy shrinkage in commercial deposits.
Source
newspapers
2. December 1, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State bank commissioner issued restraining order after examination found heavy shrinkage in commercial deposits; bank forbidden to pay out funds or receive deposits until court hearing.
Newspaper Excerpt
Central Fairfield Trust company of this city was suspended today by state bank commissioner, Lester E. Shippee.
Source
newspapers
3. December 9, 1930 Receivership
Newspaper Excerpt
NORWALK BANK PLACED IN HANDS OF RECEIVER ... the state banking commissioner has placed a bank - the Central Fairfield Trust company of Norwalk - in receivership.
Source
newspapers
4. January 10, 1931 Other
Newspaper Excerpt
Proposed confirmation of the First National Bank & Trust Company of Bridgeport as receiver for the Central Fairfield Bank & Trust Company ... was postponed two weeks while stockholders sought funds for reorganization.
Source
newspapers

Newspaper Articles (12)
1. December 1, 1930 New Britain Herald New Britain, CT
Article from New Britain Herald, December 1, 1930

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Article Text

First In 10 Years Hartford, Dec. 1 (P)-Commenting on the suspension of the Central Fairfield Trust company of Norwalk, on his return from that city today. State Bank Commissioner Lester E. Shippee said it was the first instance among state banks in ten years and he did not expect the suspension would be long. Mr. Shippee said: "After analyzing the assets of this bank. we are of the opinion that the depositors are fully protected and it is anticipated that the suspension will be a temporary one, as negotiations are already under way with well known banking interests looking toward the reorganization of this bank. If such reorganization is accomfished, the bank will operate with added strength and with increased facilities, in excellent management." No Hartford Connection The change in status of the Mutual Bank & Trust Co. of Hartford, Mr. Shippee pointed out, has no Learing on the difficulties of the Central Fairfield Trust company. This explanation was occasioned by the fact that President Emil Hemming of the Central Fairfield was a director of the Mutual in Hartford whose president, A. Ray Betts, came to Hartford from Norwalk where he was secretary of the Central Fairfield. He is still a director of that institution. Although under the restraining order no deposits may be received or money paid out until the order is revoked, those having notes or other obligations to the bank will make their payments in due course, and in the usual way, and will be admitted to the banking house for that purpose, Mr. Shippee said. Mr. Shippee's action follows an all-night session with the directors which ended at 3:30 this morning. John H. King, assistant attorney general, and counsel for the banking department, also took part in the meeting. The suspension notice was posted by A. F. Austin, chief bank examiner, at 8 o'clock this morning. Assets Are Large The assets of the bank are a total of $2,900,000. while the deposits amount to $2,329,000, which are divided into $1,394,0000 in savings deposits and $335,000 in commercial deposits. The reorganization movement is expected to crystallize within two weeks.

2. December 1, 1930 Kingsport Times Kingsport, TN
Article from Kingsport Times, December 1, 1930

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Article Text

BANK SUSPENDED NORWALK, Conn., Dec. 1. (AP) The Central Fairfield Trust company of this city was suspended today by state bank commissioner, Lester E. Shippe. The bank is forbidden paying out funds or receiving deposits until a court hearing is held. Christmas club checks to the amount $30,000 which were to be received by depositors today have been held up. The bank's difficulties are due largely to the result of a heavy shrinkage in commecial deposits.

3. December 1, 1930 The Daily World Helena, AR
Article from The Daily World, December 1, 1930

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MORE FIVE BANKS FAIL OPEN UP AT BLYTHEFIRST NATIONAL CLOSES FOR MERGER VILLE AT STEPHENS ANOTHER Blytheville, Ark., did National open this morning and anmade in a posted nouncement was the bank had closed pending notice Farmers Bank with the merger Coincident and Trust Company." officers of the announcement with institutions went the two ference behind closed doors. and the FarFirst National The mers Bank and Trust Company are institutions in the only banking Blytheville. Ind., Dec. New Albany, The New Albany American Bank re-opened Trust Company and having been today after here closed since November 20. It was to safeguard by directors closed financial conafter resources disturbed by here were ditions in Kenof bank closings series tucky. Conn., Dec. Norwalk, Trust ComCentral Fairfield The towas suspended of this city Bank Commissioner State The bank Lester Shippee. funds or reout forbidden paying court hearuntil a ceiving deposits is held.

4. December 2, 1930 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, December 2, 1930

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8 BANKS CLOSE GRAIN MEN FIGHT AND ONE OPENS Merger Negotiations Have Part in Two Suspensions. (By The Associated Press.) Eight banks in the United States closed their doors Monday, merger negotiations given as the cause in two instances. One bank reopened after a period of susThe First National bank of Blytheville, Ark., did not open. An announcement said it had closed "pending a merger with the Farmers Bank and Trust company At Stephens, Ark., the Peoples bank suspended for five day period. Officials said the closing was for reorganization or possible consolidation with the Bank of Stephens Three State Banks Close. Closing of three state banks in Illinois was reported to State Auditor Oscar Nelson at Springfield The banks were the Johnson City State bank, the Rock Grove State bank and the Marine Trust Bank of Carthage A Marion III., dispatch said the Marion First National bank had closed. The action was taken it was reported to protect depositors against heavy withdrawals At Chatham Va., the Chatham Savings bank. one of the oldest financial institutions in Pittsylvania county failed to open for business The bank. capitalized at $100,000 was closed by order of the state banking department. One Connecticut Closing. Distribution of Christmas club checks totaling $30,000 was halted when the Central Fairfield Trust company of Norwalk, Conn., was suspended by means of restraining order issued by state bank commissioner The bank's difficulties, the commissioner indicated. were largely the result of heavy shrinkage in commercial deposits which forced liquidation of quick The New Albany American Bank and Trust company at New Albany Ind. reopened after having been closed since Nov. 20.

5. December 2, 1930 The Times Shreveport, LA
Article from The Times, December 2, 1930

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Article Text

INDIANA BANK SHUT, REOPENS Two Small Institutions in Arkansas Close Monday for Reorganization New Albany, Ind., Dec. Albany American Bank Trust company reopened Monday after 20. was closed by directors to safeguard its resources after conditions here were disturbed series of bank closings in Kentucky. Blytheville, Dec. First National bank here did not Monday and announcement made posted notice that bank closed "pending merger with the Farmers Bank and company.' Coincident the announcement officers the doors. First and the Farmers Bank Trust are only banking institutions in Blytheville. Ark., Dec. Peoples bank Monday for Officials closing was for with the Bank of Stephens. Va., Dec. oldest in Pittsylvania failed to open Monday. The bank capitalized $100,000 note the door the bank was closed by order of the banking department. Officers said approximately $25,000 of Pittmoney on deposit was protected by bond. Norwalk, Conn. Dec. Central Fairfield Trust company this city was suspended Monday State Lester Shippee. bank ing funds deposits court held. The bank's difficulties largely the result heavy shrinkage in commercial deposits.

6. December 2, 1930 Tulsa World Tulsa, OK
Article from Tulsa World, December 2, 1930

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Article Text

BANKS IN FIVE STATES SUSPEND OPERATIONS Institution in New Abany, Ind., Closed Last Week, Is Reopened NORWALK Conn. Dec. (A checks planned was halted when the for Central Fairfield Trust company of this city suspended by of restraining order issued by bank The order forbids the bank from paying funds or deposits uncourt hearing is held The action followed an examination of the bank The bank's present difficulties statement were largely the result of heavy shrinkage in commer deposits which forced liquidation of quick statement by the bank com A would be temporary negotiations were under looking toward reor-

7. December 6, 1930 New Britain Herald New Britain, CT
Article from New Britain Herald, December 6, 1930

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Article Text

BANK MEETING CALLED Norwalk. Dec. 6 (UP)-Difficulties of the Central Fairfield Trust com. pany, suspended Monday by the state banking commissioner, may be solved at a meeting of stockhold ers called for 2 p. m. today. An announcement of the meeting said three courses would be considcred. reorganization nerger or sale. Payment on $28,000 in Christmas clubs was delayed by the suspension.

8. December 7, 1930 Hartford Courant Hartford, CT
Article from Hartford Courant, December 7, 1930

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Name Six to Arrange For of Central Fairfield Trust Norwalk, Dec. committee of six men. instructed range for Central Fairfield Trust Company today meeting in the bank offices. Under restraining order issued State Bank Shippee, the bank suspended payments last Monday Members reorganization committee John Warren John Lester Warren Charles Harand Keeler group will act depository body power obtain shares from stockholders with an option to sell them The was empowered to set per share upon holdings They immediately confer outside purchase control the institution. of committee proceedings will be given Saturafternoon. Edward Quinlan, attorney. who presided today's clared affairs the bank were today when Commissioner Shippee made an announcement concerning bright hopes for reorganization and reopening the bank ago. stockholders present that deposits would be fully protected. This year nearly 200 couples about marital ferences the English Divorce Court have been reunited.

9. December 9, 1930 New Britain Herald New Britain, CT
Article from New Britain Herald, December 9, 1930

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Article Text

NORWALK BANK PLACED IN HANDS OF RECEIVER Assistant Attorney General Says Assets of Institution Are "Frozen" Hartford, Dec. 9 (UP)-For the first time in more than a decade, the state banking commissioner has placed a bank-the Central Fairfield Trust company of Norwalk-in receivership. Assistant Attorney General John H. King, acting for Commisioner Lester E Shippee, appeared before Superior Court Judge Newell Jennings here yesterday and obtained

10. January 10, 1931 Hartford Courant Hartford, CT

Article Text

Receivership Action For Norwalk Bank Deferred 2 Weeks Bridgeport. Jan. -Proposed confirmation of the First National Bank & Trust Company of Bridgeport as receiver for the Central Fairfield Bank & Trust Company of Norwalk recently closed by State Bank Commissioner Lester E. Shippee, was postponed for two today by Judge E. M. Yeomans in Superior Court here. The Bridgeport bank had been named as temporary receiver for the Norwalk bank and the hearing today was to confirm the receivership Attorney Edward Quinlan of Norwalk representing the stockholders of the Norwalk bank. declared that the stockholders' committee has already raised about $250,000 of the $300,000 needed to reorganize and reopen the bank He was confident that if continuance was granted for two weeks the remaining $50,000 would be obtained and the appointment of receiver will not be nece sary If the required additional $50.000 is obtained in the next two weeks motion will be made in the Superior Court for the dismissal of the temporary receiver When the bank is reopened. 000 in Christmas club funds will be distributed to depositors Rumania has prohibited the Im portation of all goods of Russian origin.

11. February 19, 1931 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, February 19, 1931

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Final Proceedings In The Legislature And Measures Passed Republicans Force Through the Bill That Hits at Levitt and Then Began Recriminations of Members included one to appropriate $2,500,Hartford, Feb 19.-(UP)-The : re000 to the Fairfield state hospital at publicans "should hang their heads Newtown. in shame" if the measure were Another created the Lafayette passed, declared Rep Wallace N. Jewett, dem, East Hampton's poetstate highway between New Milford farmer. He was referring to the and Torrington. dispute on the Levitt controversy. Under suspension of the rules, the He charged the bill was partisan and house passed a bill changing the challenged the majority to permit a name of the Central Fairfield Trust roll call vote to show it. This moCompany of Norwalk to the Mertion was defeated. chants Bank and Trust Company. The amendment was defeated on The measure was transmitted to the a rising vote. Then the bill was senate which concurred. The Central Fairfield Trust was closed. on passed. "Now," said Johnson, turning toorder of. the banking commissioner ward Jewett, "I know where my several months ago and is in process valentine came from." He referred of reorganization. to a valentine ne displayed yesterUnder suspension of the rules the day, which read "Why the devil don't house passed measures reimbursing you-' on the outside and "become the Cheshire Reformatory $1,254.50 a democrat?" on the inside. for goods sent to the State Board of "You aren't the only one who got Health and authorizing Belden and a valentine," shouted Jewett, BranBrothers, Incorporated, Waterbury truckers, to move to Putnam. The dishing an envelope. Rep Markham senate concurred in the latter. moved the valentines be transmitted to the seante but the chair ruled the The senate passed measures creatmotion out of order. ing the General Israel Putnam State The grade crossing measure then Highway in Windham county, in honor of the Connecticut Revolupassed without opposition. Other bills passed from calendar tionary War hero and establishing the harbor lines on Mill river, New Haven. A favorable report on a bill to raise the salary of the deputy judge of Waterbury district common n Lauded pleas court from $4,000 to $6,000 a year was tabled for calendar. The senate voted to retire Louise Schmall and Katherin T. Harty, vetBarr eaker eran school teachers, on a pension. The teachers had sought retirement with pension from education officials without success. Will in Them for

12. March 1, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, March 1, 1933

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CIVIL ACTIONS SEEK $14,000 DAMAGES SETTLEMENT OF PRE-INAUGURAL POSE Four Suits Filed CASE ON TRIAL In Common Pleas FOR MANY WEEKS Norwalk Bank Had Sued And Superior Court Hartford Insurance Co. For $50,000 Bond Coal Company Asks $5,000 on Alleged Breach of Con= Amount Paid is Secret tract-Mary Raimo, Struck By Pinavich Auto= Bridgeport, Conn, March 1 mobile, Sues For $5,000 (UP) - An out-of-court settlement today ended the suit of the Merchants Bank and Trust ComIn the coal company suit, the Damages of $14,000 are asked in pany. of Norwalk, against the four civil actions filed to-day in the plaintiff charges the defendant Hartford Accident and Indemnity common pleas and superior courts. failed to go through with its part Company, which had been on trial The Vanasse Coal Co. Inc. asks of an agreement to lease the plainbefore Superior Court Judge P. B. $5,000 from the Waterbury Coal Co O'Sullivan for nearly three weeks. tiff's coal yards and that as a reon an alleged breach of contract The Norwalk Bank, as receiver for sult the plaintiff lost considerable suit filed in common pleas court: the detunct Central Fairfield Bank sums. Mary Raimo asks $5,000 from Wiland Trust Company, had sought Mary Raimo charges she was hit liam Pinavich for injuries suffered to recover the full amount of a by the defendant's car at Waterwhen hit by the defendant's car; $50,000 bond, issued by the insurtown avenue and Robbins street, Elizabeth Aspell asks $3,500 from ance company, protecting the FairFeb 15th as she was crossing the Joseph W. Handy on a note transfield bank against losses through action and John Bartush asks $500 street about 7 p. m. Injuries to her acts of its employes. arm and body are alleged to have from Feliz Roganski of Thomaston The Merchants Bank claimed an been suffered. on a commission suit. $85,000 shortage in the closed bank's funds had been caused by stock purchases, allegedly made by two of the bank officers. The insurance company contended reSystem Modification sponsibility lay with the board of directors in permitting the funds to be used for speculation purposes. The settlement was reached Depression Cure after a conference between Attorneys William H. Comley, for the bank, and Francis Cole, representing the insurance company. The Rev Joseph Todd Discusses Economics With Kiwanis amount was not divulged.