gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3d1165e5cf4ca5ce
Response Measures
None
Description
Reopening was delayed pending litigation against the investment committee; bank operated under commissioner supervision while enjoined.
Events (2)
1.February 1, 1909Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension ordered after discovery of large unprofitable loans and overextended real-estate advances (loans exceeding property values), prompting commissioner action and court injunction.
Newspaper Excerpt
closing the Greenfield Savings bank of Greenfield, and suspending the payment of further dividends
Source
newspapers
2.April 1, 1913Reopening
Newspaper Excerpt
The Greenfield Savings Bank ... was reopened today for business. Notice has been given that the depositors will receive the full amount of their principal ... together with a three per cent. dividend and interest since last November.
Source
newspapers
Newspaper Articles (15)
1.February 2, 1909Norwich BulletinNorwich, CT
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Article Text
GREENFIELD SAVINGS BANK CLOSED BY COMMISSIONER Has 7,000 Depositors, Many of Whom Are Working People. Boston, Feb. 1.-By an order of the supreme judicial court today, closing the Greenfield Savings bank of Greenfield, and suspending the payment of further dividends, it is hoped to eliminate the unproductive assets of the bank, and eventually throw open the doors of the institution to its 7,000 depositors who have entrusted nearly three million dollars to its keeping. The bank is one of the largest savings institutions in the Connecticut valley, and its closing today, at the request of the savings bank commissioner, Pierre Jay, came unexpectedly to the depositors, many of whom are mill hands and other working people. Instead of asking for a receiver, Commissioner Jay requested that a course similar to that adopted in adjusting the finances of the Marblehead Savings bank five years ago, be pursued. This permits the trustees to carry on the business of the bank under the supervision of the bank commissioner. to lend money to needy depositors, and to gradually nurse the bank back to a healthy condition.
2.February 2, 1909The Montgomery AdvertiserMontgomery, AL
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Article Text
SAVINGS BANK CLOSED. Court Decides on Method to Eliminate Unproductive Assets. Boston, Mass., Feb, 1,-By an order of the Supreme Judicial Court today, closing the Greenfield Savings Bank of Greenfield, and suspending the payment of further dividends, It is hoped to eliminate the unproductive assets of the bank, and eventually throw open the doors of the institution to its 7,000 depositors, who have entrusted nearly three million dollars to its keeping. The bank is one of the largest savings institutions in the Connecticut Valley, and its closing today at the request of Savings Bank Commissioner Pierre Jay came unexpectedly to the depositors, many of whom are mill hands. The court issued a temporary injunction. and on February 9 will take up the question of making it permanent.
3.February 9, 1909The Barre Daily TimesBarre, VT
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Article Text
PERMANENTLY ENJOINED. Officers of Greenfield Bank Can't Receive or Pay Out Funds. Boston, Feb. 9.-Supreme court Judge Sheldon today made permanent the injunction restraining the officers of the suspended Greenfield Savings bank from paying or receiving funds of depositors. The business will - be continued, and it is hoped in a few months the bank will re-open, settling with the 6,779 depositors in full.
FRANK E. HOWE, Editor and Publisher Difference in Banks. Vermonters who borrow money from savings banks on real estate security are often heard to grumble because the bank will only loan them an amount equal to sixty per cent of the value of their property. But, in the words of the clever advertisement writer, there is a reason, and this reason has been emprasized by the recent failure of a Greenfield savings bank, which had deposits of almost three millions and was supposed to be one of the strongest banks in Massachusetts. Since the bank was closed the cause of its troubles have been made public at least in part and the principal cause assigned is the loaning of money on real estate to an amount that proved later to be greater than the value of the property. When payment was defaulted and property was taken under foreclosure it could not be sold for the amount of the loan. It is stated that the bank had in the vicinity of a million and a half loaned on North Adams real estate. Owing to the. business stagnation at North Adams during the past year all property there depreciated in value to a point that made it impossible for the bank to realize on its loans It is probable that the depositors in the bank will not lose their principal but they are likely to lose interest for several years while the bank is in liquidation. In the meantime Vermonters have reason to congratulate themselves that in this state savings banks can loan to an owner of real estate only sixty per cent of the value of his property. This gives a good margin for possible depreciation or accident and protects the depositors absolutely from danger of loss. The Bennington savings bank has not lost a dollar on real estate loans in many years and even during the business depression of the past year it continued to prosper so that at the beginning of the present year it commenced paying four per cent interest on deposits.
5.February 17, 1909The Abbeville Press and BannerAbbeville, SC
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Article Text
COURT CLOSES A SAVINGS BANK. Order Permits Business to Continue Pending Reorganization. Boston, Mass.-By an order of the Supreme Judicial Court closing the Greenfield Savings Bank, of Greenfield, and suspending the payment of further dividends, it is hoped to eliminate the unproductive assets of the bank and eventually throw open its doors to its 7000 depositors, who have intrusted, nearly $3,000,000 to its keeping. The bank is one of the largest savings institutions in the Connecticut Valley, and its'closing, at the request of the Savings Bank Commissioner, Pierre Jay, came unexpectedly to the depositors, many of whom are mill hands and working people.
6.March 25, 1911Daily Kennebec JournalAugusta, ME
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Article Text
Filed by Massachusetts Bank Commissioner Against Finance Com. Members of Greenfield Savings Bank. Also Causes $350,000 Attachment --Alleges Neglect of Law. Greenfield, Mass, March 24.-Claiming that the respondents, all of whom were members of the finance committee of the Greenfield Savings Bank at the time of its suspension in February. 1909 were guilty of neglect to perform their duties properly, Arthur B. Chapin. savings bank commissioner of Massachusetts, filed a bill of complaint in the supreme court todav and caused an attachment to be made of $350.000 against Robert Abercrombie, Levi .1. Gum, Charles R. Lowell, William A. Borbes and S. B Slate. The bill is 11 voluminous document of about 50 typewritten pages and was filed by C. E. Choate Jr., a Boston attorney, in behalf of Bank Commissioner Chapin, who in turn represents the Greenfield Savings Bank The bill alleges that the respondents failed to observe the statutes and requirements of the banking laws relative to making loans. The bill also asks that the respondents be forced to repay to the bank the money which it is allleged the bank lost as a result of their official negligence. When the bank was enjoined from doing business in February, 1909 it had property valued at about $4,000,000. Since that time the sum of $288,000 nas been charged off as the lossess on poor loans made by the respondents of their predecessors. It is alleged that these losses will aggregate half a million dollars. The bill of complaint declares that Messrs. Abercrombie and Gunn received from George N. Rich of North Adams inducements and gifts offered by Rich for the purpose of getting an improper loan. The bill also states that this fact did not become known to the complainant until recently and that the Greenfield Savings Bank is not informed of the character and amount of such loans. According to the specifications in the bill of complaint the banks losses were sustained on loans made to North Adams pΓ rties. One specification alleges that a loan of $153,000 was made to the Berkshire Hotel of North Adams and that this property brought only $35,000 at a sale, causing a loss to the bank of $118,000. Some thirty or forty other unprofitable loans are cited in the bill. In conclusion the bill charges that the respondents not only exceeded the legal loan rate of 60 per cent. of the property value, but in some cases loaned more than the total value of the property. The present officials of the bank were not consulted by Mr. Chapin in the present litigation it is understood. The present board of officers expect that by July, 1912. the bank will resume business and pay dollar for dollar.
BANK OFFICIALS SUED Commission Seeks to Recover $228,000 on Bad Loans Greenfield, Mass., March 27.-On the ground that the respondents, all of whom were members of the finance committee of the Greenfield Savings bank at the time of its suspension in February, 1909, were guilty of neglect of duty, Arthur B. Chapin, savings bank commissioner of Massachusetts, has filed a bill of complaint in the supreme court and caused an attachment to be made of $350,000 against Robert Abercrombie, Levi J. Dunn, Charles R. Lowell, William A. Forbes and S. B. Slate. The bill alleges that the respondents failed to observe the statutes and requirements of the banking laws relative to making loans. The bill also asks that the respondents be forced to repay to the bank the money which it is alleged the bank lost as a result of their official negligence. When the bank was enjoined from doing business in February, 1909, it had property, valued at about $4,000000. Since that time $228,000 has been charged off as losses on poor loans made by the respondents or their predecessors. It is alleged that these losses will aggregate half a million dollars.
8.September 22, 1911Vermont PhΕnixBrattleboro, Bellows Falls, Ludlow, VT
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Article Text
The Greenfield, Mass., Savings bank probably will be able to resume business in the usual way next July, paying all the depositors in full, although without interest on their deposits from the time the bank suspended payment, Feb. 1, 1909. Savings Bank Commissioner Arthur B. Chapin is authority for the statement that if put into liquidation now the bank could pay 95 cents on each dollar of the deposits. New Orleans is used to floods, but one occurred there early in the week which startled even the oldest inhabitants. A warehouse on the levee burst Tuesday noon, and as it covers more than a block and was once used as a reservoir, and of late had been full of molasses, there was trouble. A 20-foot section of a side-wall burst out with a roar, and more than 1,000,000 gallons of molasses started down Magazine street. The molasses was soon 10 inches deep in the street, and the weight broke two city water mains, which added their contributions. The fire department was called out to aid the street cleaners and it will be days before the sticky mess is entirely removed.
9.September 16, 1912Norwich BulletinNorwich, CT
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Article Text
The Greenfield (Mass.) Savings bank which suspended in February, 1909, will not be reopened at present, although its financial standing has been restored.
10.September 27, 1912Vermont PhΕnixBrattleboro, Bellows Falls, Ludlow, VT
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MASSACHUSETTS NOTES. Depositors in the Greenfield Savings bank will be interested to know that the bank, which suspended three years and six months ago, has assets enough to pay every dollar of its indebtedness, besides a surplus. Bank Commissioner Thorndike told the trustees Friday that he could not consent to a full resumption of business until the termination of the suit brought by his predecessor against the investment committee, but he recommended that within a short time the trustees allow interest to the depositors.
11.December 10, 1912Daily Kennebec JournalAugusta, ME
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PLENTY OF FUNDS But Greenfield, Mass., Bank Cannot Resume Till Suit Is Settled. Greenfield, Mass., Dec. 9.-An unique situation in the banking situation of Massachusetts was shown, today, at the annual meeting of the Greenfield Savings Bank, which has been closed since February, 1909, Bank Commissioner Augustus G. Thorndike announced that although every cent of the bank's $2,838,075 liabilities to depositors was covered by good assets, and there was a surplus of $106,924, the bank could not be opened nor could its 7000 depositors be paid. This condition of affairs is due to the fact that the bank has a suit pending against the Board of Investment, which was in office when it was closed and whose alleged poor investments and irregularities brought about the suspension. The bank commissioner said the laws of Massachusetts would not allow the re-opening of the bank until the suit was disposed of. He announced his intention of asking the in-coming Legislature to amend the present statutes So that a re-ppening might be possible.
12.March 31, 1913The Daily Gate CityKeokuk, IA
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Bank Open Again. GREENFIELD, Mass., March 31.After having been closed for four years the Greenfield Savings bank is to open its doors tomorrow. The depositors have been notified and all who wish to may draw out the full amount of their deposits, together with a 3 per cent. dividend and interest since last November. The Savings bank commissioner closed the bank in February, 1909. The assets now amount to $3,055,497 and the deposits, $2,838,075.
13.April 1, 1913The Evening TimesGrand Forks, ND
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SAVINGS BANK REOPENS. Greenfield, Mass., April 1.-The Greenfield Savings Bank. which was closed by order of the savings bank commissioner more than four years ago, was reopened today for business. Notice has been given that the depositors will receive the full amount of their principal on deposit. togethed with a three per cent dividend and interest since last November. The suspension of the bank was caused by unprofitable loans.
14.April 1, 1913The Hattiesburg NewsHattiesburg, MS
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SAVINGS BANK REOPENS. Greenfield, Mass., April The Greenfield Savings Bank, which was closed by order of the savings bank commissioner more than four years ago, was re-opened today for business. Notice has been given that the depositors will receive the full amount of their principal on deposit, together with a three per cent. dividend and The interest since last November. suspension of the bank was caused by unprofitable loans.
15.April 2, 1913Amarillo Daily NewsAmarillo, TX
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Savings Bank Re-Opens GREENFIELD, Mass., April 1.The Greenfield Savings Bank, which was closed by order of the savings bank commissioner more than four years ago, was reopened today for business. Notice has been given that the depositors will receive the full amount of their principal on deposit together with three per cent dividend and interest since last November. The suspension of the bank was caused by unprofitable loans.
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