gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a798bd8a72384837
Response Measures
None
Description
Receiver appointed and fraud allegations followed the bank's suspension; closure remained permanent with long receivership.
Events (2)
1.November 25, 1932Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed by board and suspended business amid serious asset deterioration and later allegations of misuse/concealment of ownership and improprieties.
Newspaper Excerpt
This bank closed by order of the board of directors, pending efforts at reorganization.
Source
newspapers
2.December 1, 1932*Receivership
Newspaper Excerpt
Kalahar was appointed receiver after the bank closed in December of 1932; receiver later pursued charges and assessments against interested parties.
Source
newspapers
Newspaper Articles (19)
1.November 26, 1932Detroit Free PressDetroit, MI
Article Text
CITIZENS SAVINGS BANK OF MT. CLEMENS CLOSED
MT. CLEMENS, Mich., Nov. 25(A. The Citizens Savings Bank failed to open for business today A notice posted on the door stated: "This bank closed by order of the board of directors, pending efforts at reorganization.' The bank, which was merger of the old Ullrich Savings Bank and the old Citizens Savings Bank, was capitalized at $500,000 and listed surplus of $250,000. In its last statement it listed footings, liabilities and assets, at $4,847,189. statement at the State banking department at Lansing said the bank was closed preserve the assets of the bank for the benefit of depositors. The bank was founded Feb. 6, 1900. Its total resources of last October totaled in excess of $4,500,000.
2.January 25, 1933Battle Creek EnquirerBattle Creek, MI
Article Text
CANNOT IGNORE REQUESTS torney general has ruled that the courts cannot ignore the recommendation of the state bank commissioner in appointment of bank receivers. The opinion ruled that courts exceeded their authority in recent appointment of receivers at Detroit, for the Clare State bank and for the Citizens Savings bank at Mt. Clemens. Rudoph E. Reichert, state commissioner. declared that his recommendations for pointments had been ignored by the courts. An act by the first special session of last year provided that the commissioner make the
3.March 29, 1933Battle Creek Moon-JournalBattle Creek, MI
Article Text
BANK RECEIVER CHARGES FRAUD
Mt. Clemens Man Says Stock Ownership Concealed.
Mt. Clemens, Mich., March Detroit bank officials, four banks and two holding companies were charged with "farud, deceit, and trickery" today an alleged conceal their ownership stock the funct Citizens Savings bank here. President Macy E. Watkins of the Macomb County Bankers association made charge sworn statement filed before Judge Neil E. Reed circuit court. Watkins receiver the which closed its doors four months ago. He asked the court for authority levy 100 per cent assessment on all The bank's assets have depreciated $1,537,000 he said. The three Detroit bank officials named the statement are: Fred H. Talbot, executive vice president the Commonwealth Commercial State Harry Covington. former executive vice president of the Guardian National Bank Commerce. and R B. Locke, for vice president of the First National bank. Watkins also named the Detroit Bankers company, the Guardian the First National Bank. the Com-
4.March 29, 1933The Times HeraldPort Huron, MI
Article Text
SEES EVASION OF LIABILITY
Mt. Clemens Bank Receiver Accuses Detroit Banks
Mt. March statement before Circuit Judge Reid Macy E. Watkins. for Citizens bank of Mt. Clemand president of the Macomb charged group of Detroit banks and officials deceit trickery' alleged their ownership of the bank, four ago. the court authority per cent sessment on all he the of bank have $1,537,000
5.April 4, 1933Battle Creek Moon-JournalBattle Creek, MI
Article Text
MICHIGAN NEWS
HIGHWAY FUNDS ARE UNGUARDED
Jury Investigation Of Mt. Clemens Bank Appears Likely.
Mt. Clemens. April Investigation the defunct Citizens Savings bank here revealed today that the state highway department had deposit, unprotected security bonding. when the bank suspended busi-
Assistant Receiver B KalaON FLINT RIVER BANKS the information report Leo Moriarty and Frank Watson. assistant attorFlint. April 4.-City employes neys-general, here investigating paraded banks the Flint the bank. river Monday and kept special That the state funds un- guard on the city dams as Flint contrary Kala- prepared for possible har said. banking Weather officials in Lansing warnpractice for state funds that the river would bonded for the bank put least six and the security. Records show, tent snow and hall that the practice was not followed during the day indicated more instance.' extreme rise. Sections Flint in the lowlands The assistant attorneys-general were under water as the drainage have indicated they will file facilities the river over. quest one-man grand jury taxed. some parts Flint. porinvestigation, when they complete tions the roads were under their own inquiry
6.April 4, 1933The Flint JournalFlint, MI
Article Text
DEPOSITS HELD
Mt. Clemens, April (By UP) Investigation of the Cit. izens Savings bank revealed today that the department deposit, unprotected by bonding when the bank suspended busiAssistant Receiver B. Kalahar, information Moriarty and report Frank assistant here investigating the "That the state funds were unprotected contrary to Kalahar said. usual banking practice for state funds bonded or for bank put security. Records show, the practice not followed in this instance." assistant have indicated they file request grand when complete their own
7.April 4, 1933The Flint JournalFlint, MI
Article Text
DEPOSITS HELD UNPROTECTED
Mt. Clemens, April Investigation of the defunct izens Savings bank here revealed today that state highway partment deposit by security the bank suspended Assistant Receiver B. Kala. har, the Moriarty and Frank assistant torneys here investigating the "That the state funds were protected contrary said. usual practice funds bonded or the bank put Records that practice was not followed in this The assistant have indicated they request for grand they complete their inquiry. inspection tax of 25 cents barrel provided for and retailers violating the act would subject fine og and two years and $5,000 years. The carries the follow beer wine shall be served to any person for consumption the said person seated at table.' "No regulation shall be made quiring food with the purchase of beer "Beer wine sold by vendors for on the premises
8.April 4, 1933Lansing State JournalLansing, MI
Article Text
STATE FUNDS IN BANK FOUND UNPROTECTED
MT. CLEMENS. April 4 (UP)-Investigation the defunct Citizens Savings bank here revealed Tuesday that the state highway department had $97,000 on deposit. unprotected by security bonding, when the bank suspended business. Assistant receiver B. A. Kalahar disclosed the information in report to Leo F. Moriarty and Frank H. Watson. assistant attorneys-general, here investigating the bank. The assistant attorneys -general have indicated they will file a request for one-man grand jury investigation. when they complete their own inquiry.
9.May 19, 1933Detroit Free PressDetroit, MI
Article Text
Bank Closin Laid to Slu
Officials Are Cle in Mt. Clemen
MT. CLEMENS May Grand Jury tion of the affairs zens Savings Bank which suspended in wound up Thursday will of Circuit Judge Glenn Paw that cruninal against any Judge Warner who the one-man jury investigat the bank's held that ties of the bank were most adverse economic human control No returned by the judge His findings, however. that are some which the termined the civi] mentioned the use of saving ment securities to secure the commercial department for stock assessments, The investigation was April by Judge Neil the Macomb County covered the bank's back September, 1929 merged with the Ultrich Bank under the Robert M. Allan, former of the American ings Bank Detroit. The bank suspended Nov. and Macy president the Macomb Bankers Association. receiver. He later group Detroit banks officials had their ownership bank, and the Grand Jury tion
10.February 8, 1934The Saginaw NewsSaginaw, MI
Article Text
he differed from the given When Mills finished Couzens took say that no does not condemn the comptroller the in the years 1932 and The bank president rehis tee that institution solvent holiday Couzens asked the ness knew money" being withdrawn from the bank December 31, and crash and dropping off of be. Mills stoutly none this represented money. David Saperstein, associate of Ferdinand Pecora, today Pecora the stock bill. then letter had sent to Mills on March 1933, following the by Luther Thomas warned their friends of the bank's condition. was president of Fidelity Trust company The letter attention the large board and said that some ings and that rumors immediately
How "Tips" Were Given.
"You know that some directors their friends, check your books to he out the letter the banker adding that he did check made found no such He to he made difficulty keeping of bank's affairs within Previously during Mills' questhat Citizens bank Mount Clemens, was closed until after 1932 the of banking his and the attorney agreed in the deproduced letter dated Locke, the First National Bank of Detroit Donald Merrill of Mt. Clemens, the chairman the in sing the letter ed.
'Merrill stated that the closing of have disastrous effect the of the The called and stated that although hour stay in immediately with Commissioner the bank was not closed was Senaasked.
Anent Loans to Officers.
November Brucker did not carry Macomb Saperstein to show that 1933. the last day operation there total of outstanding in loans officers, emand tors of the Detroit Bankers holding company and Mills said don't Mills insisted the figures includappeared Mills permission to his tions for improving banking legisOutstanding requirement the tivities receivers not "shrouded porations prohibited from are federal members banks should instruct periodito liquidate their loans.
11.January 30, 1941The Daily MonitorMount Clemens, MI
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Article Text
Honorable Neil E. Reid, circuit judge, announced today that he had authorized B. A. Kalahar, receiver of the Citizens Savings Bank of Mount Clemens and his attorney, .B. V. Nunneley, to make application to the Reconstruction Finance Corporation for a new loan to provide funds for an additional payment to depositors at the earliest possible date.
12.June 18, 1941The Daily MonitorMount Clemens, MI
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Article Text
Depositors to Receive $255,303.52 in Cash PAYMENTS TO BE SPREAD OVER THURSDAY, FRIDAY, SATURDAY Distribution of $255,303.52 to week before presenting their claims at the receivership ofdepositors of the defunct Citizens fices in the Price building where Savings bank will be effected on Thursday, Friday and Saturday the payoff will be continued. at the Macomb County Trust CLOSED NINE YEARS company office in the Price After the bank closed in DeBuilding, Bernard A. Kalahar, receiver, announced today. cember, of 1932, Kalahar was appointed receiver. He effected The 10 per cent payoff brings to $1,183,813.22 the cash total 20 per cent payment on Depaid patrons of the bank during cember 24, 1934 and a 15 per the receivership. A total of 35 cent payment December 6, 1939. per cent-$928,509.70-has been In addition $1,191,269.39 was disbursed prior to the present paid creditors of the bank. payoff. Kalahar said an additional diCOURT APPROVES vidend is possible, probably Circuit Judge Neil E. Reid towithin two years, when the day signed an order authorizing $267,500 RFC loan used for the the payment of the dividend. The current payoff is liquidated. order gave Kalahar permission Kalahar appeared before Cirto hire whatever help is needed cuit Judge Neil E. Reid on Feb. to effect the disbursement. 15 to ask authority to seek a Kalahar said depositors need loan from the RFC. Judge Reid signed the order five days later only to present their certificates and on April 11 the RFC approvto receive the payoff. He urged ed the loan. those who have lost certificates to wait until Monday of next On April 24 Judge Reid set May 17 as the date for a hearing at which time Kalahar was given Kerosene Stove Cause authority to pledge the bank's of Minor Household Fire assets in return for the loan. When objections were lacking, Firemen were called to the Judge Reid took the final legal Herman Schalm home, 50 Buyne step this morning. street, at 9:35 this morning to
13.June 18, 1941The Daily MonitorMount Clemens, MI
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Article Text
Distribution of $255,303.52 to depositors of the defunct Citizens Savings bank will be effected on Thursday, Friday and Saturday at the Macomb County Trust company office in the Price Building, Bernard A. Kalahar, receiver, announced today. The 10 per cent payoff brings to $1,183,813.22 the cash total paid patrons of the bank during the receivership. A total of 35 per cent-$928,509.70-has been disbursed prior to the present payoff. COURT APPROVES Circuit Judge Neil E. Reid today signed an order authorizing the payment of the dividend. The order gave Kalahar permission to hire whatever help is needed to effect the disbursement. Kalahar said depositors need only to present their certificates to receive the payoff. He urged those who have lost certificates to wait until Monday of next
14.September 16, 1941The Daily MonitorMount Clemens, MI
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Article Text
Acreage Sold to Jack Green Jack A. Green and wife, Anna E., today purchased 59.5 acres of land at the corner of Joy boulevard and Sugar Bush road. Mr. and Mrs. Green paid $5,800 in cash for the property. The land was ordered sold by Circuit Judge Neil E. Reid through B. A. Kalahar, receiver for the Citizens Savings Bank.
15.March 6, 1942The Daily MonitorMount Clemens, MI
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Article Text
FOR SALE-4 shares Mt. Clemens Savings Bank stock, one Trust-fund Certificiate, $1133.40, Mt. Clemens Savings Bank. One receiver's certificate, Citizens Savings Bank, $249.73. Hugo Blank, RFD No. 1, Mt. Clemens. Phone Mt. Clemens 2485-W4.
16.September 14, 1943The Daily Monitor LeaderMount Clemens, MI
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Article Text
Five Per Cent Return Is Set for October 5 5,000 to Benefit from Fourth Return to Depositors A five per cent return to depositors in the old Citizen's Savings bank which closed its doors Nov. 23, 1932, was announced this morning by Bernard A. Kalahar, receiver, following authorization by Circuit Judge Neil E. Reid. Five thousand holders of deposit certificates will participate in the $127,468.02 melon Kalahar revealed. RECOVER HALF The new payoff, scheduled for Oct. 5, will bring up to 50 per cent the return to depositors since the financial institution failed. A total of $1,296,273.20 will have been recovered for them when the new five per cent return is completed. The receiver urged that as many people as possible mail in their certificates so that checks may be sent out but said that See PAY-OFF-Page 6
17.September 22, 1944The Daily Monitor LeaderMount Clemens, MI
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B.A. KALAHAR, Receiver of the Citizen's Savings Bank. a Michigan Banking Corporation, of Mount Clemens, Mich.
18.November 17, 1944The Daily Monitor LeaderMount Clemens, MI
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Article Text
Depositors Get Final Payoff Legal Fees Total $42,303 Former depositors in the long closed Citizens Savings Bank continued to stream into the offices of the receiver, in the MonHor-Leader building, today to collect their final payoff checks against funds frozen by the financial institution's collapse Nov. 23, 1932. Among details of the final closing of the bank's books are various items of interest to those whose funds have so long been tied up as a result of the bank's failure. Included is the fact that of the $1,508,572 total recovery effected by the receivership, virtually three per cent was earmarked for the payment of fees to legal counsel and slightly more than three per cent represented salaries paid to the receiver himself. Of the $42,303.13 paid out to See PAYOFF-Page 2
19.December 12, 1944The Daily Monitor LeaderMount Clemens, MI
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Article Text
Bank Failure Cost County Over $12,000 Closing of the Citizens' Savings Bank, Mount Clemens, in the Christmas season of 1931, cost the County of Macomb $12,099.58, it was revealed at the Board of Supervisors meeting Monday, when a final statement of the bank's receivers was made and the county's books closed on this particular debit. County Controller Sherwood J. Bennett announced that the county had a balance of $29,541.23 in the bank when it closed its doors. Successive payoffs amounting to approximately 57 per cent produced $17,441.65 for the county and the receivership has now been closed with all assets liquidated. "That's a lot better than we expected," was the only audible supervisor's comment at the meeting, in reference to the 57 per cent payoff.
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.
