gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7fdad707697a1511
Response Measures
None
Description
Closed after a clearing house investigation; plaintiff later alleged fraud and doubtful assets.
Events (3)
1.September 28, 1905Chartered
Source
historical_nic
2.September 28, 1907Suspension
Cause
Bank Specific Adverse Info
Cause Details
Investigation found doubtful paper, loans to bankrupt firms and jailed individuals; directors decided to wind up affairs.
Newspaper Excerpt
It closed its doors September 28, 1907, after an investigation by the clearing house committee.
Source
newspapers
3.November 2, 1907Voluntary Liquidation
Source
historical_nic
Newspaper Articles (6)
1.October 2, 1907Rock Island ArgusRock Island, IL
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Article Text
FEDERALNATIONALSUSPENDS Chicago Bank Fails to Secure Enough Business to Pay Dividends. Chicago, Oct. 2.-Directors of the Federal National bank yesterday afternoon decided to wind up the affairs of the institution. An informal statement issued by the directors asserted all depositors will be paid in full upon demand. The reason assigned for suspending was the failure of the institution to secure sufficient business to warrant continuing. The bank was organized two years ago with a capital of $500,000. Deposits averaged $1 250,000. Its depositors were smail tradesmen.
2.October 2, 1907The Cairo BulletinCairo, IL
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Article Text
CHICACO BANK TO SUSPEND BUSINESS WILL PAY DEPOSITORS, MOSTLY MEN OF MODERATE MEANS IN FULL ON DEMAND. Chicago. Oct. 1.-At a meeting of the directors of the Federal National bank here today it was ordered to wind up the affairs of the institution and suspend business. In a formal statement issued after the meating of the directors it was asserted that all depoistors will be paid in full upon demand. The reason assigned for the suspending was the failure of the institution to secure sufficient business to warrant continuing. The bank was organized two years azo with a capital of $500.000. The deposits averaged $1.000,000, and the depositors were chiefly men of moderate means.
3.October 4, 1907The Red Cloud ChiefRed Cloud, NE
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Article Text
Federal National Bank to Suspend. Chicago, Oct. 2.-At a meeting of the directors of the Federal National bank here, it was decided to wind up the affairs of the institution and suspend business.
4.December 4, 1907The Evening Star and Newark AdvertiserNewark, NJ
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Article Text
BANK A GOLD BRICK. DECLARES STOCKHOLDER. Purchaser of Control of Suspended Institution Wants Contract Rescinded. CHICAGO, Dec. 4.-Declaring that he bought a gold brick when he purchased control of the Federal National Bank, John W. Worthington began action yesterday to have rescinded the contract of sale between himself and Isaac M. Perry. Perry until the early part of August was president of the bank. Worthington avers that he was induced to purchase the controlling interest through fraud and misrepresentations made by Perry. The complainant asks the court to compel Perry to return to him $40,000 and his notes for $140,000. In his bill of complaint Worthington avers that Perry violated the Federal banking laws on more than one occasion. He also declared that much. paper of a doubtful character was found in the bank and consequently it was forced to suspend. Plaintiff says he found in the bank's assets notes securing loans given by firms which had gone into bankruptcy and by individuals who were in jail. The bank was organized in 1905 with a capital stock of $500,000. It closed its doors September 28, 1907, after an investigation by the clearing house committee.
5.December 4, 1907Evening StarWashington, DC
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Article Text
BANK A GOLD BRICK. Chicago Man Claims That He Was Buncoed. CHICAGO, December 4.-Declaring that he bought a gold brick when he purchased control of the Federal National Bank, John W. Worthington began action yesterday. to have rescinded the contract of sale between himself and Isaac N. Perry. Perry until the early part of August was president of the bank. Worthington avers that he was induced to purchase the controlling interest through fraud and misrepresentations made by Perry. The complainant asks the court to compel Perry to return to him $40,000 and his notes for $140,000. In his bill of complaint Worthington avers that Perry violated the federal banking laws on more than one occasion. He also declares that much paper of a doubtful character was found in the bank, and consequently it was forced to suspend. Plaintiff says he found in the bank's assets notes securing loans given by firms which had gone into bankruptcy and by individuals who were in jail. The bank was organized in 1905 with a capital stock of $500,000. It closed its doors September 28, 1907, after an investigation by the clearing house committee.
6.December 4, 1907Deseret Evening NewsSalt Lake City, UT
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Article Text
BOUGHT GOLD BRICK. J. W. Worthington Says that What He Got When Bought Fed. Nat'l Bank. Chicago, Dec. 4.-Declaring that he bought a gold brick when he purchased control of the Federal National bank, John W. Worthington began action yesterday to have rescinded the contract of sale between himself and Isaac N. Perry. Perry until the early part of August was president of the bank. Worthington avers that he was induced to purchase the controlling interest through fraud and misrepresentations made by Perry. The complainant asks the court to compel Perry to return to him $40,000 and his notes for $140,000. In his bill of complaint Worthington avers that Perry violated the federal banking laws on more than one occasion. He also declares that much paper of lubtful character was found in the bank and consequently it was forced to suspend. Plaintiff says he found in the bank's assets notes securing loans given by firms which had gone into bankruptcy and by individuals who were in jail. The bank was organized in 1905 with a capital stock of $500,000. It closed its doors Sept. 28, 1908, after an investigation by the clearing house committee.
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.
