gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d30d6f1d744f77ae
Response Measures
None
Description
Closed by state banking commissioner and placed in receivership; deposits covered by state guaranty law.
Events (3)
1.May 23, 1922Run
Cause
Bank Specific Adverse Info
Cause Details
Silent run of withdrawals (> $200,000 since Jan 1) as bad/frozen loans reduced liquidity; a $14,000 check precipitated failure.
Measures
Funds available for small checks but unable to meet large check; no special liquidity measures reported.
Newspaper Excerpt
Since the closing of the bank it has been authentically stated that a silent run had been made on the bank, more than $200,000 having been drawn out since January 1.
Source
newspapers
2.May 23, 1922Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by state banking commission due to inability to realize on frozen credits and numerous bad loans.
Newspaper Excerpt
The State Savings bank was closed at noon today upon orders of the state banking commission.
Source
newspapers
3.May 24, 1922Receivership
Newspaper Excerpt
B. V. Curry, state bank examiner ... has been placed temporarily in charge by Mr. Foster; ... has been appointed receiver for a number of state banks, has been placed temporarily in charge by Mr. Foster. (article states receiver in charge).
Source
newspapers
Newspaper Articles (14)
1.May 24, 1922The Topeka State JournalTopeka, KS
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Article Text
TO TAKE OVER ALL ASSETS Leavenworth Banks to Assist in Liquidation of State Savings. Liquidation of the affairs of the State Savings bank of Leavenworth, which was closed Tuesday, will be undertaken by the local association of banks at Leavenworth, it was announced today by State Bank Commissioner Frank H. Foster, upon his return from that city. The other banks are arranging to take over all assets of the Savings bank, under which arrangement it is understood, all liabilities will be met. Mr. Foster reiterated that the cause of the failure was over loans and loans on which it was impossible to make collections. B. V. Curry, state bank examiner who recently has been appointed receiver for a number of state banks, has been placed temporarily in charge by Mr. Foster. The commissioner declined to give any estimate as to the aggregate amount of bad paper held by the institution.
2.May 24, 1922The Guthrie Daily LeaderGuthrie, OK
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Article Text
Leavenworth, Kan., May 24.-The State Savings bank was closed at | noon today upon order's of the state banking commission. inability to realize on "frozen" credits was the reason assigned for the closing. P
3.May 24, 1922The Morning Tulsa Daily WorldTulsa, OK
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Article Text
LEAVENWORTH. Kan... May 23.-The State Savings bank was closed at noon today upon orders of the state banking commission. Inability to realize on "frozen" credits was the reason assigned for the closing.
4.May 25, 1922Abilene Weekly ReflectorAbilene, KS
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Article Text
SAVINGS BANK GOES TO WALL [Associated Press] Topeka, May 23.-The State Savings Bank of Leavenworth was closed today. Frank H. Foster, state bank commissioner, is temporarily in charge. Its capital was $100,000, loans $1,000,000, deposits $1,123,000. Bad paper is assigned as the cause. Its deposits are guaranteed
5.May 29, 1922The Topeka State JournalTopeka, KS
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Article Text
Leavenworth, Kan, May 29.-It was a check for $14,000 that "broke the bank" in the case of the Leavenworth State Savings bank which recently closed its doors here. The bank having been heavily loaned up on-its more than a million deposits, difficulty was encountered in making sufficient collections to meet demands of depositors. Since the closing of the bank it has been authentically stated that a "silent run" had been made on the bank, more than $200,000 having been drawn out since January 1. Funds were available for checks of nominal sums, but when the local light company presented a check for $14,000, the bank could not meet it. More than half of the notes held by the bank were given by farmers, it was stated, many of them being unable to pay them off. No charges of misappropriation of funds have been made against the officers. The day the bank closed, F. M. Potter, vice president, resigned as president of the Lansing State Bank. The depositors will not lose, the bank being guaranteed by the state depositors' guaranty law. Certificates on the state will be issued to the depositors at once. These certificates draw interest.
6.June 3, 1922The Topeka State JournalTopeka, KS
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Article Text
LOSS MAY REACH $150,000 Efforts to Reorganize State Savings Bank at Leavenworth Fails. Losses of the State Savings bank of Leavenworth-recently closed by the state banking department-may reach $150,000. Efforts to reorganize the institution and underwrite losses by Leavenworth institutions have failed. Announcement of the probable losses of the bank was made here today by Frank H. Foster, state bank commissioner. Commissioner Foster said exact amounts of losses would not be known for some time. The bank operated under the state bank guaranty law. Numerous bad loans by the institution caused the recent failure, according to statements, from the banking department. The institution has been in charge of B. V. Curry, a state bank examiner, who is now receiver for six banks closed under directions of Commissioner Foster.
7.July 25, 1922The Topeka State JournalTopeka, KS
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Article Text
SUES FIVE FOR $120,000. Leavenworth Bank Stockholders Are Asked to Make Up Deficit. Leavenworth, Kan., July 25.-Five stockholders in the State Savings bank, Leavenworth, which closed its doors May 23, by order of the state bank examiner, have been sued by the bank's receiver under the double liability clause of the state bank guaranty law According to allegations made in the bank's petition, the assets of the institution are insufficient by $120,000 to pay claims of the depositors.
8.August 19, 1922The Topeka State JournalTopeka, KS
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Article Text
IS COLLECTING BANK'S ASSETS. State Savings at Leavenworth May Pay Dividend About Nov. 1. Leavenworth, Kan., Aug. 19.-The first dividend payment of the State Savings bank of Leavenworth, closed some time ago, will be delayed unless some 1,800 depositors who have not yet made proof of their elaims do so, according to M. L. Bishop, assistant to the receiver of the bank. So far the receiver has collected about $150,000 of the bank's assets, it was said. In the event as good progress can be made during the next three months and the 1,800 delinquent depositors make their claims, the first dividend would be declared about November 1, it was thought.
9.September 20, 1922The Topeka State JournalTopeka, KS
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Article Text
STATE CONTROLS TEN BANKS B. V. Curry Is Official Receiver for All Institutions. Ten state banks are now closed and under control of the state bank commissioner. B. V. Curry, an assistant bank commissioner, is the official receiver of all ten of these institutions. In addition to the ten, there are nine banks in the state now operating under individual receivers. The ten banks under state control and of which Mr. Curry is receiver: Farmers' State bank, Washington. State Savings bank, Leavenworth. Farmers' State bank, Quenemo. C. M. Condon & Co., State bank, Oswego. Traders' State bank, Arkansas City. Citizens State bank, Geuda Springs. Exchange State bank, Wichita, State bank of Hope. Citizens' State bank, Harper. Farmers State Bank, Belmont. Mr. Curry has just been appointed receiver of the Citizens State Bank of Harper, the last bank to be closed by State Bank Commissioner Foster. Following -are the institutions now operating under private receivers: Citizens State Bank, Manhattan. People's State Bank. Salina. Broeker-Lefferdink Bank, Salina. Farmers and Merchants Bank, Pawnee Rock. Farmers State Bank, McCune. Viola State Bank, Viola. Aulne State Bank, Aulne. Hanover State Bank, Hanover. Farmers State Bank, Spring Hill.
10.June 11, 1924The Weekly Kansas City StarKansas City, MO
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Article Text
LAW GETS ARTHUR MOSSE.
Former K. U. Coach and Hog Breeder Held on Coast.
Leavenworth, Kas.—Arthur St. Leger Mosse, former Kansas university football coach and nationally known breeder of Chester White hogs, has been arrested at Sawtelle, Cal., according to a telegram received from M. L. Bishop, assistant to the receiver in charge of the defunct State Savings Bank of Leavenworth.
Mosse is wanted in Leavenworth to answer three counts charging fraud in his statement of financial resources made in connection with applications for loans from the bank in July 11, 1921.
It is not known where Mr. Mosse's family is at present.
11.June 11, 1924The Weekly Kansas City StarKansas City, MO
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Article Text
LAW GETS ARTHUR MOSSE.
Former K. U. Coach and Hog Breeder Held on Coast.
Leavenworth, Kas.—Arthur St. Leger Mosse, former Kansas university football coach and nationally known breeder of Chester White hogs, has been arrested at Sawtelle, Cal., according to a telegram received from M. L. Bishop, assistant to the receiver in charge of the defunct State Savings Bank of Leavenworth.
Mosse is wanted in Leavenworth to answer three counts charging fraud in his statement of financial resources made in connection with applications for loans from the bank in July 11, 1921.
It is not known where Mr. Mosse's family is at present.
12.June 11, 1924The Weekly Kansas City StarKansas City, MO
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Article Text
LAW GETS ARTHUR MOSSE.
Former K. U. Coach and Hog Breeder Held on Coast.
Leavenworth, Kas.—Arthur St. Leger Mosse, former Kansas university football coach and nationally known breeder of Chester White hogs, has been arrested at Sawtelle, Cal., according to a telegram received from M. L. Bishop, assistant to the receiver in charge of the defunct State Savings Bank of Leavenworth.
Mosse is wanted in Leavenworth to answer three counts charging fraud in his statement of financial resources made in connection with applications for loans from the bank in July 11, 1921.
It is not known where Mr. Mosse's family is at present.
13.August 11, 1925The Kansas City TimesKansas City, MO
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Article Text
CRASH A BOON TO SOME.
All Except Depositors and Guaranty Fund Appear Benefited.
TOPEKA. Aug. 10.-The failure of the State Savings bank of Leavenworth. in May. 1922, appears to have been good thing for everybody connected with the handling of the institution after its failure—except the depositors and the state guaranty fund. When the bank failed it had a capital stock of $100,000. It had a surplus of $20,000. It had undivided profits of
Bank Receiver Thinks Auditor Report Unfair
(Continued from Page One.) had to with the of question torney's fees." Bishop emphatically denied accounts that her had been discharged. fact that told Mr. Docking some time ago that wanted relieved on August About the last Topska and at the earnest request Mr. Docking, agreed to remain my present position until August
WILL INQUIRE RECEIVERSHIPS. Topeka, Kan., Aug. Revelations alleged irregulariin the receivership of the State Savidgs Bank of Leavenworth will bring more thorough Inquiry into other receiverships, declared Roy Bone,state bank commissioner to. day. Probably three score bank failures within the last four or five years were included under the sweeping investigation order of the the legislature, and likely that the state bank department will pro. ceed to have some of them audited. Attorney General Griffith handed the voluminous record of the bank audit to. and' immediately began study of the evidence and of the laws to fraud, to determine whether prosecution is warranted. Mr. Griffith Brookens, Topeke police judge, special assistant attorney general to take charge of the legal inquiry into the alleged Irregularities. The examination of the audit and of pertinent statutes will probably quire more than week, the attorgeneral said. Other Irregularities.
New facts were coming to light today as the study of the audit continued. In the case the Bankers' Investment Company, which bought $181,524.71 worth "book value" assets of the bank for $15,000, the audit shows Malo, who arranged the sale, celved not only commission $500 for selling the property to but his own note for $5,500 included in the assets taken over. The report shows that Bishop, acting for the ceiver, paid off more than $1,100 back due taxes on real estate Main's company. In the face of Bishop's denial certain contained in the audit. the report shows that be not only paid $1,373 for new barn on farm sold Hayden, Topeka lawyer, but also spent $62 for porch on the house. He also paid from the bank's assets nearly $7,500 in delinquent taxes before the transfer to Hayden was effect. ed, the audit declared. These were included in the sale of of book assets the Topeka attorney, for which Hayden is declared to have paid $48,000.
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.
