gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
50ef833be00db3b6
Response Measures
None
Description
Bank was a subsidiary of Caldwell & Co.; securities substitutions and missing collateral figure prominently in collapse.
Events (3)
1.November 1, 1930*Run
Cause
Bank Specific Adverse Info
Cause Details
Large withdrawals followed discovery/substitution of pledged securities and revelations about missing collateral and questionable dealings with parent Caldwell & Co.
Newspaper Excerpt
Runs on the banks here would bring about economic disnsto the entire The ...panic that has swept Nashville with increasing since the closing of the Bank of Tennessee
Source
newspapers
2.November 8, 1930Receivership
Newspaper Excerpt
The Bank of Tennessee was placed in the hands of State Supt. of Banks D. D. Robertson ... bank has resources of $15,867,071 and deposits of more than $12,000,000.
Source
newspapers
3.November 8, 1930Suspension
Cause
Bank Specific Adverse Info
Cause Details
Receiver appointed after heavy withdrawals and discovery that large amounts of pledged securities were missing or substituted; state demanded securities Sept. 25 and later found them absent.
Newspaper Excerpt
The Bank of Tennessee was placed in the hands of State Supt. of Banks D. D. Robertson, on his request that a receivership be granted.
Source
newspapers
Newspaper Articles (21)
1.November 8, 1930St. Cloud TimesSaint Cloud, MN
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Article Text
Bank of Tennessee Goes Into Hands of Receiver
Nashville, Tenn., Nov. 8. (UP)-The Bank of Tennessee was placed in the hands of State Supt. of Banks D. D. Robertson, on his request that a receivership be granted. The bank has resources of $15,867.071 and deposits of more than $12,000,000.
Following the appointment of Rob. ertson as receiver, the committee of Nashville bankers named to work out affeirs of Caldwell & Co., the southeast's largest investment bankers, is sued a statement pointing out the Bank of Tennessee is "among other assets" of Caldwell & Co.
The action in turning over the bank to receiver, according to the statement was considered advisable to prevent hasty disposition of the bank's securities.
Richmond, Va., Nov. 8. (UP)-James P. Jones, former treasurer of the Vir ginia Anti-Saloon league was found guilty of embeszzling funds of the Virginia Methodist orphanage, while treasurer of the institution, by a jury today. The verdict carries with an automatic sentence of five years im prisonment. Notice of appeal was filled.
INVENTORY IS MADE OF BANK OF TENNESSEE
Robertson Lists Liabilities at and $32.55 Cash on Hand.
BOOK VALUE
Knox County and East Tennessee Depositors In Nashville Are Named.
By BENTON STONG of the Bank of Tennessee filed in Davidson Chancery Court today shows the Bank of Tennessee, closed last week, had liabilities of with $32.55 cash on hand and stocks and bonds "book value" of $12,655,The State of Tennessee was among the larger depositors, with State Highway partment funds, of the state's general fund and Department of Finance and Taxation (motor vehicle) count, according to the inventory. The statement resources and liabilities of November, pieled State Banking Superintendent Robertson, shows resources, loans and discounts, $734,574.17; overdrafts, stocks and bonds, other real estate, cash hand, $32.55; cash due from banks, tal, Liabilities, capital stock, surplus, undivided profits,
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3.November 14, 1930St. Louis Post-DispatchSt. Louis, MO
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Article Text
FOR PERJURY mately but due to heavy withdrawals found impossible to weather the raging financial bank has capital of with surplus and undivided profits of
Account of Missouri State Life Co. Opened Years Ago. The account the Missouri State Life Insurance with the Bank of Tennessee opened about four and half ago, Hillsman Taylor, president of Missouri State, said today. It an active said, subject drawals from time to time, and he estimated that the time the bank closed company's balance on deposit approximately $850.000. The inventory as reported by the bank's receiver places Taylor said the collateral held by the curity for deposit acquired within the last year and that prior to that the deposit was secured by collateral, there being no legal requirement for security Taylor said that the time the collateral taken was considample security and he still believed its intrinsic value would protect the insurance company full, despite the shrinkage the the under present The the as reported by the bank's shares of stock Banco Kentucky and bonds follows: Alabama Cadet Hosiery Frank Silk Rockhill Printing Finishing $100,000; Warrior Water The Banco Kentucky stock listed on the Chicago but has not been active although quoted from to share At the higher figure the value the shares would be $315, The face value of the bonds Only one of the bond items found standard lists used by bond This Mills. bonds part of issue first mortgage bonds offered in 1928 by Caldwell and sold These bonds listed the New Orleans curb been offered recently The directorate Alabama Mills company includes both Rogers president the Caldwell and President of Missouri State Life. The opening the company's account the Bank of prior acquisition of control the company by Caldwell said. by ownership of more than 30 of the stock, ended last May when Caldwell sold its stock. block of the stock. of the total. was bought by the Life Insurance Co. of Ky., also filiated the Caldwell interests. Taylor said he did not know how this stock was held The company has about that easy for single large block to acquire Total capital of the Missouri State Life Insurance Co. represented shares of $10 par value, according to of State Insurance Department ferson City, also said the company has surplus of said that in the course of the recent state the company, completed last he sent examiners to ville to check security sales made to Missouri State by Caldwell Co., particularly to the cost Caldwell and the price to the insurance and found that these transactions reasonable. Thompson the State Insurance Department has no control bank deposits made by insurcompanies and cannot require them to obtain collateral such but does have trol to deposited with the State and over securities which capital and surplus are invested.
4.November 15, 1930The Courier NewsBlytheville, AR
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Article Text
Commerce Union Takes Over Hermitage at NashToday.
NASHVILLE Tenn. Nov. Commerce Union bank Nashville today complete charge and control of the Tennessee Hermitage National bank result agreements reached tween the two banks and banks the Clearing House association Inst night. The Tennessee Hermitage stood a terrific the bank that lasted throughout Friday, and the the two Institutions formed night to guarantee the stabllof the through the strong Influence of the Commerce Union and the backing practically every bank In the The run on the Liberty bank Thursday caused doors to close yesterday and Immediately thereafter run started on the Tennessee Hermitage. special details of to the keep crowd order and to prevent shows Paul M. Davis, president of the American National bank. now formthe second largest bank in the south, announced the merger last night and Insured the public of the stability of the Institutions the public did not continue the run against the smaller institutions. The banking committee warned in statement last night that continued runs on the banks here would bring about economic disnsto the entire The the two banks expected to bring close the financial panic that has swept Nashville with increasing since the closing of the Bank of Tennessee vember
Jacksboro Bank Closes JACKSBORO TENN. Nov. County Bank and Company of Jacksboro, has decided close because has deposit in Holston Union National Bank of Knoxville which closed Winston Baird, president of the small bank, today. Depositors will be paid Monday nd Tuesday
Millions Of Dollars Of State's Money Missing In Assets Banks Closed In Tennessee Recently
Nashville, Tenn., Nov. General Smith said torney today that none of approximately in securities deposited by the Bank of Tennessee September at the demand of the superintendent of banks, were found the bank's when went into receivership November Cash hand September 25, the Smith statement in excess examinaafter the bank had closed, have dissipated.' The attorney general also nounced that state funds totalling were on deposit Bank Tennessee and the Liberty Bank and Trust both Nashville, and the Holston Union National bank Knoxville,
Smith said thorough made the affairs tion being the Bank determining the meth"purpose of such the but to the curity" probable result 25, when the deOn September mand deposit securities Smith the action made made, said, solvent in the the bank entirely opinion of the state said this gave the banks, who Bank Tennessee margin more than $1,000,000 assets over abilities. The general said his attorney fice was recovering all such securities and part restoring same to the assets of the Bank Tennessee be applied
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6.November 16, 1930The Philadelphia InquirerPhiladelphia, PA
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Article Text
$3,840,000 Held Missing in Failure of Bank
NASHVILLE, Tenn., Nov. 15 (A. -Attorney General L. D. Smith said today that none approximately $3,840,000 in securities deposited the Bank of Tennessee September the demand of the Superintendent Banks found among the bank's assets when went into receivership November Cash hand September 25 in excess of $1,000,000 was shown in an examination after the bank had closed to been "all the statement said. The General also announced that State funds $5,700,000 were on the Bank of Tennessee and the Liberty Bank and Trust Company, both of the Houston Union National Bank Knoxville, all closed.
STATE WILL GET DEPOSITS
Attorney-General, After a Survey, Points Out Unusual Condition.
CREDIT OFFER BELIEVED BY BOARD UNNECESSARY
Detailed Report Indicates Assets Easily Enough To Place Funds.
NASHVILLE. Tenn., Nov. (Spl.) Smith, compiling formal statement the condition the state's finances relative to the impaired deposits the defunct banks, expressed his belief that the state should receive large deposits with the Smith pointed to the culiar surrounding audit by the state department banking as the key state's hope getting back largely its deposits.
Hopeful of Recovery The banks, September found more than $1,000,000 in cash in the Bank of Tennessee, and demanded the placement $3,840,000 addithe absolutely time. General Smith today that when the bank was closed November that million dollars in cash had been dissipated and the $3,840,000 assets placed in the bank to guarantee solvency then completely disappeared among the the hopeful of recovering part or all such and the same to the asof the Bank of applied upon General Smith's statement declared.
Broadens Assets "The investigation made leads to the the assets claimed by which Bank merely subsidiary, are in reality property of the Bank and may be reached for the purpose them upon its liabilities, the statement General Smith lists state's deposits in each of the banks in the hands of along security held by the state for the deposits summary of these deposits are are follows: Bank of Tennessee: General motor vehicle funds, $11,216.56 way and bridge funds National Bank General funds $266,589.50; high-
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8.November 16, 1930Shawnee News-StarShawnee, OK
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Article Text
SECURITIES MISSING
NASHVILLE Attorney General Dr Smith said today that nothing of approximately 83,840,000 in securities deposited by the Bank of Tennessee September 25 at the demand of the superintendent of banks, found among the bank's assets when It went into receivership November Cash on hand September 25. the Smith statement said in excess of $1,000,000 was shown in an examination after the bank had closed to have been "all dissipated.'
VOTE WANTED
Mandamus action to compel calling of a recall election for Mayor Walter Dean and all councilmen within 30 days whs filed today against Oklahoma Hearing likely will be Thursday district The alleged citizens have made application for the recall clection.
9.November 16, 1930News and RecordGreensboro, NC
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Article Text
AT NASHVILLE
Securities Recently Placed In Bank of Tennessee Gone, Says Attorney General.
FUNDS BEING TRACED
Nov. ney General Smith today that none securities deposited the Bank Tennessee the demand the banks, were the bank's assets when went into receivership November Cash hand September 25, the Smith excess examination after the bank had closed to have The general also nounced that funds on deposit in the Bank and the and Trust company, Nashville Holton Na. tional Knoxville, all closed said examinamade of the affairs the of the of the the but the examination had not far enough for any ment to the same. On September when the de. deposit Smith the action made the entirely solvent in the the banks. who this gave the Bank Tenmargin more assets liabilities
10.November 28, 1930Evening StarWashington, DC
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one of about a dozen banks in Tennessee that have closed this month. It was the second to fail in Nashville, its closing following by a week that of the Bank of Tennessee, a subsidiary of the investment banking house of Caldwell & Co., now in receivership. The People's Bank & Trust Co., a colored institution in Nashville, closed a week ago.
BANKER ENDS LIFE, USING SHOESTRING (Continued From First Page) proximately $1,000,000. and he expressed the opinion that with CCOnomical administration of the in stitution's affairs the depositors would be paid in full. The state superintendent of banks was named receiver. One of Dozen Banks The Liberty Bank & Trust company was one of about a dozen banks in Tennessee that have closed this month. It was the second to fail in Nashville, its closing following by a week that of the Bank of Tennessee. it subsidiary of the investment banking house of Caldwell and company. now in receivership. The Peoples Bank & Trust company. a Negro institution in Nashville, closed a week ago.
HARDEMAN GROUP PLEADS TRANSFER
Tennessee Asks Funds Be Changed Under Caldwell Company Case
26and fraudulent" substitution by Caldwell and Company of collateral pledged to secure deposits, Hardeman county, Tennessee, petitioned Federal Judge John Gore today to substitute the American National bank for the Bank of Tennessee as trustee for the collateral. Judge Gore agreed to the transfer, and the turned the American National bank by the receiver for the Bank Tennessee 629 shares of the Nashville Baseball association capistock The petition stated that on March last, Caldwell Company. investment banking house now ceivership, bought counroad bonds for bought another issue the proceeds being deposited with Caldwell and company under an agreeemnt that the bonds held by the Bank Tennessee trustee secure the Caldwell and the right. was stated. other collateral the bonds. but the were ernment. state or municipal bonds.
SECURITY SHIFT BARED AT QUIZ
Tipton Blames Withdrawals For Bank Crash,
SUBSTITUTIONS BARED
Transactions, With State Explained.
NASHVILLE, Jan. 27 timony made securities deposited additional collateral upon the state banking department of its cash in hand all probability' rendered the Bank of Tennessee today the Nat Tipton, an assistant attertee that some of the securities sub stituted for those valued which were deposit drainage worth from cents on the dollar. Some of the others, he had bank what the man in the street "cats and dogs. LISTS The of been stated by ordered deposited by the Bank Tennessee following examinalast September to cover securities held assets the bank. When the bank closed November had state deposits excess hand at the time of closing $32.55. The first withdrawal, Mr. Tipton said, was made when shares InterInsurance stock replaced by various other curities. Other withdrawals continued, he stated, until all of the original securities had been with1,000 shares of RogCaldwell York corporation, and 10,000 shares Nashville REVEAL TRANSACTIONS these securities withdrawn officials without author other of less ity value fense would that ed Faulkner. think would be breach of trust, Mr. Tipton replied. The attorney general said the person making the with.
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14.February 6, 1931The Atlanta JournalAtlanta, GA
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FAILURE TO PROBE TENNESSEE'S BANK CLOSINGS STUDIED
Kiting Charged to Col. Lea by Superintendent at Inquiry
Feb. NASHVILLE committhe inquired legislative Friday why criminal trosecution had not from the and the loss state banks estimated at several millions Robertson. superintendent of said he had reported the rehis investigations Nashville, the disgeneral attorney state attorney general's had the been fully He other duty the superintendexplained Robertson had testified at length regarding substitutions that he said by Caldwell & Co. rithout approval made of the Banking Devalued at for required the Bank of Tennessee to put condition for continuing busiits September 25 examina Bank of Tennessee was subsidiary The of the investment banking juse. about the substitutions, WalAsking Haynes inquired if Caldwell had any more right to go into the Bank of Tennessee and substitute securities than any other citizen had right to in there in the dead of the night and take them
"That's putting it pretty strong," the witness mplied No Right to Substitute Then he was asked if the letter which Caldwell Co. pledged the securities the bank permitted it, Robertson replied that 'so far the pledge was concerned they had Mr. right Robertson told the legislative irrestigating committee Friday that Bank of Tennessee paid only 3 of cent on state deposits while payon other public funds interest per from The bank, to subsidiary of Caldwell Company, closed on November rith approximately 400,000 of state said records showed that the of Tennessee borrowed $525,000 im the old Fourth and First Namal Bank at per cent interest. carrying deposit of $400 000 at same institution which drew only cent interest. also testified that the bank all highly speculative securities there by Caldwell & Company Asked Robert McReynolds comnitee attorney. if the stocks were ones, he Well, they were not stocks I'd buy. Kiting Is Charged The testified that deposits of the bank climbed rapidly periods following the sale of state Just before the committee recessed all day hearing Thursday Robertasked if he knew of any eviinte "kiting' about the time the failed last "Yes, there had been a kite trough the bank for several months, aid. To the question "Who seemed have been the participants in that be!" the superintendent replied Colonel Lea and his son. Colonel Lea is a Nashville newspaper Previously Robertson had testified at Colonel Lea was "instrumental appointment" as superintendent Inquiry was made of Robertson about Chancery Court suit he had against Colonel Lea and others etcing judgment for approximately 160,000 alleged to be due the bank him them. The suit averred that Colonel Lea and R. E. Donnell, late resident of the Liberty Bank, had iminated" its affairs and used the promote their own gains Donnell committed suicide shortly bank failed. "Dummy corwations were organized to further is plan, Robertson alleged. Runs On Bank He agreed with Robert L. McReynrids, the committee questioner, that purpose of the "dummy corporlitte was conceal from the bankdepartment the names of those reiving the benefits of loans Asked if such alleged actions were responsible for breaking the bank Robertson said that the closing was directly to "runs" on it and that udden withdrawal' by the state masurer of about $110,000 of state ttds within ten days of the closing "largely responsible for its failHe conceded that if money laned the alleged "dummy" corprations had been invested in "good ans" the bank could have used these collateral to its benefit The bank about $350,000 of state funds on when Much of the hearing was devoted substitutions made for $3,840,securities that the Banking Deariment had demanded of the Bank Tennessee when the September exmination showed $2,200,000 depreciaassets Robertson said Caldwell & Co masferred the $3,840,000 collateral the bank to secure a repurchase stement between the two affiliated atitutions and that there was "no merstanding" with his department substitutions be made. 15 Per Cent Recovery Had the pledged remained said, the state vould not have lost dime of its These deposits were in ex$3,400 and Attorney GenSmith has announced that more than 15 per cent of them Robertson "understood" that the institutions were by E. A. sodioe, cashier of the Bank Tenone part and certain offiCaldwell & Co. on the other named the latter as E. J. Heitzeand Dewitt Carter, vice presiand Donovan, secretary
FACES
Ramsey Ordered Brought Back On Charges.
Criminal charges will be preferred against Ramsey, former president of the National Bank and Holston Trust Co., on instructions of the State Investigating Committee which today endorsed the demand of Senator Hal Clements of Knoxville. Ramsey and his family are Florida, and planned have him brought back for trial. About six years ago, Ramsey came to Knoxville from small town Kentucky, going with the Third National Bank and after Joseph Gaut resigned president of the merged National Bank short time later. he made the Holston generally considered that Luke Rogers Caldwell put him at the head the bank. Ramsey had personal notes Liberty Bank Trust Co. Nashville, and $19,500 Bank of Tennessee when closed. He also in one
Caldwell Indicted by Jurors In Tennessee on Two Charges
Charged With Receiving Deposits In An Insolvent Bank; Each Indictment Contains Two Counts.
NASHVILLE. Tenn., March Caldwell, president of Caldwell and company, investment banking house now in receivership, was indicted today by the Davidson county grand jury on two charges of receiving deposits in an insolvent bank.
Bank of Tennessee which Caldwell president The bank was subsidiary of Caldwell and company. One indictment charged Caldwell with receiving deposit of $6,500 from the State Highway Robert Baker October 28 1930. eight before the bank closed The true bill charged that Caldwell. October 25, last received deposit of $50,000 from John Nolan state treasurer. Each indictment contained two counts, count in each charging Caldwell with the bank was insolvent. the other count say. ing he had reason to believe the stitution was insolvent
17.June 21, 1931Evening StarWashington, DC
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SAYS TRUSTS VIOLATED Bank of Tennessee Cashier Testifies in Banker Trial. NASHVILLE, Tenn., June 20 (AP).E. A. Goodloe, cashier of the defunct Bank of Tennessee, testified today in the trial of Rogers Caldwell, president of the bank charged with fraudulent breach of trust, that 25 of the 52 trust agreements made by the bank had been violated a few months before it closed last Fall. Caldwell, who also was president of Caldwell & Co., investment banking house now in receivership, which controlled the Bank of Tennessee, is accused of violating a trust agreement with Hardeman County by substituting less valuable collateral than that agreed upon as security for the county's deposits.
18.June 26, 1931The Tampa TribuneTampa, FL
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Caldwell Bank Receiver Petitions for Judgment
NASHVILLE Tenn. June 25 (A.P. D. Robertson, receiver for the Bank of Tennessee, today filed an intervening petition seeking $12,655,094.61 judgment against receivers for Caldwell & Co., investment house, of which the bank was subsidiary. The bill said the bank, at the time of its collapse in November, 1930, had on hand $12,655,094.61 of securities purchased from the parent concern under repurchase agreements. The repurchase agreements, the bill averred, provided that Caldwell & Co. buy back the securities at the price paid by the bank. The repurchases were to be made whenever demanded by the bank, the bill said. It was set out that demand was made on receivers for Caldwell & Co. but they declined to buy the securities back.
19.July 3, 1931Birmingham Post-HeraldBirmingham, AL
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CALDWELL TRIAL IN FINAL PHASES
Testimony Concluded And Arguments To Begin At Nashville Friday
NASHVILE Tenn., July 2-(P)The trial of Rogers Caldwell, financier, moved into its final phases Thursday with the conclusion of testimony and announcements that arguments would begin Friday. Caldwell is being tried on charge of fraudulent breach of trust. Mildly surprising spectators, the state end its examination of Caldwell at noon after questioning him as to various operations of his failed investment house, Caldwell & Co., and its subsidiary, the Bank of Tennessee, which also is in receivership. The defense then put on 16 character witnesses, including former Gov. Benton McMillin: Mayor Hilary E. Howze, Dr. James Vance, Caldwell's pastor, three judges, three farmers, detective, an undertaker, a college president and broker. The character witnesses testified they had known Caldwell intimately and knew him to be a man of good repute. Only one. C. Bradford, a stock and bond broker. was questioned as to other matters. Assistant District Atty. Gen. J.
20.October 16, 1931The TennesseanNashville, TN
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RECEIVER'S SUIT FILED FOR $3,499
Pearson Charges Fraud in $14,000 Note by Ramsey.
Suit to recover $3, 499.15 was filed In Part I of chancery court, late Thursday, by Herbert Pearson, receiver of the Holston. National bank of Knoxville, Tenn against the Bank of Tennessee, of this city. and its receiver, D. Robertson, state superintendent of banking. The Holston- National bank suspended business on November 10, 1930, and the Bank of Tennessee about the same time. It charged that on September 26, 1930, J. B. Ramsey, president of spired with the Bank of Tennessee" to bring about an arrangement by which he could secure for himself $14,000. Re executed a note to the Bank of Tennessee for this sum. the bill asserts, and attached to It collateral which was wholly in adequate to secure the amount. This note he sent to the Nashville had the proceeds put to bank and the credit of the Holston-Union National bank. He then had the Bank of Tennessee charged. on the books of his own bank, with the $14,500, and his personal account credited with that figure. Then, It is alleged, he checked the money of the bank. out The whole transaction was fraudulent arrangement," Pearson charges; and as the receiver of the Bank of Tennessee has sold the co:lateral deposited with the note. realizing 499 the suit is brought have the court order Receiver Robertson turn over this money to the Holston Union bank. Fowler and Fowler of Knoxville and C. Trabue of Nashville are counsel for the complainant bank.
21.October 29, 1931The Dodge CriterionDodge, NE
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Had $4,and Counties State 400,000 Deposited in Defunct Bank
Nov 12 Nashville. various the in the Bank Tennessee deposit Tennes filed to total approximately today listed in the invenState as the State highway departcredit the vehicle ment, finance account of the of the general and credit to specounty fund deposited credit counties, computed from the was time deposits, funds in trust. Claims Have Priority. While the inventory not list securities pledged collateral for State's deposits, the State supreme court the State titled claims the bank payable its depositors no priority claim unpledged assets. made what might realized from the sale unpledged securities and from the favorable from the pledged Loans overdrafts and other real estate in invenbook value stocks, municipal corporation bonds and stocks of trolled Caldwell and Company, of which the Bank of was subsidiary and certificates deposits. Liabilities given as the same listed the securities pledged secure deposits and bills payable The Bank of Tennessee acted f1nancial agent Caldwell Combanking house, of which Total time deposits companies controlled Caldwell and Company the and included the following Caldwell and Company the Southern Surety Company Bills payable included the following Bank LouisNational York, National $200,000, the National bills payable the Holston Union Tenn. which closed yesterday.
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.
