gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3cab451dd1dd4f51
Response Measures
Capital injected, Full suspension, Books examined
Other: Reorganization plan with capital increase and cash subscriptions (private equity injection) to pay depositors and reopen the bank; appointment of a receiver by the Comptroller.
Clearinghouse involved: Yes
(loan, examination, or other measures)
Receivership Details
Date receivership started
1901-06-27
Date receivership terminated
1901-11-12
OCC cause of failure
Excessive lending
Description
Failure precipitated by heavy loans/overcertified checks to Marquand & Co.; Comptroller closed bank and appointed receiver.
Events (8)
1.April 11, 1865Chartered
Source
historical_nic
2.June 26, 1901Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy loans and overcertified checks tied to Henry Marquand & Co. led correspondents and depositors to withdraw balances.
Measures
Directors obtained cash from their own funds and attempted to reassure; clearing house removed the bank from clearings.
Newspaper Excerpt
A huge crowd soon surrounded the bank...the enormous withdrawal of funds by country banks which kept their accounts with the Seventh National.
Source
newspapers
3.June 27, 1901Receivership
Source
historical_nic
4.June 27, 1901Receivership
Newspaper Excerpt
The comptroller of the currency has just been advised of the closing of the Seventh National bank. A receiver will be appointed at once...appointed Forest Raynor, national bank examiner, temporary receiver.
Source
newspapers
5.June 27, 1901Suspension
Cause
Government Action
Cause Details
Comptroller of the Currency ordered suspension after directors could not meet conditions and clearing house refused aid.
Newspaper Excerpt
Controller Dawes today ordered the closing of the Seventh National bank of New York and appointed Forrest Raynor...
Source
newspapers
6.November 12, 1901Reopening
Newspaper Excerpt
After a suspension of over four months the Seventh National bank opened for business this morning...the receiver will be discharged and all creditors paid in full with interest.
Source
newspapers
7.November 12, 1901Restored To Solvency
Source
historical_nic
8.April 9, 1903Voluntary Liquidation
Source
historical_nic
Newspaper Articles (23)
1.June 26, 1901New-York TribuneNew York, NY
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Article Text
TAPPEN SAYS LITTLE. President Tappen would not discuss the situation yesterday afternoon further than to say: All the banks have settled their balances satisfactorily. This disposes of all rumors. More than that I cannot say. The reason commonly assigned for the bank's trouble is overcertification of the checks of one of its largest customers, the Stock Exchange house of Henry Marquand & Co., No. 160 Broadway, to the amount of $1,600,000. When this statement was communicated to President Kimball he admitted that Marquand & Co. were debtors to the bank, but not to the amount named. "In the regular course of business," he continued. "banks certify checks in the morning and customers as a rule 'make good' during the day. Certain customers failed in their obligations, which compelled the bank to get the cash from its directors. The customers subsequently 'made good.'' The firm of Henry Marquand & Co. consists of Henry Marquand, son of the well known retired banker, Henry G. Marquand, and Frank B. Poor, a son of the late Edward E. Poor, who was prestdent of the National Park Bank. Mr. Poor was disinclined yesterday afternoon to discuss the Seventh National Bank's affairs, beyond saying the bank was to his personal knowledge "as good as gold." As to his own firm, it had a balance in
RECEIVER NAMED Controller Dawes on the Cause of the Suspension. Washington, June 27.-Controller Dawes to-day ordered the closing of the Seventh National bank of New York and appointed Forrest Raynor, national bank examiner,
3.June 27, 1901Waterbury DemocratWaterbury, CT
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Article Text
Washington, June 27, 11:10 a. m.The comptroller of the currency has just been advised of the closing of the Seventh National bank of New York. A receiver will be appointed at once, but no action in that regard yet has been taken.
4.June 28, 1901New-York TribuneNew York, NY
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Article Text
SEVENTH NATIONAL BANK FAILS HEAVY LOANS, INSTITUTION, EMBARRASSED BY TOO ORDERED CLOSED BY THE CONTROLLER. POSTOFFICE FUNDS IN IT WELL SECURED. The Seventh National Bank closed its doors yesterday morning, a half hour after the opening of business. The suspension was directed by the Controller of the Currency, the directors having failed to give him required assurances that loans of Henry Marquand & Co., aggregating $1,600,000, would be taken up and the money therefor be paid into the bank by to-morrow night; and National Bank Examiner Raynor took charge of the bank. The Seventh National was debtor yesterday morning at the Clearing House to the amount of $644,108, and on receiving notice from the directors that they had decided temporarily to suspend payment, the committee instructed the manager to eliminate from the clearings all transactions connected with the Seventh National Bank. All the other banks cleared without difficulty, and none are believed to be in any trouble. Late in the afternoon a statement was issued by the bank, in which the failure was charged to the action of Henry Marquand & Co. in not taking up their loans and to the acceptance by the Kimball administration of collateral which was not marketable, although probably of more or less intrinsic value. The country correspondents of the bank withdrew their balances, thus causing the heavy debit balance of the bank yesterday at the Clearing House. The institution had been made a depository for postoffice money order funds through Perry S. Heath's connection with it. The Federal moneys, however, are secured by government bonds.
5.June 28, 1901Daily CameraBoulder, CO
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Article Text
Morquand & CO. Fail For Millions FAILED FOR MILLIONS. Marquand & Co. Cause Bank to Fall And Now go Under Themselves. New York, June 28-Marquand & Co. failed this morning. No statement was furnished, but the liabilities run far into the millions. The firm took $6,000,000 of the bonds of the Pittsburg & Shaw. mutt railroad, a line to the Pennsylvania coal fields, and secured enmity of the oil and steel trust. They were compelled to borrow heavily and got $1,600,000 from the Seventh National bank which The bank's failed yesterday. failure carried Marquand & Co down with it and renders the bank failure a much more gloomy affair for its depositors.
6.June 28, 1901The Billings GazetteBillings, MT
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Article Text
Ordered From Washington. Washington, June 27-Comptroller Dawes today ordered the closing of the Seventh National bank of New York and appointed Forest Raynor, national bank examiner, temporary receiver.
7.June 28, 1901Washington StandardOlympia, WA
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Article Text
THE Seventh National Bank, of New York city, suspended payment yesterday. The days are growing shorter and Christmas is coming.
8.June 28, 1901The Iola RegisterIola, KS
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Article Text
THE BANK CLOSES. Seventh National Bank of New York Closed Today. By Scripps-McRae Press Association New York, June 27.-The seventh national bank closed the doors this morning. A notice posted saying the comptroller of currency had taken charge. The clearing house returns this morning showed the bankdebtor $644,000. Before the returns were published a notice was sent to the directors of the bank who were in session. They then announced that they considered it wise to suspend temporarily. A huge crowd soonsurrounded the bank. Many angry depositors talked of mismanagement. William Cromwell, counsel for the bank, said a statement of the bank's affairs was being prepared and would be made public later today. The bankers expect no further trouble They say situation is improved by a formal confession of the insolvency of the Seventh National. GOVERNMENT FUNDS ALL RIGHT. By Scripps-McRae Press Association Washington, June 27-Regarding the Seventh National bank's failure Comptroller Dawes said: "The million dollars President Thomas put up to save the bank is not in the shape I wanted it. In other words the bank did not fulfill my conditions. The government is fully protected as far as the quarter of a million of government funds deposited there is concerned."
9.June 29, 1901The Savannah Morning NewsSavannah, GA
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Article Text
The Seventh National Bank. New York, June 28.-There was no news to-day in connection with the suspension of the Seventh National Bank. The temporary receiver who was in charge said there was nothing to be made public today.
10.July 4, 1901Griggs CourierCooperstown, ND
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Article Text
Bank Suspends. New York, June 28.-The Seventh national bank has been closed by order of the comptroller of the currency. Heavy loans on doubtful security caused the closing.
Bank Suspends. New York. June 28.-The Seventh national bank has been closed by order of the comptroller of the currency. Heavy loans on doubtful security caused the closing.
12.July 6, 1901The Dickinson PressDickinson, ND
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Article Text
New York, National bank of Newstel doors shortly after 11 o'cloc The controller of the currency appointed a national bank examiner as temporary receiver and the directors immediately took steps to reorganize the institution. The failure of the bank was precipitated by the inability of its manage. ment, after refusal of the clearinghouse to come to its aid, to comply with the conditions imposed upon it by the government officials in the controller of the currency's department in Washington, also by the enormous withdrawal of funds by country banks which kept their accounts with the Seventh National.
13.July 10, 1901The Daily Morning Journal and CourierNew Haven, CT
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Article Text
SEVENTH NAT'L BANK AFFAIRS. Statement by Directors-Plans for Reorganization Considered. New York, July 9.-The conference of the directors of the defunct Seventh National bank to-day lasted until late in the afternoon. After the conference Mr. Cromwell gave out the following statement: "The board of directors was in continual session most of the day, having before it for the first time since the suspension a general statement of the present status of the bank. The board made considerable progress in considering possible plans for reorganization, but no conclusion has yet been reached and, in the nature of the case, cannot be for several days. "The board adjourned to meet Thursday to receive further reports from committees and counsel. "Mr. Cromwell stated that it was true that he had been to Washington on Friday to see Comptroller Dawes, and that the comptroller had manifested a most considerate disposition to give the directors and stockholders reasonable opportunity to reorganize or voluntarily liquidate."
14.July 26, 1901The Houston Daily PostHouston, TX
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Article Text
A PLAN TO REORGANIZE. Seventh National Bank May Get on Its Feet Again. New York, July 25.-With the Federal grand jury in session on an Investigation of their affairs, the board of directors of the Seventh National bank today decided upon a plan for the reorganization of the defunct bank. The capital stock Is to be increased from $700,000 to $2,500,000. The cash proceeds of the assessment on the existing stock and the sale of new stock will, It is claimed, pay all present obligations and completely restore solvency. ExIsting stockholders are to be required to pay the assessment ordered by the comptroller of the currency. Edward R, Thomns, Edwin Gould, William X. N. Cromwell. Frank Roy, W. H. Taylor and Edmund K. Stahl have been constituted a committee of subscribers with plenary pow. ers to carry out the plan. United States District Attorney Henry L. Burnett says the plan to reorganize the Seventh National bank will not affect the investigation by the Federal grand, jury. William E. D. Stokes, who 18 a stockhold. er of the Seventh National, has taken out summonses in the supreme court against the directors of the bank, President Thomns and Receiver Raynor.
PLANS ARE APPROVED. Comptroller Dawes Agrees to Reorganization of Seventh National Bank of New York City. Washington, Sept. 23.-William Nelson Cromwell, counsel for the reorganization committee of the Seventh national bank of New York, accompanied by E. K. Stallo and Forrest Raynor, receiver of the Seventh national bank, called at the office of Comptroller Dawes Saturday and submitted to the comptroller a plan for the readjustment of the affairs of the Seventh national bank, under authority of which the depositors of the bank will be paid in full with interest as quickly as the legal requirements in the case of reorganized banks can be complied with, which will be but a few weeks. One million seven hundred and fifty thousand dollars in cash has been subscribed, over $1,500,000 of which has already been paid into the hands of the committee. The reorganization committee have presented two alternative plans for reorganization, both of which have been approved by the comptroller. The decision as to the one which shall be followed will be determined by the committee within the next week.
16.November 12, 1901Arizona RepublicanPhoenix, AZ
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Article Text
THE SEVENTH NATIONAL. New York, Nov. 11.-Comptroller of the Currency Ridgely notified the New York clearing house this afternoon that the condition of the reorganization of the Seventh National bank is satisfactory to the United States government and the receiver will be discharged. The bank will be opened officially tomorrow.
17.November 12, 1901Akron Daily DemocratAkron, OH
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Article Text
REOPENED. New Start For Seventh National. All Creditors Have Received Their Money With Interest. New York, Nov. 12.-(Spl.)-After a suspension of over four months the Seventh National bank was opened for business again this morning. Edwin Gould is president of the bank under the reorganization. All creditors of the old bank have received their money with interest. When the doors of the bank were closed some months ago there was great excitement in New York and a panic among the depositors.
Again Ready for Business. New York, Nov. 12.-Comptroller of the Currency Ridgley has notified the New York clearinghouse that the condition of the reorganized Seventh National bank was satisfactory to the government; that its affairs were in the condition where it could pay all its obligations and reopen with promising prospects and that the receiver had been discharged.
19.November 12, 1901The Seattle StarSeattle, WA
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Article Text
PEN AGAIN Seventh National Bank Resumes Business New York, Nov. 12.-After a suspension of over four months, the Seventh National Bank opened for business this morning. While using' its old name the officials of the bank are entirely changed. Edwin Gould is the new president.
20.November 12, 1901The Butte Inter MountainButte, MT
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Article Text
NEW YORK.-Comptroller Ridgely has notified the clearing house that the re-organization of the Seventh National bank is satisfactory to the government, and that the receiver has been discharged.
21.November 12, 1901The Salt Lake HeraldSalt Lake City, UT
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Article Text
Bank to Open Today. New York, Nov. 11.-Comptroller of the Currency Ridgley notified the New York clearing house this afternoon that the condition of the reorganization of the Seventh National bank was. satisfactory to the government and that the receiver had been discharged. The bank will be opened officially tomorrow.
BANK RESUMES. New York, Nov. 12.-After a suspension of four months the Seventh National Bank opened today. Edwin Gould is the new president. All creditors received their money with interest.
23.February 14, 1903The Washington TimesWashington, DC
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MEN WHO WRECKED NEW YORK BANK SET FREE Court Satisfied They Did Not Profit by Marquand & Co. Transactions. NEW YORK, Feb. 14.-William H. Kimball, formerly president of the Seventh National Bank, and Gamaliel W. Rose, paying teller of that institution, who pleaded guilty to the charge of overcertifying checks of the former firm of Marquand & Co., were arraigned for sentence today. Judge Thomas said he was satisfied that no wrong was intended, and that neither Kimball nor Rose profited by the transaction. He then sentenced Kimball to pay a fine of $5,000, and permitted Rose to go under suspension of sentence. The crime with which the two defendants was charged resulted in the wrecking of the bank, which, however, was reorganized. The amount of checks which were over-certified amounted to about $1,250,000.
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.
