10912. First Savings Bank (Grand Forks, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
June 3, 1924
Location
Grand Forks, North Dakota (47.925, -97.033)

Metadata

Model
gpt-5-mini
Short Digest
e23f9f6495e90fe0

Response Measures

None

Description

The bank suspended payments in early June 1924 and was later placed in the hands of a receiver a few months afterward. Articles report depletion of reserves caused the suspension and later indictments for embezzlement of the treasurer, supporting a bank-specific insolvency leading to closure/receivership.

Events (3)
1. June 3, 1924 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Depletion of reserves leading to inability to meet deposits; later evidence of embezzlement by bank treasurer.
Newspaper Excerpt
The First Savings Bank of Grand Forks suspended payments today and will be placed on the special deposit list. ... Depletion of reserve was the chief cause of the suspension of payments.
Source
newspapers
2. September 1, 1924* Receivership
Newspaper Excerpt
The First Savings Bank of Grand Forks suspended payments on June 2, 1924, and was placed for several months on the special deposits list. It was placed in the hands of a receiver a few months later.
Source
newspapers
3. November 11, 1925 Other
Newspaper Excerpt
W. V. O'Connor, treasurer of the defunct First Savings Bank of Grand Forks, was placed under arrest ... on charges of embezzlement, making of false entries and receiving deposits when the bank was insolvent.
Source
newspapers

Newspaper Articles (2)
1. June 3, 1924 Evening Star Washington, DC
Article from Evening Star, June 3, 1924

Click image to open full size in new tab

Article Text

BANK STOPS PAYMENTS. First Savings Institution of Grand Forks, N. D., on Special Deposit. GRAND FORKS, N. D., June 3.The First Savings Bank of Grand Forks suspended payments today and will be placed on. the special deposit list Tuesday, it was decided at a meeting of representatives of this bank with those of three other banks here and a representative of the state depositors' guaranty fund commission. The bankers authorized the statement that negotiations are under way, which, it is believed, will insure payment of depositors in the near future. Depletion of reserve was the chief cause of the suspension of payments. The bank is capitalized at $50,000 and its deposits amount to $296,273.27. Loans and discounts total $375,633.62.

2. November 14, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, November 14, 1925

Click image to open full size in new tab

Article Text

GRAND FORKS BANK OFFICIAL IS ARRESTED Grand Forks, N. D., Nov. 11. (AP) W.V. O'Connor. treasurer of the defunct First Savings Bank of Grand Forks, was placed under arrest this afternoon on charges of embezziement, making of false entries and receiving deposits when the bank WPS insolvent, contained in 12 indictments returned by the grand jury which ended its session Friday. O'Connor will be arraigned this afternoon before Judge C. M. Cooley. of the 12 indictments returned against him four charge embezzlement, the total of the amount alleged to have been embezzled being $7,624.40; three charge false entries on the books of the bank and five charge receiving 01 deposits when the bank was insolvent. The First Savings Bank of Grand Forks suspended payments on June 2, 1924, and was placed for several months on the special deposits list. It was placed in the hands of a receiver a few months later.