National Bank - Albany, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 1, 1908*
Location: Albany, New York (42.653, -73.756)

Metadata

Model: gpt-5-mini
Short Digest: f8ebb39c1760dba1

Response Measures

None

Description

Article (Waterbury Evening Democrat, 1908-06-09) reports the Albany National Bank as defunct with a receiver recovering bonds. The failure was driven by embezzlement/misappropriation by the cashier William Montgomery who rehypothecated collateral and stole customer funds. No run is mentioned; the bank has a receiver, so classification is suspension leading to closure (receivership) due to bank-specific adverse information (embezzlement).

Events (2)

1. June 1, 1908* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Cashier William Montgomery took bonds and rehypothecated collateral, using depositor funds for speculation and leaving worthless paper in their place.
Newspaper Excerpt: Bonds valued at $125,000 have been recovered by the receiver of the Albany National bank.
Source: newspapers

2. June 9, 1908 Receivership

Newspaper Excerpt: Bonds valued at $125,000 have been recovered by the receiver of the Albany National bank. They were surrendered by Mrs Frank Lee, who was to have married William Montgomery, cashier of the defunct bank.
Source: newspapers

Newspaper Articles (1)

1. June 9, 1908 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, June 9, 1908

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Article Text

WIDOW RETURNS A FORTUNE. Fiancee Whom Cashier "Montgomery Duped Gives Up $125,000. Pittsburg, June 9.-Bonds valued at $125,000 have been recovered by the receiver of the Albany National bank. They were surrendered by Mrs Frank Lee, who was to have married William Montgomery, cashier of the defunct bank. The widow gave Montgomery $10.000 from her husband's life insurance to invest for her. He gave her bonds of the Pittsburg Brewing company to the amount of $125,000. telling her be had made that much money in specilation with her money. The bonds, It turns out, were taken by Montgomery from the bank and worthless paper was left in their place. All the collateral in the bank was rehypotheticated by Montgomery. and the receiver is intent on getting a large amount of it back. Mrs Lee said she thought Montgomery had really invesed the money for her and had no idea It had been stolen.