American State Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: December 4, 1922
Location: Omaha, Nebraska (41.259, -95.938)

Metadata

Model: gpt-5-mini
Short Digest: e1098932

Response Measures

None

Description

The paper (Omaha Morning Bee, 1922-12-05) reports the American State Bank failed to open Dec 4, 1922; state examiners found it insolvent, reorganization plans failed and deposits will be paid from the state guaranty fund. No run is described; this is a suspension that results in permanent closure.

Events (1)

1. December 4, 1922 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Examiners found the bank insolvent with heavy losses (~$300,000); capital dissipated and attempted reorganization (new capital) proved insufficient.
Newspaper Excerpt: The American State bank at Eighteenth and Farnam streets failed to open its doors for business yesterday morning. State Examiners Report Their Inability to Restore Institution to Solvent Condition.
Source: newspapers

Newspaper Articles (1)

1. December 5, 1922 The Omaha Morning Bee Omaha, NE

Article from The Omaha Morning Bee, December 5, 1922

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Article Text

American State Bank Here Closed State Examiners Report Their Inability to Restore Institution to Solvent Condition. Protected by State Fund The American State bank at Eighteenth and Farnam streets failed to apen its doors for business yesterday morning. Failure of the institution involves losses estimated at $300,000. according to a statement issued by J. E Hart, secretary of the Department of Trade and Commerce. All depositors will be paid in full from the state guaranty fund. it was announced at the Omaha office of Attorney General Clarence A. Davis. Capital of the American State bank was $200,000. Deposits, $1,100,000. Loans. $1,000,000. $200,000 Capital. Of the $200,000 capital stock, $89,400 was held by officers as follows: D. W. Geiselman, president, $68,700; D. C. Geiselman. $20,500; H. M. Krogh, assistant B. Nelson, vice no A of are be a new bank which over the deposits of a was made dur ing and an tion as as possible, stock. Application said the will group Secretary by it a day. is to be Attorney believed the pursued cashier, local organizing for defunct Hart president, cashier, General may financial stated. orderly rapidly receiver institution. take $200. Davis held interests liquida. T. Plan Falls Through Two weeks ago a plan for reorgan ization of the bank was worked out which, it was thought for a time. would be adequate. A group of Omaha men stood ready to put in approximately $225,000 of new capital. Fur ther examination indicated that this would not be sufficient to meet the situation and the deal failed. Failure of the American State is not regarded as a reflection of present conditions in financial circles. as transactions leading up to the failure occurred many months ago. No other banks are involved, it was announced. 4 It was found during the recent exof bank of Trade and partment amination paper Commerce Bank by the Build that Dethere much American and paper according to ing being company was held, other Shafer Deputy Attorney General J. B. Davis. Organized by Shafers. Founders of the American State bank took over the charter of the German American State bank several M. F. and were the years among ago. group/handling W. E. Shafer this transaction. M. F. Shafer formerly was president of the bank. In Geiselmans conseveral months trol. afterward lititheir was gation out of the between new officers the Just years ago a warrant arrest of D. Geiselissued the States man district the of use mails for purpose injuring business of M. Shafer & was not on the In 1920. suit damages was filed against W. five the M. F. Shafer, bank Geiselman reputa- alleged Shafers. charges. Co. of management was 1919 for October. For by Geiselman two coming the attorney's the the the the and by office, yesterday directors marked the United charging who and for tried gained differences W. F. and $250,000 D. by of damage to his business tion and health. Operated at Loss. was made This steretary statement Department by J. E Hart, of the of Trade and Commerce: In announcing the closing of the American State bank. the Depart Trade and that bank's was and ment the of capital Commerce the directors states hope were and to make and lessly unable shareholders dissipated good unwilling the im The bank at for several pairment. a loss has months. operated Five.) and (Turn to Page Two, Column