State Bank & Trust Company

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 23, 1907
Location: Carson, Nevada

Metadata

Model: gpt-5-mini
Short Digest: 264d3897

Response Measures

None

Description

The State Bank & Trust Company (Carson, NV) announced a temporary suspension of business on Oct 23, 1907; suspension was prompted by large losses tied to the failure of the L. M. Sullivan Trust Company (about $400,000) and adverse market conditions. The article describes the suspension as temporary and that the state bank examiner is auditing accounts, so I classify this as a suspension with intent to reopen.

Events (1)

1. October 23, 1907 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Large exposure (~$400,000) to the failed L. M. Sullivan Trust Company; inability to realize on securities amid declining stock market and tightened money market; New York 'flurry' further unsettled affairs.
Newspaper Excerpt: This morning, immediately after opening, the State Bank & Trust Company, with headquarters in Carson ... announced a temporary suspension of business. The institution is now in the hands of the State Bank Examiner, and the accounts are being audited.
Source: newspapers

Newspaper Articles (1)

1. October 26, 1907 The Eureka Sentinel Eureka, Tonopah, NV

Article from The Eureka Sentinel, October 26, 1907

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Article Text

TWO NEVADA BANKS SUSPEND State Bank & Trust Co. and Nye & Ormsby Temporarily Close Their Doors Carson, Nevada, Oct. 23.-This morning, immediately after opening, the State Bank & Trust Company, with headquarters in Carson and with branches in Tonopah, Goldfield, Manhattan and Blair, announced a temporary suspension of business. The institution is now in the hands of the State Bank Examiner, and the accounts are being audited. President Rickey is in San Francisco, where he went several daysago on business connected with the bank. Directly to the L. M. Sullivan Trust Company of Goldfield, which failed last January, is the embarrassment of the State Bank & Trust Company due. It was at this bank that the defunct trust company carried its business, and when its failure was announced it developed that the State Bank & Trust Company stood to lose in the neighborhood of $400,000. Arrangements were made by which the Sullivan stocks were taken over as security for that sum, and since that time an effort has been made to realize on those securities. The declining stock market and the gradual; tightenng of the money market made this im. ossible, and the bank found itself facing a difficult sit nation. The New York flurry tended further to unsettle affairs, and it was decided to close the doors temporarily.