Globe Bank & Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: August 23, 1931
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: ae1bee14

Response Measures

None

Description

The Globe Bank and Trust Co. was taken over by the State Banking Department on Aug 23, 1931 for 'nonliquid condition and depreciation in the value of its assets' and subsequently entered liquidation; legal notices (July 1932) show Manufacturers Trust involved in paying creditors. Articles mention gossip and rumors in relation to other nearby bank runs, but Globe's closing is attributed to insolvency rather than a discrete rumor-triggered run.

Events (2)

1. August 23, 1931 Receivership

Newspaper Excerpt: were taken over at 6 P. M. yesterday by the State Banking Department. Deposit liabilities of the bank were listed at $5,366,000 the day before the bank was closed. Under the program of liquidation... Globe Bank Trust Co. of Brooklyn, will be taken over by one large banking institution within few days, with view to assuring the 70,000 more depositors receiving 100 cents on the dollar eventually. LEGAL NOTICES... application for an order authorizing Manufacturers Trust Company to pay all creditors Globe Bank and Trust Company whose claims have been filed and accepted ... Globe Bank and Trust Company in Liquidation. JOSEPH BRODERICK, Superintendent New Banks Globe Bank and Trust in Liquidation. (legal notices July 1932).
Source: newspapers

2. August 23, 1931 Suspension

Cause: Bank Specific Adverse Info
Cause Details: State Banking Department cited 'nonliquid condition and depreciation in the value of its assets' when taking the bank over.
Newspaper Excerpt: The Globe Bank and Trust Company, 815 Broadway, Brooklyn, and its four branch offices were taken over at 6 P. M. yesterday by the State Banking Department. Nonliquid condition and depreciation in the value of its assets was given as reason for the action.
Source: newspapers

Newspaper Articles (6)

1. August 23, 1931 Daily News New York, NY

Article from Daily News, August 23, 1931

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Article Text

GLOBE BANK AND TRUST CLOSED; GOSSSIP BLAMED pany, 815 Broadway, Brooklyn, and its four branch offices were taken over at 6 P. M. yesterday by the State Banking Department. "Nonliquid condition and depreciation in the value of its assets" was given as reason for the action. Deposit liabilities of the bank were listed at $5,366,000 the day before the bank was closed. The Myrtle Ave., 1612 Broadway, 2700 and 5007 Church Ave., all Brooklyn. In connection with the closing of the Rockaway Beach National Bank in Queens, directors and officers yesterday anounced that Federal and State officials are attempting to discover the source of "malicious rumors" preceding the run on the bank, which resulted in its application for suspension. Willingness to drop the $50,000,000 action against the directors of the Bank of United States, provided they contribute to Max D. Steuer's reorganization plan "funds commensurate to the loss they caused," was voiced yesterday by Daniel W. Blumenthal on behalf of the Independent Stockholders and Depositors Committee, which he represents as chief counsel. Will you risk winning $100 to find out what your handwriting tells? Send a sample to The News graphology experts.

2. August 23, 1931 Daily News New York, NY

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Article Text

GLOBE BANK AND TRUST CLOSED; GOSSSIP BLAMED The Globe Bank and Trust Com-4 pany, 815 Broadway, Brooklyn, and its four branch offices were taken over at 6 P. M. yesterday by the State Banking Department. "Nonliquid condition and depreciation in the value of its assets" was given as reason for the action. Deposit liabilities of the bank were listed at $5,366,000 the day before the bank was closed. The branch offices are located at 6617 Myrtle Ave., 1612 Broadway, 2700 and 5007 Church Ave., all Brooklyn. In connection with the closing of the Rockaway Beach National Bank in Queens, directors and officers yesterday anounced that Federal and State officials are attempting to discover the source of "malicious rumors" preceding the run on the bank, which resulted in its application for suspension. Willingness to drop the $50,000,000 action against the directors of the Bank of United States, provided they contribute to Max D. Steuer's reorganization plan "funds commensurate to the loss they caused," was voiced yesterday by Daniel W. Blumenthal on behalf of the Independent Stockholders and Depositors Committee, which he represents as chief counsel. Will you risk winning $100 to find out what your handwriting tells? Send a sample to The News graphology experts.

3. September 12, 1931 The Brooklyn Daily Times Brooklyn, NY

Article from The Brooklyn Daily Times, September 12, 1931

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Article Text

MERGER PLANNED AID DEPOSITORS BANKS One Large Institution Will Take Over Assets and Liabilities of Group. TO PAY 70,000 IN FULL Globe Bank and Trust Co. Is Included; Governor Reported as Giving Approval. and liabilities of five cently closed banks, including Globe Bank Trust Co. of Brooklyn, will be taken over by one large banking institution within few days, with view to assuring the 70,000 more depositors receiving 100 cents on the dollar eventually. The name of the banking house which absorb the five institutions taken over by Superintendent Broderick of the State Banking Department, has not been disclosed. Deposits in the five closed banks are between $25,and Under the program of liquidation, is understood, depositors in the five banks will be permitted draw 50 per cent. of their balances immediately the mergers are perfected; and, expected, an additional 30 per cent. will be available within 80 days. Governor Approves Plan The remainder of their balances, is understood, will be available depositors as soon as possible. The program of liquidation strong bank instead of by the State Banking Department, reported, has approval of Gov. Roosevelt, to whom the question was referred the banking perintendent. The plan marks departure from the regulation method of liquidation in the case banks closed by the department. It. reported reliably the program has been under consideration for several weeks. approve of any suggestion, such this, which will available to depositors in the shortest possible Governor quoted saying when the proposal was put before him by Mr. Broderick. "The plan gives full protection to depositors and due protection to stockholders of the several The largest of the closed banks the Bank of Europe Trust Co., 1492 First Manhattan, with deposits of $9,500,000. Examination shows resources of nearly $16, The run on this bank was caused, reported. by gossip of an hysterical woman depositor. Figures for Other Banks The others are: The American Union Bank, 37th and Eighth ave., Manhattan; deposits, closed Aug. assets estimated more than Globe Bank and Trust Co., 813 Broadway, closed Aug. 23; deposits, chiefly savings counts; assets, International Madison Bank and Trust Co., 147 Fifth Manhattan, closed Aug. deposits, $6,more than Times Square Trust Co., Seventh and 40th Manhattan. closed Aug. deposits, sources, nearly

4. July 23, 1932 Times Union Brooklyn, NY

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Article Text

# LEGAL NOTICES NOTICE IS HEREBY GIVEN, pursuant the Honorable the State of York, that application 1. For an order authorizing Manufacturers ment to Company creditors claims Globe Bank and accepted and the owners have and Company in the amount 20% said claims tract Manufacturers Trust Com pany and Banks For order and the Banking listed claims and what Bank and Trust any entitled priority For the the liquidation Banks Bank Trust Company 18th. 1931 to and including May 31st. 4. and relief the court seem just and proper to heard Part Court the and Kings Room the County House Brooklyn, and Toral New City Kings, that day July, 1932, 10 Banks of the the Superintendent and other are copy there York, New may by any JOSEPH BRODERICK, Superintendent New Banks Globe Bank and Trust in Liquidation.

5. July 23, 1932 Times Union Brooklyn, NY

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NOTICE IS HEREBY GIVEN, pursuant Honorable - Supreme the Druhan, State York, that application order authorizing Manufacturers Trust to all creditors Globe Bank pay. Trust Company whose claims have and accepted and to the owners books and in the amount Bank Trust claims Company and 20% said tract Manufacturers Trust pany dated For order and specifying. what uant of and what the Bank and Trust Company Globe any. entitled y of the expenses by the the liquidation Globe Bank and Trust Company from 1931 and including for such and relief the may just and come be heard at Special Term Court the State nom and in County Kings, in Court and City, New the Borough 29th day of July, 1932, at 10 day. the petition his are file the and New this of A. Globe and

6. July 23, 1932 Times Union Brooklyn, NY

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Article Text

LEGAL NOTICES. NOTICE IS HEREBY GIVEN, pursuant Honorable ustice the Supreme of the State that application For an order authorizing Manufacturers Trust Company make additional ment to all creditors Globe Bank Company claims have filed and accepted the accounts by the records Globe Bank and Trust Company 20% said claims tract between Manufacturers to a Trust certain Superintendent For order and pursuant 78 of the Law, claims and what and accepted the Bank and Trust Company liquidation, any entitled priority of ayment: For expenses incurred the the matter the liquidation of Globe and Trust Company ust 28th. 1931 to and including May 31st. such and further the and court may seem just on to be heard at the of the State of and for the the County of Kings, in 123, County and New Streets, York Borough Brooklyn, the 29th day of July, 1932, at 10 that A copy of the other the Superintendent his and papers relative are on file office Kings and the the New York, entre City New York, may be inspected any person therein. JOSEPH Superintendent Banks harge Bank and Trust