1649. Citizens Bank & Trust Company (New Haven, CT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
December 9, 1930
Location
New Haven, Connecticut (41.308, -72.928)

Metadata

Model
gpt-5-mini
Short Digest
7329a589

Response Measures

None

Description

State Banking Commissioner ordered the bank to suspend on Dec 9, 1930. Articles describe heavy deposit shrinkage, suicide of a director (Jonathan N. Rowe) and large loans to him that could not be readily liquidated — bank-specific adverse information. A temporary receiver was sought Dec 17, 1930 and a receiver (Matthew A. Reynolds) is referenced in July 1931, indicating the suspension led to receivership/closure. Variants in the press (Citizen's/Citizens') corrected here to 'Citizens Bank & Trust Company'.

Events (4)
1. December 9, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Shrinkage of deposits (34% over five weeks) and discovery after the suicide of trustee Jonathan N. Rowe that substantial loans to him could not be readily liquidated; reserves depleted by withdrawals and business depression; state examiner ordered suspension to safeguard depositors.
Newspaper Excerpt
The Citizen's Bank & Trust company was closed today on an order of suspension by State Banking Commissioner Lester E. Shippee. The bank was forbidden to make payments or accept deposits.
Source
newspapers
2. December 11, 1930 Other
Newspaper Excerpt
State Banking Commissioner Lester E. Shippee announced today that Christmas club checks of the Citizen's Bank and Trust company, which was suspended Tuesday, would be cashed by other New Haven banks. The New Haven Clearing House association agreed ... to pay the full amount on about $17,000 in such checks which remained unpaid when Shippee restrained payments.
Source
newspapers
3. December 17, 1930 Other
Newspaper Excerpt
An application will be made in superior court here or in Hartford late today by Assistant Attorney General John H. King for appointment of a temporary receiver for the Citizens Bank and Trust Co of New Haven which recently was restrained from conduct business.
Source
newspapers
4. July 1, 1931 Receivership
Newspaper Excerpt
Police today disclosed that Matthew A. Reynolds, receiver for the Citizens Bank and Trust company, ... had received threatening letters demanding payment of $25,000 in extortion notes.
Source
newspapers

Newspaper Articles (12)
1. December 9, 1930 New Britain Herald New Britain, CT
Article from New Britain Herald, December 9, 1930

Click image to open full size in new tab

Article Text

Citizen Bank & Trust Co., Ordered Not to Conduct Further Business by Shippee STEADY STREAM OF PEOPLE REFUSED THEIR DEPOSITS Two Investigations During Five Weeks Result in Decision to Take Action - Decision On Appointment of Receivership to Be Made Thursday-Other Institutions in Elm City to Help Back Concern. New Haven, Dec. 9 (UP)-The Citizen's Bank & Trust company was closed today on an order of suspension by State Banking Commissioner Lester E. Shippee. The bank was forbidden to make payments or accept deposits. Today's suspension was the second in the state in nine days, the Central Fairfield Trust company of Norwalk having been closed December 1 because of "frozen" assets. Such action had not been taken previously in Connecticut in 10 years. Two Probes Made State Bank Examined Richard Papport of Hartford said state banking officials made a thorough investigation of the bank about two months ago and a second about five weeks ago after Jonathan N. Rowe. director of the bank and former city assessor. had shot himself to death Commissioner Shippee, who came here from Hartford, posted an official notice of the suspension on the door of the bank before opening time today. The doors were closed but unlocked and a steady stream of depositors filed in and out of the bank. All were informed that deposits could not be accepted nor payments made. A state bank examiner was in charge. The bank was founded on a state charter in 1921. Officers were listed as follows: President. C. B. Dann: vice president. Albert Matthewson: secretary treasurer, George E. Tester: assistant treasurer. W. Herbert Frost; assistant secretary, Bessie G. Foster. At Work on Books Shipper said state bank authorities had been watching the situation for five weeks and that examiners had been scrutinizing the books since Saturday. During the last five weeks, the banking commissioner said, there has been a 34 per cent decrease in deposits, probably due to business depression. and the bank had been forced to draw on its reserve. Suspension was ordered. he explained, to safeguard the remaining depositors. Efforts were being made to obtain capital from other New Haven banks. Officials of other city banks, it was reported. met this morning and agreed to furnish backing after it was certain that there would be no run on other institutions when word of the Citizens Bank closing became known. To Decide on Receiver Shippee said decision as to whether a receiver would he appointed would be made by Thursday. The last bank statement, giving the condition of the Citizens Bank and Trust as of September 24 and published October 1. listed total assets of $1,543,629.28 and total liabilities of exactly the same amount. The statement listed among liabilities, $140,000 in capital stock. $599,137.12 in savings deposits and $391,550.90 in general deposits. Loans and discounts were reported as assets totalling $662,264.38.

2. December 9, 1930 The Courier-News Bridgewater, NJ
Article from The Courier-News, December 9, 1930

Click image to open full size in new tab

Article Text

Today's High Spots CHRISTEN HUGE .ESSEL News, Va., Dec. bottle of water from the seven seas, held in the hand of Mrs. Hoover, to the liner Hoover, the largest vessel turned out in American yards. the the The liner first of the Dollar Steamship Line's two new $8,000,000 craft. FILIPINO GROUP BOMBED El Centro, Galif., Dec. bomb tossed the of Filipinos and seriously injured others last night. The bomb structed of length of gaspipe slugs. LETHEL FOG UNEXPLAINED Brussels, Belgium, Dec. the fog in Meuse Valley failed disclose termine cause of the deaths. Saturday the Ministry of Health announced the due the thick, wet fog affecting persons ready suffering from lung, heart throat troubles. Later was suspected that zinc poisons in the region, held to the ground by the 10g, had been responsible. ARSENAL UNCOVERED Lisbon, Portugal, Dec. Police yesterday large supply and bombs warehouse on the Rue Acucar Many arrests were made in connection with the discovery. Several such plots have been discovered recently, including last week which planned blow up the principal buildings of Lisbon. WOMAN FACES LIFE TERM Denver, Colo., Dec. ing death through legal loophole, Mrs. Pearl O'Loughlin today faced life term hard labor the Colorado Penitentiary conviction first degree murder. Mrs. O'Loughlin was found guilty last night of slaying her Leona, 10, body found in Berkeley Park Lake Oct. 17. DOAK SWORN IN Washington, Dec. N. Doak in today Secretary Labor succeeding James newly elected Senator from Doak's apconfirmed yesterday by the Senate. BANK SUSPENDED New Haven, Conn., Dec. The Citizens' Bank and Trust Company closed today on order suspension State Banking Lester Shippee. Today's the second in the State in nine days. OPERATIVE SLAIN Canyon, Tex., body of Brunson McCarver, New York government operative who shot and killed yesterday battle with officers, held today pending word East. killed by Chief of Police Hicks and Deputy Sheriff Bob Barnett after he terrorized bus kill them. and Barnett after the gun fight and released on bond.

3. December 9, 1930 Corvallis Gazette-Times Corvallis, OR
Article from Corvallis Gazette-Times, December 9, 1930

Click image to open full size in new tab

Article Text

New Haven, Connecticut, Bank Closes Doors Conn., Dec. Citizens Bank and Trust company here closed today, the ond in the state to suspend the past week. Deposits totaled more than million and quarter.

4. December 10, 1930 The Plain Dealer Cleveland, OH
Article from The Plain Dealer, December 10, 1930

Click image to open full size in new tab

Article Text

Bank in Baltimore Closes Its Doors Shortly before 3 this the Cheasapeake Bank of Baltimore placed the following notice on its door. "This institution is in the hands of the bank commissioner George Page state bank commissioner later have taken over this bank The board of directors passed resolution asking me to do that There has and the bank was thing of run unable to pay It not possible this time say what the assets and liabilities are. NEW HAVEN Dec. The the Citizens Bank banking & Trust Co. in this city was closed today incorporated in The bank was 1921 with capital of $140,000 and surplus of $14,000. This bank the second in Connecticut to suspend operations within the last week. Bank of Lilesville, Anson County closed its doors today, John Mitchell chief state bank examiner, capiThe bank was talized $25,000 Ohio Sports Writers Organize. NEW O. 9. -Sports writers of nine and those this including Dover the NorthOhio Sports AssociaLuther and Alliance, secretary.

5. December 10, 1930 The Courier-News Bridgewater, NJ
Article from The Courier-News, December 10, 1930

Click image to open full size in new tab

Article Text

BANK SUSPENDED New Haven, Conn., Dec. 10 The Citizens' Bank Trust Company was closed yesterday order by State BankCommissioner Lester ShipToday's suspension was the second in State nine days. Suez Canal tolls are being duced.

6. December 10, 1930 Chicago Tribune Chicago, IL
Article from Chicago Tribune, December 10, 1930

Click image to open full size in new tab

Article Text

BANK CLOSES IN BALTIMORE; CITY FUNDS TIED UP $400,000 in Municipal Deposits Involved. Baltimore, Md., Dec. 9. (AP) The state bank late today took charge of the Chesapeake Bank of Baltimore. A notice on the door announced: This institution is in the hands of the state bank com missioner." Two also closed The bank, established 19 years ago, was not member of the federal resystem or of the Baltimore clearing house. In its most recent statement, Sept. 2. it deposits to demand of $1,833,089. George W. Page, bank said he had been asked by the board of directors the institution. of run and the bank was unable to pay, he said. Included in the funds on deposit in the bank was $400,000 account of the city government. New Haven Bank Closed. New Haven, Conn., Dec. The Citizens Bank and Trust company In this city was closed today. A notice on the door said the state bank had ordered that no deposits be paid The bank was incorporated in 1921 with a capital of $140,000 and a surplus of $14,000. The manual for 1930 gives the undivided profits of the at $32,302, savings deposits of $742,068 and commercial deposits of $448,076. The bank is the second in Connecticut to suspend operations within the last week. Ohio Bank $100,000 Short. Warren, O., Dec. (AP) With Reese B. Jones, president of the First State bank of Newton Falls, held in the Trumbull county jail, federal bank examiners continued an audit of the bank's books tonight with the belief expressed that shortage there may be in excess of $100,000. No charge has been filed against Jones. Direc-

7. December 10, 1930 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 10, 1930

Click image to open full size in new tab

Article Text

NEW HAVEN BANK FORCED TO CLOSE Shrinkage of Deposits in Oitizens Bank & Trust NEW HAVEN Dec 9 (A. -Shrinkage of deposits attributed in part to the recent suicide of one of its trustees and to unemployment today forced the citizens Bank and Trust Company of this city to suspend payment of deposits. The bank which was incorporated 1921 was ordered to suspend operations by Lester E. Shippee, Bank who said that drawal of from percent of the deposits during the past weeks had the reserves of the bank and a lack reported under way night which might in the abof the bank by some other local banking institution in Unless these plans terialize receiver for the institution will be sought by Shipwho the opinion that withdrawal money by unemployed was responsible for of the shrinksome age Albert in the deposits Mathewson, of the bank. M. first president of the bank and one of its founders, said the recent suicide H. Rowe, trustee "precipitated the the bank. Loans reported totaling between $30,000 and $40,000 made to Rowe by the bank are ered by collateral which the bank has learned, since his death, cannot be readily liquidated. In last financial statement, issued Sept 1930, the bank gave surplus as savings deposits, were Christmas savings and thrift funds, $33 286 and undivided profits, $31,179.62.

8. December 10, 1930 The Day New London, CT
Article from The Day, December 10, 1930

Click image to open full size in new tab

Article Text

Rumor Closed Bank May Be in Merger NEW HAVEN official available the Citizens' Bank and Trust Co. closed under restraining by Bank Commissioner Lester day. The remained the bank. this did not about was said alternative would be the bank thrown into

9. December 11, 1930 New Britain Herald New Britain, CT
Article from New Britain Herald, December 11, 1930

Click image to open full size in new tab

Article Text

Banks to Issue Checks For Suspended Member New Haven, Dec. 11 (UP)-State Banking Commissioner Lester E. Shippee announced today that Christmas club checks of the Citizen's Bank and Trust company, which was suspended Tuesday, would be cashed by other New Haven banks The New Haven Clearing House association agreed at a meeting today to pay the full amount on about $17,000 in such checks which remained unpaid when Shippee restrained payments. The Citizen's Bank had paid approximately an equal amount before closing. The directors of the Broadway Bank and Trust company, at a meeting today, declared a seven per cent dividend.

10. December 11, 1930 The Journal Meriden, CT
Article from The Journal, December 11, 1930

Click image to open full size in new tab

Article Text

CHARITIES FUNDS ARE TIED UP IN SUSPENDED Salvation Army May Appeal to City For Christmas Needs New Haven. Dec. 11. closing the Bank Trust here number of will be made the disposing cheer which might not urgently needed. The Army's funds which Christmas baskets for distribution are tied and the army today made plea that folks on the street chip in more kettles their contribution toward meeting the army's funds. The Fire department's athletic funds are also tied up and had been planned these buy Christmas baskets to be given to the the money so used be replaced out receipts of athletic meet early the year. The firemen are now plansome other means through which the Christmas cheer can be given. Conditions the closed bank were today. Bank Lester Shippee giving the bank directors ample time which to have the taken another bank. So far stated. efforts have failed have another bank take over the Citizens. of affairs of bank directed to the through which recently killed secured than what described Chief president as too good colRowe destroyed his books records. many two the head and the tangle is to be intricate one.

11. December 17, 1930 New Britain Herald New Britain, CT
Article from New Britain Herald, December 17, 1930

Click image to open full size in new tab

Article Text

Ask Temporary Receiver For Bank at New Haven New Haven Dec. 17 (Artan application will be made in superior court here or in Hartford late 10day by Assistant Attorney General John H. King for appointment of a temporary receiver for the Citizens Bank and Trust Co of New Haven which recently was restrained from Color business The effect will be to tie up inlettilely it considerable part ot the Christmas club funds of the bank as while checks had been issue many of these had not come back into the bank for collection. Other banks have been aiding depositors to a limited extent but a receivership will stop this aid for the present.

12. July 2, 1931 The Springfield Daily Republican Springfield, MA
Article from The Springfield Daily Republican, July 2, 1931

Click image to open full size in new tab

Article Text

$25,000 DEMANDED IN EXTORTION NOTES. Bank Receiver. and Retired Real Estate Dealer Get Threatening Letters. New Haven, Ct., July 1-(AP)Pelice today disclosed that Matthew A. Reynolds, receiver for the Citizens Bank and Trust company, and George Horwitz, retired real-estate dealer, were among the local bankers and business who had received threatening letters demanding payment of The letters. written by person who signed himself Garibaldi' originate from Bridgeport hotel and threatened Fun on the banks if the money was not forthcoming. Police expressed the opinion that the letters were similar to those received by Hartford theater owners a few weeks ago and that there is no chance the "racketeers' accomplishing anything by the process. State and federal police were also working the case. Reynolds. police said, had written a letter to the Bridgeport hotel addressed to Garibaldi stating that he was unable to meet the demand and pointed that he could not make payments without court orders.