Solvent Savings Bank & Trust Company

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: January 14, 1928
Location: Memphis, Tennessee (35.150, -90.049)

Metadata

Model: gpt-5-mini
Short Digest: 13e46302

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension

Other: Bank received loan from National Benefit Life Insurance Company which was quickly depleted.

Description

Article (The Afro‑American, 1928-01-14) describes the Solvent Savings Bank & Trust Co. of Memphis failing after investments in a chain grocery store went bad; an insurance company loan briefly covered cash but wiped out all cash in two days, indicating heavy withdrawals/run leading to failure. Classified as run → suspension/closure (receivership).

Events (3)

1. January 14, 1928 Receivership

Newspaper Excerpt: Memphis Bank Failure ... Three of its were arrest ... The National Benefit Life Insurance Company came the rescue with loan on the bank wiped out all cash in two days.
Source: newspapers

2. January 14, 1928 Run

Cause: Bank Specific Adverse Info
Cause Details: Bad investments—large loss in chain grocery store and change in investment policy left the bank short; loan from an insurer exhausted and deposit withdrawals drained cash.
Newspaper Excerpt: wiped out all cash in two days
Source: newspapers

3. January 14, 1928 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Solvency impairment from failed grocery store investment and substantial shortage in assets leading to suspension/closure.
Newspaper Excerpt: Memphis Bank Failure ... Solvent Savings Bank and Trust ... failed
Source: newspapers

Newspaper Articles (1)

1. January 14, 1928 The Afro-American Baltimore, MD

Article from The Afro-American, January 14, 1928

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Article Text

Memphis Bank Failure The and Solvent Bank and Trust of failed Three of its were arrest ir$50,000 But the directors this bank under $100,000 which be sufficient make good the shortage and leave something Since the bank changed its policy of investment merger Bank Trust last year simply delayed the crash. The National Benefit Life Insurance Company came the rescue with loan on the bank wiped out all cash in two days. Solvent Savings Bank and Trust Company's trouble began when abandoned its policy securities not approved the local clearing house. supposed sunk in chain grocery store investment proved failure large part which bank has out is upon real up that profitably liquidated. Spaulding President of the N. Mutual Insurance in the to AFRO pointed out that 1000 white banks failed last bank. fact to made investment cannot learn the banking business mistakes. Memphis owes itself to let this mistake cramp its business thinking and its COoperative Fraternal and Solvent Bank should be reput under learned experience now how bank should invest its funds.