Article Text
ST. PETERSBURG, FLA., BANK RECEIVER GRANTED REVIEW WASHINGTON May the First the the fededal holding the liquidator the Peoples bank Clearwater the by the St. for collection against the Petersburg had collected for
2301. Peoples Bank (Clearwater, FL)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- May 1, 1933
- Location
- Clearwater, Florida (27.966, -82.800)
Metadata
- Model
- gpt-5-mini
- Short Digest
d7bdb94a
Response Measures
None
Description
Articles state the Peoples Bank of Clearwater was 'a State bank in liquidation' and involved in litigation with the St. Petersburg national bank receiver. No run or depositor panic is described; the bank is in liquidation/receivership (permanent closure). OCR in Article 1 is garbled; Article 2/3 (Evening Star) clearly identify the Clearwater bank as a state bank in liquidation.
Events (2)
1.
May 1, 1933
Receivership
- Newspaper Excerpt
- Peoples Bank of Clearwater, the latter in liquidation. ... the Clearwater bank, a State bank in liquidation, was indebted to the national bank in receivership.
- Source
- newspapers
2.
May 1, 1933
Suspension
- Cause
- Government Action
- Cause Details
- Bank placed in liquidation and a receiver appointed (insolvent/state bank liquidation).
- Newspaper Excerpt
- the Clearwater bank, a State bank in liquidation
- Source
- newspapers
Newspaper Articles (3)
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Article Text
SET-OFF QUESTION IN SUPREME COURT Florida Banks' Dispute Involving Liquidation Points, First Up in Years. A matter of vital importance to depositors and creditors of insolvent national and State banks involving the right to set-off was presented to the Supreme Court for its determination in litigation between the insolvent First National Bank of St. Petersburg, Fla., and the Peoples Bank of Clearwater, Fla., the latter in liquidation. The case was presented to the Supreme Court on certiorari to the United States Circuit Court of Appeals for the Fifth Circuit, having arisen in Florida. The court below held as a matter of law that the right to bring an action, without regard to the real ownership of the items upon which a set-off was claimed, gave the bank claiming the set-off such set-off right. The facts in the case disclosed that the Clearwater bank, a State bank in liquidation, was indebted to the national bank. in receivership. When the national bank receiver brought suit on this debt, the State bank answered by pleading the right to set-off drafts issued by the St. Petersburg Bank, and held by the Clearwater bank, at the suspension of the former bank, against its debt to the former bank. The national bank asserted beneficial ownership of such drafts did not exist in the Clearwater bank, but vested as a matter of law in the customers of the Clearwater bank. Dispute Over Set-Off. The position of the Clearwater bank was that it could apply the obligation of the St. Petersburg bank on the drafts as a set-off for money the Clearwater bank owed the St. Petersburg bank. The St. Petersburg receiver reason character fiduciary contended that, by of the collection of the items, for which its drafts were issued, set-off was not available. In the argument before the Supreme Court it further developed that the Clearwater bank now asserts ownership of the drafts in question, in answer to which contention the St. bank receiver asserted the of now the Petersburg position ownership taken by respondent Clearwater bank was a clear departure from the position theretofore taken by that bank that the pleadings failed to afford a basis for such argument, hence that question was not before the court. Donald C. McMullen of Tampa, Fla., appeared as counsel in the argument for the St. Potersburg bank, while his nephew, Melvin A. McMullen, appeared as counsel for the Clearwater bank. George B. Springston appeared in the argument on behalf of the controller of the currency. Importance of Issue. Emphasizing the importance of the controversy by reason of more than 1.150 national banks in the hands of receivers and more than 700 national banks in the hands of conservators, the controller of the currency of the United States, as a friend of the court, stated that a decision on the ruling of the Fifth Circuit Court of Appeals, which had permitted the Clearwater bank to avail itself of the right of setoff against the St. Petersburg bank. involving fiduciary funds, would materially assist the Treasury Department and the controller in expediting the liquidation of national banks either in receivership or conservatorship throughout the country. The importance of the case, it is observed by Treasury officials. lies in the fact that for the first time in more than 40 years the Supreme Court of the United States has before it for consideration the important class question of set-off in the administration of the liquidation of insolvent national banks, the last time that court considered set-off in national banks being, in the case of Scott vs. Armstrong, 146 United States 499, decided in 1892.
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Article Text
SET-OFF QUESTION IN SUPREME COURT Florida Banks' Dispute Involving Liquidation Points, First Up in Years. A matter of vital importance to depositors and creditors of insolvent national and State banks involving the right to presented the Supreme its in litigation between the insolvent First National Bank of St. Petersburg, Fla., and the Peoples Bank of Clearwater. the latter in liquidation. The case was presented to the Supreme Court certiorari to the United States Circuit Court of Appeals for the Fifth Circuit, having arisen in Florida The court below held as matter of law that the bring an action, without regard to the real ownership of the items upon which set-off was gave the bank claiming the such right. The facts in the case disclosed that the Clearwater State bank in liquidation. was indebted to the tional bank. in When the national bank receiver brought suit this debt, the bank answered pleading the right set-off drafts issued by the St. Petersburg Bank. and held by the Clearwater bank, the suspension of the former against its debt to the former bank. The national bank asserted beneficial ownerdrafts did not exist in the Clearwater but vested as matter of law in the customers of the Clearwater bank. Dispute Over Set-Off. The position of the Clearwater bank was that could apply the obligation of the St. Petersburg bank on the drafts as set-off money the Petersburg bank. The Petersburg receiver contended by reason of the fiduciary character the collection were In the argument before the Supreme Court it further developed that the Clearwater bank now asserts ownership of the drafts in question. in swer which contention the Petersburg receiver asserted position of ownership now taken by the respondent Clearwater bank was the pleadings failed afford such argument, hence that question was not before the court. Donald C. McMullen of Fla., appeared counsel in the argument for the Petersburg his Melvin A. McMullen. appeared as counsel for the Clearwater George B. Springston appeared in the argument on behalf of the controller of the currency Importance of Issue. Emphasizing the importance of the reason of 1.150 national banks the hands receivers and more than 700 national banks in the hands of conservators, the controller of the currency of the United as friend of the stated that decision on the ruling of the Fifth Circuit Court of Appeals which had permitted Clearwater bank to avail itself the right of off against the St. Petersburg involving fiduciary would materially assist Treasury Department and the controller in expediting the liquidation of national banks either in receivership or throughout the The importance of the it served by Treasury lies the fact that for the first time in more than 40 years the Supreme Court the United States before for consideration the important class question of in the the liquidation of insolvent national banks the last time that court considered in national banks in the case of Scott VS. Armstrong. 146 United States 499, decided in 1892.