Lakewood Bank - Atlanta, GA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 11, 1929
Location: Atlanta, Georgia (33.749, -84.388)

Metadata

Model: gpt-5-mini
Short Digest: 70137290

Response Measures

None

Description

Article reports discovery of a large embezzlement by the cashier, the bank placed in the hands of the state and 'probable liquidation' (i.e., permanent closure/receivership). There was a prior run at the time of the Manley chain failure, but that run occurred earlier and the bank survived it; the current episode is a suspension leading to closure driven by embezzlement/bank insolvency.

Events (3)

1. January 11, 1929 Receivership

Newspaper Excerpt: has been placed in the hands of the state ... in probable liquidation.
Source: newspapers

2. January 11, 1929 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovery of an alleged embezzlement/shortage of roughly $47,000 to $50,000 by the cashier, rendering the bank insolvent.
Newspaper Excerpt: The bank ... has been placed in the hands of the state for investigation probable liquidation.
Source: newspapers

3. * Other

Newspaper Excerpt: Mr. Etheridge pointed out that there was a run on the Lakewood bank the time of the failure of the Manley chain of 85 banks in Georgia. The institution belonged to the Manley chain, but survived the run through the heroic efforts of the officers and directors.
Source: newspapers

Newspaper Articles (1)

1. January 11, 1929 The Atlanta Journal Atlanta, GA

Article from The Atlanta Journal, January 11, 1929

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Article Text

CASHIER HANCOCK WAVES HEARING IN EMBEZZLING CASE $7,500 Bond Is Agreed Upon-Shortage Reported Exceed $50,000 Preliminary hearing was waived Friday morning by W. Hancock, cashier of the Lakewood bank since organization ten ago, when before Judge L. Rosser in brought municipal court to answer charges of approximately $50,000 of embezzling bank's He bound over the to the grand jury under $7,500 bond. Paul 3. Etheridge, president of when the bank, appeared in court and the question of bond arose he suggested that the defendant's counsel, John F. Echols and Noah Stone, name they thought reasonable. an amount They agreed on the $7,500 figure. said it was his inMr. Etheridge tention of urging Solicitor General matter Boykin to present the John A. at the earliest posto the grand sible moment. located at Lakewood The bank, road, has been avenue and Jonesboro hands of the state in the placed banking for investigation probable liquidation. and Hancock was placed under that arrest he alleged confession after an $47,000 of the bank's had taken told officials of the bank He covered period that of six his years, peculations during which blackmail he had to been compelled to pay addict who was unnamed drug threatening to kill him and his wife and child. Officials of the bank questioned the Hancock's story, and expressed that the alleged shortage opinion period of few covered months. They also estimated that the shortage would surpass Hancock's figby at least $10,000, exceeding ures stock of $50,000 and the the capital surplus of $1,500. The deposits were $75,000. Mr. Etheridge, chairman of the Fulton county commission and president of the bank, also is the largest He declared Friday that stockholder. efforts are being made to save everything possible for the depositors, although it is not probable that any effort will be made to reopen the inMr. Etheridge pointed out that there was a run on the Lakewood bank the time of the failure of the at Manley chain of 85 banks in Georgia. The institution belonged to the Manley chain, but survived the run through the heroic efforts of the ficers and directors. At that time the bank's books were thoroughly audited and they have been checked several times since, giving rise to the opinion that Hancock's shortage could have existed for a six-year period.