3585. First American National Bank & Trust Company (Berwyn, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
12426
Charter Number
12426
Start Date
June 1, 1932*
Location
Berwyn, Illinois (41.851, -87.794)

Metadata

Model
gpt-5-mini
Short Digest
7727b23165ddc11e

Response Measures

Full suspension, Books examined

Other: Bank was placed in receivership; federal and state examiners/national bank examiners investigated and indictments followed.

Receivership Details

Depositor recovery rate
12.5%
Date receivership started
1932-06-21
Share of assets assessed as good
4.9%
Share of assets assessed as doubtful
92.1%
Share of assets assessed as worthless
3.1%

Description

Contemporary articles report frightened depositors and runs on north-side banks precipitated trouble; the First American National Bank of Berwyn suspended business (reported Jun 1932) and subsequently closed and went into receivership. Dates in sources are somewhat ambiguous/OCR-corrupted, but newspaper metadata (Chicago Tribune Jun 19, 1932) indicates the suspension/closing occurred in June 1932. Article texts and a later 1933 article describe the bank as closed and a receiver appointed; lawsuits referencing the 1931 closing appear to be OCR/date confusion in foreign-language piece.

Events (5)

1. August 14, 1923 Chartered
Source
historical_nic
2. June 1, 1932* Receivership
Newspaper Excerpt
Just eleven months later, the First American National of Berwyn also closed. Within days national bank examiners uncovered evidence which resulted in Karel's indictment ... the First American National Trust company of Berwyn last June ... closed ... receiver appointed was being named as receiver of the Lyons bank and John S. O'Donell was appointed as his ... that the First American National of Berwyn also closed. Within days national bank examiners uncovered evidence which resulted in Karel's indictment ... appointed receiver ... (Apr 22, 1933 article).
Source
newspapers
3. June 1, 1932* Run
Cause
Local Banks
Cause Details
Runs and frightened depositors triggered by prior closings of other local/north-side banks (fear spreading from Citizens' State Bank and others).
Newspaper Excerpt
Fright Causes Trouble. ... Besides the Chicago banks, the First American National Bank of Berwyn suspended business. statement of its deposits was made.
Source
newspapers
4. June 1, 1932* Suspension
Cause
Local Banks
Cause Details
Suspension followed heavy withdrawals and general depositor alarm stemming from other local bank closings and runs on north-side banks in Chicago area.
Newspaper Excerpt
Besides the Chicago banks, the First American National Bank of Berwyn suspended business.
Source
newspapers
5. June 21, 1932 Receivership
Source
historical_nic

Newspaper Articles (3)

Article from Chicago Tribune, June 19, 1932

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Article Text

NORTH AV. STATE BANK CLOSED BY STATE AUDITOR Depositors' Fright Is Cause of Trouble. The North State bank was closed yesterday by State Auditor Oscar Nelson at the request of the board of directors. The bank, 600 West North avenue one of the largest in the north district and had deposits of $2, Capital was $600,000 and Another bank closed yesterday by the state auditor at the request of the board of directors the Empire Trust and Savings bank, 3256 North Crawford avenue. Continued and heavy caused closing, It was had capital of surplus of $20,000 and deposits of $150,000 Close Bank at Clark and Devon. The Devon Trust and Savings bank also was closed by order of the auditor. The bank, at 6353 North Clark of surplus of $100,000 and deposits of The Prudential State Savings bank, 758 West North was closed at the request of the board of directors. This bank had capital surplus of $20,000 and deposits of $750,000. Fright Causes Trouble. The closing of the Citizens' State Bank of Chicago, 3228 Lincoln avenue, two weeks ago, was said to have alarmed north side depositors and started run on other north side banks. State Auditor Nelson declared that most of the banks were in sound condition and that the trouble was caused by the run of frightened Besides the Chicago banks, the First American National Bank of Berwyn suspended business. statement of its deposits was made.


Article from Chicago Tribune, April 22, 1933

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Article Text

Convicted 'Boy Banker' Still in His Job as Bank Receiver Frank Karel, known as the boy banker of Berwyn, who was indicted last an charge and convicted of bribery two months ago,thas been serving throughout the full period as receiver a defunct state bank, it became known esterThe Frank Karel who was indicted federal grand jury on a charge embezzlement five days after the closing. of the First American National Trust company of Berwyn last June is same whom: State Auditor Oscar Nelson had appointed closed Lyons State bank at Lyons, III., one year earlier, it was learned. the federal action subsequent indictment in which Karel was charged with employing the funds to bribe thirteen Berwyn officials, he has continued to draw $150 month as receiver of the Lyons bank until now. Karel was found guilty the bribery charge Feb. 17 by Judge Philip L. Sullivan and is now appealing from the conviction. Bank President at 29. In 1328, at the age of 29 years, Karel president of the First National bank of Berwyn. When out lying banks began to grow shaky in 1931, Karel put merger involving his bank and two others, calling the merged institution the First American National Bank and Trust company. with himself as chairman of the board. On July 29. 1931. the Lyons bank closed listed sources of $399,234 and deposits of $243,402. hailed who was being as the vior of Berwyn was med as receiver and John S. O' Donell was appointed as his Just eleven months later, the First American National of Berwyn also closed. Within days national bank examiners uncovered evidence which resulted in Karel's indictment by the federal grand jury on charges of falsifying records and misappropriating $10,000. At the time Karel is reported to have stated publicly in Berwyn that he used the money to bribe Berwyn officials. Indicted for Bribing Officials. Byron Thorpe, former mayoriof Berwyn, demanded an investigation, as result of which Karel was indicted in the state courts for distributing the bribe among three aldermen, nine former aldermen and the former city attorney for the suburb. Two former aldermen turned state's evidence and are said to have testified that Karel distributed the money among the council members to pass an ordinance enabling the city rent for period of years the building which Karel's bank occupied before the merger, and finally to purchase the building for a city hall at price of $187,000. At the trial before Judge Sullivan, Karel declared the $10,0000 was contribution. One of the former aldermen, who had been promised immunity, surprised the state by corroborating Karel's story. Judge Sullivan rejected the explanation and found Karel At State Auditor Barrett's office yes. terday it was stated that Mr. Barrett was investigating the case.


Article from Telegraf, June 4, 1937

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Article Text

původu československého byli rozhořčeni na prohlášením Rothermera, že stát byl "chybou, spáchanou mírotvorci y Paříži po světové válce." V úloze jejich mluvčího, Jaroslav F. Smetanka, generální konsul Československa, pravil ve stredu: "Rád bych opravil některá Z tvrzení pana lorda. Především, Československá republika nebyla utvořena V mírové konferenci. Československo mělo své vlastní legie, bojující na straně spojenců od r. 1917. Tito bojovali na ruské, italské a francouzské frontě. Když president Wilson, Lloyd George a 0statní mírotvorci se začali sjížděti do Paříže, Československo bylo již pevně zřízeno. Stran tvrzení lorda Rothermera, že československo -jež píše S rozdělkou - má takový smysl, jako Anglo-Hollandsko," konsul Smetánka pravil: "Čechové a Slováci jsou si při nejmenším tak blízcí, jako Škoti a Angličané, Severoněmci a Jihonemci, Francouzi Z Normandie S Francouzi Z Bretoñska. Ve skutečnosti, pečlivé zkoumání dějin dokáže lordu Rothermerovi, že příbuzenství mezi Čechy a Slováky je přesně stejné jako mezi Angličany a Škoty. A pozoruji, že zatím, CO někteří Škotové agitují pro zvláštní parlament, vet šina jich jest úplně spokojena S nynějším stavem věcí.. Konsul Smetánka byl požádán, aby vyložil své názory na jazykový problem své vlasti, bod, na který lord Rothermere kladl velký důkaz. "Dojista naším nejvážnějším problemem jest přítomnost trí a čtvrt milionu německy mluvících občanů V naší zemi. Němci žili po staletí ve starém Českém království, jež jest jádrem nynějšího Československa. Po válce začali někteří Z nich pošilhávati do Německa o sympatie, ale od r. 1925 většina jich podporovala různé československé kabinety a byli V nich vždy zastoupeni, dnes více než kdykoli předtím. Přirozené, jsou tam štváči. "Srovnání jazykových menšin V Československu S vězni a vlády S egyptskými tyrany je řeč žalobce a nikoli spravedlivého a nepředního novináře. Němci V Československu mají tolik členů V parlamentu, ku kolika jsou oprávněni ve svém poměru k počtu všeho obyvatel stva. Každé dítě německy mluvících rodičů chodí do německých škol, zahrnující i vyšší školy. V Praze jest německá universita a německé polytechniky jsou V Praze a Brně. Německy mluvící občané dostávají svůj díl ve veřejných úřadech. Jediní ze všech národů střední Evropy jsme se zdrželi pronásledování Židů nebo kterékoli osoby, nepovažující se za Českoslováka." - U spolkového distriktního soudu byla podána žaloba, ve které jest J. L. Tupý, vcrhní vyšetřovatel kongresního Sabathova výboru, viněn za spiknutí a účelem ošizení věřitelů a podílníků zavřené First American National Bank of Berwyn. Žaloba byla zadána V zájmu Franka Šťastného, bývalého místopředsedy a tajemníka berwynské banky, kte rá byla prý spojena S Berwyn Securities Company. - Banka byla zavřena roku 1931. Mimo Tupého jsou V žalobě jmenováni Bert Roach,receiver banky do srpna 1935, Francis Karel, bývalý předseda banky, firma Karel a Žitník, Frank Petrželka, Berwyn Securities Co., Frank Krajíc, Charles Zitník a Berwyn Agency and Loan Co. V jedné části žaloby se pra ví, že Tupý arangoval S Karlem půjčku $10,000 od První národní banky V Berwyn, ústavem, který byl později spojen S třemi jinými za účelem utvoření First American. Tyto peníze, podle žaloby nebyly nikdy zaplaceny. V žalobě se dále praví, ze Tupý a ostatní obza Tupý a ostatní obžalovaní podepsali protokol ředitelské