Central Republic Bank & Trust Co.

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: October 1, 1932*
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 4696a5cb

Response Measures

Borrowed from banks or large institutions

Other: RFC had made a large loan in 1932 and later sued stockholders for double liability; the bank was liquidating under state receivership plans.

Description

Article (1934-11-20) describes a depositor run that forced Central Republic Bank & Trust Co. to close (in October, year implied 1932), followed by liquidation actions and RFC litigation and planned state receivership. OCR is noisy; dates are inferred from context (loans in 1932, default Dec. 24, 1932). The episode therefore is a run leading to suspension and permanent closure/receivership.

Events (4)

1. October 1, 1932* Run

Cause: Bank Specific Adverse Info
Cause Details: Run precipitated by bank's insolvency-related problems (large loan/RFC default, allegations of embezzlement and loss of confidence in the Trust Co.)
Measures: Other Chicago banks intervened; deposits were paid/transferred (City National Bank & Trust handled deposits); bank assets being liquidated.
Newspaper Excerpt: the run forced the bank close Oct.
Source: newspapers

2. October 1, 1932* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Suspension/closure following the depositor run and default on RFC loans and deteriorating financial condition; liquidation contemplated and state receivership planned.
Newspaper Excerpt: two months after the loan made. Deposit by the City National Bank Trust the Central Republic paying of RFC loan amount equal the deposits.
Source: newspapers

3. November 20, 1934 Other

Newspaper Excerpt: The Reconstruction Finance Corp. filed suit in federal district court ... to collect the million dollars equal the trust company's total capitalization; State Auditor Barrett planned take over the trust company for liquidation under state ... loan has been in default since Dec. 24, 1932.
Source: newspapers

4. November 20, 1934 Receivership

Newspaper Excerpt: Plan State Receivership The RFC suit stated that State Auditor Barrett planned take over the trust company for liquidation under state ... Federal Judge John Burns enjoined other creditors ... the court rules that recovery can be made ... receiver be appointed collect the RFC and other credit
Source: newspapers

Newspaper Articles (1)

1. November 20, 1934 The Decatur Daily Review Decatur, IL

Article from The Decatur Daily Review, November 20, 1934

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Article Text

RFC By For Embezzlement Stockholders May Have to Off Part Pay of Famous 80 Million Dollar Dawes and other stockholdthe old Central Republic Bank Trust Co. today faced prospect having to dig million dollars from their pockets. That much demanded part of the still pay the bank's famous from the Reconstruction Finance Corp. The RFC filed suit in federal district court late of collect the million dollars equal the trust company's total italization, under law double liability for bank holders. Quit RFC, Got Loan The 80 million dollar loan negotiated Dawes 1932 for the Central Republic Bank Trust which he shortly after he retired head of the run forced the bank close Oct. two months after the loan made. Deposit by the City National Bank Trust the Central Republic paying of RFC loan amount equal the deposits. Dawes now heads the City National. Other liabilities and assets the failed bank transferred the Central Republic Trust which years has been liquidating the bank's assets and paying debts. Dawes Family Hit Hard The bill the bank owes the RFC on loan dated June 1932, and another loan 1932. turned in his signation RFC chairman June 15, 1932. The Dawes family liability, cording to the suit, would be Federal Judge John Burns enjoined other creditors from instituting similar action against the stockholders pending the outcome of the RFC suit. the court rules that recovery can be made the million dollars from holders the bill that ceiver be appointed collect the RFC and other creditthe bank. Plan State Receivership The RFC suit stated that State Auditor Barrett planned take over the trust company for liquidation under state Other liabilities have for the most been paid the suit while the RFC debt left to the last. The loan has been in default since Dec. 24, 1932. made on temporary basis purposely give the RFC power to guard its funds. At the time the loan made Dawes declined small the deposand said he would close the bank enough cash cover deposits fully Other Chicago banks, fearing the effect bank failure, interceded the RFC its suit the government will find itself the numerous restaurants and businesses because many stockholders Greek who had bought the stock to cents share hope that final liquidation return handsome profit holding stock.