4415. First Italian State Bank (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 9, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
5b2b398f

Response Measures

None

Description

Articles report the bank failed/ did not open the day after the president disappeared and grand jury later charged him with embezzlement and vault shortages. No mention of a depositor run; the failure appears to be a suspension that led to permanent closure/receivership. Date of initial failure/suspension inferred as 1931-09-09 (last Wednesday relative to Sept. 14–15, 1931 articles).

Events (1)
1. September 9, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
President Savario Ariani disappeared and was later accused of embezzlement; examiners found vault severely short of cash (found only $9,800 versus much larger amount previously).
Newspaper Excerpt
the bank did not open for business the following day. The state banking department later announced that Ariani had been notified to obtain $200,000 additional capital or the bank would be closed.
Source
newspapers

Newspaper Articles (2)
1. September 15, 1931 The Public Ledger Maysville, KY
Article from The Public Ledger, September 15, 1931

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Article Text

Missing Banker Named By Jury Chicago, Sept. 14-Savario Ariani, bank president who disappeared on the eve of the failure of the First Italian State Bank last Wednesday, was reported named today in a true bill voted by the grand jury charging embezzlement of $138,335. Bank examiners reported last week

2. September 15, 1931 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, September 15, 1931

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Article Text

TRUE BILL IS REPORTED Missing Banker Is Said to Have Been Accused of Embezzlement. CHICAGO. (AP). true bill charging Savario Ariani, missing president of the First Italian State bank, with embezzlement of $138,335 was reported issued Monday by the county grand jury. Ariani disappeared last and the bank did not open for business the following day. The state banking department later announced that Ariani had been notified to obtain $200,000 additional capital or the bank would be closed. Bank examiners and state's attorney's agents opened the bank's vault and announced they found only $9,800. The banking department said that much larger amount of cash had been on hand a week before. Mrs. Ariani and two sons, all of whom were employed at the bank, are being held in technical custody.