4787. State Bank & Trust Company (Downers Grove, IL)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
August 18, 1928
Location
Downers Grove, Illinois (41.809, -88.011)

Metadata

Model
gpt-5-mini
Short Digest
dfa9f4a7

Response Measures

Capital injected, Full suspension, Books examined

Other: State Auditor ordered closure; successor bank organized to assume liabilities and reopen.

Description

Bank experienced steady withdrawals after president Roy C. Toombs' financial/legal troubles; State Auditor ordered the bank closed (suspension) on Aug 18, 1928. A reorganized successor was announced to assume liabilities and open about Sept 1, 1928.

Events (3)

1. August 18, 1928 Run
Cause
Bank Specific Adverse Info
Cause Details
Withdrawals were driven by the financial difficulties and alleged missing funds/charges against president Roy C. Toombs (International Life Insurance and brokerage troubles).
Measures
None specified as a run-response beyond decision to close; State Auditor ordered the bank closed after steady withdrawals.
Newspaper Excerpt
steady withdrawals since Toombs' recent troubles in Chicago and St. Louis made the closing advisable
Source
newspapers
2. August 18, 1928 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State Auditor closed the bank after withdrawals linked to the president's legal and financial scandals and alleged shortages in related concerns; examiners began review of assets and receiver activity followed in reporting of troubles elsewhere (Toombs' firms in receivership).
Newspaper Excerpt
State Auditor Oscar Nelson ordered the bank closed following a meeting of its officials last night.
Source
newspapers
3. September 1, 1928 Reopening
Newspaper Excerpt
A new bank has been organized to succeed the Downers Grove institution ... will assume $700,000 in liabilities ... The new bank will open in about ten days with capital and surplus of $100,000 each. (Sept. 1 articles).
Source
newspapers

Newspaper Articles (11)

Article from Evening Star, August 18, 1928

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Article Text

STATE BANK CLOSED BY TOOMBS LOSSES Defunct Chicago Broker Was Former President of Illinois Institution. By the Associated Press. CHICAGO, August 18.-The financial difficulties of Roy C. Toombs, Chicago broker and St. Louis insurance executive, have resulted in closing the State Bank & Trust Co. of Downers Grove, a suburb. Until his resignation last Wednesday Toombs was president of the bank. State Auditor Oscar Nelson ordered the bank closed following a meeting of its officals last night. He explained that steady withdrawals since Toombs' recent troubles in Chicago and St. Louis made the closing advisable. although he believed the bank to be in good condition. Bank examiners today began a review of the bank's assets, while Chicago police sought Toombs on a fugitive warrant from St. Louis, charging grand larceny of $85,000 from the International Insurance Co. of St. Louis. Alleged shortages in the insurance company. of which Toombs is president, and in his Chicago investment firm of Toombs & Daily, have put both concerns into receiverships.


Article from Pottsville Republican, August 18, 1928

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Article Text

WARRANT IN INSURANCE CASE CHICAGO, Aug. to appear fore the referee today as witness in Court about by the É his brokerage firm, Toombs Daily. been in seclusion who for two warrants were for arrest, was pected to obey the referee, and police to be on duty serve their warrants. However, Eugene counsel for the investment broker, banker said the warrants could not served was in custody the Federal Court here as in the bankruptcy The warrant which the arrest will sought accuses Toombs of $85,000. was issued St. affairs his the International Life, were found to be dire circumstances with perhaps $3,000,000 $4,000,000 in assets The pany has been faced with The State Bank and Trust pany, of Downers Grove, suburb, which Toombs president until resigned week, been ordered closed by the state auditor.


Article from Reno Gazette-Journal, September 1, 1928

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Article Text

TOOMBS BANK BE REVIVED Sept. bank been organized succeed the Downers Grove merly headed by Roy now testifying before referee bankruptcy regarding missing funds of Life Insurance Company of St. Louis, of which he was presiand his Chicago brokerage house of Toombs and Daily. The new suburban bank. was announced by State Auditor Oscar Nelson. in liabilities of the State Bank and Trust Company, which was closed shortly after Toombs had its president. At that time was his finandifficulties might cause "run" the bank. was decided upon although was filed yesterday by the Dunnegan Company, contractors of Wayne. Ind. The suit was result of Toombs' leged disposal of bonds deposited in the old bank by the contractors The new bank, it was announced. will open in about ten days with capital and surplus of $100,000 each


Article from Lansing State Journal, September 1, 1928

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Article Text

NEW BANK ASSUMES Illinois State Auditor Announces Reorganized Institution to Open Soon CHICAGO, Sept. (/P)-A new bank has been ceed the institution headed by Roy C. Toombs, testifying before referee in regarding the missing funds the International Life Insurance Company of St may Louis, of which he and and his house fore 10:00 and The bank. was announced by State Oscar Nelson, will assume regular liabilities of the State Bank and Trust company. was closed shortly after resigned as its that time Six days was feared his difficul- days One ties might cause "run" on the sertion takes Reorganization was decided No upon although three filed Friday by the Dunne gan company contractors of Ft sult Toombs' deposited the old bank by the contractors. The new was nounced. will open in about capital and surplus of each.


Article from The Akron Beacon Journal, September 1, 1928

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Article Text

ORGANIZE SUCCESSOR FOR TOOMBS' BANK Liabilities Of $700,000 Will Be Assumed By New Or. ganization CHICAGO, Sept. 1. (AP)-A new bank has been organized to succeed the Downers Grove Institution formerly headed by Roy C. Toombs now testifying before referee in bankruptey regarding missing funds of the International Life Insurance Co. of St. Louis, of which he was president, and his Chicago brokerage house of Toombs and Daily. The new suburban bank, it was announced by State Auditor Oscar Nelson, will assume $700,000 in liabilities of the State Bank and Trust Co., which was closed shortly after Toombs had resigned as its president. At that time it was feared his financial difficulties might cause run on the bank. Suit Filed Reorganization was decided upon although a $115,000 suit was filed yesterday by the J. Dunnegan C)., contractors of Ft. Wayne, Ind. The suit was result of Toombs' alleged disposal of bonds deposited in the old bank by the contractors. The new bank, was announced, will open in about 10 days with capital and surplus of $100,000 each.


Article from Palladium-Item, September 1, 1928

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Article Text

TOOMBS REORGANIZED CHICAGO. Sept. new bank been to succeed Downers Grove merly headed by Roy Toombs, now testifying before referee in bank. ruptey regarding missing funds International Life Insurance company Louis, which president, and his Chicago brokerage house of Toombs and The new suburban bank, its was announced state auditor Oscar Nelson, assure $700,000 abilities the State Bank and Trust company, closed shortly resigned its president. At that time was fearfinancial difficulties might "run" the bank decided upon although $115,000 was filed yesterday the Dunnegan contractors of Fort Wayne. result Toombs' alleged bonds deposited old bank the contractors announced. will open about capital and surplus each.


Article from Salt Lake Telegram, September 1, 1928

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Article Text

New Bank Succeeds Toombs' Institution CHICAGO, Sept. new bank has been to the Grove formerly headed by Roy C. now testifying before referen In regarding missing funds of the Life Insurance company of St. Louis, of which he was president. and his Chicago house Toombs & Daily. The suburban bank, It was announced by State Auditor Oscar will assume $700,000 In bilities of the State Bank and Trust company. which was closed shortly after Toombs had resigned as its At that time was president. his financial difficulties feared on the bank. might cause


Article from Orlando Evening Star, September 1, 1928

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Article Text

BANK FORMED FAILURE Chicago Suburban Firm Reorganized Assume Old Liabilities CHICAGO, Sept. new has been to succeed the Grove institution, headed by Roy Toombs, testifying before referee regarding missing funds the Life Insurance of St. Louis, of which he and his Chicago house of Toombs and The new suburban bank, it was by State Auditor Oscar Nelson, $700,000 bilities of the State Bank and Trust Company. which closed short. after Toombs resigned its that time it was ed his financial might "run" on the bank. decided although new $5,000 suit was filed yesterday by the Dunnegan Ft. Wayne, Ind. The suit was the sult Toombs' alleged bonds deposited in the old bank by the contractors The new bank, announced. will open in about 10 days with capital and surplus of $100,000 each.


Article from The Dispatch, September 1, 1928

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Article Text

NEW BANK FOLLOWS ARREST OF TOOMBS Chicago, Sept. bank has been organized to succeed the Downers Grove institution formerly headed Roy Toombs, now tifying before referee bankregarding funds of International Life Insurance company of Louis, of which he president, and Chicago house of Toombs and Daily. new suburban by State Auditor Oscar Nelson, will assume in liabilities the State Bank and Trust company, which was closed shortly Toombs had resigned president. At that time feared his financial difficulties "run" on the bank.


Article from The Evansville Journal, September 1, 1928

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Article Text

BANK HEADED BY TOOMBS TO BE REORGANIZED To Assume $700,000 of Liabilities of Old Bank CHICAGO, Sept. 1.-(AP)-A new Bank has been organized to succeed the Downers' Grove Institution formerly headed by Roy C. Toombs, now testifying before referee in bankruptcy regarding missing funds of the International Life Insurance company of St. Louis, of which he was president, and his Chicago brokcrage house of Toombs and Daily. The new suburban bank, it was announced by State Auditor Oscar Nelson, will assume $700,000 in liabilities of the State Bank and Trust company, which was closed shortly after Toombs had resigned as its president. At that time was feared his financial difficulties might cause "run" on the bank. Reorganization was decided upon although $115,000 suit was filed yesterday by the Dunnegan company, contractors of Fort Wayne, Ind. The suit was result of Toombs' alleged disposal of bonds deposited in the old bank by the contractors. The new bank. was announced. will open in about ten days with a capital and surplus of $100,000 each. Sue on Note ROCKPORT Sept. 1.-Suit against Noah N. Bender. John Metcalf. and George Gerlach. for the collection of note, was filed in circuit court yesterday by the Farmers' State bank of Chrisney.


Article from Dixon Evening Telegraph, September 4, 1928

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Article Text

New Organization Takes Toombs Bank Chicago, Sept. 1-(AP)- A new bank has been organized to succeed the Downers Grove institution formerly headed by Roy C. Toombs, now testifying before referee in bankruptcy regarding missing funds of the International Life Insurance Company of St. Louis, of which he was president, and his Chicago brokerage house of Toombs and Daily The new suburban bank. it was announced by state auditor Oscar Nelson, will assume $700.000 in liabilities of the State Bank and Trust Company, which was closed shortly after Toombs had resigned as its president. At that time It was feared his financial difficulties might cause a "run" on the bank HOWARD SAVAGE MARRIED Chicago, Sept. 1-(AP) P. Savage, former national commander of the American Legion, and Miss Mary Van Oss, a nurse. wer married today at a quiet ceremony in St. Mary's church They left for Atlanta, Ga. on their honeymoon trip. Mr Savage was a widower We do anything in the Joh Print-