7341. National Bank of Kentucky (Louisville) (Louisville, KY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Start Date
November 17, 1930
Location
Louisville, Kentucky (38.254, -85.759)

Metadata

Model
gpt-5-mini
Short Digest
cc351e7f

Response Measures

None

Description

The National Bank of Kentucky (Louisville) suspended operations on Nov 17, 1930 and a receiver (Paul Keyes) was appointed by the comptroller of the currency. Contemporary articles attribute the suspension to wild rumors about the bank's condition; the bank was turned over to the comptroller and did not resume normal operations (later litigation seeking recovery from directors is noted). Several affiliated and correspondent banks also suspended as a consequence.

Events (2)

1. November 17, 1930 Receivership
Newspaper Excerpt
Appointment of Paul Keyes as receiver to liquidate the affairs of the National Bank of Kentucky at Louisville, was announced today by comptroller of the currency, John Pole. The Louisville bank suspended operations today when its directors voted to turn its affairs over to the comptroller of the currency. Keyes member of the comptroller's staff.
Source
newspapers
2. November 17, 1930 Suspension
Cause
Rumor Or Misinformation
Cause Details
Directors said suspension was deemed necessary because of 'wild rumors' concerning the bank's condition.
Newspaper Excerpt
Appointment of Paul Keyes as receiver to liquidate the affairs of the National Bank of Kentucky at Louisville, was announced today by comptroller of the currency... The Louisville bank suspended operations today when its directors voted to turn its affairs over to the comptroller of the currency.
Source
newspapers

Newspaper Articles (16)

Article from Kenosha News, November 17, 1930

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41 Banks Shut Doors in Four States in Day (Continued from Page One) bank, of Clayton, and the Timewell State bank, of Timewell, were closed today, State Auditor Oscar Nelson announced. All the closings were in connection with the failure of the State Savings Loan and Trust company, Quincy, which the Timewell and Clayton institutions were correspondents. The Timewell bank had deposits of $150,000 and the Clayton bank $500,000. Missouri Banks Close, Jefferson City, Mo.- (U.P.) -Four northeast Missouri banking institutions closed their doors today as direct result of the failure last week of the State Savings Loan and Trust Quincy, III. All the institutions had deposited their funds in the Illinois bank, and were forced to close their doors to protect depositors. Receiver is Named Washington- (U.P.) -Appointment of Paul Keyes as receiver to liquidate the affairs of the National Bank of Kentucky at Louisville, was announced today by comptroller of the currency, John Pole. The Louisville bank suspended operations today when its directors voted to turn its affairs over to the comptroller of the currency. Keyes member of the comptroller's staff. The first Pacific cable was completed in 1902, The first American Pacific cable was laid in 1903 between San Francisco and the Philippines, distance of 7846 nautical miles.


Article from The Brownsville Herald, November 18, 1930

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BANKS CLOSING PRECAUTION Houses With Many Kentucky Closed Doors Solvent, Officials Declare LOUISVILLE, Ky., Nov. Kentucky financial instituwith resources totalling more tions $75,000,000 were closed today. than these was the NaThe largest of of Kentucky at Louistional Bank under control of ville, which was C. Keyes, of the receiver, Paul staff of the comptroller of the curIts resources rency at approximate Directors of the National Bank said the suspension yesKentucky deemed necessary beterday was cause of "wild rumors" concerning Simultaneously with its condition. two affliated instituits closing, tions, the Louisville Trust company and the Security Bank, suspended operations. Their directors said they were solvent and that they were closed precautionary The three Institutions affiliated through the BancoKentucky, holding company. Two negro banks in Louisville, the Mutual Savings bank the First Standard bank which through the Louisville Trust closed. The Bank of St. Helens, Louisville suburb, also suspended as precautionary Two banks outside Louisville also closed when was learned the National Bank Kentucky had suspended. They were the McElwain Mcguiar Bank and Trust company Franklin. Ky., and the First Naat tional bank at Horse Cave. Ky. The National Bank of served as correspondent for both. Officers other leading Louisville banks issued statements night declaring yesterday's deposits were greater than withdrawals. ported new accounts were opened during the day. and reiterated earlier statements that the institutions were solvent.


Article from The Daily Record, November 18, 1930

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KENTUCKY FINANCIAL INSTITUTIONS CLOSED LOUISVILLE, Ky., Nov. Kentucky financial institutions with resources totalling more than $75,000,000 were closed today, the of these was the nalargest tional bank Kentucky at Louisville, which was under the control receiver, Paul Keyes, the staff of the of the at Its currency sources approximate Directors of the national bank of Kentucky the suspension terday deemed necessary cause of "wild rumors" concerning its condition. Simultaneously with its closing, two affiliated institutions, Louisville Trust Comand the Securty Bank suspany pended operations.


Article from Fort Collins Coloradoan, November 18, 1930

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Eight Kentucky Are Closed Today Louisville, tucky financial institutions with sources totalling $75,000,000 closed today. largest these was the National Bank Kentucky Louisville, which was under the control of receiver. Paul Keyes, staff the comptroller the currency Washington. Its resources proximate $60,000,000. Directors of the National Bank Kentucky suspension yesterday deemed necessary because "wild rumors" concerning its condition. its closing, two affiliated stitutions, Louisville the Security bank, company Their direcsaid they were solvent and that they were closed precautionary measure. The three institutions affiliated thru the tucky, holding small Negro Louisville, the Mutual Savings bank the First National bank, which cleared thru the Louisville Trust closed. The Bank St. Helens, Louisville suburb, suspended as Two banks Louisville closed when learned tional bank Kentucky had suspended. They the McElwain Megular and Trust company and First National bank Horse Cave, Ky. The Bank of Kentucky as for both. Officers other leading ville banks night yesterday's deposits were greater than reported were during the day, and earlier that the institutions solvent.


Article from Brooklyn Eagle, November 18, 1930

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Rumors Closed Kentucky Banks, Officials Assert Eight Institutions Held Solvent--To Reopen 43 Closed in Louisville, Ky., Nov. 18 Kentucky financial institutions, with resources totaling more than $70.000,000, were closed today. The of these was the National largest Bank of Kentucky Louisville, which control of ceiver, Paul Keyes, or the dott the Controller of the Currency Washington Its resources approximate Directors of the National Band "wild rumors" co.cerning its the Security suspended ations. Their directors said they were solvent and that Officers of other Mading Louis ville barks issued statements were greater new were opened during the and earlier statements that the were


Article from The Times-Mail, November 18, 1930

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EIGHT BANKS IN KENTUCKY CLOSE Remaining Louisville Banks Issue Statements To Gain Confidence of Public Kentucky financial institutions with resources total. than closed today. The of these the National Bonk Kentucky at Louisville, which was the control Keyes, of the staff of the troller the currency at WashingIts resources approximate Directors of the National Bank Kentucky said the suspension yesterday was deemed necessary because rumors" concerning its condition. Simultaneously closing, two affiliated stitutions, Louisville Trust Company and the Security suspended operations. Their rectors solvent and that they were closed cautionary measure. The stitutions are affiliated through holding pany. Two small negro banks in LouisThe Mutual SavBank and The First Standard Bank, through the later closed. The Bank of St. Helens, suburb, also suspanded precautionary Two banks outside of Louisville also closed when was learned the National Bank Kentucky had suspended. They were the McElwain Meguiar Bank and Trust Company Franklin, and the First National Bank Horse Cave, Ky. The National Bank of Kentucky served as correspondent for both. Officers of other leading Louisbanks issued last night declaring deposits greater than reported were opened during the day, and earlthat the institutions were solvent.


Article from The Macon News, November 18, 1930

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LEADERS PLAN REOPENING OF BANKS LITTLE Nov. 18 permeated statements of Arkansas financial leaders as they laid plans Tuesday to reopen the 43 banks which temporarily suspended or closed Monday The executive of the American Exchange Trust company here, largest and one of the oldest banks in the state which for five days, was employed upon plans Closing of the American Exchange was followed by of tivities by the 42 other banks the aggregate deposits which were B. president of the American Exchange, and controlling stockholder in 34 the 42 other banks scattered over the state, said the boards of directors were trying obtain pledges of loyalty from their and supporting capital to assure freedom of danger from Resumption of normal business by the banks, he said, would follow such assurance to directors. EIGHT KENTUCKY BANKS SUSPENDED LOUISVILLE Ky., Nov. 18. Eight Kentucky financial institutions with resources totalling more than $75,000,000 were closed Tuesday. The largest these was the National Bank of Kentucky Louisville, which the control of receiver. Paul Keyes, the staff of the comptroller of the currency at Washington. Its approximate $60,000,000. Directors of the National Bank of Kentucky said suspension yesterday was deemed necessary because rumors" concerning its condition. with its closing. two affiliated institutions, the Louisville Trust company and the Security bank, suspended operations. Their directors said they solvent and that they were closed as precautionary measure. The three institutions are affiliated through the a holding company.


Article from Springfield News-Sun, November 18, 1930

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From Page One TWO OHIO BANKS CHANGE OWNERSHIP ings Bank and Trust Co., Western Bank and Trust Co., Second NaLincoln National Bank and Bank. Officers each bank signed the LOUISVILLE Nov. Eight Kentucky financial institutions totalling more were closed largest these was the National of Kentucky Louisville, which was the Paul the of the comptroller the at Washington. Its resources Directors the National Bank Kentucky the suspension yesterday was deemed necessary cause rumors" concerning its two affilatied institutions, the Louisville Trust Company and the Security suspended Their directors said they were solvent. small Negro banks in Louisville, the Mutual Bank the Standard through the Louisville The Bank Louisville suburb. also suspended as measure Two banks outside Louisville also when learned the National Bank Kentucky had They were McElwain Meguiar Bank Trust Company Ky., the First National Bank Horse Ky The National Bank Kentucky served as correspondent for both


Article from The Peninsula Times Tribune, November 18, 1930

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Nov. Eight Kentucky financial instituresources more than million dollars closed largest these the National Bank Kentucky Louisville, which under the control receiver Paul Keyes. the staff of the comptroller currency Washington. resources approximate million dollars. Directors the National Bank Kentucky the suspension yesterday deemed necessary because "wild rumors" concerning its condition its closing, affiliated Trust Company and the Security Bank, suspended Their rectors they were solvent and that they closed precautionary The institutions through the holding comsmall Negro banks in Louisville, Mutual Savings Bank and the First Standard Bank which through the Louisville Trust closed. The Bank of Helens, Louissuburb, suspended banks Louisville also closed when learned the National Bank Kentucky suspended. were the McElwain Bank and Trust Company Franklin. Ky., and the National Bank Horse Cave. National Bank Kentucky served correspondent both. Officers of other leading Louisville banks issued statements last night declaring deposits than greater reported accounts were openduring the day, and reiterated earlier that the institutions were


Article from Columbia Daily Tribune, November 18, 1930

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Eight Kentucky Banks Are Closed Eight Kentucky financial institotaling more than were closed today The largest these was the National Bank Kentucky Louisville which under the control receiver. Keyes, the staff comptroller the Washington. Its Directors the Bank Kentucky the yesterday deemed necessary because "wild rumors" concerning its condition. affiliated stitutions, Trust Company and the Security Their rectors they were solvent and that they closed preThe three inare affiliated through holding company


Article from Fort Worth Record-Telegram, November 20, 1930

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KENTUCKY BANK CHIEF FOUND HANGING IN BARN HORSE CAVE. Ky., Nov. 19. body of William Virgil Bell 55. presiof the First National Bank of Horse Cave, which closed Monday was found hanging in barn behind his residence late today by Lige Chaney, who had seen him enter the barn few before. Chaney said he had asked Bell what going to do. did not swer. be said, so he called two men investigate and they found the body suspended from a rafter by The First National Bank suspended operations when the directors learned the National Bank of Kentucky at Louisville had closed. The Louisville institution was correspond ent for the local bank.


Article from The Star Press, November 21, 1930

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PRESIDENT HANGS SELF AFTER BANK IS CLOSED Horse Cave. Ky. Nov. 20 (P)-The body of William Virgil Bell, 55, president of the First National Bank of Horse Cave which closed Monday was found hanging in barn behind his residence late yesterday by Lige Chaney, who had seen him enter the barn few minutes before Chaney said he had asked Bell what he was going to do Bell did not he so he called two men to investigate and they found the body suspended from a rafter by a stout wire The First National Bank suspended operations when the directors learned the National Bank of Kentucky at Louisville had closed The Louisville institution was correspondent for the local bank.


Article from The Owensboro Messenger, March 7, 1931

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Increased Selling Tends To Drag Grain Values Down Chicago, March prospects domestic winter crops led to increased selling IMPROVED day houses with southwest, and dragged down both Confidence Returns Gradually As Seven Closed Institutions Are Reopened. (By Associated Press) Reopening of several banks and formulation of plans to reorganize others has done much to relieve the financial uncertainty Kentucky of the past weeks. Developments given rise to the belief stronger financial will be the Blue Grass heritage Plans are under way for reorganization of the Bank and Trust company at Lexington, largest bank outside of Louisville to close. The stockholders have decided sell the bank's eight-story building, form new institution. 75 Per cent to Depositors Meanwhile depositors of the closed bank will receive per cent of their deposits, pledged by the Lexngton Clearng House assocation. more definite reorganization culminated yesterday at Middlesboro opening the Commercial Bank Trust company. which replaces defunct Citizens Bank and Trust company. The Bank has been approved Dicken, banking commissioner. announced his proval of the Lexington tion Banks Reopen Of the 25 Kentucky banks which closed, starting with the National Bank of Kentucky failure at Louisville last November 17. have reorganized opened. Others the Security Trust, Louisville: negro banks Louisville which merged and reopened, and banks St. Helen's, Sulphur, Sturgis. and the Farmers Bank, Fulton. Louisville was heartened by nouncement that the First National bank had purchased sufficient the assets closed National Bank of Kentucky to return to positors the latter institution two-thirds dividend. which will distributed within few weeks. MAKE PAYMENT SOON March First payment depositors of the Hopkins county bank which pended operation last and which has been the hands of state banking commissioner for liquidation since. is to be made soon Hughett. special deputy banking charge of liquidation. indicated today. Reports that be made about March MAY REOPEN TRUST CO. Louisville, Mar call number of depositors the Louisville Trust company meet this and discuss possibility reopening has been sent out by Huston Quin. signed by him chairman De positors committee. proponents the say reopening would duce and sult in depositors getting back larger per cent of their money MANY DEPOSITS MADE Middlesboro, March The Commercial Bank and Trust company opened here today replacing Citizens bank which closed last November 28. Officers the bank said many deposits were made. large on hand the opening W. Tennent president of the new bank: Gaius Whitfield cashand W. Bailey, dent. The First National Bank of Louisville, Ky., the new bank's depository.


Article from Oakland Tribune, December 21, 1931

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Seeks Judgment in Suit Against Dec. 21-(UP) compelled specific cases to compensate losses depositors full amount of their instead amount Currency Pole told United Press the liability of bank directors the full assets be the evolved protect money reduce bank Such would inflict heavy penalties violators. The government now conductagainst the directors National Bank Louisville, recover depositors. deal this come from assets other than shares the bank, closed its doors November Should government win its effects will far reachMoney deposited would more secure and bank failures fewer. "Considerable sums of money have collected from bank rectors.' "when they have misused powers failed principles cribed by law and advised by spectors. of the bank director simple. his shareholders busiconducted along the lines specified by shareholder turn responsible the depositor, places his money the bank good Referring failure of the National Bank of Kentucky. Pole improvement to company the bank, which assets the report made before its failure. ate finance now studying this loan and others of similar nature."


Article from Pasadena Star-News, December 21, 1931

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LAW PROPOSED Dec. 21. Bank be cases losses the full their of their of the Currency Pole, today Establishing the liability of bank directors full amount the their laws evolved protect money bank Such reduce would inflict heavy violators. The government now conductcase directors National Bank of Kentucky Louisville, recover deal this awarded, will from assets other than shares directors closed its doors November 1930. Should the Money secure and bank failures


Article from The Fresno Bee, December 21, 1931

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U. S. SEEKS TO MAKE BANKS PAY TO FULL ASSETS Federal Plea Holds Directors' Liability Extends Beyond Stockholdings directors for the full amount of their own assets may be one of the laws evolved to protect money and reduce bank suspensions, Such law would inflict heavy penalties on violators. The government is now conducting case against the directors of the National Bank of Kentucky at Louisville to recover $14,000,000 for depositors. A great deal of this sum, if awarded, will come from private assets other than shares held by directors in the bank, which closed its doors November 17th, 1930. Should the government win its case the effects will be far-reaching. Money deposited would be WASHINGTON, Dec. more secure and bank failures Bank directors can be compelled in specific cases to compensate "Considerable sums of money Josses to depositors to the full have been collected from bank diamount of their own assets, in- rectors, said Pole, "when they stead of just the amount of their have misused their powers and stockholdings, Comptroller of the failed to adhere to principles preCurrency Pole said to-day. scribed by law and advised by inEstablishing the liability of bank spectors.