7493. Savings Bank (NANTICOKE, MD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
October 4, 1940
Location
NANTICOKE, Maryland (38.272, -75.905)

Metadata

Model
gpt-5-mini
Short Digest
b24561671bea3a74

Response Measures

None

Description

The articles describe the Savings Bank of Nanticoke closing on October 4, 1940 after a shortage uncovered (failure due to embezzlement). A receiver was appointed and creditors were paid from receiver distributions; no bank run is mentioned. Dates inferred from article context (newspaper dates).

Events (4)
1. October 4, 1940 Receivership
Newspaper Excerpt
attorneys for the Maryland bank commissioner, receiver for the bank ... the closed savings bank of Nanticoke which failed in 1940 through embezzlement,
Source
newspapers
2. October 4, 1940 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed after a shortage in its accounts was uncovered; later described as failure through embezzlement.
Newspaper Excerpt
which closed last October 4 after a shortage in its accounts had been uncovered
Source
newspapers
3. June 20, 1941 Other
Newspaper Excerpt
Creditors of the defunct Savings Bank of Nanticoke ... have been paid in full. Bank Commissioner John W. Downing said that full and final payment of the principal claims of all creditors had been made under the receiver's second distribution account, ratified by the Wicomico County Circuit Court. The distribution amounted to 25 per cent, or $37,196.12.
Source
newspapers
4. July 7, 1942 Other
Newspaper Excerpt
A Maryland chancery court judge ruled that payment of interest at 6 per cent must be made to the Federal Deposit Insurance Co. for sums advanced to depositors of a defunct savings bank ... the closed savings bank of Nanticoke which failed in 1940 through embezzlement
Source
newspapers

Newspaper Articles (2)
1. June 20, 1941 Evening Star Washington, DC
Article from Evening Star, June 20, 1941

Click image to open full size in new tab

Article Text

Bank Creditors Paid In Full at Nanticoke B5 the Associated Press. SALISBURY, Md.. June 20.Creditors of the defunct Savings Bank of Nanticoke, which closed last October 4 after a shortage in its accounts had been uncovered, have been paid in full. Bank Commissioner John W. Downing said that "full and final payment of the principal claims of all creditors" had been made under the receiver's second distribution account, ratified by the Wicomico County Circuit Court. The distribution amounted to 25 per cent, or $37,196.12.

2. July 7, 1942 Evening Star Washington, DC
Article from Evening Star, July 7, 1942

Click image to open full size in new tab

Article Text

FDIC Interest Claim Upheld at Salisbury By the Associated Press. SALISBURY, Md., July 7. - A Maryland chancery court judge ruled that payment of interest at 6 per cent must be made to the Federal Deposit Insurance Co. for sums advanced to depositors of a defunct savings bank before debenture holders may collect payment on principal. Judge T. Sangston Insley, in the case of the closed savings bank of Nanticoke which failed in 1940 through embezzlement, cited Maryland law relating to debentures as holding such indebtedness should be considered part of the bank's capital structure and, as such, subordinated to the rights of depositors and creditors. Attorneys for the Maryland bank commissioner, receiver for the bank. had contended the FDIC had been paid insurance premiums for service rendered to depositors and was not entitled to interest to the exclusion of debenture holders.