Security State Bank (Brooten, MN)

Episode Information

Episode UID
75049371517
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7504937 routing
Routing Number
75-0493
Start Date
May 1, 1926*
Location
Brooten, Minnesota (45.501, -95.124)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
893cfd3c76c5d125

Response Measures

None

Description

Articles state the bank was closed by the state banking department in May and later placed in receivership; investigation of alleged mismanagement followed.

Events (3)
1. May 1, 1926* Receivership
Newspaper Excerpt
shrinkage in assets from a book value of over $228,000 at the time of the receivership, a fictious value of $103,000 at present true value.
Source
newspapers
2. May 1, 1926* Suspension
Cause
Government Action
Cause Details
Closed in May by the state banking department (state-ordered closure following problems)
Newspaper Excerpt
the Brooten bank a capital of $25,000. In the case of the Brooten bank, which was closed in May, liabilities are listed at ...
Source
newspapers
3. December 9, 1926 Other
Newspaper Excerpt
investigation of the affairs of the Security state bank of Brooten ... The investigation was ordered on the petition of the depositor committee ... appointed County Attorney Blanchard to the work.
Source
newspapers

Newspaper Articles (2)
1. December 9, 1926 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, December 9, 1926

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Article Text

Brooten Bank Probe Starts Anoka County Attorney to Serve as Special Investigator-Depositors Ask Probe Will A. Blanchard, Anoka county attorney, acting as a special representative of the state banking department has started an investigation of the affairs of the Security state bank of Brooten which was disclosed in May. The investigation was ordered on the petition of the depositor committee which approached A. J. Viegel, state superintendent of banking, and asked that the affairs of the bank be thoroughly gone into. No charges have been made, but the committee stated that persistent rumors of mismanagement of the bank funds had resulted in considerable ill-feeling in Brooten and the investigation was desired to either find the cause for the rumors or finally silence them. The state department agreed to the investigation and appointed County Attorney Blanchard to the work. He has worked with the state in the Wright county investigations of last spring which resulted in the conviction of H. M. Sievers on bank looting charges in the Benson bank case concluded yesterday. The officers of the closed Brooten bank were J. P. Wahl, president, a resident of Brooten and C. 0. Knutson, now serving as receiver of the Farmers State Bank of Villard.

2. December 30, 1926 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, December 30, 1926

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Article Text

District Court Judge Orders Bank Assessment Stockholders of Defunct Brooten Institution Ordered to Pay 100 Per Cent Assessment On petition of state Bank Examiner Vogel Judge Roeser of the Stearns County District Court Monday ordered an assessment of 100 per cent on the stock of the Security State Bank of Brooten which was closed some time ago by the banking department of the state. The question of leavying a stockholder's assessment against the Richmond State Bank was taken under advisement. The Richmond bank has a capital stock of $10,000 to be assessed and the Brooten bank a capital of $25,000. In the case of the Brooten bank, which was closed in May, liabilities are listed at $17,9,311.48 with a shrinkage in assets from a book value of over $228,000 at the time of the receivership, a fictious value of $103,000 at present true value. In the case of the Richmond bank total liabilities are listed at $219,559. 22 with assets previously listed at $240,000 now valued at $87,361.34 an enormous shrinkage.