Closure followed an immediate run reportedly triggered by newspaper publicity; bank entered receivership and did not resume normal operations.
Events (3)
1.February 14, 1921Run
Cause
Rumor Or Misinformation
Cause Details
Run began after sensational newspaper headlines reporting Townley/league meetings, directors blamed The Herald for precipitating withdrawals.
Measures
Directors ordered the bank closed and called state bank examiner; refused public statements.
Newspaper Excerpt
a run which began Monday; the run was caused by The Herald
Source
newspapers
+3 days
2.February 17, 1921Suspension
Cause
Rumor Or Misinformation
Cause Details
Board closed the bank after the run precipitated by press reports and resulting heavy withdrawals.
Newspaper Excerpt
Peoples State bank... closed its doors by order of the board of directors, following a run on the bank which began Monday.
Source
newspapers
+4 days
3.February 21, 1921Receivership
Newspaper Excerpt
Deputy Examiner... arrived in Grand Forks this morning to take charge of the People's State Bank, which closed its doors last Thursday. Mr. Bergstrom began his examination this afternoon.... The question of asking for a receiver will be up to O. E. Lofthus, state examiner.
"Well, won't you tell me why you closed?" he was asked. "A run." "When did it begin?" "As soon as your paper got out with its sensational headlines," he replied. Mr. Knutson was no more communicative. He said a run did it, and the run was caused by The Herald. "No bank can stand a run," he said. "I don't care whether it's a state bank or a national bank, it can't stand a run." "Won't you make some kind of a. statement? something that will give an intelligent, fair account of the matter?" he was asked. "I won't give The Herald any statement." he said. "It wouldn't be used correctly anyhow." "You write out a statement and sign it. and I'll guarantee that it will go in The Herald just as you write it, providing you write the facts," The Herald representative informed Mr. Knutson. but he absolute.y refused to say anything. The People's State bank was organized three years ago. Thomas Allen Box and John Hastings, who at that time were organizing banks under the direction of A. C. Townley, as they later testified in the Valley City bank investigation, got a commission of about $7,500 for organizing it. The bank was organized with the idea of filling an alleged need which other banks in Grand Forks did not cover. Members of the board of directors are: C. O. Swenson, Northwood; E. H. A. Fisher, Kellys; J. P. Hemmingsen. Niagara; Jonas Lenz, Reynolds; T. G. Thompson, Thompson; B. O. Sorbo and H. O. Brenna of Grand Forks.
2.February 17, 1921The Bismarck TribuneBismarck, Mandan, ND
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PEOPLES BANK IN FORKS CLOSES DOORS TODAY Directors Shut Up Institution and Call Lofthus to Take Charge RUN GIVEN AS REASON No Statement Made Regarding Deposits on Hand by Cashier Grand Forks, Feb. 17.-Following a meeting this morning of the directors, the Peoples State bank, closed its doors shortly after noon. Cite Report. The action was forced as result of a run which began Monday after newspapers appeared in the street, giving an account of the meeting between Townley and the bankers, say the directors. They refused to say how much money was withdrawn and how much North Dakota money State bank has on deposit. Order Bank Closed. The directors ordered the bank closed and immediately after the cashier ordered O. E. Lofthus, state bank examiner.
WAS NOT MEMBER OF THE CLEARING HOUSE; RUN BEGAN MONDAY Did Not Owe a Cent to Other Banks in Grand Forks. OWES STATE BANK $50,000 ABOUT Disagreement on Directorate Othv Made Impossible For er Banks to Help. organized The People's State by Thomas bank, who, Allen then. Box three years ago Hastings, Nonpartine and John the employ J. doors of the at o'clock toard this afternoon were league. in closed by its order of the of directors. it apowed closed. When the $200,000 bank to depositorswear borrowed in and money. surplus $11,000. Approximately proximately Its capita $100,000 The was gross $75,000 assets are listed at Bank $390,000. of North in the Dakota People's had institu- State in 600 The on besides re-deposit which the institution local about $40,000 tion bank owed borrowed the state money. Draft Made. two days draft for $1,500 of North made closing Dakota toby the have Bank forced bank the refused say 10 believed.to ago to the to day. Officials statement of except Monday demake any which began bank that a run, closing. Savings it was much said. caused the made the to run, state how during the positors Officials refused withdrawn be less than money had it been is believed to not of the week. but bank was Clearing a $ 0,000 The People's State Grand Forks member banks Grand mber sociation. banks The in East throughhelp including House showed two a willingne gness the People's prop, Forks. the week to made definite out, would State out bank. and if carried A disagree osition. which the bank of open. directors, how out ever, the plan. ment have kept made on the it board impossible to carry the bank Wires Lofthus. of cashier state bank and miner to 60 the charge mand Ole wired c. Gordon O. E come Lofthus to tank. Grand Knutson. Forks man any to make The MO Get bank representation refused that of the "statements They to a simply run said which head- was Herald caused "gensation by cleans was by Herald. F. B. the Feetham. closing and lines" procipitated in for the The bank "because said of a shortof direcwas an of ready members cash. of are the known board as mem- held The of whom league. and decided 1008 all of the Nonpartisan this morn ng the folwas a beis meeting to close. here At placed o'clock, on the door diClosed rectors. o lowing the notice bank by order of the board of the of week. Differences on officers Board of the During the various embers bankers bank and conferred with bers of the erything Clearing was 10 done for senting buard association he mem and out. but it was to House help the the bank directoral there Apparently, the on impossible ii some said. differences some time. for have agree been of directors after the for annual were meeting reports board media in ately January was there reported who for pre- in of trouble. It Gle Knumber of use the of stance. that had been a elected board. beca When the report, no was viously heard opposition was not on the officials of such the statetisked said about that there prove their had 1 thank upoble and, that to Mr. of Knutson the bank of He dibeen nts. chosen said member manage of the board of not H. however with the it closing is interthis In State bank, bank indebt- is the People's to note that city which Dakota. is The ing in the of North Northwest Savonly to one the Bank bank the First owe yur National National the bank Northern the the State Bank bank of lash and a cent to other Grand from not Dakota. have The no redeposits under no obNorth Porks banks bank and are bank. did More- not s.ate the state bank Forks the the Grand gations to people's State other Grand Forks a cent to the East business con lanks or to being no The member associabanks. there whatever. House however. Little nections the Clearing every State effort, bank agree but did make People's reach any 1.011 to help possible the to. meni. Excitement. or No caused no trouble Shortly aft de The closing the bank. several and timent at closed. hall the doors appeare were red Mr. in the Knutson directors ex plained the closed mositors to get in that the that the De asked to them bank and of the member Fund emmission behing Lositora places banks tank Guaranty state guarantee which are Inside men which deposits in commission of director vers all of of the the board groups. each Those other in members found were in two talking to wore sitting were group in the other thinking made vilent. Herald to get the end one those but inparently. represe ntative a statement bank The attemption Iron the cashier veral and Gordon. he refuse officials. facts Mr to first, but no mor appealed will make name he said was tements reply. over my 10 Continued on Page
4.February 18, 1921The Washington TimesWashington, DC
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RUN ON NORTH DAKOTA BANK SHUTS ITS DOORS GRAND FORKS, N. D., Feb. 18.The People's State Bank, of Grand Forks, has closed its doors by order of the board of directors, following a run on the bank which began Monday. The bank owes approximately $200,000 to depositors and approximately $100,000 in borrowed money. Its capital was $75,000 and surplus $11,000.
5.February 18, 1921The Bridgeport Times and Evening FarmerBridgeport, CT
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BANK CLOSES ITS DOORS. Grand Forks N. D.-The People'h State Bank, of. Grand Forks, has closed its doors by order of the board of directors following a run on the bank which began Monday. The bank owes about $200,000 to depositors and approximately $100,-
EXAMINATION OF LOCAL BANK BEGINS TODAY Deputy Examiner Here Today to Take Charge of People's State Bank. Complete List of Stockholders Given-F. B. Wood Holds Eighteen Shares. O. E. Bergstrom, deputy bank examiner, arrived in Grand Forks this morning to take charge of the People's State bank, which closed its doors last Thursday. Mr. Bergstrom began his examination this afternoon. He said he would be unable to make any kind of a statement until the examination is completed. This will take at least a week, he said. He was unable to say what steps would be taken toward settling the affairs of the bank. The question of asking for a receiver will be up to O. E. Lofthus, state examiner. and he will act only upon the report of Mr. Bergstrom. Under the state law, stockholders of the bank are liable to a 100 per cent assessment on the stock. Stockholders List. A list of stockholders, on file at the office of County Auditor Hans Anderson, shows how the 750 shares of stock are divided. The late K. K. Lageson of Reynolds, N. D., appears on. the list as the heaviest stockholder. According to the July. 1920, report, made about six months after Mr. Lageson's death, he had 40 shares of stock, valued at $4,000. The People's State Bank has a claim of over $4,000 against the Lageson estate, but whether or not this is for the 40 shares of stock is not known. The claim appears in the form of two notes, copies of which are on file in the county judge's office. If the stock is not paid for, heirs of Mr. Lageson are liable not only for the amount of the stock but for an additional $4,000, or a 100 per cent as-
7.February 24, 1921The Miller PressMiller, SD
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AND FORKS BANK CLOSES Caused Trouble, Officials State; About $300,000 Owed. rand Forks, N. D.-The Peoples e bank, organized three years ago Thomas Allen Box and John J. tings, closed its doors by order of board of directors. hen the bank closed it owed apmately $200,000 to depositors and oximately $100,000 in borrowed y. Its capital was $75,000 and as $11,000. Bank of North Dakota had on re-deposit in the People's bank, and the Grand Forks inon owed the state institution $40,000 in borrowed money. ials of the bank refused to any statement, except to say run, which began Monday, the closing.
MORE BANK BUSTING Recently it was announced from Grand Forks that the farmer-owned People's bank in that place would soon resume business .It had been forced temporarily to suspend business because of the big banker conspiracy against state banks, as exposed recently by John Skelton Williams, former comptroller of the currency. But no sooner was it announced that plans for reopening the bank were under way than the I. V. A. thru their press agent in Fargo headquarters, opened an attack on the bank, for the express purpose of preventing a reorganization. Efforts are made to frighten farmers by intimating to them that every farmer-owned bank is mismanaged. These efforts are rather curious, read in connection with the developments in the Beisecker chain of banks, and in the news of
9.August 11, 1921Emmons County RecordLinton, Williamsport, ND
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State Summary PassingGlimpses fLate Events in North Dakota Mandan-Upwards of 1,000 people took part in the tour of inspection of farms of the North Dakota Holstein Breeding circuit at New Salem, listened to the stories of the farmers who have made money despite unfavorable crop condiitons, and inspected their herds. Milk, rich, full creamy cow's milk, was supplied as a thirst quencher at farm after farm. Bismarck-D. C. Poindexter, state ayditor, has directed the auditor of Slope county to proceed against the former county treasurer, J. S. Douglas, to recover about $60,000, the amount of Slope county funds which he deposited in two Amidon banks, without bonds, it is charged. The two banks have closed. Grand Forks-"The elimination of ilteracy by 1924." is the slogan adopted by the state department of public instruction in its campaign for school betterment, Miss Minnie J. Nielson, state superintendent, announced here at a special convocation of the university summer school. Minot-Because Minot's police court has failed to prove a "paying proposition" a special committee has been named to ask Magistrate John Lynch to impose heavier fines on city ordinance violators. Bismarck-Reassessment of property in the towns of Carrington, Brace City, Jaunita, McHenry, Melville, Bordulac, Brantford, Dundas and Barlow has been ordered because of complaints of inequalities. Crosby-Miss Anna Black, Divide county Red Cross nurse, and Miss Lo!s Hatch, deputy clerk of court, were injured when the auto in which they were riding struck a stretch of sand and overturned. Grand Forks-An attempt to reopen the Peoples State bank here is expected as the result of the announcement of $50 assessments levied against stockholders. Grand Forks-The North Dakota Home Builders association is reported to have disposed of a supply of lumber at a loss of 25 per cent to the state. Jamestown-Raising of a $1,000,000 endowment fund for Jamestown college was urged by Pres. Kroeze before the North Dakota synod of the Presbyterian church. Minot-Albert Uchner, former Soo depot agent at Makoti, has been given a 3-year suspended sentence on his plea of guilty to charges of misappropriating $400. Grand Forks-The Grand Forks Salvation Army corps staged a tag day to raise funds to pay indebtedness incurred in organizing and equipping its band. Bowbells-L. L. Hydle, who for several years acted as superintendent of the Bowbells schools, has become affiliated with the First National bank.
# ACCOMMODATION NOTES.
In the suits brought for the collection of notes given to the since suspended Peoples' State Bank of Grand Forks the proceeds of which were intended to be used in the operation of the since suspended Grand Forks American, it develops that certain of these notes had been given for no money consideration received by the makers, but were intended simply as a loan of the credit of the individuals to the institution or institutions which it was desired to assist. Notes of this kind are called accommodation notes. Many of them have been given during the activity of the Nonpartisan league in North Dakota. They have been given upon assurance that the makers would never be called upon to pay, as means of payment would be found before the maturity of the notes. The makers of such notes would not be inconvenienced in any way whatever. It would be interesting to know in just how many hundreds of cases such assurances have been given, later to be found worthless. Hundreds of thousands of dollars, possibly millions of dollars, have been paid by North Dakota farmers on notes of exactly this character. Sometimes collection was resisted. Sometimes there was no opposition, it being understood that resistance would be futile, and the interested persons have frequently not desired the publicity which would come from suits at law; but whatever the method and whatever the surrounding circumstances, when the effort has been made, either the money represented by these notes has been collected or judgment has been secured to hang like a millstone around the necks of the makers of these notes. The particular notes to which reference has just been made were given by residents of the western part of Grand Forks county to aid in financing one or more of the enterprises inaugurated in support of the Nonpartisan league management and in the customary way, subsidiary to it. It has frequently been stated that the Peoples' Bank was not a part of the Nonpartisan league, that the Grand Forks American was owned by Grand Forks farmers and not by the league. The fact is that both enterprises were the product of league activities, were promoted by league organizers, and were intended to be conducted in the interest of the league. The credit of men of substance has been obtained for enterprises ostensibly of a business character in order that a political movement might be fostered. In each case disaster resulted. It is fortunate that Grand Forks county has experienced but a few things of this kind, but even a few is too many. The farmers of the county who have become familiar with the facts will doubtless be somewhat cautious hereafter about signing accommodation notes for the promotion of political movements.
B. J. Schoregge Here For Investigation B. J. Schoregge, recently appointed supervisor of receivers of state banks and member of the depositors' guarantee fund commission, arrived in Grand Forks Thursday to make an investigation of the records of the People's State bank of this city, which has been closed for some time.
12.May 26, 1922Grand Forks HeraldGrand Forks, ND
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Reorganization Of Bank Is Considered According to John Valley, receiver, the People's State Bank of Grand Forks, which was closed on Feb. 17. 1921, on an order from the state bank examiner. may be re-opened within the next few months. J. I. O'Donnell of this city is now going over the bank's books and paper, to determine what, if anything can be done
13.November 20, 1922The Bismarck TribuneBismarck, Mandan, ND
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ALL BIDS BUT TWO ON BANKS ARE REJECTED Commission and Committee Considering Bids For Purchase in Decision GOVERNOR IN DEFENSE Rejection of all of the bids made on the purchase of assets of 19 closed banks in the banks except bids on two bankers.2which are under consideration, has been been to for reccommendation to the banking board has the Guaranty Fund Commission and bankers' committee. Among the bids rejected were those for the purchase of assets of the closed Peoples State bank of Grand Forks. Decision on the two bid; still under consideration is expected soon. Because of misunderstandings of the work of the men in charge of the essets of the closed banks, Governor R. A. Nestos has made a statement of the conditions, and the present status of proceeding towards elling the assets of some of che institutions. According to the governors statement, three banks, or the assets of three banks have been sold. The advertisement for the sale of the assets of the nineteen at present being considered was ordered by the State Guarantee Fund Commission, two of whose members are appointees of Governor Frasier. The decision of the bankers of the state that it would be better to sell the assets of the banks than to attempt to work cut through receiverships was arrived at openly at the last meeting of the State Bankers association, declares the governor, this meeting having been held at Minot. Assets of two of the three banks whose paper was sold in August, according to the governor were sold to 2 party from Alexandria, Minn., while the assets of the third bank were sold to Craig Craig, a former state manager of the Nonpartisan League.
14.November 28, 1922The Bismarck TribuneBismarck, Mandan, ND
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Fargo, N. D.-District Judge Cole, temporarily enjoined state bank board from selling assets of People's State bank of Grand Forks and directing to show cause December 1, why John Vallely should not be removęd as receiver of the bank.
BANK CONTINUES MAKING PAYMENTS Receiver John Valley of the People's State bank is continuing to pay 20 per gent on all receiver's certificates held by depositors. he said today. although today's number and
# BANK HEARING
# OPENED HERE
# THIS MORNING
(Continued from Page 1)
Mr. Johnson and Mr. Duis regarding the latter's desire to be given a place in the defunct Peoples' State bank with a view to getting it re-opened. These were offered as evidence by Mr. Lemke, and the offer will be ruled on by Judge Kneeshaw this afternoon.
Audit Introduced.
W. S. Dickinson, who made an audit of the Peoples' State bank Sept. 30, was also put on the stand to testify as to that audit. The apparent object of this testimony was to show that Mr. Vallely as receiver of the Peoples' State bank had loaned some of the funds of the bank to other banks in this part of the state of which he was receiver, and had made other loans and settlements to the disadvantage of the local bank. Mr. Dickinson was cross-examined by Mr. Bangs as to several of the transactions in question, many of which were for small amounts.
One of the items was $25 alleged to have been received by Mr. Vallely for expenses in making a collection which it is claimed does not show in the books of the bank.
Lemkes Contention.
In opening his case Mr. Lemke said that it was the intention of the petitioners to show that the state banking board was acting in violation of the law in attempting to sell the assets of the closed banks;
That the board had sold the assets of other closed banks, and threatened to sell those of the bank here;
That favoritism had been shown in the administration of the Peoples' State bank;
That the bank could have been re-opened had its affairs been properly administered;
That the receiver had been guilty of malfeasance in his handling of the bank's funds, and that his actions had been with the consent of the state banking board.
Will Continue Thursday.
Hearing of the case opened at 10 o'clock this morning with the arrival of Attorney General Sveinbjorn Johnson who had been delayed by late trains. At 12:30 o'clock a recess was taken until 3 o'clock this afternoon in order to give those who so desired an opportunity to attend the funeral of the late James Elton.
Indications are that the case will continue through Thursday.
17.January 18, 1923The Bismarck TribuneBismarck, Mandan, ND
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# DEFENDANTS ARE VICTORS
# IN NOTE SUIT
Grand Forks, N. D., Jan. 17.-
Claim that the note for $7,500 sold to a Chicago bank which they had to pay, was simply an "accommodation note," and that signatures of three others were not obtained on the note as promised, is the basis on which H. O. Haroldson, C. T. Ulberg, and H. G. Link sought to recover from John LaVallely, receiver for the defunct People's State bank of Grand Forks, amounts which the plaintiffs assert they paid on a note for $7,500 given the People's bank. Mr. Vallely, receiver, has been substituted for the People's bank, at first named as defendant.
The plaintiffs assert that on Oct. 15, 1920 they were requested by the People's bank to sign the note for $7,500 as an accommodation, owing to the fact that an overdraft had been permitted to the Grand Forks American, Non-partisan daily newspaper, also defunct. They claim that they were assured by the People's bank officials that at least three other responsible persons would be obtained to sign with them, but that such signers were not obtained,
18.January 23, 1923The Bismarck TribuneBismarck, Mandan, ND
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# RECEIVERSHIPS OF CLOSED BANKS VERY COSTLY,
# REPORT MADE BY GUARANTY COMMISSION SHOWS
Enormous expense of conducting receiverships of closed banks in the state is shown in the tabulated statement which the Depositors' Guaranty Fund Commission has submitted to the legislature in connection with its general report on the condition of affairs in the banks and in the fund. The commission in its summary called attention to the manner in which expenses mount in closed banks.
The total expense of the receiverships from the time of first closing on November 11, 1920 to Jan. 1, 1923, is given as $413,713.74. During this same period there was accomplished a liquidation of loans and discounts of the closed banks of $1,251,465.00. There was listed as expense in collections on borrowed money $94,964.03.
The expense of the receiverships from November 18, 1920 until Jan. 1, 1922, or a year and about a month and a half, is placed at $243,877.40. The expense of conducting the affairs of the closed banks in the year ending Jan. 1, 1923, is placed at $169,836.34.
There is shown a reduction in borrowed money of the closed banks of $1,220,262.17, which was accomplished through the collection of loans and discounts in a little larger amount.
On January 1, 1923, the closed banks had $8,568,766.00 of loans and discounts, and the amount of borrowed money was $1,327,040.03. Of the notes held by the banks $1,094,363.00 collectable was pledged collateral to secure borrowed money, $1,260,770.00 was uncollectable pledged collateral; and $1,186,096.00 was rated as uncollectable, unpledged loans and discounts and warrants. Assets of closed banks include banking house furniture and fixtures valued at $247,452,00, other real estate valued at $567,927.00.
The guaranty fund, which amounts to $598,146.43, has $24,402.81 in closed banks of the state; $85,567.06 in open banks on special deposit; and $488,176.56 in general deposits in all other state banks. The distribution of the deposits is not recorded.
The Depositors Guaranty Fund Commission has sold the assets of three banks-the State Bank of Bantry; the Farmers and Merchants Bank of Robinson; the Dunseith State Bank.
A 20 percent dividend paid the depositors of the Peoples State Bank of Grand Forks is the only dividend recorded paid. Assets have not been rated in the following banks: Security State Bank of New England; Farmers State Bank of Havelock; Mohall State Bank of Mohall; Farmers State Bank of Rhames; First Security Bank of Carpio; Scandinavian-American Bank of Fargo; Peoples State Bank of Leith; Crocus State Bank; Farmers State Bank of Walum; First State Bank of Amidon; Slope County State Bank of Amidon; Regent State Bank of Regent; Bank of Mowbray.
The names of the closed banks, and the situation with respect to depositors held to be guaranteed, etc. is given in the table below:
19.January 30, 1923The Bismarck TribuneBismarck, Mandan, ND
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WILL DISCUSS BANK STATUS Judge Kneeshaw to Hear Progress on Reopening Grand Forks, Jan. 30.-District Judge W. J. Kneeshaw of Grafton, before whom the recent injunction hearing of the People's State bank was heard, will be in Grand Forks during the coming week in connection with legal phases of the proposed reopening of the bank, according to information given out by members of the bank finance committee recently. It is expected that some definite plan will be put forward to open the defunct bank at that time, in accordance with the decision rendered by Judge Kneeshaw at the Decem ber hearing, in which he held the matter in abeyance for 40 days in the hope that the stockholders of the bank, John Vallely, receiver, and other interested persons might evolve a plan for reopening the institution. The finance committee, which was appointed soon after the December hearing, has been working on a plan for reopening the bank and it is understood that the plan only needs the confirmation of Judge Kneeshaw as to its legal status, to be put in operation. No definite announcement as to the nature of the proposed plan has been made pub/ lic.
20.January 30, 1923The Bismarck TribuneBismarck, ND
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Judge Kneeshaw to Hear Progress on Reopening
Grand Forks, Jan. 30.—District Judge W. J. Kneeshaw of Grafton, before whom the recent injunction hearing of the People's State bank was heard, will be in Grand Forks during the coming week in connection with legal phases of the proposed reopening of the bank, according to information given out by members of the bank finance committee recently.
It is expected that some definite plan will be put forward to open the defunct bank at that time, in accordance with the decision rendered by Judge Kneeshaw at the December hearing, in which he held the matter in abeyance for 40 days in the hope that the stockholders of the bank, John Vallely, receiver, and other interested persons might evolve a plan for reopening the institution.
The finance committee, which was appointed soon after the December hearing, has been working on a plan.
21.January 30, 1923The Bismarck TribuneBismarck, ND
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Grand Forks, Jan. 30.—District Judge W. J. Kneeshaw of Grafton, before whom the recent injunction hearing of the People's State bank was heard, will be in Grand Forks during the coming week in connection with legal phases of the proposed reopening of the bank, according to information given out by members of the bank finance committee recently.
It is expected that some definite plan will be put forward to open the defunct bank at that time, in accordance with the decision rendered by Judge Kneeshaw at the December hearing, in which he held the matter in abeyance for 40 days in the hope that the stockholders of the bank, John Vallely, receiver, and other interested persons might evolve a plan for reopening the institution.
The finance committee, which was appointed soon after the December hearing, has been working on a plan for reopening the bank and it is understood that the plan only needs the confirmation of Judge Kneeshaw as to its legal status, to be put in operation. No definite announcement as to the nature of the proposed plan has been made public.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
