8385. Security State Bank (Brooten, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 1, 1926*
Location
Brooten, Minnesota (45.501, -95.124)

Metadata

Model
gpt-5-mini
Short Digest
9e6f40e0878c766b

Response Measures

None

Description

Articles (Dec 1926) report the Security State Bank of Brooten was closed by the state banking department in May 1926, is in receivership/receivership proceedings, and stockholders were ordered assessed 100%. No run is described. Classification: suspension leading to permanent closure/receivership.

Events (2)
1. May 1, 1926* Receivership
Newspaper Excerpt
officers of the closed Brooten bank were J. P. Wahl, president, ... and C. O. Knutson, now serving as receiver ...; liabilities are listed ... at time of the receivership ... (Dec 1926 article referencing the bank's receivership and assessment order).
Source
newspapers
2. May 1, 1926* Suspension
Cause
Government Action
Cause Details
Closed by the state banking department in May 1926; followed by investigation and receivership.
Newspaper Excerpt
the Brooten bank, which was closed in May, liabilities are listed at ...
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.