First National Bank - Benson, MN

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 6154
Charter Number: 6154
Start Date: June 1, 1926*
Location: Benson, Minnesota (45.315, -95.600)

Metadata

Model: gpt-5-mini
Short Digest: f37155ea

Response Measures

None

Receivership Details

Depositor recovery rate: 17.3%
Date receivership started: 1926-07-06
Date receivership terminated: 1930-09-10
OCC cause of failure: Fraud
Share of assets assessed as good: 12.4%
Share of assets assessed as doubtful: 26.4%
Share of assets assessed as worthless: 61.2%

Description

The First National Bank of Benson is reported closed in June 1926 and a receiver (H. A. Johnson) was appointed by the Comptroller of the Currency on 1926-07-17. Articles describe alleged illegal transfers/looting and criminal charges against officers, indicating bank-specific adverse information (embezzlement/illegal transfers) as the cause. A receiver is still referenced in 1928, consistent with permanent closure and receivership.

Events (5)

1. March 10, 1902 Chartered

Source: historical_nic

2. June 1, 1926* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Alleged looting/illegal transfers and fraudulent affidavits by bank officers; criminal charges and illegal transfers reported by investigators.
Newspaper Excerpt: the First National Benson. which closed June
Source: newspapers

3. July 6, 1926 Receivership

Source: historical_nic

4. July 17, 1926 Receivership

Newspaper Excerpt: Receiver for Benson National Bank Named Benson, Minn., July 17.-H. A. Johnson...was appointed receiver of the closed First National bank of this city Friday. His appointment was made by the comptroller of currency at Washington, D. C.
Source: newspapers

5. August 2, 1928 Other

Newspaper Excerpt: Mr. Cary will maintain offices at the four banks he is now receiver for, Glenwood, Benson, Brandon and Alexander... Mr. Cary has been appointed in his place.
Source: newspapers

Newspaper Articles (3)

1. July 17, 1926 The Minneapolis Star Minneapolis, MN

Article from The Minneapolis Star, July 17, 1926

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Article Text

Receiver for Benson National Bank Named Benson, Minn., July 17.-H. A. John son, formerly of Minneapolis, was ap pointed received of the closed First National bank of this city Friday. His appointment was made by the comptroller of currency at Washington, D. C. hearing will be held before Judge G. E. Quale at Benson, Aug. 16 upon petition of A. Veigel, state commis sioner of banks, to direct an assess ment on stockholders of the closed Swift Falls bank at Swift Falls, Minn. E2 F. Clark of Minneapolis, is in charge of the Swift Falls bank as re ceiver.

2. September 11, 1926 The Minneapolis Journal Minneapolis, MN

Article from The Minneapolis Journal, September 11, 1926

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Article Text

BANK DECLARED LOOTED OF $40,000 Swift Falls President Released After Transfers Reported by Investigator Benson. Minn., Sept. Swift Falls Bank. the president which liberty bail charges grand larceny been looted from to Attorney Blanchard, of Anoka, today. Blanchard, appointed special investiSwift Falls the bank said the looting by "different parties.' He declined say, however, whether oth. arrests might follow Illegal transfer funds has been progress period years, who recently completed three weeks investigating. said the county "The criminal fea. ture not taken within three years after the Thornton, of the bank released from custody terday, charged with affixing fraud. signatures notes, which he placed the draw funds indorsed instruments for and $600 name of the Creek Lum ber British firm, Thornton had no such capacity, declared was capitalized at and Deposits totaled the neighborhood of Thornton have preliminary hearing Sep tember 28. Thornton also president of the First National Benson. which closed June the Swift State Bank suspended business.

3. August 2, 1928 St. Cloud Times Saint Cloud, MN

Article from St. Cloud Times, August 2, 1928

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Article Text

ceiver of the First National banks at Brandon and Alexander. Mr. Cary will maintain offices at the four banks he is now receiver for, Glenwood, Benson, Brandon and Alexander, but will continue his residence at Benson. Frank Hinsley, formerly of the First National bank here, receiver for the banks at Brandon and Alexander, recently resigned, and Mr. Cary has been appointed in his place.