March 13, 1991 |
Meet some of the victims of Rhode Island's banking crisis: There's the family that lost both the house it was selling, and the one it was buying; the father of three, who lost his job and access to his $29,000 retirement fund; the woman from North Providence who was able to bury her mother only after the governor signed an executive order so she could withdraw enough money to pay for it. There's the hard-working couple, George and Patricia Sackal,...
October 27, 1992 |
It is the December surprise. A multi-billion-dollar tab that will be presented to taxpayers - after the election is over. No presidential candidate has paid much public attention to it. Neither party platform mentions it. The press generally ignores it. Finally, in the last presidential debate, Reuter's Gene Gibbons mentioned the unmentionable: Is there a commercial bank crisis and, if so, how bad is it? Suddenly, what had been show time threatened to turn serious. The question probed both the banking debacle and the bipartisan political collusion to avoid responsibility for it. The banking crisis is an open secret in Washington.
June 23, 1990 |
Despite its efforts, Texas still ranks first in a number of categories it would just as soon not be in at all. For the past four years, the state has led the nation in the number of bank failures. Last year, 133 commercial banks in the state failed - and 62 have failed so far this year, almost one-half of the failures nationwide. That is why Rep. Henry B. Gonzalez (D., Texas), chairman of the House committee probing bank failures, came to his home state yesterday to hold two days of hearings and talk dollars and sense.
July 3, 1992 |
Pennsylvania officials were haunted by fears of a statewide banking crisis similar to Rhode Island's in the months before they shut down two small private banks in April, the state's secretary of banking testified yesterday. Sarah W. Hargrove told a Berks County court that state officials, including Gov. Casey, worried that the failure of either Marian or Tobias Knoblauch Private Bank could precipitate a banking crisis that could ultimately cost Pennsylvania as much as $300 million, while severely damaging confidence in all the state's financial institutions.
August 19, 1991 |
The government is now the biggest banker in America, thanks to the rash of failed savings and loans. And without drastic measures the looming banking crisis will make it even bigger. After almost two years in business, the Resolution Trust Corp. has seized more than 575 failed savings and loans. When the corporation finishes taking over failed thrifts, it faces the daunting task of cleaning up the slew of bank failures sure to follow. At this rate, eventually there will be only one giant bank - run by the government - an institution ill-equipped to run the country, much less a bank.
July 17, 1991 |
Are you wondering why we have a banking crisis? Consider a game called "Beat the Bank. " If you borrow millions for real-estate development or investment and the project loses money, you don't owe the lender anything and the lender may well pay you. Here's how the game works. When you default, actively involve the bank in the project's problems, soliciting the bank's financial expertise. Tell the bank the best solution involves partial forgiveness of debt, a reduced interest rate and lending you more money.
April 2, 1992 |
The Bush administration appears to be delaying moves to shut down large failing banks until after November's elections for political reasons, the director of the Congressional Budget Office said yesterday. The delay could drive up costs of the bank failures by tens of billions of dollars, CBO director Robert D. Reischauer told the Senate Banking Committee. The slowdown in closures probably also is rooted partly in fear that shutting down big-name banks might shock consumers and financial markets badly enough to abort the budding economic recovery, Reischauer said.
March 15, 1991 |
In the first of several investigations into Rhode Island's banking crisis, a special commission yesterday blamed a state regulatory system that ignored ominous signals for years and deceived depositors into thinking that their money was safe. "If you're trying to find a villain here, the villain is the system," said Brown University president Vartan Gregorian, who had been asked by Gov. Bruce Sundlun to lead an independent examination of the affair. In a harshly worded report, the commission said state regulators failed to oversee the Rhode Island Share and Deposit Indemnity Corp.
April 22, 2014 |
In 40 years running Talluto's Authentic Italian Food Inc. - stores on Ninth Street in South Philly, and in Norristown and Ridley Park, and a Folcroft plant that makes Italian meals for ShopRite and Acme and other markets - Joe Talluto's family has survived a lot of banks. " First Pennsylvania, PNB, Continental, PNC, Progress, Citizens ," Talluto recites. Most vanished in mergers. At Citizens, his initial loan officer "was good, but he disappeared. " So Talluto moved to little DNB First (the former Downingtown National Bank)
March 7, 2014 |
At its peak in the mid-2000s, Vernon Hill's Commerce Bank was adding its boxy, sunlit branches up and down the East Coast at the rate of one a week. On Saturday, Hill was back, in Cherry Hill, near his Moorestown mansion, opening a new glass-walled Republic Bank branch that looks like the next generation of Commerce - or Metro Bank Plc , his fast-growing operation in England. Seven years after he stepped down as Commerce CEO amid a dispute with regulators - and six years after Canada's Toronto-Dominion Bank paid $8.5 billion for Marlton-based Commerce and its 460 branches and $48 billion in loans and other assets, then scrapped the big red C signs and replaced them with white-on-green TD placards - Hill sees new opportunity in his old front yard.