Penn Square Bank's Rise and Fall Story

Penn Square Bank was founded in 1973 in Oklahoma City, Oklahoma, and it quickly became one of the largest independent banks in the state.

The bank's rapid growth was fueled by its aggressive lending practices, particularly in the oil and gas industry.

Its success was also attributed to the bank's innovative approach to financing, which included offering high-interest loans to oil and gas companies.

By the late 1970s, the bank's assets had grown to over $1 billion, making it one of the largest banks in the country.

However, the bank's success was short-lived, as it began to experience significant financial difficulties in the early 1980s.

The bank's aggressive lending practices had led to a high level of default on loans, which severely impacted its financial stability.

As a result, the bank was forced to seek federal assistance, including a $350 million loan from the Federal Deposit Insurance Corporation (FDIC).

For another approach, see: Washington Mutual Loans Mortgage

The collapse of Penn Square Bank was a result of its own making. The bank's aggressive lending practices led to a significant increase in bad loans.

A 3rd printing of "Belly Up: The Collapse of the Penn Square Bank" reveals the extent of the bank's financial woes. The book includes an index, notes, and sources to help readers understand the complex events leading up to the collapse.

The bank's lack of oversight and regulation allowed it to engage in reckless behavior. A very good condition dust jacket, despite being price clipped, hints at the bank's former prosperity.

In the end, the bank's collapse was a result of its own unsustainable business practices.

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The collapse of Penn Square Bank was a dramatic event that had far-reaching consequences. It was the second-largest bank failure in US history at the time, with $450 million in deposits lost.

The bank's collapse was the result of a combination of factors, including a $900 million loan portfolio that was largely composed of highly speculative oil and gas investments. These investments turned sour, leaving the bank with a massive hole in its balance sheet.

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The bank's officers were aware of the risks, but they continued to make loans to oil and gas companies, often using inside information to make the deals. This created a culture of greed and recklessness that ultimately led to the bank's downfall.

The collapse of Penn Square Bank had a significant impact on the local economy, with many depositors losing their life savings. The event also led to a major overhaul of banking regulations in the US.

Penn Square Bank was founded in 1960 and located in the rear of the Penn Square Mall in Oklahoma City.

The bank made its name in high-risk energy loans during the late 1970s and early 1980s Oklahoma and Texas oil boom, with its assets increasing more than 15 times to $525 million between 1974 and 1982.

The bank's deposits swelled from $29 million to more than $450 million during the same period, mainly due to the sale of over $1 billion in "loan participations" to other banks throughout America.

The bank's collapse coincided with the 1980s oil glut and Penn Square was the first of 139 Oklahoma banks that failed in the 1980s.

Broaden your view: Square and Venmo

The Southdale Center in Edina, Minnesota, opened in 1956 and is often credited as the world's first enclosed shopping mall.

This innovative concept revolutionized the retail industry by providing a climate-controlled environment for shoppers.

Southdale Center was designed by architect Victor Gruen, who envisioned a self-contained community with shops, restaurants, and entertainment options.

Gruen's design influenced the development of shopping malls worldwide.

The center's success was largely due to its innovative design, which included a central courtyard and a system of escalators and elevators.

Southdale Center's impact on modern retail and urban planning cannot be overstated.

This pioneering shopping center paved the way for the modern shopping malls we know today.

The Penn Square Bank was founded in 1960 and initially located in the rear of the Penn Square Mall in Oklahoma City.

Between 1974 and 1982, the bank's assets increased more than 15 times to $525 million. This rapid growth was largely due to the bank's high-risk energy loans during the Oklahoma and Texas oil boom.

The bank's deposits swelled from $29 million to over $450 million during the same period. Most of these deposits came from other financial institutions and were largely uninsured.

The bank's irresponsible lending practices led to its failure in July 1982, resulting in significant losses for its depositors. The bank's failure was a major loss for the depositors, as no other bank was willing to assume their deposits.

The bank's collapse coincided with the 1980s oil glut and was the first of 139 Oklahoma banks that failed in the 1980s. This event had a ripple effect on the banking industry, with major losses at other banks including Seattle First National Bank, Michigan National Bank, and Chase Manhattan Bank in New York.

The bank's energy-lending chief, Bill Patterson, was sentenced to a two-year prison term as a result of the investigation by the Federal Deposit Insurance Corporation (FDIC) after the bank's failure. The investigation uncovered 451 possible criminal violations.

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