How did the banks recover stolen money from a robbery before the FDIC insured days? March 7, 2010
Posted by Banking in : Personal Finance , trackback
I remember reading about how the Ashley gang from the 1920s got away with 4,500 dollars and 18,000 in securities.
This, of course, was long before FDIC where which guarantees the safety of deposits in member banks, currently up to $250,000 per depositer.
How did the banks before FDIC recover money in the event of a robbery, like the Ashley gang robbery, or a bank run? Did the bank immediately go under?
By: Daphne
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the police or whoever ran after the culprits and shot them down and took back the money
i think the banks could have borrowed from other banks, other branches and just eat the cost. But I dunno I’m just guessing.
most likely a sheriff or officer got a group together and tried to hunt them down. They put up wanted posters with rewards and people turned them in. If they weren’t found then the bank was out the money.
FDIC has nothing to do with funds lost to a robbery. It only covers depositors for their losses in the event the bank becomes insolvent and has to be closed.
Banks have separate insurance to cover losses from robbery or fraud. They have a deductible they have to pay and then the insurance company covers the remainder of the loss. They pay a regular premium, just as with any other type of casualty insurance.
some bank used contract farming. paying farmer to farm.
Example; $8,000.00 into Hybrid corn natural modifier 157 bushel’s to the acre =+ $1,256,000.00 it keep depositor’s alive. when other bank were falling.