Franklin National Bank , based in Franklin Square on Long Island, New York was once the 20th largest bank of the United States. On October 8, 1974, it collapsed under obscure circumstances, involving Michele Sindona, a famous mafia banker and member of an irregular freemasonic lodge, Due Propaganda. It was at the time of the bank's biggest failure in the country's history.
Video Franklin National Bank
Banking history and innovation
The bank was founded as Franklin Square National Bank in 1926 (but changed its name to Franklin National Bank in 1947). The original location was built in 1929 in Franklin Square. It was later expanded gradually until 1955. It consisted of a one-story Colonial Revival style building in 1929; expansion 1939; expansion 1946/47 which includes the addition of second floor, pediment, partially hooked roof, dome, four additional rear floor and two-storey banking hall; and 1955 additional four-story back office and drive-through teller. The building remained the bank's headquarters until 1960, when a new headquarters was built in Mineola, New York. The building is listed on the National Register of Historic Places by 2015.
Arthur T. Roth joined the bank in 1934 as head teller and became president in 1946. Under his leadership, Franklin National Bank introduced many banking innovations, such as:
- The junior savings account (1947)
- The drive up teller window (1950)
- Bank credit card (1951)
- No smoking policy on banking floor (1958)
- Outdoor teller machine installed in bank branch (1968)
- Franklin Savings Bond which later developed into Certificate of Deposit. (1969)
In 1964, Franklin opened a branch office in New York City, and in 1967 joined the Federation Bank & Trust Company. In 1968, Roth was removed as CEO by protà © © gà © Å ©, Harold Gleason, after allegedly a conflict of interest real estate scandals involving Donald Roth and proposed airfield development in Calverton, NY (see Newsday). In 1970, Roth lost his position as Chairman and was encouraged from the board of directors for an influential future promised by Michele Sindona. Gleason later became Chairman and Chief Executive Officer, inviting Laurence Tisch to join as Vice Chairman because he is a 22% shareholder.
Maps Franklin National Bank
Collapse
In 1972, Michele Sindona, a banker with close ties to the Mafia, P2 pionudo-masonic, and the Nixon government, bought a controlling stake in Franklin National Bank of Long Island, from Laurence Tisch, Chairman of the Loews Corporation, which owns hotels in Italy. Then the US Treasury of the Currency declared Tisch an unqualified director for a conflict of interest, paving the way for Sindona to take over Franklin. Sindona pays more than Tisch to pay for the stock. Tisch was later prosecuted by the Federal Deposit Insurance Corporation (FDIC) for breach of fiduciary liability in connection with the sale of its shares to Sindona. Tisch has bought the stock in a gradual accumulation as an aid to Sindona. It seems a sudden need to sell stock and Sindona sits on the wing, allowing the purchase of shares by Sindona to appear as a golden angel to save. Harold Gleason governs the situation by appointing Tisch as a Member of the Board, creating a conflict of interest states that will allow Tisch to make a sale to Sindona in addition to the reasons for the quality of the investment. Neither the Currency Financial Supervisor, FDIC, or Security and Exchange Commission indicate an interest in the matter.
As a result of the acquisition of a controlling stake in Franklin, Sindona eventually has a money laundering operation to assist its relationship with the Vatican Bank and Sicilian drug cartels. Sindona uses the bank's ability to transfer funds, generate letters of credit, and trade foreign currencies to start building a banking empire in the US. Allegedly Sindona used his influence in Republicans and the Nixon government to ensure that his background did not hamper his ability to become Vice Chairman and the largest shareholder in the bank. Unfortunately Sindona started suffering huge losses in the foreign exchange market, and decided to cheat the bank for $ 30,000,000 to cover its losses, which brought the bank under the capital requirement to operate. In mid-1974, management revealed huge losses and depositors began to take large withdrawals, causing banks to borrow more than $ 1 billion from the Federal Reserve Bank. On October 8, 1974, the bank was declared bankrupt due to mismanagement and fraud, involving losses in foreign currency speculation and poor lending policies.
In 1975, Peter Shaddick, former deputy chief executive of the bank's international division, pleaded guilty to fraud. After their 1979 trial in the Federal District Court in New York, Gleason, Paul Luftig, former bank president and chief administrative officer, and J. Michael Carter, a former senior vice president, were convicted for falsifying financial records. Italian lawyers and liquidators from the Italian financial empire, Giorgio Ambrosoli, gave the US Department of Justice evidence to punish Sindona for his role in the collapse of the World Bank. Ambrosoli was killed by a Mafia assassin commissioned by Sindona in July 1979.
In 1980, "mysterious Michele" was convicted in the United States and in 1984 extradited to Italy. In March 1986, he died of cyanide poisoning while serving a life sentence. Some sources indicate he was killed, while others indicated he committed suicide. Murder can be committed by actors in retaliation for alleged murder of the Pope against Sindona. Others say there is a fear that elderly people in prison speak as they reflect on their destiny. Franklin's assets were later bought by the European American Bank, which was later acquired by Citigroup.
References
St Peter Banker: Michele Sindona by Luigi DiFonzo; Franklin Watts 1983 ISBNÃ, 0-531-09889-3
External links
- Breaking Bank Roth Built by George DeWan, Newsday Long Island History Site (archived December 15, 2007)
Source of the article : Wikipedia
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