Failure of Penn Square Bank recalled
April 26, 1982: “The American Banker” publishes a story bringing into question some of Penn Square Bank’s loan practices.
June 28, 1982: The Office of the Comptroller of the Currency determines PSB would fail.
June 30, 1982: Oklahoma City oilman Robert A. Hefner III withdraws $28 million from his PSB account.
July 1, 1982: The PSB board of directors holds a special meeting at the calling of the comptroller and is informed of the bank’s “poor condition.”
July 2, 1982: PSB board determines the bank is insolvent and hands the bank over to the comptroller.
July 3, 1982: PSB board Chairman Bill Jennings is quoted in The Oklahoman saying “Penn Square Bank is not insolvent.”
July 5, 1982: PSB becomes only the third bank in U.S. history to be taken over by the Federal Deposit Insurance Corp., according to The Oklahoman.
July 6, 1982: More than $50 million is withdrawn from the bank by clients who lined up outside its doors.
July 1, 1996: FDIC receivership of PSB is terminated, with more than $340 million in dividends paid and a total resolution cost to the FDIC of $65 million. “Scott Cooper
This article appears in Jul 4-10, 2007.