UNIQUE LEGAL SUIT
BANK FAILURE SEQUEL CLAIM BY GOVERNMENT (Elec. Tel. Copyright —United Press Assn.) (Received Dec. 29, 3 p.m.) NEW YORK, Dec. 28.
The City Clearing House Association, comprising 20 of the largest local banks, is preparing to tight an equity suit filed by fiscal agents of the Federal Government to regain for depositors money lost ili the collapse of the Harriman Bank, aggregating about £1,800,000. The Government alleges that at least a year before the ’‘February bank crisis, Harriman wa§, insolvent, bub as Clearing) House members feared that the closing would precipitate a general bank crisis, they jointly undertook to guarantee deposits to keep the bank open. After Mr. Roosevelt became President, the officials ordered tho institution to be liquidated. The Clearing House has now declared that the agreement was made in a time of crisis, and. is not legally binding, and refused to make restitution.
It is believed fEafc the Government suit is unique in the history of American jurisprudence-
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Bibliographic details
Poverty Bay Herald, Volume LX, Issue 18283, 29 December 1933, Page 8
Word Count
163UNIQUE LEGAL SUIT Poverty Bay Herald, Volume LX, Issue 18283, 29 December 1933, Page 8
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