1974day.year
Franklin National Bank collapses due to fraud and mismanagement; at the time it is the largest bank failure in the history of the United States.
Franklin National Bank collapsed in 1974 due to fraud and mismanagement, marking the largest bank failure in U.S. history at the time.
On October 8, 1974, Franklin National Bank in Long Island, New York, was seized by federal regulators due to insolvency. Aggressive foreign currency speculation and high-risk lending practices had led to massive losses. Internal fraud and deceptive accounting further undermined the bank's financial stability. Chairman Arthur Nadel and other executives faced allegations of misconduct and failure to disclose mounting deficits. With assets exceeding $8 billion, its collapse was the largest bank failure in U.S. history at the time. The fallout prompted sweeping reforms in banking oversight, including stricter capital requirements and enhanced regulatory transparency.
1974
Franklin National Bank