Well, it was only a matter of time before this old stand-by - a common fixture of many a financial panic in New York City over the last two hundred years - showed itself.
Hundreds of Chinatown residents rush neighborhood bank
April 22, 2003, 7:47 PM EDT
NEW YORK -- Hundreds of Chinatown residents rushed a neighborhood bank Tuesday after notices were posted outside announcing that the former branch manager was being investigated for involvement in "account irregularity."
Dozens of police officers were called in to control the crowd outside Abacus Federal Savings Bank. Customers were allowed into the bank until it closed at 4 p.m. After that, police officers using bullhorns urged customers to return Wednesday morning.
"Your money is safe inside the bank," announced one officer, adding that the customers' accounts were federally insured.
David Lee, Abacus' assistant vice president of operations, said the bank was investigating whether the former manager had improperly handled about 40 of its 20,000 accounts.
Notices posted by bank officials outside the business said that transactions handled by the former manager were being investigated by the FBI for possible prosecution by the U.S. attorney's office.
The notices also said the manager was accused of omitting withdrawals made by account holders, wrongfully crediting and charging accounts and creating fake certificates of deposit and savings accounts.
The notices said that the bank is covered by a Community Bank Fidelity Bond, which protects businesses from theft or other financial dishonesty, and that it "expects to fully restore these accounts affected."
FBI spokesman Jim Margolin said he could not comment on whether an investigation is under way.
Dozens of Chinatown residents, many of whom did not speak English, remained outside the bank after it closed, trying to decipher the notices.
Connie Liu, who kept a safe deposit box there, said the bank was popular because it was the first to do business on Saturdays and Sundays in an area bustling with street vendors and small storefront businesses.
"People are too afraid, because these accounts are (federally) protected," Liu said. "This is a very popular bank. Hopefully they'll open tomorrow."
Copyright © 2003, The Associated Press |
