The Nation : Century-Old Bank Closed

The 104-year-old Strong’s Bank in Dodgeville, Wis., was closed after Circuit Judge James Fiedler declared the bank insolvent because of poor-quality loans and financial mismanagement. The Federal Deposit Insurance Corp., noting that Strong’s was the 47th bank to fail this year, said it suspects about $1.1 million in brokered funds placed in the bank by a New Jersey firm were used to fund fraudulent transactions. Court testimony disclosed that about 23% of the $20 million in bank loans on Strong’s books were in trouble. FDIC officials were preparing to pay off insured depositors up to the insurance limit of $100,000.