Arthur T. Roth
Encyclopedia
Arthur Thomas Roth was an American
banker.
Known as "Mr. Long Island", Arthur Roth played a key role in the development of Long Island
banking from 1926 through the 1970s. Roth started as a messenger at the Manufacturers Hanover Trust Company at age 17 and rose quickly through the ranks. He began his career at Franklin National Bank
in 1934 as a cashier
and worked his way up to become the chief executive in 1946. During his tenure, Franklin National Bank became the 18th largest bank in the United States. Under Roth's leadership, Franklin National Bank was the first bank to issue credit cards, as well as the first to offer drive-in teller services.
In July 1968, Arthur Roth was removed from his position as chief executive due to growing loan losses and a shrinking stock price. His removal was precipitated by press accounts of his son Donald's connection with land deals in Suffolk County
. Harold V. Gleason, then President, wanted Roth out and bad press was the best way to get rid of Roth. Some claim Roth over-extended the bank by aggressively pushing into the New York City
real estate market. Among other close connections the bank had, was with Webb and Knapp
, developers of Roosevelt Field, on whose board Roth sat. As real estate values in New York dropped in the following years, Franklin National Bank was stressed with millions of dollars of questionable loans. The Directors from a merger with the Federation Bank were persuaded by Gleason not to nominate Roth for another term as Director, and Roth left the bank in 1970. Gleason then became Chairman and Chief Executive Officer, inviting Laurence Tisch
to join as Vice Chairman as he was a 22% shareholder. Tisch served in an inactive manner until he sold his stock to Michele Sindona
, "The Popes Banker", in 1972. Management of Franklin, led by Gleason and Sindona engaged in a massive real estate expansion, fraudulent statement of financial assets, foreign currency activities, and mismanagement that ultimately led to the bank's demise on October 8, 1974. At the time it was the largest bank failure in the history of the United States. The bank's assets and deposits were then purchased out of the receivership by European-American Bank & Trust Company.
Roth, along with his son Donald, later went on to develop the Bank of Suffolk County, in Stony Brook, New York
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
banker.
Known as "Mr. Long Island", Arthur Roth played a key role in the development of Long Island
Long Island
Long Island is an island located in the southeast part of the U.S. state of New York, just east of Manhattan. Stretching northeast into the Atlantic Ocean, Long Island contains four counties, two of which are boroughs of New York City , and two of which are mainly suburban...
banking from 1926 through the 1970s. Roth started as a messenger at the Manufacturers Hanover Trust Company at age 17 and rose quickly through the ranks. He began his career at Franklin National Bank
Franklin National Bank
Franklin National Bank, based in Franklin Square in Long Island, New York was once the United States' 20th largest bank. On October 8, 1974, it collapsed in obscure circumstances, involving Michele Sindona, renowned Mafia-banker and member of the irregular freemasonic lodge, Propaganda Due...
in 1934 as a cashier
Bank teller
A teller is an employee of a bank who deals directly with most customers. In some places, this employee is known as a cashier. Most teller jobs require cash handling experience and a high school diploma. Most banks provide on the job training....
and worked his way up to become the chief executive in 1946. During his tenure, Franklin National Bank became the 18th largest bank in the United States. Under Roth's leadership, Franklin National Bank was the first bank to issue credit cards, as well as the first to offer drive-in teller services.
In July 1968, Arthur Roth was removed from his position as chief executive due to growing loan losses and a shrinking stock price. His removal was precipitated by press accounts of his son Donald's connection with land deals in Suffolk County
Suffolk County, New York
Suffolk County is a county located in the U.S. state of New York on the eastern portion of Long Island. As of the 2010 census, the population was 1,493,350. It was named for the county of Suffolk in England, from which its earliest settlers came...
. Harold V. Gleason, then President, wanted Roth out and bad press was the best way to get rid of Roth. Some claim Roth over-extended the bank by aggressively pushing into the New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
real estate market. Among other close connections the bank had, was with Webb and Knapp
Webb and Knapp
Webb and Knapp was a real estate development firm, founded in 1922 by Robert C. Knapp and W. Seward Webb, along with Eliot Cross, a noted architect, who along with his brother John Walter Cross, formed the architectural partnership of Cross and Cross. William Zeckendorf joined the Firm in 1938 ...
, developers of Roosevelt Field, on whose board Roth sat. As real estate values in New York dropped in the following years, Franklin National Bank was stressed with millions of dollars of questionable loans. The Directors from a merger with the Federation Bank were persuaded by Gleason not to nominate Roth for another term as Director, and Roth left the bank in 1970. Gleason then became Chairman and Chief Executive Officer, inviting Laurence Tisch
Laurence Tisch
Laurence Alan "Larry" Tisch was an American businessman, Wall Street investor and self-made billionaire. He was the CEO of CBS television network from 1986 to 1995...
to join as Vice Chairman as he was a 22% shareholder. Tisch served in an inactive manner until he sold his stock to Michele Sindona
Michele Sindona
Michele Sindona was an Italian banker and convicted felon. Known in banking circles as "The Shark", Sindona was a member of Propaganda Due , a secret lodge of Italian Freemasonry, and had clear connections to the Mafia...
, "The Popes Banker", in 1972. Management of Franklin, led by Gleason and Sindona engaged in a massive real estate expansion, fraudulent statement of financial assets, foreign currency activities, and mismanagement that ultimately led to the bank's demise on October 8, 1974. At the time it was the largest bank failure in the history of the United States. The bank's assets and deposits were then purchased out of the receivership by European-American Bank & Trust Company.
Roth, along with his son Donald, later went on to develop the Bank of Suffolk County, in Stony Brook, New York
Stony Brook, New York
Stony Brook is a hamlet located in the Town of Brookhaven in Suffolk County, New York, which is on the North Shore of Long Island...
.