Midwest Federal Savings & Loan
Encyclopedia
Midwest Federal Savings and Loan was an American
bank
headquartered in Minneapolis, Minnesota. Starting in the mid-1960s, its headquarters were located at 801 Nicollet Mall in what is now called the Midwest Plaza. Midwest Federal was in business for ninety-nine years until its failure in 1989. Its collapse was due mostly to bad real estate loans. On April 22, 1991 the St. Paul Pioneer Press
called the bank's failure the "largest financial disaster in Minnesota history" and was part of the savings and loan crisis
of the 1980s. Midwest Federal had assets of $3.5 billion, was liquidated by the Government at a cost of $1 billion to taxpayers. Midwest was $1 billion in debt when it was seized by regulators in February 1989.
The former chairman, Harold W. Greenwood Jr., Donald J. Snede, Charlotte E. Masica, and Robert A. Mampel were indicted on Federal fraud and conspiracy charges involving financial losses at the failed institution. After its collapse, Midwest Savings was eventually placed under the "conservatorship" of the Resolution Trust Corporation (RTC) until its deposits were sold to various parties. The largest share of Midwest's deposits - $638 million - went to Minneapolis banker Carl Pohlad
, whose Marquette Bank Minneapolis
bought the deposits of eight branches for US$3.2 million.
FDIC takes control of Midwest Federal of bank
March, 1988 Midwest Federal Savings executives lend $6.5 million more to the money losing resort, the Jockey Club of Miami in Miami, FL. after withholding an analysis of the value of the resort from federal examiners.
May, 1989 - Carl Pohlad buys bank deposits
March, 1990 - Susan Greenwood Olson, a former officer with Midwest Federal Savings and Loan, indicted.
The indictment focuses on unsecured loans extended to the Jockey Club and an inflated appraisal of its value.
June, 1990 - Bank Chairman and Executives indicted on charges of racketeering.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
headquartered in Minneapolis, Minnesota. Starting in the mid-1960s, its headquarters were located at 801 Nicollet Mall in what is now called the Midwest Plaza. Midwest Federal was in business for ninety-nine years until its failure in 1989. Its collapse was due mostly to bad real estate loans. On April 22, 1991 the St. Paul Pioneer Press
St. Paul Pioneer Press
The St. Paul Pioneer Press is a newspaper based in St. Paul, Minnesota, primarily serving the Twin Cities metropolitan area. Circulation is heaviest in the eastern metro region, including Ramsey, Dakota, and Washington counties, along with western Wisconsin, eastern Minnesota and Anoka County,...
called the bank's failure the "largest financial disaster in Minnesota history" and was part of the savings and loan crisis
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States...
of the 1980s. Midwest Federal had assets of $3.5 billion, was liquidated by the Government at a cost of $1 billion to taxpayers. Midwest was $1 billion in debt when it was seized by regulators in February 1989.
The former chairman, Harold W. Greenwood Jr., Donald J. Snede, Charlotte E. Masica, and Robert A. Mampel were indicted on Federal fraud and conspiracy charges involving financial losses at the failed institution. After its collapse, Midwest Savings was eventually placed under the "conservatorship" of the Resolution Trust Corporation (RTC) until its deposits were sold to various parties. The largest share of Midwest's deposits - $638 million - went to Minneapolis banker Carl Pohlad
Carl Pohlad
Carl R. Pohlad was a successful financier and the owner of the Minnesota Twins baseball franchise from 1984 until his death in 2009.-Early life:...
, whose Marquette Bank Minneapolis
Marquette Bank Minneapolis
Marquette National Bank was chartered in 1920 and was named for Marquette Avenue, the financial center of Minneapolis, Minnesota.The bank was eventually acquired by Carl Pohlad and had $350 million in assets in 1982 when it acquired the failing Farmers and Mechanics Savings Bank of Minneapolis and...
bought the deposits of eight branches for US$3.2 million.
Causes of failure
The bank was involved with a series of unsecured loans. Many of the bad loans were to mobile home owners. On the opposite scale were the unsecured loans to the Jockey Club of Miami, a resort in Miami, Florida, beginning in 1975, with a $6 million loan in 1975. The bank continued unsecured loans to the resort until its collapse in 1990.Timeline
Feb., 1989 - Midwest Federal declared insolvent. Chairman Greenwood ResignsFDIC takes control of Midwest Federal of bank
March, 1988 Midwest Federal Savings executives lend $6.5 million more to the money losing resort, the Jockey Club of Miami in Miami, FL. after withholding an analysis of the value of the resort from federal examiners.
May, 1989 - Carl Pohlad buys bank deposits
March, 1990 - Susan Greenwood Olson, a former officer with Midwest Federal Savings and Loan, indicted.
The indictment focuses on unsecured loans extended to the Jockey Club and an inflated appraisal of its value.
June, 1990 - Bank Chairman and Executives indicted on charges of racketeering.