THE BATTALION Page 4 College Station, Texas Wednesday, January 27, 1971 Closing of bank begins problems for the depositors HOUSTON UP)—Business went on as usual Tuesday in the multi million dollar Sharpstown shop ping center and mall in south west Houston except at one es tablishment—the center's only bank. Shai’pstown State Bank—Tex as’ largest state bank—was or dered closed late Monday. The closing came after some of the estimated 26,000 deposi tors made a run on the bank, withdrawing $15 million after the Jan. 18 filing in Dallas of a Se curities and Exchange Commis sion civil injunction suit naming the Frank W. Sharp interests and alleging stock manipulation and fraud. Sharp is the bank’s majority stockholder. Small groups all through the day gathered on a street in front of the 10-story glass-walled structure that is the focal point of the shopping complex of 57 stores and specialty shops. They started arriving before 8 a.m. Some came from their homes in the surrounding 6,000- a c r e Sharpstown subdivision. Others stopped by on their cof fee breaks or lunch hours. Some stayed minutes. Others remained all day. All had one thing in common. They had bank deposits that had been frozen. They wanted answers to their questions — complete answers — “not in generalities.” State Banking Commissioner Robert Stewart said the deposits probably would be frozen from several days to a week. He said he does not believe the funds are seriously endangered. Directors said the run merely had depleted the bank of cash. Stewart said he is trying to reorganize the bank. He said if this effort fails, he will turn it over to the Federal Deposit In surance Corp., which guarantees individual accounts up to $20,000. The commissioner said the bank is “solvent from a capital standpoint” but v t a s forced to close and be reorganized by the state because of the tremendous depositor demand the past w T eek. “This place is mass confusion,” Stewart said. “There are 40 bank examiners and all the bank’s em ployes, all looking for some place to work.” He said there had been “a gross misunderstanding during part of the day w-hen customers w r anting to get into their safety deposit boxes w'ere turned away. He said they should have been the and allowed to check the boxes from the start. The bank will honor no checks on depositors’ accounts during the reorganization period. Some of those outside building Tuesday laughed told jokes. Most, however, saw nothing funny. Like Kenneth Horak, 27, who was laid off from his job with a construction firm last week. “All the money I have is in this bank. I have just paid by check $200 interest money for a house I am buying. 1 know that wmn’t go through. We ought to have some sort of legal recourse.” A wmman who refused to give her name was bitter. “The rich get richer,” she said. “We asked for a loan from 111 bank once. They took our Im chip stock and discounted per cent as collateral fori loan.” “Do you think this happen because of a run on the banlll another woman asked. “Don'tla yourself,” she said in answeii|j her own question. “They made some bad investments." Bill Runnels, an insurance mil said he wasn’t worried about i getting his money back, but| he needed money now. |! “They will have to do thing,” he said. “That’s whjl have all these controls. |T|] banking business is no goodaij where if this is not the cast,’! m fSI SED? il§® l^dii c 1 IBSl rntfimr vmm wm * a W V& /./? FTL. CANE SUGAR 'ami \ ^ BWM/n/O&u/eef) UMITJ. WfTH O/Z. 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