Word: dresdner
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Dates: during 1930-1939
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...than withdrawals. German statesmen played their hand shrewdly. During the three weeks that Germany has been under partial moratorium the Government investigated every bank that seemed to be in serious trouble. Deposits of the closed Danat Bank were guaranteed. The Government bought 75%, of the stock of the great Dresdner Bank. As a last move to prevent runs 8% was promised on all new deposits. That did the trick. Tellers reported no more business than usual on a midsummer day; huge bundles of unused banknotes were returned to the Reichsbank...
Looking forward to the time when the banks must reopen, the Government announced a $71,000,000 loan to the Dresdner Bank to stave off a threatened run. The loan will be made by buying three-fourths of the bank's outstanding stock. At the same time it was definitely announced that whenever German banks do reopen, that other D bank in distress, the Danat, would reopen too, the Government guaranteeing depositors' funds. Correspondents realized that with the Reichsbank dictating to all German banks, with the Government owning two of the greatest remaining private banks, state capitalism...