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Philadelphia Savings Fund Society

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369: 286: 1385: 430: 520: 614:. The court has agreed to review whether the trial court had the appropriate jurisdiction to hear the breach of contract dispute. The government is further arguing that the FDIC is Non-Appropriated Fund Instrumentality (NAFI), an agency created by the executive branch that receives no funding, and will not receive any funding, from the government. The FDIC receives funding by charging banks fees to member banks. If the 242: 29: 278:. Over several meetings the group figured out the bank's structure and positions. Andrew Bayard was elected the first president of the bank during the third meeting on November 28. The bank was named the Philadelphia Saving Fund Society because Raguet felt the name "bank" was unpopular and calling it a society would make it easier to receive a charter from the 541:
the bank branches' name, becoming the Philadelphia Savings Fund Society. When the deal went into effect in 1990 Meritor turned off the PSFS on the PSFS Building saying it was inappropriate to use the sign. Turning off the sign provoked protest from the public, historians and architecture buffs and Meritor and Mellon Bank agreed to relight the sign.
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invested $ 215 million (equivalent to $ 517 million in 2023) in a Virginia mortgage company that went bankrupt, and in October 1987, Meritor halted its dividend after announcing a third-quarter loss of $ 379.6 million (equivalent to $ 874 million in 2023). That same month the company also announced plans to sell some of its operations.
178:, United States. PSFS was founded in December 1816, the first savings bank to organize and do business in the United States. The bank would develop as one of the largest savings banks in the United States and became a Philadelphia institution. Generations of Philadelphians first opened accounts as children and became lifelong depositors. 334:. At first PSFS was open only on Mondays for receiving deposits and Thursdays for giving payments. While PSFS soon opened daily for business, deposits and payments were still only taken on those days. In 1835 PSFS expanded giving out deposits and payments on both Mondays and Thursdays, and in 1865 it was open for all business daily. 270:, Clement C. Biddle and Thomas Hale on creating a similar institution in Philadelphia. A meeting was held on November 25 to discuss the plan. A total of twelve men agreed to work together to form the bank. Along with Raguet, Peters, Biddle, and Hale, the other men, called associate founders, were Charles N. Bancker, Andrew Bayard, 545:
their original cost. In February 1991, regulators demanded higher capital standards which Meritor failed to meet. A few months later in August, Meritor ending a troublesome dispute with bondholders by giving up 37 percent of its common stock plus cash to redeem US$ 115 million (equivalent to $ 229 million in 2023) in debt.
185:, who had read about the concept of savings banks becoming popular in Great Britain. The bank quickly began to expand by adding services and branches, and moving into larger headquarters buildings. By the late 1910s, PSFS had the most depositors of any savings bank in the United States; it was second to the 600:
Over the next decade there was little news on the progress of the case, with a website, meritorpsfs.com, the main source of information. On August 16, 2002, a judge ruled that the FDIC was wrong in seizing Meritor and that shareholders were entitled to damages. On February 10, 2006, Meritor investors
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for traditional community banks. The crisis prompted the government to step in with a solution to force mergers between troubled banks and healthy banks such as PSFS. In April 1982, PSFS merged with the Western Savings Fund Society, receiving US$ 294 million (equivalent to $ 786 million in 2023)
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In 1948, PSFS was the second largest savings bank in the United States with deposits totaling US$ 594,460,363 (equivalent to $ 6.03 billion in 2023). In the 1960s PSFS, along with three other Philadelphia savings banks, established a US$ 20 million (equivalent to $ 134 million in 2023) pool
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Despite the effort, conditions continued to deteriorate for Meritor and other banks around the United States. Not helping matters was a poor commercial real-estate market that left Meritor with empty Philadelphia office buildings and half-finished suburban strip shopping malls valued at fractions of
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for US$ 335 million (equivalent to 717 million in 2023) in 1989. The deal, which included selling Mellon Bank the right to use the name PSFS, shed US$ 4.9 billion (equivalent to $ 10.5 billion in 2023) in assets from Meritor. Earlier that year an extra "s" was added to the word "Saving" in
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for US$ 7,000 (equivalent to $ 191,047 in 2023). That same year PSFS moved its offices to Sixth and Minor Streets. In the 1820s PSFS moved three more times, to Decatur Street in 1821 and Third and Walnut Streets in 1826. The latter office proved too small, so PSFS quickly bought its own building
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Things soon took a turn for the worse as the company began losing millions through its new business ventures as its competitors began encroaching on Meritor's home market. Meritor's stock prices continuously dropped from almost the moment they were first issued. In August 1985, Meritor revealed it
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The money Mellon Bank paid went to the FDIC, leaving Meritor's stockholders with nothing. In 1993 Slattery—who had long opposed government interference in business—sued the FDIC, claiming regulators reneged on their 1982 promise to permit goodwill in the company's merger with Western Savings Fund
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Frank Slattery bought 5.5 percent of Meritor's stock, becoming the controlling shareholder. Slattery began pushing for changes and in June, with help from others, was able to demote chairman and CEO Frederick S. Hammer to president and replace him with Roger S. Hillas. To try to stanch the losses
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In the 1970s, changes in the personal finance industry led to smaller banks struggling to stay open. A government solution had such banks merge with healthier ones and in 1982, the Western Savings Fund Society was merged with PSFS. The merger deal and changes in regulations allowed PSFS to expand
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to organize and do business in the United States. Savings banks had existed in Europe for years and in the early 1810s had grown rapidly through Great Britain. This growth became the topic of numerous journals and pamphlets, some of which were brought to the attention of Philadelphia businessman
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court agrees and finds that appropriated funds may not be used to pay judgments against NAFI's, then any judgment in the Meritor Savings case will be produced by the banks regulated by the FDIC and not by Treasury dollars. In other words, the FDIC could be found to be in breach, but it would be
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PSFS had students work as tellers to collect and record deposits. PSFS also provided a separate counter just for student accounts at their headquarters. The School Accounts Counter included step stools for the youngest depositors. The program helped several generations of Philadelphians open up
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organization selling 35 million shares at US$ 11.25 each. In January 1984, PSFS began expanding into financial service by buying a loan portfolio and mortgage business from General Electric Credit Corp. for US$ 568 million (equivalent to $ 1.41 billion in 2023). In April 1985, the company
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After purchasing the PSFS bank branches and the PSFS name from Meritor, Mellon began operating its bank branches as Mellon PSFS. Acquiring the remainder of the PSFS branches from Meritor in 1992, Mellon continued to expand in the 1990s including the construction of combination Mellon PSFS and
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acquired four savings and loans in Florida and began paying five cents per share quarterly dividend to stockholders. In September of that year, PSFS began doing business under the name Meritor Financial Group to emphasize its expansion into financial services. In 1986, Meritor began operating
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On December 4, 1816, the Articles of Association, which contain the earliest written use of the name Philadelphia Saving Fund Society, were adopted. The Philadelphia Saving Fund Society (PSFS) opened two days before on December 2 in the office of the Saving Fund Society's first Secretary and
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By October 1992, bank analysts had listed Meritor among institutions most likely to be seized by the end of the year. In the next month, worried depositors withdrew more than US$ 100 million (equivalent to $ 195 million in 2023) from PSFS branches. On December 4, Meritor sold off its
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buying shares for as little as 5 cents with hopes of a government payout to settle the case. Most of the 55 million outstanding Meritor shares are believed to be owned by speculators or PSFS depositors who had bought shares when the company first went public.
579:. Mellon PSFS's parent company, Mellon Financial, was interested in abandoning its retail banking assets and focus on high income investments. On July 17, 2001, Mellon Financial announced it was selling its retail banking business, including Mellon PSFS, to 398:. The pageants included songs about thriftiness set to popular music, cheers, speeches that quoted historical figures' opinions on thriftiness, and a play. In the plays, costumed children warned the audience about spending money on treats, movies, and 213:
to emphasize its expansion into financial services. The new business venture led to the company losing millions of dollars; it was forced to sell off many of its subsidiaries and PSFS bank branches. Despite the effort, Meritor continued to lose money.
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entitled to recover the judgment by member banks. In order to find the FDIC a NAFI, the government is arguing that Congress has no obligation to honor its promises to back deposits with the full faith and credit of the United States.
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By the end of the 1920s PSFS was the third largest savings bank in the United States and in 1935 was ranked thirty-fourth largest savings bank in the world. In 1932 PSFS built a new headquarters building on Market Street. The new
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in the amount of money deposited. PSFS began programs in the 1920s that encouraged children to put money into savings accounts instead of spending it on treats and school programs, allowing children to open accounts with PSFS.
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in the amount of money deposited. In 1923 PSFS began the first in-school banking program at William Penn School for Girls. The program was intended to teach children to save by allowing them to deposit money at the bank. In
1277: 467:. The merger gained PSFS US$ 2 billion (equivalent to $ 5.34 billion in 2023) in assets. FDIC also credited PSFS with US$ 800 million (equivalent to $ 2.14 billion in 2023) in "supervisory goodwill". 229:
for US$ 335 million (equivalent to $ 653 million in 2023). Mellon renamed the former PSFS branches Mellon PSFS, a name which lasted the end of 2001, when the branches were acquired by
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for US$ 2 billion (equivalent to $ 3.29 billion in 2023). At the end of November 2001, all Mellon PSFS branches became branches of the newly formed Citizens Bank of Pennsylvania.
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seized Meritor and placed it into the receivership of the FDIC, who sold Meritor's 27 remaining branches to Mellon Bank for US$ 181 million (equivalent to $ 353 million in 2023).
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Hillas sold Meritor's credit-card portfolio and some of its subsidiaries. Continuing to lose money, Meritor sold 54 suburban branches of PSFS, more than half of its branches, to
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By 1917 the Philadelphia Savings Fund Society had the largest number of depositors of any savings bank in the United States and was second only to the
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was opened for business on October 11, 1869. Forced to expand even more, additions were later made in 1885-86 by Hutton and in 1897–98, designed by
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and moved there on October 2, 1827. By 1833 PSFS again needed more room and PSFS bought property on which the bank built a structure designed by
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In 1865 PSFS again began looking for a new location and in 1866 a location was found on Seventh and Walnut Streets. Designed by architect
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The deals also allowed the merged banks to expand into new business ventures. PSFS soon began expanding into new services such as
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branches, the first of which opened in 1994. In 2001, Mellon PSFS had 350 branches and 650,000 customers in Pennsylvania,
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Another way PSFS taught children to save money in savings banks was a program that produced pageants for playgrounds and
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Florida-based savings and loan subsidiary, the company's last out-of-state banking operation. On December 11, 1992, the
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DiStefano, Joseph N. (July 18, 2001). "Mellon Financial Corp. of Pittsburgh to Get Rid of All Its Bank Branches".
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were awarded US$ 371.7 million (equivalent to $ 541 million in 2023), totaling US$ 6.75 a share.
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Treasurer, George Billington. The office was located on the west side of South Sixth Street, between
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and is topped with the Philadelphia Saving Fund Society's initials in 27 feet (8.2 m) red
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The United States in the 1970s saw numerous changes to personal finance such as the advent of
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On December 11, 1992, federal regulators seized the 176-year-old bank and placed it into the
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PSFS grew slowly, but as early as August 1817 there were resolutions authorizing setting up
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Bergen, Jane (September 7, 1996). "Mellon PSFS to Put 100 Offices in Acme Supermarkets".
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through a subsidiary, completing the transition to a full-service financial institution.
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Raising consumers: Children and the American Mass Market in the Early Twentieth Century
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Belden, Tom (December 3, 2001). "Mellon PSFS to Put 100 Offices in Acme Supermarkets".
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into new business ventures. PSFS quickly began expanding into other fields such as
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In 1986, the bank went to the U.S. Supreme Court to defend itself against a claim
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Society. The lawsuit kept the stock for the now defunct company alive with
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Mason, Todd (February 11, 2006). "A court win for Meritor investors".
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instead of putting the money in a savings bank where it would grow.
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Founded in 1816, the Philadelphia Saving Fund Society was the first
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built in the United States. The modern skyscraper was designed by
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accounts as children, leading many to become lifelong customers.
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A History of the Philadelphia Savings Fund Society 1816 - 1916
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to finance mainly low and moderate income minority families.
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Philadelphia Saving Fund Society, Twelfth and Market Streets
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In 1818, PSFS issued its first home mortgage to architect
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Interested in the idea, Raguet approached associates,
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Philadelphia Saving Fund Society, 700 Walnut Street
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Philadelphia Saving Fund Society, 306 Walnut Street
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In September 1983, PSFS converted from a 1399:MeritorPSFS Shareholders Association, Inc. 1188:"Mellon Bank to Buy 54 of Meritor's Units" 1505:American companies disestablished in 1992 1425:PSFS Building, Walnut and Seventh Streets 1231: 1335:. Philadelphia: J.B. Lippincott Company. 1298: 1111:"Savings Deposits up by $ 450,000,000". 1028: 988: 986: 984: 982: 980: 978: 976: 974: 972: 963: 911:"PSFS Bank and York Row to be Renovated" 903: 879: 724: 722: 518: 428: 367: 284: 240: 1485:Defunct companies based in Pennsylvania 1328: 1317: 1185: 951: 939: 885: 873: 861: 846: 834: 793: 781: 769: 757: 745: 720: 718: 716: 714: 712: 710: 708: 706: 704: 702: 441: 1500:American companies established in 1816 1470:1992 disestablishments in Pennsylvania 1442: 1246: 1216: 1198:from the original on December 20, 2017 992: 805: 314:the Philadelphia Saving Fund Society. 1261: 1126:"Negro Help is Planned by Pa. City". 1085: 969: 1324:. New York: B.F. Buck & Company. 699: 1460:1816 establishments in Pennsylvania 1186:Michael, Quint (December 6, 1989). 357:construction began in 1868 and the 306:servant. On February 25, 1819, the 13: 1480:Defunct banks of the United States 1404:Historic American Buildings Survey 1340: 1130:. November 24, 1968. pp. F17. 993:Cassel, Andrew (August 16, 2002). 886:Gallery, John Andrew, ed. (2004), 606:Slattery (Meritor Savings) v. U.S. 523:PSFS Building's banking hall, 1985 14: 1516: 1376: 1321:Century of American Savings Banks 1175:. January 25, 1991. pp. C11. 1171:"PSFS Will Light the Sky Again". 1145:. December 6, 1989. pp. A04. 735:. December 12, 1992. p. A01. 156:Philadelphia Savings Fund Society 22:Philadelphia Savings Fund Society 1383: 1048:. March 10, 1930. Archived from 164:Philadelphia Saving Fund Society 27: 1475:Companies based in Philadelphia 1270: 1255: 1240: 1225: 1210: 1179: 1164: 1149: 1134: 1119: 1104: 1079: 1075:. November 9, 1935. p. 22. 1064: 1034: 690:Gross Domestic Product deflator 376: 372:The Society's 1869 headquarters 289:The Society's 1840 headquarters 1318:Manning, James Hilton (1917). 799: 561: 505:Meritor Savings Bank v. Vinson 458:. These changes resulted in a 412:international style skyscraper 1: 1303:. Columbia University Press. 1292: 1160:. June 7, 1990. pp. A01. 671:"What Was the U.S. GDP Then?" 1465:Banks disestablished in 1992 1115:. July 30, 1948. p. 24. 806:Wright, Robert Eric (2005). 556: 551:Office of Thrift Supervision 7: 1450:Banks based in Pennsylvania 1357:Journal of Economic History 1071:"Savings Banks Rank High". 326:outside of Philadelphia in 249: 10: 1521: 1329:Willcox, James M. (1916). 586: 359:PSFS Headquarters building 236: 1455:Banks established in 1816 1369:10.1017/S0022050700015473 1351:; Rotella, Elyce (1994). 1264:The Philadelphia Inquirer 1249:The Philadelphia Inquirer 1234:The Philadelphia Inquirer 1219:The Philadelphia Inquirer 1173:The Philadelphia Inquirer 1158:The Philadelphia Inquirer 1143:The Philadelphia Inquirer 1042:"Business: Savings Banks" 995:The Philadelphia Inquirer 732:The Philadelphia Inquirer 456:automated teller machines 317: 162:), originally called the 142: 122: 112: 104: 89: 79: 55: 45: 35: 26: 1430:HABS No. PA-1533, " 1423:HABS No. PA-6663, " 1416:HABS No. PA-1462, " 1409:HABS No. PA-1461, " 772:, pp. 19–20, 23–24. 622: 581:Citizens Financial Group 308:Governor of Pennsylvania 231:Citizens Financial Group 1495:History of Philadelphia 1299:Jacobson, Lisa (2004). 480:real estate development 463:in assistance from the 263:in late November 1816. 211:Meritor Financial Group 204:real estate development 1086:Dupré, Judith (1996). 524: 434: 373: 290: 246: 810:The First Wall Street 522: 510:1964 Civil Rights Act 432: 383:Emigrant Savings Bank 371: 288: 244: 187:Emigrant Savings Bank 1052:on February 12, 2009 442:Expansion and crisis 16:Former American bank 692:figures follow the 484:mutual organization 388:junior high schools 23: 1192:The New York Times 1128:The New York Times 1113:The New York Times 1073:The New York Times 529:venture capitalist 525: 452:money-market funds 435: 374: 339:William Strickland 328:Northern Liberties 291: 247: 147:Financial services 21: 1284:on March 7, 2016. 1031:, pp. 65–67. 1010:Missing or empty 966:, pp. 59–61. 942:, pp. 76–77. 876:, pp. 62–63. 796:, pp. 25–27. 760:, pp. 11–12. 500:sexual harassment 476:corporate finance 472:equipment leasing 433:The PSFS Building 396:settlement houses 280:state legislature 196:corporate finance 170:headquartered in 152: 151: 1512: 1393: 1388: 1387: 1386: 1372: 1336: 1325: 1314: 1286: 1285: 1274: 1268: 1267: 1259: 1253: 1252: 1244: 1238: 1237: 1229: 1223: 1222: 1214: 1208: 1207: 1205: 1203: 1183: 1177: 1176: 1168: 1162: 1161: 1153: 1147: 1146: 1138: 1132: 1131: 1123: 1117: 1116: 1108: 1102: 1101: 1083: 1077: 1076: 1068: 1062: 1061: 1059: 1057: 1038: 1032: 1026: 1020: 1019: 1013: 1008: 1006: 998: 990: 967: 961: 955: 949: 943: 937: 931: 930: 928: 926: 921:on July 19, 2010 917:. 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Retrieved 674: 615: 609: 605: 603: 599: 590: 569:Acme Markets 565: 547: 543: 526: 514: 503: 497: 493:mutual funds 469: 448:credit cards 445: 436: 404: 393: 380: 377:20th century 352: 336: 321: 292: 276:Roberts Vaux 272:Samuel Breck 265: 261:Condy Raguet 256:savings bank 253: 245:Condy Raguet 219:receivership 216: 210: 208: 200:mutual funds 192: 183:Condy Raguet 180: 176:Pennsylvania 172:Philadelphia 168:savings bank 163: 159: 155: 153: 132:Pennsylvania 128:Philadelphia 123:Headquarters 84:Condy Raguet 73:Pennsylvania 69:Philadelphia 50:Savings bank 36:Company type 18: 1088:Skyscrapers 594:speculators 562:Mellon PSFS 538:Mellon Bank 416:George Howe 117:Mellon Bank 1444:Categories 1293:References 897:0962290815 534:Pittsburgh 1003:cite news 557:Aftermath 426:letters. 332:Southwark 113:Successor 108:Dissolved 1196:Archived 1056:July 22, 925:July 22, 696:series. 577:Delaware 296:Chestnut 250:Founding 166:, was a 143:Products 46:Industry 616:en banc 611:en banc 587:Lawsuit 536:-based 237:History 221:of the 95: ( 90:Defunct 80:Founder 61: ( 56:Founded 1307:  1094:  894:  818:  460:crisis 318:Growth 202:, and 40:Public 623:Notes 502:. In 488:stock 486:to a 1305:ISBN 1204:2017 1092:ISBN 1058:2009 1046:Time 1016:help 927:2009 892:ISBN 816:ISBN 684:2023 575:and 478:and 454:and 424:neon 418:and 330:and 298:and 160:PSFS 154:The 105:Fate 97:1992 93:1992 63:1816 59:1816 1365:doi 604:In 67:in 1446:: 1361:54 1359:. 1355:. 1194:. 1190:. 1044:. 1007:: 1005:}} 1001:{{ 971:^ 913:. 854:^ 701:^ 673:. 631:^ 512:. 474:, 450:, 365:. 282:. 233:. 206:. 198:, 174:, 135:, 130:, 71:, 1371:. 1367:: 1313:. 1251:. 1236:. 1221:. 1206:. 1100:. 1060:. 1018:) 1014:( 997:. 929:. 824:. 686:. 158:( 99:) 65:)

Index


Public
Savings bank
Philadelphia
Pennsylvania
Condy Raguet
Mellon Bank
Philadelphia
Pennsylvania
Financial services
savings bank
Philadelphia
Pennsylvania
Condy Raguet
Emigrant Savings Bank
corporate finance
mutual funds
real estate development
receivership
Federal Deposit Insurance Corporation (FDIC)
Mellon Financial
Citizens Financial Group

savings bank
Condy Raguet
Richard Peters
Samuel Breck
Roberts Vaux
state legislature

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