Newsday (Suffolk Edition) du lieu suivant : Melville, New York • 4

$517.980.562. At of SIX and off will back ance. taken day's control. panded assets. Newsday The otherwise the 000.000 Since over be or cent of to consideration was is and Franklin's European European-American place end its bank.

it addition. 1921. banks Long 1968, sellinz from rated beyond of in has a next assets cent in owned will but the out from last of 81 Note Island only six when The No. this in last and its to left actually by the year, have stockholders. the of the a six 186 as a of Business best it by a of cold note is years.

ceiling bank had up roots by price has will consortium in Editor growth who is the of a first assets of tenfold. Belgian dating those of of It the AG. per was Bankverein geles. gium, larged jalizes is finance. American an said six to Bahamas.

177 and four: banks Generale also billion of operation banks investment of has Francisco has of Bank international institutions from a have Austria. its NV. branches markets. its rumored. and still ramifications possible month.

company drawn more the was department jointly on that by of significantly in A an owned of a world that nave it "shareholders" of own Nassau $100.000.000 of on a Creditanstalt- by of impend- because 9.100 spec- OWnS and and last out veil in in the in by was per the has tive. City ican, down attempt of has been cent Bank own the to chairman only chairman and two stay and a changed issued banks above and new joined to survival aid. put for and a as instrumental audit. of all an in interest. less the a By Amsterdam- by of in program than of a of European-Amer- of to in the with was other this had compensation a been cited the in management on he of it of all infusion knowl- during losses have bank major dra- had was and the it Something Had Happened By Jane Snider and Ed Lowe Suddenly, there were signs all over the Construction worker Sherman Trent approached the drive-up window of tine Franklin National Bank's Riverbead branch yesterday, read the cardboard sign covering most the window.

drove a little further, go: out of his car. walked back to the window and read the sign again. The sign read, "Temporarily closed." going on? Trent asked. Charles Kaczorowski, owner of Uniondale Paint and Wallpaper, saw a Franklin Bank employe place another sign in the window of the Uniondale branch vesterday morning. It was a full-page advertisement from 8 Monday newspaper reading: Still With You Franklin National Bank is a solvent bank." I don't understand what's hap Kaczorowski said.

Last night, on the back door of the Franklin Square branch. just under the "Franklin National Bank" sign, there were two new signs taped to the The class. on the left said, Bank Trust member FDIC." The other said; "We have a proud new name. You have the same friendly service, with DO interruption Today, EuropeanAmerican, the bank that has been touted in recent radio ads as "The bank you never beard of." has 104 branches on Long Island. Inside Franklin's office in Westbury, as in other branches throughout Nassau and Suffolk Counties, employes took the news in stunned silence-at first.

"They came to our section at about five after three," said one personnel department employe. "They just called us together and they just told us, and that was it. I don't know how the rest of the place is. I didn't notice anyone crying. Everyone's very quiet.

They're not saying anything." A switchboard operator at the Westbury branch said that she had never been 80 busy, and a vice president's secretary confided: "Actually, it's a mixed feeling. Mixed with relief that finally something is being done." Two data processors who work out of Westbury were relieved almost to the point of joy. August Turano, 37, Malverne, that in his there a boost in morale yesterday afternoon, after changed hands, following the the bank weeks of uncertainty. "From what I can see, it's just a matter of a new label," Turano said. "I'm optimistic." Vincent Pumillo, 30, who said that he had turned down several opportunities for new jobs recently, said: "I know the system here and I love to work for them.

Now, I feel better, because I have security for the future." Both said that they had been worried that Franklin would fold altogether. In Riverhead, a teller said: "None of us knew what was happening. I was walking upstairs and I saw 12 men walking in the front door with briefcases, and I said, 'Uh oh, something's Then the managers called us in and told us." The 12 men were from the Federal Deposit Insurance and throughout yesterday afternoon and last night FDIC men were seen in different branches, bringing in pencils, papers, computer sheets and ledgers for the audit they will conduct. Last night, FDIC auditors at the Franklin Square offices made a hamburger run to a local fast-food restaurant, then returned to continue the Franklin Bank Declared Bankrupt -Continued page cent, which a is bargain years liquidatmoney European- the InE raised Anything over new revert capital SIX that -the itare pester- TO help now deal. Franklin.

Long-Term Enfinance In FDIC agreed number ing Franklin takeover to purchase long-term for $150- of banks had been tight -American in of secrecy been had around for bank's assump- intricate negotiations carried tion a good Franklin's lis- high-level regulatory part This bilities. loan. of the sensitive big European- vesterday, bank failure to the economy. Everyone taking $100.000.000 the cautious. loan months to decide But the possibilities for bailing whether wants pick bal- Franklin began to surface.

By The 10.03 week, the field initial interest rate per and float between floor for a appeared to takeover nar- 1114 eight per rowed Manufacturers Hanover few 1974 Trust, Chemical Bank, First. National place. OCTOBER A itself valiant European American. And Franklin had bid for its independent survival, bank, with FDIC But FDI Frank Wille all but shot Franklin's the ing way for takeover. the weekend it was learned that four contend- es readied themseves to make bids.

Department Justice on opinion the competitive antitrust aspects a takeover had been received the Con- troller of the Currency. The stage was President 'Disappointed' Franklin's new chairman and chief executive officer, Joseph W. Barr, who in Franklin's water the last months, statement ves- Bank With Belgian Roots By Daniel Kahn In 1968, the both names institu- Bank Los The An- reflecting Trust interests. San Midland Rotterdam banks that year, and major has Both are a other 1971. joined in includes Amsterdam- Deutsche Bank Midland England, Ltd.

For than more consortium that Rotterdam Bank Banque Societe de SA Bel- France. and Societe Generale branches throughout $96 about in total resources. rican formed 1921 as a banking agency in New York for Societe Belgique. In 1950, the agency was chartered by the state as an investment company doing banking business, and was known as BelgiumAmerican Banking Corp. But it was not authorized to accept domestic deposits, and specialized in international banking.

Two years later, the BelgianAmerican Bank Trust Co. was organized as a full-fledged commercial bank receiving domestic deposits. TURANO: It's just a matter of a new label." PUMILLO: feel I better, because have security for the future." terday expressing his disappointment in He today's the outcome. "massive effort to restructure this bank" that Franklin's directors, to banks, has $467.470.037, deposits among com- The New chartered York mercial country. State and a member of the Federal De- posit Insurance commercial is institution that emphasizes domestic transactions.

Its headquarters are in the heart of the financial district, at 10 Hanover and it has two other New York branches, one on Park Avenue and the other in Rockefeller enter. There also a branch on Grand Cayman in the Cayman Islands. Also headquarted at 10 Hanover Sq. is the European-American Banking chartered by New York State. Thursday, have 20 interest Austrian Five banks bank small president EuThe H.

ropean-American is E. Ekblom, a veteran Manhattan Bank Chase execuHe had been in charge Chase's London operations vears befive fore joining European-American last year. The institution has a 28-man board of directors, equally divided among Europeans and Americans. European-American was guided in its mid-years by Jean Cattier, a native Belgian who has made Long Island his adopted home. Cattier, who first came to this country in 1926, became a naturalized American citizen in 1942, and now lives in Locust Valley.

He joined the bank in 1950 and retired as chairman in 1968. Cattier carries the title of honorary chairman. employes engaged last several months. "We cut exec- pay- utive said. had tions were banking in half," "We reduced employment rolls by almost one third.

We brought expenses under strict control. We attained our initial objective of saving the bank." He cited his attempts to obtain FDIC assistance and concluded that officials, set. he had been unsuccessful primarily because it has not been possible under current market conditions to raise the necessary private capital which the FDIC requires as an addition to its assistance." And that precisely what European-American 1974 9, 9, OCTOBER WEDNESDAY, NEWSDAY, few do itself able to without putting into an unduly monopolistic position. Years of Difficulty Franklin has been mired in financial difficulties for several years. Its earn- original crown ex- The Deutsche, than and ings performance was poor in relation banks, despite the fact that had grown to be the 20th largest the U.S.

The true extent bank's difficulties became public spring. An antipicated merger edge Talcott National a finance company, which would given Franklin much-needed new the capital, was rejected by Federal Reserve Board. Then May 12, the bank announced that uncovered huge foreign exchange within its international operation. Those losses, which now total about $45,000,000, triggered the bank's matic slide. A reassessment the bank's earnings, or rather lack of earnings, showed that, Franklin had lost almost $83.000.000 since the first of the year.

The bank was forced to borrow massive funds, revealed yesterday to be $1.75 billion, from the Federal Reserve Bank of New York to keep going. Deposits drained off rapidly. By yesterday, although the situation had stabilized in the last few weeks, Franklin had lost $1.62 billion or more than half of its total deposits since the losses were first reported in May..