| Notes |
The Fed loaned Franklin a total of $1.75 billion, the largest bailout ever offered to a member bank at the time. Later, the Federal Deposit Insurance Corporation stepped in to help arrange a bank takeover. The FDIC set up negotiations with 16 banks, and a firm called European-American ultimately purchased Franklin for $125 million. The bottom line is that regulators helped to avoid an economic hit by lending Franklin money, and then smoothly transitioning the bank into a subsidiary of a functional institution. |