Penn Square Bank
From Wikipedia, the free encyclopedia
Penn Square Bank was a large commercial bank located in the Penn Square Mall in Oklahoma City. The bank made its name in high-risk energy loans during the late 1970s and early 1980s Oklahoma and Texas oil boom. As a result, primarily, of irresponsible lending practices, Penn Square Bank failed during July of 1982.
The bank is often cited as being partly responsible for the collapse of Continental Illinois National Bank and Trust Company of Chicago, which had to write-off some US$500+ million in loans purchased from Penn Square. Two books were written about the Penn Square Bank's spectacular failure and the ensuing international fallout: 1) Funny Money by Mark Singer is a hilariously-funny account of the many interesting characters involved, and 2) Belly Up: The Collapse of the Penn Square Bank by Phillip L. Zweig is a serious examination of the events. Anyone who enjoys post mortem stories of big business failures should consider both.
