Runaway Rumor

Continental Bank's dark day

When someone starts an ominous rumor about Chicago's Continental Illinois Bank, people generally listen. Reason: the whispered tales have often been true. Continental, the biggest banking company (assets: $41.4 billion) between San Francisco and Manhattan, has during the past two years established an unfortunate record of making loans that go sour. In 1982 it suffered a major blow from the failure of Oklahoma City's Penn Square Bank, which had sold Continental $1 billion in shaky energy loans. Currently, its beleaguered borrowers run the gamut from Argentina to International...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!