SCANDALS: Franklin's Low Finance

The situation of New York's Franklin National Bank, until recently the nation's 20th largest, has looked dismal ever since a gray day in May. Then the bank announced that instead of the $582,000 profit it had originally reported for the first quarter, it might have suffered a loss of as much as $39 million because of unauthorized trading in foreign currency by employees (TIME, May 27). Last week the picture suddenly turned $24.6 million worse. The bank reported losses of a numbing $63.6 million for this year's first five months: $40 million in the first quarter, mainly because of...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

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