Old Court Savings and Loans

Old Court Savings and Loans (Old Court Thrift Savings) was a state bank headquartered in Pikesville, Maryland, United States, that failed due to embezzlement by its president, Jeffrey Levitt.

Collapse of state deposit insurance corporation

In 1962 Maryland established a quasi-public non-profit corporation, the Maryland Savings-Share Insurance Corporation (MSSIC), to insure accounts held in state chartered savings and loan associations. In May 1985, rumors of financial instability at two thrifts, Old Court and Merritt Commercial Savings and Loan, led to depositors questioning whether MSSIC was financially able to guarantee all of the deposits, resulting in a run on all state savings and loan associations.^[1] This led to the withdrawal of deposits, the failure of Old Court and the subsequent collapse of MSSIC. The Maryland General Assembly during two special sessions in 1985 established the Maryland Deposit Insurance Fund (MDIF) to replace the MSSIC.^[1]

Conviction of Levitt

Old Court President Jeffrey Levitt was charged in relation to the failure of the bank for making improper loans and the looting of bank funds.^[2][3] He served several years in Maryland prison before being released on parole.^{[citation needed]}

Subsequent events

The failure of the State Bank insurance systems of Maryland, Ohio, and Arizona presaged the national collapse of the Federal Savings and Loan Insurance Corporation.^{[citation needed]}

References

1. ^ ^{a b} 'Brandenburg v. Seidel', 859 F.2d 1179, 1181 (4th Cir. 1988).
2. ^ Kornheiser, Tony (October 26, 1986). "Jeffrey Levitt Stole $15 Million". The Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2006/11/27/AR2006112700867.html. Retrieved 7 May 2007. 
3. ^ "Jail Term Set In Thrift Case". Associated Press. January 21, 1986. http://query.nytimes.com/gst/fullpage.htmlres=9A0DE3D91639F932A15752C0A960948260. Retrieved 7 May 2007. ^{[dead link]}

See also

• Savings and loan crisis
• Tafflin v. Levitt