RG 060. Depositors Economic Protection Corporation (DEPCO), 1936-2001
Identifier: RG 060
The Rhode Island Share and Deposit Indemnity Corporation (RISDIC), created in 1969 to insure deposits at state chartered credit unions, collapsed in December of 1990. Problems at the following member institutions led to the failure of RISDIC: Jefferson Loan and Investment Company suffered losses on lease investments purchased from two firms that had since failed; Heritage Loan and Investment Company's loan portfolio suffered substantial losses and its president was charged with embezzling $13 million; Marquette Credit Union had a negative net worth of $30 million; Davisville Credit Union had a negative net worth of $18 million; and Rhode Island Central Credit Union had a negative net worth of $19 million and suffered a major run in December of 1990. When Rhode Island Central Credit Union was denied additional loans from the Rhode Island Credit Union League's Corporate Credit Union, the RISDIC board met on December 31, 1990, to assess the situation and asked that a conservator be appointed. On January 1, 1991, within a few hours of taking office, the governor of Rhode Island issued an Executive Order closing all 45 RISDIC insured institutions. There were 35 credit unions, seven loan and investment companies, and three banks or trust companies. All closed institutions were ordered to apply for federal insurance. Depositors at nine closed institutions were only allowed to withdraw up to $12,500. By February of 1991, only 27 institutions had reopened. Two had gone out of business (with no losses to depositors) and two were not depository institutions at the time of closing. Fourteen institutions remained closed. Legislation was enacted to create the Rhode Island Depositors' Economic Protection Corporation (DEPCO). The state issued $150 million to assist in providing 100 percent coverage for all deposits up to $100,000 and partial insurance for deposits over that amount in the 14 closed institutions. The bonds were to be repaid from liquidating the failed institutions' assets and from a 0.5 percent increase in the state sales tax. On February 9, 1991, the governor of Rhode Island promised that payments to depositors would be made within 60 days, but by January of 1992, depositors had received only about 10 percent of their deposits. Nine institutions remained closed despite state efforts to sell them. By June 1992, 18 months after the closings, all but 38,000 depositors had received their deposits and those depositors had received 90 percent of their money. Costs to the state of Rhode Island reached $471 million as of June 1992.
Found in 9 Collections and/or Records:
Series — Box 1-4. Depositors' Economic Protection Corporation (DEPCO) Bond Records, 1991-1993
Abstract These records include bond issuance binders, as well as bond refunding, defeasance and cancellations, and bond rebate certificates.
Series — Box 1-21. Depositors' Economic Protection Corporation (DEPCO) Corporate records, 1991-2001
Abstract This series consists of the corporate records of the Depositors' Economic Protection Corporation.
Series — Box 1-14. Depositors' Economic Protection Corporation (DEPCO) Executive records, 1992-2002
Scope and Contents This series consists of several sets of DEPCO Executive level records, each covering all or part of the span of DEPCO's existence. Included are Board of Directors' meeting minutes as well records of the proceedings when the board went into executive session. These records also include copies of consultant reports, business plans, and strategic plans. Also included are several Auditor General reports and reviews prepared for the General Assembly.; executive director briefings, amd media requests...
Series — Box 1-7. Rhode Island Depositors' Economic Protection Corporation (DEPCO) legal case records, 1991-1998
Abstract This series includes, but may not be limited to, records related to legal cases brought by or against DEPCO in the mid-1990s. The records include case exhibits, depositions as well as videotapes of depositions,receivership financials and balance sheets; receivership interim operating procedures, and first interim reports, court appointment of receivers, as well as documentation of public hearings.
Series — Box Rhode Island Depositors Economic Protection Corporation (DEPCO) records, 1944-2011
Abstract The Rhode Island Depositors Economic Protection Corporation (DEPCO) records consist of records from the three DEPCO divisions: Warehouse, Loans, Administration and Payout and Investigations, Liability and Litigation.
Dates: 1944-2001; Majority of material found within 1991-1997
Series — Box 1-3. Rhode Island Depositors' Economic Protection Corporation (RISDIC) corporate records
Scope and Contents This series consists of files containing RISDIC acts of incorporation and charters. It also includes, but is not limited to, corporate by-laws, rules and regulations, and personnel policies and guidelines, board minutes, annual report booklets, and committee records.
Rhode Island Depositors' Economic Protection Corporation (RISDIC) Financial Institutions' Corporate records
Series — Box 1-22. Rhode Island Depositors' Economic Protection Corporation (RISDIC) Financial Institutions' Corporate records
Abstract RISDIC's files included corporate records from the various financial institutions it insured. DEPCO inherited the assets and liabilites, including the records, of the failed RISDIC-insured financial institutions.
Dates: 1936-1992; Majority of material found within 1970-1989
Rhode Island Depositors' Economic Protection Corporation (RISDIC) Investigative Commission final reports
Series — Box 1. Rhode Island Depositors' Economic Protection Corporation (RISDIC) Investigative Commission final reports
Scope and Contents This series includes several reports filed by the investigative commission. Included are a report for each phase of the investigation concerning the Lending Practices of RISDIC-insured financial institutions and a report on the Failure of Government Oversight. Also included are reports on "Withdrawals by Insiders," and, finally, a report on the collapse of the Heritage Loan and Investment Commission
Rhode Island Depositors' Economic Protection Corporation (RISDIC) Investigative Commission videotapes
Series — Box 1-2. Rhode Island Depositors' Economic Protection Corporation (RISDIC) Investigative Commission videotapes
Scope and Contents This series consists of videocassetes recordings of the Commission's hearings.