Depositors' Economic Protection Corporation (DEPCO) Corporate records
Scope and Contents
This series consists of the corporate records of the Depositors' Economic Protection Corporation. Included are administrative records, including accounting and other financial records as well as records related to personnel, facilities, payroll and benefits records, procedure manuals and vendor lists. This series also includes manuals belonging to AMRESCO (Asset Management Resolution Company), a real estate settlement agent employed by DEPCO to deal with the substantial real estate investments held by several of the financial institutions involved in the collapse.
- Creation: 1991-2001
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Conditions Governing Access
No special restrictions unless otherwise specified.
Conditions Governing Use
Copyright is in the public domain unless otherwise specified. We reserve the right to restrict reproduction of materials due to preservation concerns.
Biographical / Historical
In 1991, the Rhode Island General Assembly created the Depositors Economic Protection Corporation (DEPCO ) and established a semi-autonomous public corporation. DEPCO served as a liquidating bank. It was also charged with protecting the interests of individuals who held deposits of certain credit unions, loan and investment companies and bank and trust companies in the state (PL 1991, ch.116.) Thus, DEPCO was empowered to act as the receiver, to manage the failed banks' estates, marshal and liquidate their assets, repay depositors, and seek recovery from those responsible for the fiasco.. This was made necessary by a banking crisis triggered by the collapse of the Rhode Island Share and Depositors' Indemnity Corporation (RISDIC), a private firm that had been established by the General Assembly in 1969 to insure deposits in certain of Rhode Island's financial institutions. The failure of several RISDIC-insured companies (Jefferson Loan and Investment Company and the Heritage Loan and Investment Company) over a short period of time overwhelmed RISDIC, quickly draining it of its limited financial resources. This prompted Governor Bruce Sundlun to declare a banking emergency and to close over forty RISDIC-insured institutions unable to obtain legally required deposit insurance elsewhere. This was the last in a series of post-1970 failures of state-chartered, privately operated, deposit insurance funds for thrift institutions, industrial banks, and some credit unions. The failures began in Mississippi in 1976 and continued in Nebraska and California (1983), Ohio and Maryland (1985), Utah and Colorado (1987), and Rhode Island (1990).
The lockout provoked a financial crisis. It prevented depositors from withdrawing their funds and caused consternation in a myriad other ways. Over time, many of the affected institutions were able to obtain insurance from other sources such as the Federal Deposit Insurance Corporation, and resumed operations. Others were absorbed by insured entities. In the end ten financial institutions were unable to reopen. These financial institutions' lending practices accounted for their eventual insolvency. They were all placed into conservatorship. DEPCO was dissolved on April 30, 2003.
25.20 Cubic Feet (21 record cartons)
This series consists of the corporate records of the Depositors' Economic Protection Corporation.
No accruals are anticipated at this time.
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