Midwest Federal Savings & Loan
From Wikipedia, the free encyclopedia
| Company type | Savings and loan |
|---|---|
| Industry | Financial services |
| Founded | 1890 |
| Defunct | 1989 |
| Fate | Collapsed as part of the savings and loan crisis and mismanagement |
| Headquarters | , |
Area served | Minnesota |
Key people | Hal Greenwood, Jr (Chairman convicted for criminal mismanagement) |
| Products | Retail banking |
Midwest Federal Savings and Loan was an American bank headquartered in Minneapolis, Minnesota that starting in the mid-1960s and collapsed in 1989. Its headquarters were located at 801 Nicollet Mall in what would later be called McGladrey Plaza. Midwest Federal was in business for ninety-nine years until its failure in 1989.
Its collapse was due mostly to bad real estate loans. On April 22, 1991, the St. Paul Pioneer Press called the bank's failure the "largest financial disaster in Minnesota history" and was part of the savings and loan crisis of the 1980s. Midwest Federal had assets of US$3.5 billion (equivalent to $8.1 billion in 2024), was liquidated by the government at a cost of US$1 billion to taxpayers ($2.3 billion in 2024). Midwest was US$1 billion in debt when it was seized by regulators in February 1989.[1]
The former chairman, Harold W. Greenwood, Jr, Donald J. Snede, Charlotte E. Masica, and Robert A. Mampel were indicted on Federal fraud and conspiracy charges involving financial losses at the failed institution. After its collapse, Midwest Savings was eventually placed under the "conservatorship" of the Resolution Trust Corporation (RTC)[2] until its deposits were sold to various parties. The largest share of Midwest's deposits – $638 million – went to Minneapolis banker Carl Pohlad, whose Marquette Bank Minneapolis bought the deposits of eight branches for US$3.2 million.[citation needed]