STANDARD TRUST, the first labor bank in the nation, received a federal charter as the
When the bank experienced financial difficulties in the late 1920s, Engineers' merged with the Nottingham Savings & Banking Co., the Guaranty State Savings & Loan Co., and the Commonwealth Savings & Loan Co. to form the Standard Trust Co., on 11 Mar. 1930. The new bank had 7 offices with $23 million in resources, and although the brotherhood relinquished all its banking interests, its members continued to support it. With the onset of the Depression, Standard Trust was forced to liquidate, 21 Dec. 1931. A State Banking Department investigation found that large loans had been made to friends of bank president C. Sterling Smith with inadequate security. Smith was indicted for embezzlement and sentenced to prison in 1933. By 1941 the liquidators had returned 50% of the $13.2 million in deposits to 22,000 people.