Ohio Governor Reports Offer on Closed Bank

An out-of-state bank has offered to buy the closed Home State Savings Bank of Cincinnati and to guarantee depositors full protection of their frozen savings, Gov. Richard F. Celeste said today.

As Celeste made the announcement at a news conference in his office, angry chants of “We want our money!” and “Impeach Celeste!” could be heard from several hundred Home State depositors marching outside the Statehouse.

Celeste did not identify the bank he said has offered to buy Home State, closed since March 9 because of a run on deposits.

He said he has asked the Ohio General Assembly to meet Thursday and Friday to pass a bill permitting the sale to an out-of-state institution and that he will give Ohio banks until Thursday to make a better bid.

Depositors’ Motorcade

About 50 carloads of unhappy Home State Savings bank depositors came to Columbus from Cincinnati by motorcade today to demonstrate at the Statehouse and meet with officials.

Home State was closed last month after a three-day run by worried customers drained about $150 million from the institution. The run was triggered by reports that the bank stood to lose millions of dollars because of the collapse of ESM Government Securities of Fort Lauderdale, Fla., with which it did business.

When customers of other state-chartered S&Ls; saw that Home State customers were unable to get their money, they began runs on their institutions, prompting Celeste to shut down 70 privately insured S&Ls; for 10 days until they applied for federally backed insurance.