Tulsa Bank Fails--26th in Oklahoma

Propelled by a run on funds that caused a downtown traffic jam, the state Banking Commission today took possession of the Bank of Commerce in Tulsa after depositors withdrew $5 million.

Banking Commissioner Robert Empie said the Wednesday run and publicity about the bank’s troubles forced officials to close the 82-year-old bank a few hours earlier than planned. The decision was sealed after traffic in downtown Tulsa became snarled by depositors trying to get into the bank this morning.

The Federal Deposit Insurance Corp. was named receiver for the bank, which had about $100 million in deposits at the closing, down from $225 million as of Jan. 1.

The commissioner said the bank had aggressive lending policies that got it into trouble during the oil boom years of 1979 to 1982. Since July, 1982, 26 Oklahoma banks have closed.