FDIC HONORING CLAIMS AGAINST FIRST EXCHANGE

The deadline for filing claims against defunct First Exchange Corp. banks passed more than a year ago, but the Federal Deposit Insurance Corp. says it will still honor claims against the banks, which were declared insolvent in May 1992.

The five subsidiary banks owned by First Exchange Corp., a bank holding company headquartered in Cape Girardeau, included one each in Cape Girardeau, Jackson and Fredericktown and two in St. Louis.

Earl Manning, state commissioner of finance, ordered all of the banks closed and liquidated May 7, 1992.

"The date for filing claims expired in November of 1993," said Steve Holmes, claims adjuster with the Chicago FDIC office's Division of Assessments and Deposits. "But, if there are people out there who still feel they have a claim, they can contact this office."

Inquiries may be sent to Steve Holmes, FDIC claims agent in charge of First Exchange Bank receiver, 500 Monroe, Chicago, Ill. 60661.

Holmes and Steve Hester, department head for closings, settlements and termination at the Chicago FDIC office, each reiterated that depositors in any of the Exchange banks were protected up to $100,000.

"We're still a long way from final disposition of the First Exchange case," said Hester. "It could be at least six months or more."

Authorities said major causes of the banks' failures were insider dealings and poor management. Loans were made to officers, directors and principal shareholders and their families and friends and business associates at preferential rates, they said. The loans were made under conditions that might not be available to the general public.

There are still a number of unanswered questions. For instance, it has never been announced how many claims were settled or how much money was involved in the insider loans.

Some First Exchange Board of Directors and stockholders suffered big losses. "We can't comment on any of that at this time," said Hester.

Dr. Charles P McGinty of Cape Girardeau, one of the board members, authored a book, "Under the Hammer," about the failure. In the book, he estimated bank losses could top $100 million. McGinty said 463 stockholders lost about $40 million.

"I'm still acting as director for what is left of the company," McGinty said Monday. "I keep in touch with the Chicago FDIC office, but they're not giving out any information right now."

Meanwhile, no less than five buyers purchased the First Exchange Banks: Commerce Bank of Poplar Bluff acquired First Exchange Bank of Cape Girardeau; Boatmen's Bank of Cape Girardeau acquired Jackson Exchange Bank and Trust Co.; Commerce Bank of St. Francois County in Farmington acquired First Exchange Bank of Madison County in Fredericktown; Magna Bank of Clayton purchased First Exchange Bank of St. Louis on Butler Hill Road; and First Bank, a savings bank at Clayton, purchased First Exchange Bank of North St. Louis County.

Four indictments were issued for bank fraud charges.

Three of the four people indicted are dead. Don Chilton, former chairman of First Exchange Corp. in Cape Girardeau and former chairman of Jackson Exchange Bank; and his wife, Patricia Chilton, former corporate vice president and vice president of the Jackson Bank, were found shot to death in California at almost the same time they were indicted on bank fraud charges. Authorities said the deaths appeared a "mutual suicide."

Bill Chilton, Don Chilton's brother and former advisory director of the corporation, hanged himself in a federal prison in Georgia last year. Chilton had been sentenced to 30 months after pleading guilty to a charge filed in connection with the First Exchange Bank.

The fourth person indicted was Arkansas bond salesman Andrew J. Crawford, who was sentenced to 27 months in federal prison.