Name Arthur Roth | Died September 17, 1997 | |
Arthur Thomas Roth (December 22, 1905 in The Bronx – September 17, 1997 in Rockville Centre, New York) was an American banker.
Known as "Mr. Long Island", Arthur Roth played a key role in the development of Long Island banking from 1926 through the 1970s. Roth started as a messenger at the Manufacturers Hanover Trust Company at age 17 and rose quickly through the ranks. He began his career at Franklin National Bank in 1934 as a cashier and worked his way up to become the chief executive in 1946. During his tenure, Franklin National Bank became the 18th largest bank in the United States. Under Roth's leadership, Franklin National Bank was the first bank to issue credit cards, as well as the first to offer drive-in teller services.
In July 1968, Arthur Roth was removed from his position as chief executive due to growing loan losses and a declining stock price. His removal was precipitated by press accounts of his son Donald's connection with land deals in Suffolk County. Harold V. Gleason, then President, wanted Roth out and bad press was the best way to get rid of Roth. Some claim Roth over-extended the bank by aggressively pushing into the New York City real estate market. Among other close connections the bank had, was with Webb and Knapp, developers of Roosevelt Field, on whose board Roth sat. As real estate values in New York dropped in the following years, Franklin National Bank was stressed with millions of dollars of questionable loans. The Directors from a merger with the Federation Bank were persuaded by Gleason not to nominate Roth for another term as Director, and Roth left the bank in 1970. Gleason then became Chairman and Chief Executive Officer, inviting Laurence Tisch to join as Vice Chairman as he was a 22% shareholder. Tisch served in an inactive manner until he sold his stock to Michele Sindona, "The Popes Banker", in 1972. Management of Franklin, led by Gleason and Sindona engaged in a massive real estate expansion, fraudulent statement of financial assets, foreign currency activities, and mismanagement that ultimately led to the bank's demise on October 8, 1974. At the time it was the largest bank failure in the history of the United States. The bank's assets and deposits were then purchased out of the receivership by European-American Bank & Trust Company.
Roth, along with his son Donald, later went on to develop the Bank of Suffolk County, in Stony Brook, New York.