Penn Square Bank
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Penn Square Bank was a large commercial bank located in north Oklahoma City which made its name in high-risk energy loans during the late 1970s and early 1980's Oklahoma and Texas oil boom. As a result, primarily, of irresponsible lending practices, Penn Square failed during July of 1982.
The bank is often cited as being partially responsible for the collapse of Continental Illinois National Bank and Trust Company of Chicago, which had to write-off some $500+ million in loans purchased from Penn Square. Other institutions such as Chase Manhattan and banks located in Michigan and Seattle took a huge financial blow for having dealt with Penn Square's holdings.
