Reckless Greed: Penn Square National Bank
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Reckless Greed: Penn Square National Bank
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This episode tells the story of Penn Square National Bank through the eyes of Lesylee Sullivan Hodge, who worked at the bank for a brief time before beginning a long career with the FDIC. What began as a small Oklahoma City bank became a symbol of how quickly a financial institution can go rogue when short-term profits, aggressive growth, a high-flying culture and large loan participations sold to other banks eager to share in the returns overwhelm basic discipline. When it all fell apart and the bank failed, its uninsured depositors and the FDIC paid the price. Lesylee’s firsthand account connects Penn Square to broader lessons about deposit insurance, bank resolution, and the people left behind when a bank fails. Lesylee’s later FDIC career gives the conversation unusual depth, showing both how a failed bank is handled by the FDIC and the emotional burden carried by those who must tell depositors their money is gone.