MCAAD
  • Join now
  • Donate now
  • {{ menuActive ? 'CLOSE' : 'MENU' }}
Public Health and Medical Research Public Health and Medical Research

Public Health and Medical Research

Entrepreneurship and Innovation Entrepreneurship and Innovation

Entrepreneurship and Innovation

Education and the Educator Education and the Educator

Education and the Educator

Access to Capital and Financial Empowerment Access to Capital and Financial Empowerment

Access to Capital and Financial Empowerment

Watch, Read, Listen

  • American Dream Video Project
  • Podcasts
  • Blog
  • Documentaries
  • Videos

Programs

  • Thought Leadership
  • Webinars

Visitor Center

  • Building the Dream
  • What's Coming

About

  • Founder's Message
  • Who We Are
  • What We Believe
  • Newsroom
  • Partnerships
  • Our Privacy Policy
  • Terms and Conditions

Careers

Building the Dream

  • Home
  • Watch, Read, Listen
  • Revisiting the American Security...
Watch, Read, Listen

Revisiting the American Security & Trust Co.

Join us as we trace the history of one of the former DC institutions that now houses the Milken Center for Advancing the American Dream. 

Published Apr 22, 2022

AST corner angle exterior

The Milken Center for Advancing the American Dream is located in the historic buildings that housed Riggs Bank and the adjoining American Security and Trust Company. For over a century the buildings have stood on the corner of 15th Street and Pennsylvania Avenue Northwest in Washington, DC, just up the street from the White House. We’ve talked about the history of Riggs Bank, and now we wanted to focus on its partner and neighbor, the American Security and Trust Company. The American Securities and Trust grew and shifted alongside national trends in banking and money management as our country grew and developed in the second half of the 19th Century.

After the Civil War, many large corporations were founded around the country as America continued to grow and industrialize. This in turn led to many individuals rapidly accumulating large sums of wealth. These wealthy individuals now needed somewhere to hold and manage their money and investments, and one might assume they would turn to banks. However, in the same period, the federal government created a number of anti-trust laws to guard against monopolies in banking, restricting what services financial institutions could offer. Major shareholders from Riggs Bank were frustrated with these anti-trust regulations that forbade them from managing trust funds for this new crop of wealthy individuals. In response to the laws, they gathered enough money to establish a separate trust management company, the American Security and Trust Company (AS&TC).

American Securities and Trust

Founding


The Trust was first formed just across the river in Alexandria, Virginia in 1889, but when a DC law allowed new types of banks in the District, it moved its headquarters into the city on G Street in 1890, becoming the second trust in the District. It grew rapidly and moved into its new, larger building at 1501 Pennsylvania Ave in 1905. This Neoclassical Revival building was designed by York and Sawyer, who also designed its neighbor the Riggs Bank. The Trust quickly became a major player in DC real estate and financed notable places around the District that you might recognize [link to post 2], as most other banks were unable to finance these endeavors under federal laws. . In addition to being an early trust, it was also one of the first D.C. banking institutions to have a women’s department—facilities with separate staff and assistance for deposit slips, drawing checks, other instructions, along with a ladies lounge, elevator, and section reserved for women using vaults. 

In this period, trust companies were considered more liberal banking institutions, and their charters allowed them to expand into a variety of services. They generally required securities—or financial assets that could be claimed if someone defaulted on their loan—that were easily saleable, but one could also access loans that used real estate as their security. The Trust also offered investment options, and the ability for the investor to pay taxes and buy investment insurance. Essentially, trust companies legally act as agents or intermediaries for individuals who use them to hold and manage their assets, including investing them or holding them for future generations.

Local advertisements for the American Security and Trust Company over the years

ad what AST accepts
sn83045462 1932 05 08 1 14 image 656x817 from 0x16 to 5915x7379 v3
asT salutes the transit 1 v2
  • ad what AST accepts
  • sn83045462 1932 05 08 1 14 image 656x817 from 0x16 to 5915x7379 v3
  • asT salutes the transit 1 v2

Institutional Cooperation


Charles J. Bell became president of American Security and Trust Company in 1893 and led the institution’s growth and adaptation over the next 35 years of his tenure. Bell was friends with Riggs Bank president Charles C. Glover, a fellow civic leader and businessman. Both contributed to the development of DC through philanthropic endeavors and urban planning: they were instrumental to the development of the Mall, the designation of Rock Creek as a park, and the construction of the National .  The coordinated classical design of their building on 1501 and 1503 Pennsylvania Avenue conveyed seamlessness and trust between the two banks.

RiggsBank Glover Charles

Riggs Bank President Charles Glover

AST Directors Meeting

American Security and Trust Directors Meeting, 1901

Charles Bell

American Security & Trust President Charles Bell

  • Riggs Bank President Charles Glover


    RiggsBank Glover Charles

    Riggs Bank President Charles Glover


  • American Security and Trust Directors Meeting, 1901


    AST Directors Meeting

    American Security and Trust Directors Meeting, 1901


  • American Security & Trust President Charles Bell


    Charles Bell

    American Security & Trust President Charles Bell


Their friendship and common goals carried over into their bank business practices: Riggs would point customers to AS&T’s trust services that it could not perform, while AS&TC would do the same for Riggs’s commercial banking services it could not provide. It was common for banking institutions at the turn of the century to reach these informal “understandings” as the federal laws placed limitations on the various types of banks. This understanding naturally occurred between AS&TC and Riggs Bank. This partnership remained an essential part of the business operations for both institutions for years, until the Federal Reserve Act of 1917 led to its dissolution. Under the Act, national banks could establish savings and trust departments, and Riggs Bank took advantage of this expansion, so it no longer needed the Trust.

Ladies Banking at AST

Women at American Security and Trust Co., Johnston, Frances Benjamin, Library of Congress.

AST interior

American Security & Trust Co. interior. Library of Congress.

AST Bank officials

Two officials in bank office at AS&TC. Johnston, Frances Benjamin, Library of Congress

  • Women at American Security and Trust Co., Johnston, Frances Benjamin, Library of Congress.


    Ladies Banking at AST

    Women at American Security and Trust Co., Johnston, Frances Benjamin, Library of Congress.


  • American Security & Trust Co. interior. Library of Congress.


    AST interior

    American Security & Trust Co. interior. Library of Congress.


  • Two officials in bank office at AS&TC. Johnston, Frances Benjamin, Library of Congress


    AST Bank officials

    Two officials in bank office at AS&TC. Johnston, Frances Benjamin, Library of Congress


Evolution


In spite of the change in the relationship between the Trust and Riggs, Bell still found ways to grow the company. In 1919, as antitrust restrictions eased and the AS&TC was able to purchase Home Savings Bank, thereby expanding into commercial banking services. After this merger, AS&T grew substantially. By 1970, it had survived the stock market crash and Great Depression, purchased three other banks, became a member of the Federal Reserve, entered the international banking market, and was the second-largest bank in DC. In 1973, American Security and Trust Company shortened its name to American Security Bank—“bank” now reflecting the breadth of functions it provided.

Nearly 15 years later in 1987, American Security Bank merged with Maryland National Bank and became MNC Financial, creating the largest bank in the Washington-Baltimore area (although MNC Financial kept the Washington bank operating under its American Security Bank name). Another merger and name change happened in 1993, when the megabank was purchased by NationsBank from Charlotte, North Carolina, making NationsBank the fourth-largest in the country.  A few years later in 1998 it became the largest when it purchased San Francisco’s BankAmerica and renamed to the well-known Bank of America, still currently headquartered in

American Security and Trust Company’s history shows an adaptability that is characteristic to banks in America. Across its history, through diverse services, institutions mergers and consolidations, and quick responsiveness to the market, the DC trust company was able to survive and grow into one of the biggest banks in the U.S.

Tags


  • Building the Dream

Share


For a limited time: Become a Charter Member!

JOIN NOW
Do not show again.
MCAAD

730 15th Street NW, 5th Floor
Washington, DC 20005

Privacy policy
Terms and conditions

Join our Mailing List


© 2023
Milken Center for Advancing the American Dream.
All rights reserved.