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Jacob Franklin Butcher (May 8, 1936 – July 19, 2017) was an American banker and politician. He built a financial empire in East Tennessee and was the Democratic Party nominee for governor of Tennessee in 1978. He was also the primary promoter of the 1982 World's Fair in Knoxville, Tennessee, and lost his business and his personal fortune after he was found to have engaged in bank fraud.
Having worked at their father's bank during their youth, Butcher and his younger brother C.H. Butcher Jr. began buying stock in numerous Tennessee banks starting in 1968. By 1974, the Butcher brothers owned or controlled eight banks, and Jake Butcher's United American Bank controlled 39% of the banking reserves in Knoxville, Tennessee. By 1982, UAB was responsible for over 50% of Knoxville's business loans, and Butcher's personal net worth was declared to be about $34 million. In the late 1970s, United American Bank built its 27-story headquarters, the Plaza Tower, which remains Knoxville's tallest building.Jerry Dean, "Plaza Building Being Sold," Knoxville News-Sentinel, 28 August 1997.Josh Flory, "City's Tallest Building Sold for Tall Price to N. Y. Group," Knoxville News-Sentinel, 12 July 2007. In the early 1980s, C.H. Butcher's City and County Bank began building the Riverview Tower, which remains the city's second-tallest building.Bill Brewer, "Riverview Tower Sold to Lawler-Wood," Knoxville News-Sentinel, 3 January 2001.
Rumors circulated that Butcher would make another run for the governorship in 1982. However, he supported Knoxville Mayor Randy Tyree, who defeated State Senator Anna Belle Clement O'Brien for the Democratic nomination. Governor Alexander won re-election handily.
During that same year, the 1982 World's Fair opened in Knoxville, which Butcher and a group of fellow Knoxville business leaders had helped to attract. The fair was considered a success and brought in more than 11 million people over its six-month run. The World's Fair site is still in use today as a municipal park in downtown Knoxville. Adjacent to the main campus of the University of Tennessee, some of the World's Fair attractions are still standing and have been rehabilitated.
The United American Bank collapsed on 14 February 1983. It was the fourth-largest bank failure in U.S. history up to that time. Seven other Butcher-controlled banks and the Southern Industrial Banking Corporation, a state licensed loan and thrift company run by C.H. Butcher, also became insolvent during the rest of 1983, and an additional three banks in 1984. The FDIC estimated that its losses in connection with the failed Butcher brother banks totaled approximately $382.6 million.Federal Deposit Insurance Corporation, Managing the Crisis: The FDIC and RTC Experience, Chapter 6: 1983 . Retrieved: 14 February 2013. Later that year, it was learned that Butcher was also insolvent; his assets were listed at $11.9 million and his liabilities at $32.5 million.Bruce Wheeler, Jacob Franklin "Jake" Butcher, Tennessee Encyclopedia of History and Culture, 2009.
Butcher pleaded guilty to federal charges of bank fraud in 1985 and was given a 20-year prison term. He was paroled in 1992, and resided in the Atlanta suburb of Canton.Drew Ruble, , BusinessTN magazine, July 2006. Butcher reportedly worked for a Toyota distributor and as a real estate developer. His assets were auctioned off to satisfy his creditors.
His brother C.H. Butcher Jr., who also was sent to state prison for state securities fraud, was paroled in 1993 and died in 2002. Butcher: Bank collapse after fair hurt city , Knoxville News Sentinel, May 2, 2007
Butcher died on July 19, 2017, at the age of 81.
Personal life and death
Butcher married the actress Sonya Wilde in 1962. They had four children.
Categories: 1936 Births, 2017 Deaths, People From Maynardville, Tennessee, Politicians From Knoxville, Tennessee, Military Personnel From Tennessee, Tennessee Democrats, Businesspeople From Tennessee, American Bankers, American Fraudsters, People From Canton, Georgia, Candidates In The 1978 United States Elections, 20th-century American Businesspeople, Candidates In The 1974 United States Elections, University Of Tennessee Alumni, Hiwassee College Alumni
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