When the editor and publisher of American Banker set up this column
We feel we have been reasonably successful. We have published many
But sometimes we receive valuable ideas that do not merit a full column.
(Maybe the submitters should earn at least an hour as Schmidlap's
We receive many aphorisms on lending. Some of these may strike home with
My favorite is: "If someone borrows money and doesn't argue over the
Michael H. Lyons 2d, senior vice president at Bank of Hawaii, sent us a
The longer the writeup, the weaker the credit.
Beware of the loan officer who says, "We've got to make this loan. The
The same loan officer says, "If we don't make this loan, the customer
In lending on a gold mine, structure the deal properly, or the borrower
Success as a CEO
Expanding beyond lending to the full role of a CEO was the list, a la
Read the comic strips every day. That will help keep you from taking
You don't have to gamble a lot, but find a bookie and make just enough
Make the coffee several times a week. This tells your junior officers
Be active in analyzing and approving loans, but get out of the lending
Forget about rubber bands around your wrist, touchy-feely retreats, and
Pay your people the most you can afford to, not the least you can get
Though any organization must have policies, make them pretty flexible,
Always tell the truth and stand behind your word.
When thinking about making some change in operations or policy, ask
Though some long-range planning may be appropriate from time to time,
Still Sound After 135 Years
Finally, Dan Roads, first vice president of Firstar Credit Card Bank of
Do nothing to encourage speculation.
Make your facilities available only to legitimate and prudent
Make your loans as short as the business of your customers will permit,
NEVER renew a note merely because you may not be able to loan the money
Distribute your loans rather than concentrate in a few hands.
Treat your customers liberally, but never allow them to dictate policy.
If you doubt the propriety of making a loan, give the bank the benefit
If you have reason to doubt the integrity of a customer, close his
Never deal with a rascal under the impression that you can prevent him
I remembered my amazement at how accurate these principles are today,