it. 10 Let me, if I may, if I can point out how my day goes 3 5 normally, when I am in the bank, as I told you earlier, I am out a tremendous amount, so the amount of time that I am in the bank, we forward every thing into the hours that I am here, 6 many, many loans are brought to my attention. So that Now, the reason that I have gray hair, and I am 57 years old, is because I have had a lot of experience. people can come to me and say thus and so about a certain loan, and would you approve our doing it, or do you approve our doing it, and I have got to be experienced enough, and quick enough to understand what it is they are saying, and give it a yes or no, and then you know, get on with the next thing I am doing, because there are probably five people lined up behind him waiting for okays on some aspects of a loan, or an entire loan, and generally it is a matter of, what do you think of this as a credit, what do you think of this as a rate for that credit, balancing rate and credits together and I will say well, I think thus and so, and then we have a brief discussion about it and then I will say yes, go ahead with it. It looks okay the way you are headed, or not, and it is pretty much how things are done. There may be those who say that a lot more time should be spent, but the time has already been spent by trained loan officers, many of whom I have trained over the years. 98-440 - 77 - pt.2 - 52 11 2 These are guys who know what they are doing. They know the limits, they know where they can go, and so a lot of my judgment 3 is based on the few facts they give me, and the fact that I am looking at the man who has done it, and I know that I can have faith in him. Q Are you in a position to make the credit decision on a particular loan? A I don't make the credit decision. If a credit is any good, it is brought to my office. If it needs to be. If it is not any good, it never reaches my office. People don't come to me and say this thing isn't any good. Do you think, is there some way we can do it, or do you want to do it? That is not the way we play the game. When people come to my office, that credit is already shaped up, and it is not going to spend a lot of time in my office, otherwise we would never get any work done. Q I show you what has been marked C of C Number 1, and if you will look at the last item on that list, it says it indicates credit approval, that is you, as Mr. Jenkins and Mr. Brougham? A Right. That is because this loan needed credit approval by a senior loan officer. Q Why is that? A Because it is a different kind of a loan. It is a loan to an individual. It would not be a substantial amount if 12 it were to a large corporation, but it is not. It is to an There are other things involved here, and the individual. minute you get into loans to individuals, then we take them out of the ordinary category, and we say, these you have to watch more closely. You have to go to a higher authority to get a loan for an individual. No reflection on the individual. It simply means 8 that you can get into more credit difficulty with an individual than with General Motors. So on a loan like this, they would need to have my credit approval, or Woodruff, at that time, has done all the credit work on it, he comes in and he says, But for this kind, because it is a different animal, it does need me, and that is the policy of the bank. That is the loan policy, and we stick to it. There is no fooling around with that one. So it needed my credit approval. I am going to try to remember back over two years ago to what somebody said to 13 2 me in presenting some thing that had to do with the matter of making a loan to an individual, in which I had to give approval, 3 and at a time like that I have trouble remembering last month, 4 5 7 but a time like that, what I would look at is principally the safety of the loan. I figure they have worked out all the other details. But I am concerned with the safety of the loan. Just doesn't 8 9 10 11 12 13 look like it is going to be a good loan when we put it open, or are we going to have trouble with this thing later on. And when I take a look at it, and I listen to their evaluation, and they are trained people, and if I am satisfied with what they are telling me, and they, the way they are telling me in the relatively brief time, that we have something like this, then I will say okay, I approve it. 14 Now, they have done all the work before that, and 15 16 built up the entire credit arrangements. MR. HEIMANN: Is it the credit, or the terms, or is approved as a credit before it ever goes to the Money Com mittee. Because there is no sense in going to the Money Com 23 mittee on something if you don't approve the credit. 24 14 Q That is, B follows A. BY MR. SERINO: Is one of the evaluations in your credit approval, the rates that the bank will be obtaining on the particular 7 Because the matter of pricing 8 is something that my man, woman, person, who is dealing with the customer, works out. That is his or her job, to work that I am doing just what it says here. I am saying that I think that if this loan is made, this bank, stockholders, That is what the credit approval is when it comes to me. That 14 15 is where we have the Money Committee. 17 16 Q Is then the pricing principally the function for the Money Committee to decide whether or not this is a properly priced loan? Bert Lance, has become rather famous in the last six months, 23 so it is hard to say that I didn't really pay a lot of atten 24 tion to a loan to a man named Bert Lance. |