Game Show Bankers

You may remember the popular game show, Let's Make a Deal where Monty Hall would ask contestants if they wanted the prize behind door number 1, 2, or 3.  Sometimes they won the big prize...sometimes they didn't.  It was a guessing game.

Recently, I had a client who wanted to move his banking relationship from his current bank, so I worked with him as he interviewed three bankers to choose a new one.  Although my client now knows more than the show contestants did about what lies “behind each curtain,” in the end, I asked him to choose: Would he like the banker behind Door number 1, Door number 2 or Door Number 3. Wanna play too?

Door #1

This banker invited my client to lunch.  The banker included one of his co-workers and me.  We had lunch at a nice Italian restaurant, so the meeting involved good food (nice).  It was on neutral turf and didn’t feel like a meeting because the banker and client spent time getting to know each other.  At the end of lunch, the banker communicated an interest in providing what my client needed, and about 5 days later provided a letter of intent with terms similar to those discussed at lunch.  This banker also offered free company and personal banking to my client. Would you choose the banker behind Door #1  (Hmm…Maybe? Probably?)

Door #2

This banker wanted to meet my client at the client’s office.  The banker brought a co-worker.  Because the meeting was at my client's office, my client had home field advantage, but the bankers seemed totally comfortable with that.  The meeting was the typical getting to know you, the client told his story about the business, the bankers asked questions and my client gave answers.  At the end of the meeting, these bankers also expressed interest and about a week later provided a letter of intent with very attractive pricing and terms.  The banker again came to my client’s office and this time brought a cash management product specialist to discuss the company's deposit needs.  Would you pick the banker behind Door #2? (Hmmmm. Nice Banker. They come to me.)

Door #3:

This banker invited my client to the banker's office.  My client showed up to be greeted by the banker, a co-worker and the credit guy.  I'm glad I was there to support my client.  The bankers had home field advantage and outnumbered my client 3 to 1.  The meeting lasted for two hours. My client felt interrogated and intimidated.  Door #3 banker sent me an email stating that he had more questions and wanted to know if he could call the client directly.  I said, “Go for it.”  Five days later: No expression of interest, no letter of intent and more questions.  So, would you pick the banker behind Door #3 (hmmm... Probably not.  No, definitely not.)

Lessons learned by my client:

Some bankers want to entertain first, and then get down to business (nice touch); Some bankers are comfortable giving the client home field advantage, some aren't. Some bankers ask questions, some interrogate.  Bottom line: Be ready for anything, Italian food or Gestapo interrogations.

So which door did you pick?  Check back tomorrow to find out which my client chose and why.

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The 5 C's of credit

Whenever there is a downturn in the economy, there is a flight to quality.  People get back to fundamentals.  Like the 5 C's of credit.  Bankers approve loans based on Character, Collateral, Credit, Cash Flow and Conditions.  Do you have your C's covered?

George Washington's 1789 Thanksgiving Proclamation

 
Whereas it is the duty of all nations to acknowledge the providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favor; and Whereas both Houses of Congress have, by their joint committee, requested me to "recommend to the people of the United States a day of public thanksgiving and prayer, to be observed by acknowledging with grateful hearts the many and signal favors of Almighty God, especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness:"
Now, therefore, I do recommend and assign Thursday, the 26th day of November next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be; that we may then all unite in rendering unto Him our sincere and humble thanks for His kind care and protection of the people of this country previous to their becoming a nation; for the signal and manifold mercies and the favorable interpositions of His providence in the course and conclusion of the late war; for the great degree of tranquility, union, and plenty which we have since enjoyed; for the peaceable and rational manner in which we have been enable to establish constitutions of government for our safety and happiness, and particularly the national one now lately instituted for the civil and religious liberty with which we are blessed, and the means we have of acquiring and diffusing useful knowledge; and, in general, for all the great and various favors which He has been pleased to confer upon us.

And also that we may then unite in most humbly offering our prayers and supplications to the great Lord and Ruler of Nations and beseech Him to pardon our national and other transgressions; to enable us all, whether in public or private stations, to perform our several and relative duties properly and punctually; to render our National Government a blessing to all the people by constantly being a Government of wise, just, and constitutional laws, discreetly and faithfully executed and obeyed; to protect and guide all sovereigns and nations (especially such as have shown kindness to us), and to bless them with good governments, peace, and concord; to promote the knowledge and practice of true religion and virtue, and the increase of science among them and us; and, generally to grant unto all mankind such a degree of temporal prosperity as He alone knows to be best.

Given under my hand, at the city of New York, the 3d day of October, A.D. 1789.

G. Washington (a copy of his actual signature)