Money, Murder, and Madness

Introduction

I was introduced recently by a friend as an “unindicted banker.” In my early days I made a number of visits to Bank of America in San Francisco for credit card meetings before Bank of America moved to Charlotte, North Carolina. The headquarters was in a new impressive tower building with a large plaza in front. There was a black sculpture of no particular shape prominently displayed on the plaza. I noticed a group of people taking pictures one day and I heard one of them say, “I think they call it the banker’s heart.” A lot of people say they hate bankers and I tried not to take it personally. During my years in banking I received death threats and hate mail and I encountered pickets and demonstrations.

Banking was not the way many politicians and members of the media described it. I worked with people I was proud to be associated with and many of them were outstanding women.

There were very few women officers or department heads in the early days at the Rockland-Atlas Bank and at State Street Bank. I unhappily recall that all the men smoked at their desks and in their offices. Although I never saw any written prohibition or heard any verbal instructions-–it was accepted that women did not smoke while working. The unequal treatment rapidly gave way to a more level playing field when it became apparent there was a need for more talented and competent people. When I retired from South Shore Bank we had thirty-five to forty senior women officers and department heads. Our branch offices were mostly managed by women who were given considerable personal authority.

State Street Bank was a wonderful organization when I was there and it grew into a world-class financial company; however, being in a community bank like Bank of New Hampshire or South Shore Bank was special. Employees and customers were on a first name basis and we loved being involved in the life of the community. Unfortunately community banks are becoming a thing of the past due to mergers. Relationships are less personal and decision-making often remote.

All businesses change over time. The banking business changed during the time I was working, but in recent years the pace of change has dramatically increased and the electronic world in many ways is making traditional banking obsolete.I started as a trainee at the Rockland-Atlas Bank in Boston and I retired almost forty years later after an adventure I could not have imagined on the first day I signed on as a “banker.”

The first part of this book is about my personal journey in banking. It includes many great people, a few villains and the murder of a Boston police officer at one of our branches. I also wrote that I was fired as chief executive officer of Bank of New Hampshire by the family who owned the bank, in spite of the fact the bank was an outstanding performer.

The second part is how our banking system evolved, no other country does it quite like we do. The Bank of England was established in 1694. Our two early attempts to have a central-bank ended in failure. The Federal Reserve was created in 1913 and it’s 100th anniversary was in December 2013. The debate continues whether the Fed has been a success or failure. It’s curious that the Fed did not originate in the halls of Congress or in the White House. The Fed was conceived at J.P. Morgan’s private club at Jekyll Island, Georgia.

The third part is controversial. I believe our government caused the housing collapse that led to the financial crisis. The elected and appointed officials most responsible have been skillful at blaming others. It may be old news to some but if we do not know the facts it’s highly likely the same mistakes will be repeated.

Part I

From Boston To Fort Kent

Chapter 1

A Personal Journey In Banking

In 1958, after two years in the pharmaceutical business, I was looking for a career in banking. My timing was not good. We were in the middle of a recession and several interviews were not productive. I happened to be standing on Congress Street in Boston with not much on my schedule when I noticed the Rockland-Atlas Bank across the street. It didn’t appear as imposing as The First National Bank or the Shawmut Bank and the name seemed a little strange for a Boston bank. I hadn’t done any research or checked with my two uncles in the banking business, but the thought was very much on my mind; my wife was pregnant with our first child and it would be nice to go home and say, ”Honey, I have a job!”

I walked in the front door of the Rockland-Atlas Bank and said to someone I was looking for a job. Instead of sending me to Personnel, as it was known in those days and later Human Resources, I was introduced to Heinie Dellicker, Vice President of the Commercial Division. I was quite sure interviewing guys off the street was not in his job description. Fortunately we hit it off immediately. He introduced me to Roy Lawson, the banks only senior vice president, and to Hop Haydock, Vice President of Commercial Lending and to several others. Haydock was brilliant and kind of unpredictable. I enjoyed working for him later on. I had the feeling things were going quite well but you never know. I was increasingly impressed with how enthusiastic everyone was about the bank.

Before I left several hours later Heinie said, “don’t call me Mister,” and he took me aside and said it was unanimous that they wanted to hire me and I should report to Bob Northup in Personnel to set up a training program. “What no training program?"