The Source of Most Problems in Banking
An appreciation for the concept of infinite demand is a common trait of great bankers.
A few years ago I was connected with Bob Smith, the last CEO of the once mighty Southern California banking dynasty, Security Pacific.
Conversations with someone like Mr. Smith can’t be had over the phone; they’re much better in person. So I flew to Pasadena to spend a few hours with him.
His house sits on a bluff overlooking the Rose Bowl Stadium.
We spent most our time talking in his office, to the right of the front door, with windows looking onto the front yard.
I asked Mr. Smith to tell me about the pictures and memorabilia in the room.
He went through a few objects before pausing on a picture of eight or so stoic-posing gentlemen in business suits, circa 1988.
It’s the executive management team of the bank, he explained.
I asked him to name each person.
He paused on the third or fourth gentleman.
“Oh God, what was his name?” Mr. Smith asked himself.
“He was the one who got caught getting a blowjob in the executive dining room...”
I never did get a name.
I’m writing from my car, a little before noon, parked outside a Starbucks (free wifi) somewhere in Phoenix.
I arrived last night from Los Angeles and will head East, toward Dallas, later today.
Sincerest apologies to anyone offended by the story above.
My purpose isn’t to promote inappropriate behavior at work or glorify the social norms of eras long since passed. It is rather to recount an experience I had for your entertainment.
I believe that in order to educate, one must entertain.
…which tees up one of the most central concepts in banking: infinite demand.
Indeed, a visceral appreciation for this concept is a common trait among great bankers — a lesson Security Pacific learned the hard way.