BANKING: The Best Collateral

What’s the best collateral for a bank? In Washington last week Bank of America’s President Lawrence Mario Giannini described one kind of collateral which had helped the bank founded by his father to grow into the nation’s biggest.

“In the early days of the establishment,” said Giannini, “the best financial statement that you could present . . . was calluses on your hands … A fellow would come in and make [a loan] application and we would ask to see his hands . .. If he had calluses on his hands he would probably get the loan . . .”