BANKING: Giannini Changes His Mind

Last March ferocious old Amadeo Peter Giannini compromised his two-year feud with the New Deal by promising to change some of the methods and practices of his 495-branched Bank of America, fourth largest U. S. bank. One provision: a $30,000,000 increase in the bank’s capital by this June. To finance the increase, RFC offered a helping hand. A. P. brushed it aside. Instead, he undertook to sell $30,000,000 worth of Bank of America 4% preferred.

Last month Banker Giannini called off the sale. Events in Europe had played hob with securities sales, only 50.460 shares ($2,523,200 worth) had been subscribed. Last week frustrated A. P. announced that Transamerica Corp. (Bank of America’s biggest stockholder) had bought the unsubscribed stock — but not with its own money. Angel of the deal was RFC, rebuffed but ever-ready. It advanced Transamerica $27,533,800 at 3½ % for ten years.