Word: bankes
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Dates: during 1970-1979
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...were not subsiding as quickly as the White House once hoped they would. If anything, they were intensifying. White House mail was running 2 to 1 against Lance. Various bankers challenged his claim that some $450,000 in overdrafts amassed by him and his relatives from Calhoun First National Bank, of which he was president, was "typical of Southern banking practices." Said a spokesman for the Amercan Bankers Association: "We don't see that as normal or typical, whether it's Southern or Northern or whatever." The President of a Midwestern bank put it more bluntly: "Bert Lance...
Overdrafts It has been established that Lance, his wife LaBelle and nine other relatives collectively amassed huge overdrafts. At one point in the confirmation hearings, Senator Javits asked Lance whether the overdrafts were repaid to the bank with interest. Lance responded, "Yes, sir." That may have been true of the period from mid-1974 to 1975. But the comptroller's report confirmed that Bert's and LaBelle's overdrafts from 1972 through the first five months of 1974 were repaid without interest...
Correspondent Bank Relations Lance, the comptroller's report confirms, received a loan of $3.4 million from the First National Bank of Chicago in January. A month before, the National Bank of Georgia, of which Lance was president, had established a correspondent relationship with a $50,000 deposit. When the Ribicoff committee held its hearings in July, Lance was asked what his role was in establishing the relationship between the two banks. Answered Lance: "Practically none. That was handled pretty much by the folks at both banks. I did not engage in those conversations at all." The comptroller...
Loan Collateral During the July hearings, Senator John Glenn asked whether the loan from the Chicago bank was "fully collateralized, or was it just a personal loan?" Responded Lance: "No, sir, it was fully collateralized." To the contrary, the comptroller's report shows that FNBC approved the $3.4 million with $1.6 million unsecured by collateral. As late as July, according to FNBC records contained in the comptroller's report, collateral was only valued at $2.8 million...
...Senators will also probe a number of other areas: How could Lance have pledged the same collateral twice for separate loans from New York's Manufacturers Hanover Trust Co. and Chemical Bank? Why did the Justice Department close its investigation into the Calhoun overdrafts the day before Lance was nominated as OMB director? Was it really common practice, as stated by Jody Powell, for small-town bankers to overdraw their accounts? And why was only a cursory mention made of the comptroller's investigation during Lance's confirmation hearings? Could internal memos at Manufacturers Hanover Trust...