1. Why was there much work to do to make the fma board more impressive?

2. There were many supporters of Alex Vandervoort on the board, weren't there?

3. Who was Alex's strong supporter?

4. A hum of conversation in the boardroom quitened. Jerome Patterton declared the meeting open. Predictably, he paid tribute to Ben Rosselli, enumerated reasons for the meeting, principally the need to name, speedily, a new chief executive for First Mercantile American Bank. Then Roscoe Heyward and Alex Vandervoort addressed the board in alphabetical precedence. Roscoe Heyward rose to his feet. There was a prepared text on the table in front of him.

"Members of the board, since this is a closed and private meeting, there are some priorities I want to elaborate on — the profitability of FMA, gentlemen, is our priority number one. In my view, social issues influence too many decisions in banking, and in business generally. As a banker I believe this to be wrong.

Corporate policies should not be subject to every changing social wind. It is dangerous to American free enterprise. It lessens our bank's strength, retards growth and reduces profits".

There were approving nods from several of the directors. Others, including the steelman Leonard Kingswood, remained expressionless.

1. What did Jerome Patterton discuss at the beginning of the meeting?

2. Was there an advertising proof on the table in from of Roscoe Heyward?

3. There was only one priority Roscoe Heyward wanted to elaborate on, wasn't there?

4. What was priority number one in Heyward's view? Why?

5. Heyward made a pause and then went on. "I spoke of profit as our principal objective. There are some who object to that. They argue it is shortsighted and selfish. Well, as banker I disagree. All banks measure profit in terms of earnings per share. Shareholders, depositors, investors and the business community nationally and internationally study widely such earnings. They regard a rise or fall in bank earnings as a sign of strength or weakness. While earnings are strong, confidence in banking is high. If big banks show decreased earnings per share, there is general alarm. Depositors with draw funds, and shareholders their investments. Bank stocks tumble. In short, there is a public crisis. This is why a bank like ours must remain vigilant in its duty to make money for itself and its shareholders.

1. In what way do all banks measure profit?

2. Are there many people who study earnings per share?

3. When is confidence in banking high?

4. In what circumstances is there general alarm?

5. There were not any murmurings of approval around the boardroom at Heyward's words, were there?

6. "How, as a bank, do we achieve maximum profit? There are some points I want to make. First, we do not achieve it by becoming involved with projects, which while good in intent, are either financially unsound or tie up bank funds at low rates of yield for many years. I refer to the funding of low-income housing. We should not place more than a minimal portion of bank funds in housing mortgages of any kind which are notorious for their low return or profit. Second, we do not achieve profitability by making concessions and lowering lending standards as, for example, with minority business loans. Third, we should not concern ourselves unduly with matters of environment. It is not our business to pass judgement on the way our customers conduct their business vis-à-vis ecology. This bank should depend on its business with American industry. We need pragmatic leadership. We should lend our own and our depositors' money only on the basis of the best return". Heyward sat down amid applause.

1. There were two points Roscoe Heyward made, weren't there?

2. What points did he make?

3. What did FMA need in Heyward's view?

4. Was there applause when Roscoe Heyward sat down?