·FDIG NEWS RELEASE
IIIOHAI. DPOSII' SNl4.ll&NQ COlf'OU,TION
FOR IMMEDIATE RELEASE PR-89-83 (11-11-83)
GIANNINI: A MAN AHEAD OF HIS TIME
An address by
William M. Isaac, Chairman
Federal Deposit Insurance Corporation
Washington, D.C.
presented to
The A.P. Giannini Co11111emorative Program
sponsored by
National Italian American Foundation
Shoreham Hatel
Washington, D.C.
November 11, 1983
FEDERAL DEPOSIT INSURANCE CORPORATION, SSOSeventeenth SL N.W., Washington, O.C. 20429 • 202-389-4221
IIIOHAI. DPOSII' SNl4.ll&NQ COlf'OU,TION
FOR IMMEDIATE RELEASE PR-89-83 (11-11-83)
GIANNINI: A MAN AHEAD OF HIS TIME
An address by
William M. Isaac, Chairman
Federal Deposit Insurance Corporation
Washington, D.C.
presented to
The A.P. Giannini Co11111emorative Program
sponsored by
National Italian American Foundation
Shoreham Hatel
Washington, D.C.
November 11, 1983
FEDERAL DEPOSIT INSURANCE CORPORATION, SSOSeventeenth SL N.W., Washington, O.C. 20429 • 202-389-4221
In keeping with the theme of this conference, I would like to address my
brief comments to three areas where we believe that change in the financial
system is essential: (1) expanding the permissible activities of banking
organizations, (2) modifying the deposit insurance system to foster a greater
•degree of market discipline and (3) reorganizing the federal regulatory
structure as it relates to financial institutions.
This is certainly an appropriate forum for these issues for A.P. Giannini,
the man we are here to honor, was a pioneer who developed new ideas and
applied them to banking. From the day he opened the Bank of Italy in 1904,
Giannini's banking practices bore little resemblance to those of San
Francisco's more established banks. Using marketing techniques proven during
his earlier career in the produce business, Giannini courted new depositors
and borrowers. He concentrated on smaller customers, a market segment then
largely ignored by other banks. Following the Earthquake of 1906, the Bank of
Italy was able to re-open nearly a month ahead of San Francisco's larger
banks, operating temporarily from a desk set up on the Wharf. The
considerable public recognition he received for this act must have signaled to
the city's other bankers that they could no longer afford to ignore this
vibrant new competitor.
The Bank of Italy's phenomenal branch expansion was often opposed by state
or federal regulators, but Giannini's flexible and innovative use of the
corporate structure allowed the bank to enter most of its targeted markets.
brief comments to three areas where we believe that change in the financial
system is essential: (1) expanding the permissible activities of banking
organizations, (2) modifying the deposit insurance system to foster a greater
•degree of market discipline and (3) reorganizing the federal regulatory
structure as it relates to financial institutions.
This is certainly an appropriate forum for these issues for A.P. Giannini,
the man we are here to honor, was a pioneer who developed new ideas and
applied them to banking. From the day he opened the Bank of Italy in 1904,
Giannini's banking practices bore little resemblance to those of San
Francisco's more established banks. Using marketing techniques proven during
his earlier career in the produce business, Giannini courted new depositors
and borrowers. He concentrated on smaller customers, a market segment then
largely ignored by other banks. Following the Earthquake of 1906, the Bank of
Italy was able to re-open nearly a month ahead of San Francisco's larger
banks, operating temporarily from a desk set up on the Wharf. The
considerable public recognition he received for this act must have signaled to
the city's other bankers that they could no longer afford to ignore this
vibrant new competitor.
The Bank of Italy's phenomenal branch expansion was often opposed by state
or federal regulators, but Giannini's flexible and innovative use of the
corporate structure allowed the bank to enter most of its targeted markets.