| This is the first part of the story of Amadeo | | | | dressed up elegantly, he went to see them, |
| Peter Giannini, an Italian emigrant who | | | | and concluded his business in person.On the |
| arrived in America still in his mother's | | | | piers at the port being a convincing person |
| womb. Amadeo was born in 1870 in San José | | | | wasn't enough and Amadeo - at the age of 15 |
| California, and starting without anything, in | | | | was already 6 feet tall and weighted 180 |
| just 40 years he was able to create the | | | | pounds - was able to make his point even by |
| world's biggest bank. | | | | taking part in brawls.The company was doing |
| | | | so well that Scatena, made him a partner in |
| In 1902 Giannini was already the director of | | | | the company to award him, first with a 30% |
| a San Francisco bank , where a lot of the | | | | share and then increased it to 50%.By the age |
| Italian emigrants went to send their savings | | | | of 20 years old, Amadeo Peter Giannini had |
| to their homeland. Giannini regretted that | | | | already become one of the most successful and |
| the Italians had to pay 8/10% tax for the | | | | admired in the Italian colony. Known for |
| transfer and they had to accept unruly | | | | being a correct person and admired for his |
| exchange rates. For two years he struggled to | | | | fascination. He was more than 6 feet tall and |
| change the bank's policies, which only paid | | | | most of the girls considered him one of the |
| attention to the well-off clients. | | | | most handsome men of the city. In 1892, at 22 |
| | | | years old, he chose a woman who was his same |
| | | | age Clorinda Flores Cuneo, who was the |
| | | | daughter of one of the richest |
| | | | Italo-americans in San Francisco. And this |
| When he realized that there was nothing to | | | | turned out to be one of the many lucky events |
| do, in 1904 he decided to open a new bank | | | | of his life.As Giannini made his way on the |
| that he called Bank of Italy. Sending money | | | | road to success, he also revealed to be |
| from his bank cost only 2% and the exchange | | | | extremely lucky thanks to his parents taught |
| was fair. It may seem incredible, that this | | | | him deep respect for the values of tradition. |
| modest bank, which was seated in a saloon in | | | | This tradition was the exact opposite of the |
| North Beach, a poor part of San Francisco | | | | conservatism, because they taught him the |
| where the Italian community lived, became the | | | | base values, that everyone should take their |
| biggest bank in the world. | | | | own life path, banking on the certainty that |
| | | | they are heading in the right direction. |
| The most surprising thing is not what he | | | | |
| did, but how he did it! All his life he | | | | And all his life, Giannini continued in this |
| operated totally out of the logical way of | | | | manner, without being attracted by either the |
| making profits with the ambition of helping | | | | euphoria of success, or by greed that people |
| the people that were the most in need.His | | | | usually get when they become rich.In 1901 he |
| life demonstrates that that even if you don't | | | | thought that it was no longer worthwhile to |
| place money as the highest value, it's | | | | continue working in order to make more money. |
| possible to make considerable profits and | | | | He had an income of $250 a month from |
| make money for yourself and others. | | | | property rentals and he decided to sell half |
| | | | of his part of the company "L.Scatena & C" to |
| But let's with all great stories, let's | | | | his employees who would paid him with their |
| start from the beginning.Amadeo Peter | | | | future earnings - his share was valued at |
| Giannini's parents were two emigrants. Just | | | | $100.000 - and this assured him an income |
| like many others who left their birthplace | | | | that allowed him to pay for daily needs and |
| searching for a better life: Favale di | | | | it allowed him to not have to worry about |
| Malgaro, which was a hamlet in the inland of | | | | daily tasks and it gave him the opportunity |
| Ligure where his grandparents and also his | | | | to be able to invest in himself, to read, |
| great grandparents were born. A small village | | | | travel and to get to know the world. |
| with | | | | |
| | | | Concerning this point, in his biography it |
| two thousand citizens, surrounded by the | | | | is said that at the age of thirty three, one |
| mountains that is found just behind Rapallo, | | | | year before establishing the Bank of Italy, |
| in the Fontanabuona valley where only a few | | | | he had already developed a theory about |
| more than 500 people live today, but over the | | | | money: "I don't want to become too rich, " he |
| last century more then three thousand of | | | | said, "because not one rich person controls |
| Favale's citizens went to America, and most | | | | richness, but is controlled by it". And |
| went to California. | | | | contrary to people who preach goodness, but |
| | | | who don't practice these principles, Giannini |
| Giannini's house was modest and isolated and | | | | stuck to this rule.In 1902 the death of his |
| built on a hill made of stone and clay, with | | | | father in law marked a turning point in |
| just one big room that was above a barn and a | | | | Giannini's life, who was already well off due |
| stable.Right after they got married, A.P. | | | | to his well known integrity and correctness, |
| Giannini's parents, Luigi who was 29 years | | | | was asked by the large number of his wife's |
| old and Virginia Demartini who was fourteen, | | | | siblings to manage the entire family's |
| decided to go to America with the idea of | | | | fortune, that was made up roughly of half a |
| making fortune and to escape from the misery | | | | million dollars.Among the assets that Amadeo |
| - that could even be considered dignifying- | | | | Giannini managed, there were also of one of |
| where the mountainous people lived. | | | | the most important banks in San Francisco, |
| | | | the COLUMBUS SAVINGS AND LOAN, who asked him |
| When they arrived in California - with the | | | | to become their senior manager that same |
| railway trans continental railway that was | | | | year.Giannini thought it would be possible |
| just inaugurated, they decided to venture | | | | have a prestigious position where he would |
| North and they stopped in San José, a | | | | have been able to help society, so he decided |
| small city between Los Angeles and San | | | | to dedicate himself with his heart and |
| Francisco where, they hoped to buy a piece of | | | | soul.Giannini worked their for 2 years, |
| land with money that they collected from | | | | hoping that he would be able to change their |
| relatives before leaving Italy. But the | | | | financial strategy.The partners with a bigger |
| information that they had on the price of the | | | | stake at COLUMBUS worked only with well off |
| land was not up to date and they realised | | | | people and offered credit only to companies |
| that they wouldn't have been able to buy a | | | | and entrepreneurs who were already |
| piece of land big enough for them to survive. | | | | consolidated. |
| They rented a house with a few rooms and they | | | | |
| transformed it in a type of guest house. | | | | Giannini said that a dignified banker |
| After six months of working very hard the | | | | shouldn't refuse credit to anyone because he |
| guest house became an Inn with twenty rooms. | | | | was honest |
| And that was where on May 6th, 1870 the most | | | | |
| important banker in the world, Amadeo Peter | | | | His dream was a bank for people who had |
| Giannini was born.The hordes of emigrants | | | | never entered in a bank before, a bank for |
| from all over the world, arrived in | | | | the emigrants.After coming to California the |
| California attracted after the discovery of | | | | poverty stricken people who had nothing, were |
| gold, helped Giannini Inn to prosper and | | | | eager to work to feed themselves, lived |
| after a few years it became a Hotel. | | | | between hardship and humiliation. They didn't |
| | | | know the language and the Americans from the |
| For Luigi Giannini, the hotel proved to be a | | | | older protestants class looked at them with |
| small goldmine which he sold after a few | | | | distrust and kept their distance from |
| years. And with the money he made from it he | | | | them.Giannini, remembering his origins, knew |
| bought a piece of land with 40 acres halfway | | | | that most of the Italian immigrants, and |
| between San Francisco and the bay. A perfect | | | | particularly those who where not only armed |
| choice, since later it became an area of | | | | with desperate courage but also with descent |
| considerable value. | | | | principles, would become backbone of |
| | | | development in California. He then resigned |
| But before he could enjoy the benefits of | | | | and dedicated his life to them. |
| his choice, six years after he bought it, | | | | |
| Luigi Giannini was killed by an employee; in | | | | In spite of the fact that Amadeo had left |
| an argument over a "one dollar" debt. A | | | | his father's company, when he decided to open |
| crying Amadeo saw the scene first hand and | | | | a bank, his stepfather Scatena was happy to |
| was the one who came to save his dying | | | | take part in this adventure investing his own |
| father.From that moment Amadeo realized that | | | | patrimony and collaborated actively. But once |
| money could poison you, or even worse, could | | | | he decided to establish the bank, he had to |
| kill you. | | | | find a headquarters. Giannini knew that the |
| | | | emigrant Anania Quilici, who had a bar at a |
| Virginia became a widow when she was only 22 | | | | very strategically North Beach intersection, |
| years old. She left behind three children, | | | | wanted to quit. And she offered her rental |
| the oldest being Amadeo, who was seven years | | | | contract for 1250.On the 17th October 1904 |
| old at the time. Virginia was a beautiful | | | | Amadeo Peter Giannini opened The Bank of |
| woman, and above all there where not so many | | | | Italy. Investing all that he had, as well as |
| women left in California, so she had the | | | | his spouse's entire patrimony, his step |
| possibility to choose a new husband from many | | | | father's major contribution and money from |
| suitors and she chose well.She married | | | | partners from Italian origins.However, once |
| Lorenzo Scatena who was twenty-six years old | | | | he established the bank he needed publicity. |
| at the time, who's only asset was a pair of | | | | He was great doing this job, since he was |
| horses and a carriage that he used to | | | | well known by almost all the Italian |
| transport produce to the docks on the San | | | | emigrants. He went around to every house, |
| Francisco bay. He actually was quite clever, | | | | offering services, help and loans, he |
| a characteristic that developed with his | | | | suggested to start businesses, to buy land, |
| loving spouse's help.Scatena was completely | | | | real estate, and to open companies and in any |
| in love with Virginia, and as someone who | | | | case to start their own businesses.In the |
| really knew how show affection, also loved | | | | beginning of the nineteenth century it wasn't |
| her three children. He particularly was fond | | | | easy to have credit from a bank, especially |
| of the oldest one, Amadeo, who even while | | | | for immigrants. The institutions didn't agree |
| studying, helped his stepfather not to tend | | | | to give loans of less than $200 and, in case |
| the fields, but also to manage the produce | | | | of need, the emigrants had to turn to loan |
| business. After a few years Lorenzo Scatena | | | | sharks.At the Bank of Italy, after asking a |
| who took his wife's suggestion from his wife | | | | few questions, Giannini gave loans starting |
| that the produce business was more profitable | | | | at $25 and as a guarantee he looked at the |
| than farming and so they moved to San | | | | calluses on their hands and at their faces. |
| Francisco in 1882, where ships arrived every | | | | He personally chose his personnel who had to |
| day to stock up on fresh fruits and | | | | know many languages. In particular he wanted |
| vegetables. Luigi bought his produce directly | | | | Pedrini, the teller at COLUMBUS to work for |
| from the farmers in the California valleys, | | | | him. In order to convince him he offered |
| brought them to the shore and then sold them | | | | double the salary. His partners protested but |
| directly to the ships, who were just berthing | | | | Amadeo said that Pedrini was a good worker, |
| their ships. Scatena became in a very short | | | | courteous with the businessmen, and polite |
| time a very successful produce distributor. | | | | with people that had problems. In order to |
| The farmers appreciated Scatena for his | | | | ease the protests he decided to give half of |
| politeness and at the dock his was known as a | | | | his own salary to Pedrini. This clause was |
| real gentleman.After going to school in San | | | | nullified after they had seen that Giannini |
| Jose until the age of 12, he continued to | | | | was right. |
| study in San Francisco, where he took a five | | | | |
| month economics course. But while studying he | | | | Giannini didn't want to be the president of |
| had already started to take part in his | | | | The Bank of Italy, and since he didn't need |
| father's business. He read a lot, but above | | | | the power that derived from the position, he |
| all he went around to get all the information | | | | assumed the position of vice-president and, |
| about new techniques in agriculture. A lot | | | | after only a year he made his stepfather |
| of the emigrants were farmers from all | | | | Lorenzo Scatena the vice president.One of the |
| different countries and Amadeo asked for | | | | regulations that was put into effect was that |
| explanations innovative methods being used | | | | the administrators would have worked without |
| all over the world. He then suggested to the | | | | pay, until the Bank of Italy started making a |
| farmers what they should grow and he gave | | | | profit.He decided to have a popular |
| them strategies to increase production. Above | | | | shareholding; he didn't want anyone to have |
| all he suggested early harvesting, when the | | | | more than one hundred of the 3000 shares that |
| first fruits were still fresh and tender. | | | | were distributed. He also limited the value |
| They weighed less , but they were worth much | | | | of the shares to a maximum of $100. He made |
| more. They not only were focusing on the | | | | sure himself that went to by bakers, |
| quality of the product, but they emerged as | | | | fishermen, grocers, plumbers, hairdressers, |
| having the best prices. In addition, he | | | | everyone who had never been in a bank before. |
| convinced his father to make loans to farmers | | | | He was only satisfied when he verified that |
| who wanted to buy new equipment, or who were | | | | most of the shares were given to shareholders |
| going through rough periods, and that way he | | | | who had from one to four shares.After only |
| was able to create a loyal clientele.Scatena | | | | two months The Bank of Italy had deposits |
| was very proud of his son, not only for his | | | | worth $70.000, but the loans were more than |
| hard work but also for his moral integrity | | | | $90.000. The partners where worried, but |
| that he had taught and that Amadeo had | | | | Giannini knew that this was the only way to |
| adopted as his own. And in no time he became | | | | gain the public's recognition and trust. How |
| the most important person in the company, and | | | | could you not be grateful to someone who |
| in eventually Scatenas alter ego. Nobody | | | | allowed you to rent a decent house or to send |
| cured the public relations like he did. To | | | | your children to school? |
| increase Lorenzo Scatena & Company's business | | | | |
| he wrote lots of handwritten letters every | | | | But Amadeo went beyond that: he subsidized |
| day, to all the potential clients and | | | | builders who built public housing on the |
| suppliers. Writing all those letters he | | | | condition that they gave favourable prices |
| didn't promise anything he couldn't maintain. | | | | for the buyers.... to be continued ... |
| And if the didn't answer his letter, , he | | | | |