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