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Lorenzo Ayres

Marquis James and Bessie Rowland James, 1954

The Story of Bank of America: Biography of a Bank

A bank built on the customers every other bank had already turned down.

Marquis James won the Pulitzer twice. This one is almost never read.

Lorenzo Ayres / 1 min

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A.P. Giannini opened the Bank of Italy in San Francisco in 1904 and lent to immigrants, small farmers and working people that the established banks would not deal with, and that institution became Bank of America.

The version of this story that gets told is a nice one about a man helping people nobody else would help. The version in the book is more interesting, because those customers were not a charity, they were an underpriced market that everybody else had written off without doing the work to price it properly.

That is the same argument I make about our own guest, and I did not get it from this book, but reading it in a 1904 form made me much more confident it generalises.

no better security than the calluses on the borrower's hands
Biography of a Bank, 1954, page 3, on Giannini lending $25

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