Friday, January 23, 2015
Jr. Credit Officer Martin: "Sir, do you not think that our exposure to Greece is way too big and risky? You know we only earn a 0.7 percent in margin on it and you know that country is so crazy it has an official retirement age of 50."
Bank President Wally: "Of course I do Martin. But since the Basel Committee allows us to leverage our equity with loans to Greece 60 times or more, tell me: how do you expect me to explain to our board we should withhold from a lending to Greece that produces us more than 42 percent in annual returns on equity?
And Martin, don't forget the bonuses we get... while nothing happens to Greece!"