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warren k.k. luke | betsy
lawer | a.w. clausen
warren
k.k. luke
Head Office Director Warren K. K. Luke describes his family's bank
-- Hawaii National Bank -- as a community bank. It was founded in
1960 by his father K.J. Luke, whose ancestors came to Hawaii from
China in the 1870s and began then to establish deep roots in the
Hawaiian community. Opening day of the bank was record setting for
the only federally chartered bank in Hawaii. By the 3 p.m. closing
time, the bank had $6.25 million in deposits, and now, some 40 years
later, it has expanded to 13 offices. K.J. Luke is now chairman
emeritus of the board, and daily operations are overseen by son
Warren, chairman and president, who has been an officer of the bank
since 1972.
The similarities between father and son are striking -- both graduated
from Harvard University's Graduate School of Business, both started
their business careers in real estate development, both have four
children, and both are committed to maintaining a true community
bank.
Because it is a small, local bank, Hawaii National Bank's prosperity
is directly linked to the prosperity of the Hawaiian economy, which
has been in a downward spiral for the past 10 years. Businesses have
had to adjust to this situation, and recently the decision was made
to buy out shareholders, go private, and make the bank family-owned
to accomplish its long-term goals. Warren Luke explains that keeping
the bank accessible to all its customers and developing strong personal
relationships is a critical adjunct to the technology that his bank
also embraces. He believes that these hard economic times bring out
entrepreneurs who can benefit from a strong relationship with a community
banker.
It is this type of grassroots information on both the Hawaiian
and Pacific Rim economies that Luke brings to the Federal Reserve
Bank of San Francisco as he serves his third term as the first director
from Hawaii.
Serving on the Fed board is but one of Luke's many public service
commitments. He holds leadership positions in numerous banking,
educational, charitable, and community organizations on local, regional,
and national levels. In addition, he remains active in various aspects
of real estate management and development.
In the 10 years since Hawaii became a state and Hawaii National
Bank opened its doors, the Luke family has witnessed a lot of changes.
In the early days business was often done on a handshake, and people
thought very hard before they filed for bankruptcy. Many of the
local businesses that started soon after the war are now being taken
over by the next generation. These businesses must now make some
tough decisions about whether they can continue to operate as a
closely held or family business. When Luke talks to his customers
about concerns such as these, he understands their situation because
he has gone through it himself. In fact, it is giving just that
kind of service -- helping customers succeed in business as well
as in family relationships -- that is most rewarding to him as a
banker.
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betsy
lawer
When Seattle Branch Director Betsy Lawer tells you she grew up
in the family bank, she really means it. At the time she was born,
her parents lived in a second story apartment in the building that
housed the First National Bank of Anchorage, and she remembers chatting
with (and dropping toys on) customers as they entered the bank.
The bank was founded in 1922, and in 1941 Lawer's grandfather,
Warren N. Cuddy, bought a controlling interest and became the bank's
president, beginning a family legacy which would last into the next
century. His son, D. H. Cuddy, succeeded him and still serves as
chairman of the board and president of the bank. Granddaughter Betsy
Lawer continues the family enterprise as vice chairman and chief
operating officer.
As the eldest of six, Lawer had the privilege as a child to accompany
her father on his Saturday morning customer calls to Alaska businessmen,
many of them independent souls who had built their own businesses.
She listened, learned, and developed a strong respect and admiration
for the personal aspects of banking.
She began working for the bank during summer vacations as soon
as she could, progressing through a wide variety of jobs.
Looking back, Lawer recalls Alaska's first oil lease sale in 1969
in Prudhoe Bay and the tremendous impact it had on the future of the
state. The sale netted over $900 million, and deposits on that sum
were loaded into bags and flown by chartered jet to New York City
because its location in the Eastern Standard Time zone allowed the
money to earn an additional day's interest. First National Bank of
Anchorage aided in supervising the transaction, and Lawer, on her
way back to college at Duke University, was lucky enough to ride along
in that chartered jet. She returned to college and promptly changed
her major to economics. Now, as a director of the Federal Reserve
Bank of San Francisco, she appreciates being able to apply her theoretical
education in economics.
Lawer keeps her finger on the pulse of the community, both as a
banker and as a community leader. Her grandmother, a former chairman
of the bank, headed the first United Way drive in Alaska, and Lawer
is proud to follow in her footsteps. As a community banker, she
balances the diverse needs of the populations served by the bank's
28 locations -- ranging from rural fishing villages to metropolitan
cities. In each case, understanding the customers' banking needs
in order to provide them with the service and technology they need
to do business remains the bank's primary goal.
Lawer provides critical input to the Seattle Branch Board on Alaska's
economy. Because Alaska's economy is relatively small, small changes
in it make a big difference, and its importance as an international
export hub is significant. She also uses the Fed as an important
resource for advice and counsel in operational areas.While the Alaskan
economy and the customer base have changed dramatically during her
family's years with First National Bank of Anchorage, Lawer is proud
that the bank's guiding philosophy, as stated by her grandfather
more than 50 years ago, is still intact. The goals are: safeguard
the depositors' money, serve the community in which the bank operates
to the limits of the bank's deposits, capital, and personnel; and
provide the employees with adequate wages, the tools to do their
jobs, and a comfortable place to work. And, if you do that, a proper
return is earned for the shareholders.
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a.w.
clausen
A. W. Clausen has a long, distinguished career in
banking. In 1970, at age 46, he was selected to head Bank of America
and over the next 20 years served as its president, chairman,
and chief executive officer. During the 1970s he also served terms
as president and Twelfth District member of the Federal Advisory
Council (for the Board of Governors of the Federal Reserve) and
as a director of the Federal Reserve Bank of San Francisco. Clausen
left Bank of America in 1981 to serve a term as president of the
World Bank, then returned to lead Bank of America. Now, in his
retirement, Clausen remains an involved participant in banking
and business issues, particularly in the international arena.
Perhaps, surprisingly, it was the love of a young
lady, not the love of banking, that initially got him into the
business. Clausen arrived in Los Angeles in 1949 after graduating
from the University of Minnesota law school to "woo and pursue"
his sweetheart. He took a job counting cash for Bank of America
at $180 per month and thus began what would turn out to be a banking
career - and a marriage - that would span the next 50 years.
In 1949, when Clausen joined Bank of America, college
graduates, especially those with an added law degree, were in
short supply. He was soon selected for the bank's two-year management
training program rotating through a variety of assignments. He
held several permanent branch assignments and then was promoted
to bank administration in the corporate finance area. In 1963
he moved to San Francisco as head of the corporate finance department
in northern California. Seven years later he was named president
and chief executive officer.
During his career Clausen has seen the Federal Reserve
both from the inside - as a director and Federal Advisory Council
member -- and from the outside -- as a customer. Clausen recalls
his service on the Fed board as a learning experience affording
him the opportunity for a behind-the-scenes look at how the Fed
operates and why it has certain rules and regulations. He remembers
being on the customer side of dealing with the Fed during troubled
financial times at B of A, and, as he reflects on those times,
he encourages the Fed to continue its assertiveness in bringing
discipline to the banking system. He also commends the Fed for
having an increasingly enlightened view of commercial banks and
for adopting regulations that recognize the more competitive world
in which commercial banks operate today.
When asked to comment on major changes in banking
over the past 50 years, Clausen is quick to cite paper processing
as number one. He is proud that Bank of America was at the forefront
of developing the magnetic ink character recognition system for
check handling, which had significant ramifications in reducing
float and speeding processing throughout the world.
Looking forward, Clausen is excited about the impact
of the Internet and the possibilities it affords for the future
of banking, and he hopes the financial sector will not fight it,
but will use it to its fullest advantage.
From his vantage point at the head of the world's
largest commercial bank, Clausen faced challenges and helped lead
the vast growth and change in banking. He says he's very lucky
to have had these opportunities, and, when asked to pass along
his secret of success, he quotes an inscription on a piece of
driftwood he treasures: "When all else fails, don't forget sheer
dumb luck."
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