SENTINEL WATCH May 24, 2010 Issue

HONORING OUR DEBTS

LINDA LEITZ

AMID THE JOCKEYING in Washington and financial centers, as people try to figure out how to prevent another financial meltdown, some powerful lessons about the importance of humility, wisdom, and integrity have emerged. It's likely they will be reinforced as this process goes on. And that is one of the genuinely good things that have come out of the crisis.

I learned a lot about the importance of these spiritual qualities when I worked with business loans where the borrowers had financial problems. As a Christian Scientist, I approached each situation, knowing that there could be a solution that needn't cause either the bank or the borrower to be a loser. Some borrowers willfully declared that they would pay their loans only if they were forced to. These people often had very sad resolutions. Other borrowers had a heartfelt desire to honor their obligations and to pay their loans. Many of these people had some very fair solutions that neither they nor I would have anticipated when we first met.

One company owed around $2,000,000 and had worked with several other bank officers before being assigned to me. It was consistently unprofitable and behind in its payments, but I sensed that the management was ethical. My division's head told me to begin legal proceedings to collect the loan, but it was clear that this would be disastrous for the company and result in a substantial loss for the bank. After I made that case, I was allowed a few months to find a solution.