Giannini Third

A billion dollar deal was compromised for one of $550,000,000 last week. The deal was in bank assets. The parties to the deal were Manhattan Social Register bankers embodying the traditions of the oldest U. S. banks and the son of an Italian immigrant who checked fruit of nights in San Francisco markets at 12, was a produce broker at 19, a big real estate operator in his mid-twenties, retired from business at 31, got into banking as the result of a row in a bank directors' meeting, and last week entered Wall Street with the reputation of being the outstanding creative banking genius of the U. S.

Last week, Amadeo Peter Giannini of California bought the 116-year-old Bank of America (Manhattan). This, combined with Giannini's many-branched Bank of Italy and Bancitaly interests, will constitute the third largest U. S. banking institution (largest is National City; second, Chase National).

Originally, Banker Giannini had planned to put the Manufacturers Trust Company into his banking army, but complicated legal technicalities prevented him from conscripting it. Therefore, he simply bought the Bank of America. For it, a new building now rises, which presently will serve as campaign headquarters for the greathearted Californian.

He kept his new bank open until 10 o'clock Saturday night, transferred a $10,000,000 certified check in partial payment, announced increase of capital stock to $50,000,000, declared that 50,000 stockholders of his San Francisco bank and investment trust would divide Bank of America control among themselves, named his brother Dr. Attilio H. Giannini, president of the Bowery and East River National Bank, as chairman of a new board of directors, refused office himself, spent Sunday reorganizing.

All three biggest U. S. banks are outside the orbit of direct Morgan influence which is exercised only upon lesser satellites in the Constellation of "institutional" (deposit) as distinguished from "private" (security issues) banking.