LITMIR.BIZ

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the bad ones inside the bonds. The situation was still worsening and the bottom line was suffering. So far, the board had stopped short of blaming Alex, choosing instead to assign responsibility to greedy bond managers and an over-stimulated mortgage market. But something told Alex that this assessment was about to change.

      “I only have a few minutes, Strom. Nicky and I have a dinner date this evening and I’m already running late.” Alex wanted Strom, prone to rambling, to get right to the subject.

      “Sure, Alex, I’ll keep it short. It seems that Barnes O’Brien, and some of the other board members, are concerned. Our bottom line is not what it should be and our stock holders have been getting kind of nervous lately. They’re starting to ask questions. Blaming subprime mortgages and an overheated market isn’t getting it anymore.”

      “Uh…huh, so now it’s “let’s blame the president”. Is that what you’re trying to say, Strom?” It was Alex’s style to get right to the point. He knew more about the banking business than his collective board put together. He didn’t like them making judgments on such matters, especially when such analysis disagreed with his.

      Strom didn’t appear to be surprised by Alex’s sharp response. “Well, not entirely Alex. The board appreciates all you’ve done over the years for Midwest; it’s just…uh they don’t like your stance on the bailout money. They….”

      Alex interrupted, “Are you saying they don’t want me to pay back the twenty-five billion?”

      “Chairman Barnes feels we could use the money; our losses are still growing.”

      “That’s blood money, Strom! There are all kinds of strings attached to it. Besides, I can borrow the money cheaper on the open market right now. I thought I explained that to everyone at the last meeting. I thought everyone was on board with the payback.”

      “They were at first, but they feel you may be jumping the gun. Like I said, our bottom line doesn’t look that good and we are continuing to get pressure from our stockholders. Barnes, and the board, feels we need to take another look at the situation.”

      Alex shook his head, “Barnes and the board or just Barnes?”

      “Dunno.”

      Alex could feel himself becoming agitated. After a long day at the office and running late for dinner, this was the last thing he wanted to discuss. But Strom had always been a loyal ally in his fights with the board and he had made a special effort to come and warn him before the morning meeting.

      He took a deep breath, “Listen Strom, I appreciate you coming over here this evening, I really do. But we can work out of this thing without Government help. We never should have accepted that bailout money—the Government so innocently calls TARP—in the first place. We need to pay it back!” Alex shook his head, “TARP—it sounds like something you throw over your boat or the back of your truck.”

      “Borrowing is tough now Alex, I’m not sure you can get the money we need on the open market and this money is already in the bank.”

      Alex grimaced, “The Government makes everything sound so easy with their bottomless pockets. And you’re right Strom, borrowing is getting a little tougher, but we can still survive. I can still borrow the money. Our commercial paper is holding its own, and our mortgage delinquencies are better than they were a few months ago. We are on our way to working our way out of this crisis. We’ll have a few bad quarters and then we’ll be back on track. The worst thing we can do is stay in bed with the Feds. They will own us! They’re already telling us what rates to charge, who we can and can’t lend to and what programs we can offer. It won’t be long before we’re like every other Government agency—broke and totally dependent on Uncle Sam. It will basically be the end of Midwest Consolidated as we know it.”

      The old man looked directly at Alex without speaking. Then he shook his head and smiled, “I knew you’d say that, Alex.” He laid his big hands on Alex’s shoulders. “I’m with ya, pal. I don’t want those clowns anywhere near our bank. I was just testing you a little. You can count on me.”

      “Thanks Strom, I’m going to need all the help I can get at that meeting tomorrow.”

      The big man’s hands fell to his side. “I’ve been lobbying some of the weaker board members to see it our way.” He shot Alex a hard stare. “But if they hold tough, it could get ugly. You know Barnes, he never saw a Government program he didn’t like and he can play plenty rough when he has to.”

      “I know Barnes can be a real pit bull at times, but that money has been nothing but a monkey on our back. We need to get rid of it so I can manage this bank the way I want to.”

      Alex smiled reassuringly. “We’ll fight the good fight and let the chips fall where they may.” He lifted his hand high and shared a hand clasp with his loyal friend. “See you in the morning Strom.”

      “Okay my friend, and don’t forget your flack jacket. You’re going to need it!” Strom hurried through the front door; Alex turned and resumed his walk to the parking garage. Once inside the garage, he picked up the pace and ran toward his car. The only sound in the expansive garage was his car keys and loose change jingling in his pocket.

      He slid his keys from his front pocket and unlocked the car door. He dropped into the bucket seat, started the engine and hurried out of the nearly empty garage. Alex had spoken to Strom with great confidence, but deep inside he was worried. It had only been in the past few years that his salary and compensation package had risen to the level of other banking consortiums the size of Midwest. He and Nicky had recently built a new house in the exclusive Zionsville area near Indianapolis and were just starting to enjoy the good life. With so much at stake, he knew his decision to pay back the bailout money could put his job in jeopardy. Chairman Barnes had threatened as much. Alex rued the day he asked the successful attorney to be on his board—he had been a thorn in Alex’s side ever since. Charming, when need be, and a natural politician, Barnes always seemed to find a way to sway the board’s vote in his favor on big decisions. The previous fall he worked behind the scenes to convince the board to accept the bailout money over Alex’s very strong objections. And once again, it appeared as though the board was leaning his way on the payback. Alex was also concerned that Barnes, now his Chairman, might use this crisis to move Midwest toward a possible change in management, one that he was certain would not include him. “We need to be more flexible and open-minded”, he so often stated during heated debates with Alex. The bank’s stock, which had been as high as twenty-nine, was now trading at just under three dollars a share. This would be a terrible time for the bank to buy Alex out; it would be a financial disaster for him and his family. He had to find a way to sway the board to come around to his way of thinking.

      Chapter 2

      “You were kind of preoccupied at dinner tonight, honey. You weren’t yourself,” Nicky said probing her husband.

      “I was hoping no one would notice.” Alex gave a quick honk to the Everett’s as they stood by the front door of their house waving good-bye. He smiled meekly at his attractive wife. She looked stunning in her black pantsuit and silk blouse. A delicate diamond necklace hung around her bare neckline and was accentuated by two small diamond earrings. Her dark brown hair was pushed back on the sides revealing her classically beautiful face. And more importantly to Alex, beneath that lovely exterior, was an equally lovely person. Kind and caring, she was a dedicated wife and mother. Alex loved her more than anything in the world.

      “Don’t worry honey, you covered yourself well. I’m sure the Everett’s didn’t notice a thing.”

      “Hope not.”

      Nicky pressed her reluctant husband, “Did something happen at work today?”

      “Well…uh yes it did. I didn’t have time to tell you earlier; we were in such a rush to get to dinner.”

      “Yes, you were late again.”

      Alex gave Nicky an exasperated look. “Sorry, but Strom Winslow came

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