IF YOU WILL IT IS NO DREAM - II

 

Commercial banks are the oldest and most powerful financial institutions in the world. Siggi was warned that no industry in the country  has more consistently and cruelly rejected Jews from positions of power and influence, than commercial banking.

There was nothing Siggi liked more than to defy preconceived beliefs. While surveying the newspapers for likely candidates, his interest focused on  a medium level bank: The Trust Company of New Jersey (TCNJ). Like Wilshire, it was run by an old-school board lacking vision.

It would take years for Siggi to acquire enough TCNJ stock to combine the two  companies but it became his number one priority. Most of the TCNJ stock was held by approximately a dozen people. The majority of the directors on the board were old Nazi types, tall German WASPS, none of them under 70 years old, totally close- knit.

Siggi picked up little bits of stock whenever they came on the market. When the largest shareholder died his son, Don Brenner, inherited his father’s shares. While visiting his home to offer condolences Siggi made his case. “This bank is a disaster”, he stated. “It has no drive-through service and the branches are very old. Yes, it’s making a little money, but the other members of your board have no interest in investing in modernizing the branches. Their only interest is in collecting dividends. They have only thirteen branches and no place to grow. You’re not going to survive”. Brenner, who agreed with Siggi’s prognosis, nodded. “Okay, I’ll throw in my stock with you. But I will be kicked out of the board if they find out. Let’s keep it quiet.”

By 1970, Wilshire’s ownership of TCNJ voting shares had grown to 50% and now had control over a commercial bank. Half the bank board, who were against Siggi taking over the Bank, were calling him “the little Jew bastard” behind his back. Nonetheless, the TCNJ board came to the same conclusion as that of the Wilshire board. This Siggi character had a natural ability to run a business, despite his lack of formal training. He showed drive and determination to increase profits for its shareholders. Putting him in charge would mean that they would get to retire and earn better dividends than they had for years.

                                                                    

        

On the first day of 1971, the directors elected him chairman of the board and, later in the year, added the title of chief executive officer. At age forty four, Siggi was the youngest chairman and CEO of any major bank in the state. Once in power, Siggi didn’t fire anyone for their anti-semitic insults.

Siggi’s tireless efforts to develop Wilshire’s revenues in 1971 reached $13 million, up 38% from the previous year. He decided it was time to merge TCNJ and Wilshire Oil Company. The Jersey Commissioner of Banking approved the merger without hesitation. All that remained was the FED’s permission to purchase the remaining shares of the bank’s stock.

Wilshire filed the request and the FED issued its reply in July 1972: They ruled that Wilshire Oil….must either divest its oil and other activities, or to sell its interest in the Trust Co. of New Jersey City Bank. They claimed that the company’s non-banking operations are incompatible with the interests of practical banking. The deadline imposed for the separation of TCNJ from Wilshire was December 31, 1980. Siggi reasoned that eight years gave him more than enough time to find a way out. He declared that the FED’s reasoning is totally false and totally unacceptable.

To start the flow of money from TCNJ, Wilshire needed to own 80% of the bank’s stock. Tired of waiting for official permission from the FED, Siggi went ahead and, in 1973, he succeeded - after acquiring 87% of TCNJ. A year later, he was elected as President of the bank.