Why banks betray smaller clients over bigger ones
Semester 1 Non-class lecture 21
Truth be told, not all of my teachings happen in a classroom situation. Sometimes law students ambush me in the cafeteria and ruin my lunch, or merienda, by asking impertinent questions.
I put up with it because there’s no telling what these smartasses are capable of doing if disappointed, like putting a live scorpion in my chalk box.
“Sir, we want to know why you think those four banks froze the accounts of BENECO,” a doe-eyed girl from Tublay, Benguet asked. Her name is Deema Niwala, whose name I found so curious I had to ask, “do you have a middle name, Deema?”
“Yes, sir. It’s Capan…from Cervantes, Ilocos Sur.”
“Your full name is Deema Capan Niwala? Short or long, it doesn’t really change much does it? I suspected it might be something like that…anyway, what was your question?”
“Those four banks, sir. How can they do that to BENECO, a valued client. Don’t they value their clients?”
“I’m sure they do. Any bank will go out of its way to make sure their biggest clients stay happy. It’s just business. I mean it’s ALSO business, not just law,” I said, as I attempted to bite my chicken sandwich.
Juan Dimacaawat was also with the group, “Those banks have lawyers, we know they’re your friends, but feel free to denounce them sir, we promise it will be ‘omerta’ don’t worry!”
I once told my class “Omerta” was the Mafia code of silence which meant “I will bring this secret with me to my grave.” I didn’t know they were paying attention.
But I said, “I’m not denouncing anybody. Those lawyers know the law and you are right, I know them–they are good lawyers. I’m sure they advised their clients well.”
Jack Makataruz, another smartalecky student whose handwriting is terrible chimed in, “Then why antagonize BENECO? Aren’t they afraid to lose such a huge account?”
“I’m sure no bank would want to lose a very huge account,” I said, managing to swallow my first bite.
Deema spoke up again after she was through rolling her eyes. “That’s what we can’t understand, sir. Why couldn’t somebody have called these banks and said, ‘hey, be careful, we don’t want to lose a very big client, who deposits millions with us everyday, and possibly even billions in the coming years’ we want them to keep all this money with us, so whatever they ask for, make sure you give them anything they ask’
I’ve just about had it with all the pestering questions. I needed so say anything to dismiss them so I can finish my sandwich.
“Listen, people, you call them local banks but they’re actually local BRANCHES of huge national bank networks. You assume they only operate in Baguio-Benguet. Maybe they have branches in faraway places too like…uh…I don’t know…uh…far places like…uh… maybe, Davao City or Puerto Princesa in Palawan. You assume that BENECO is their biggest client, but who knows they might have other clients in other sectors…”
Deema’s eyebrows met in the middle of her forehead, “what can be bigger than a triple-A rated power utility?”
I said, “I don’t know, anything..like..uh.. maybe.. an offshore natural gas drilling company..i don’t know…I mean something like that can possibly generate $1.7-million dollars A DAY.. you know…that would come under the category of a ‘big client’ don’t you think? I don’t know…”
The students looked at one another. Deema asked Juan, “Where is Malampaya Offshore oil drilling platform??”
Juan answered, “I think it’s in Palawan! But it’s got a new owner now, it was bought by the Udenna business group, I read it in the news…”
Deema asked Jack this time, “Where is the headquarters of Udenna Group??”
Jack replied, “I think Davao City.”
They all looked at me and chorused, “Sir! What is the bank of Malampaya and Udenna group?!”
“I have no idea. Why don’t you research it?”
They all grabbed their books and scrambled on their feet and ran towards the library.
Finally, I can finish my chicken sandwich in peace.
The author is a writer and lawyer based in Baguio City, Philippines. Former editor of the Gold Ore and Baguio City Digest, professor of journalism, political science and law at Baguio Colleges Foundation (BCF). He is a photographer and video documentarist. He has a YouTube channel called “Parables and Reason”