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($20 billion), saved his bank from the Southwest's energy-lending disaster by holding firmly to a highly cautious lending policy: all major loans require unanimous approval from a committee of 14 senior bank officials. BankAmerica, whose profits have been pummeled in the past three years, formed a Retail Action Team, dubbed RAT, to cut back the company's overgrown branch system. The bank plans to close at least 121 of its 1,071 branch offices this year, despite angry complaints from customers.
A bank's most important asset is not the cash in its vaults, but its customers' confidence. In the past few hectic months, some bankers have made heavy withdrawals from their confidence accounts. Financial leaders must now show that they can use their freedom from regulation to rebuild a strong and stable banking system.
— By Stephen Koepp. Reported by William Blaylock/San Francisco, Christopher Redman /Washington and Adam Zagorin/New York
