Non 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Business 89% 90% 90% 90% 90% 91% 91% 92% 92% 92% 92% 1971 1972 1973 1974 1975 Pending 91% 90% 90% 89% SOURCE: ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS 1975 ANNUAL REPORT OF DIRECTORS 59-591 - 76 pt. 4- 36 SOURCES: GNP-DEPARTMENT OF COMMERCE; BUREAU OF ECONOMIC ANALYSIS MILLIONS OF DOLLARS TESTIMONY OF JOHN W. INGRAHAM, VICE PRESIDENT AND SENIOR OFFICER, CITIBANK, N.A., NEW YORK, N.Y., ON BEHALF OF ROBERT MORRIS ASSOCIATES, THE NATIONAL ASSOCIATION OF BANK LOAN AND CREDIT OFFICERS, ACCOMPANIED BY CHARLES H. POWERS, VICE PRESIDENT, UNITED FEDERAL BANK OF DENVER; GREGORY L. BRENNAN, SENIOR VICE PRESIDENT, THE CHASE MANHATTAN BANK OF NEW YORK; JOHN J. JEROME, ESQ., MILBANK, TWEED, HADLEY & McCLOY, NEW YORK; DAVID L. BLEICH, ESQ., SHEARMAN & STERLING, NEW YORK; AND G. ALEXANDER COLE, SENIOR VICE PRESIDENT, INDUSTRIAL VALLEY BANK OF PHILADELPHIA Mr. INGRAHAM. Good morning, Mr. Chairman, and thank you. To my left are Mr. Charles H. Powers, vice president, United Bank of Denver; Mr. Gregory L. Brennan, senior vice president of the Chase Manhattan Bank; Mr. John J. Jerome, Milbank, Tweed; and to my right are Mr. G. Alexander Cole, senior vice president of the Industrial Valley Bank of Philadelphia; and Mr. David L. Bleich, of Shearman & Sterling in New York. The views expressed today will represent a consensus of the members of the Robert Morris Associates Task Force. Robert Morris Associates is an association of over 6,000 bank loan and credit officers who represent about 1,650 banks holding 78 percent of all U.S. commercial banking resources. The association founded in 1914 was named after the American patriot who was a signer to the Declaration of Independence and was largely responsible for financing our Revolutionary War. Subsequently, Robert Morris helped establish a banking system for the new Nation. The association is essentially educational in its activities and is concerned with sound commercial bank lending practices. Given the current public preoccupation with and misunderstanding of bank loan portfolio problems, there is heightened attention by bankers to the assessment of credit risks on existing and proposed loans. Banks are important suppliers of capital to the Nation's economy. They lend today over $190 billion of funds to commercial and industrial firms on both a secured and an unsecured basis. The Robert Morris Associates is opposed to enactment of either H.R. 31, the Commission bill, or H.R. 32, the Judges bill, in their present form, and we are specifically opposed to the proposed legislation in the following areas: 1. The role of the administrator in corporate reorganizations. 2. The replacement of the flexibility of chapter XI by the proposed chapter VII. 3. The use of property subject to liens. 4. Setoff and use of property subject to right of setoff. 5. Extensions of credit to debtors or trustees. 6. Creditors and equity security holders' committees. 7. Voidable preferences. Bank lending officers are deeply concerned that some of the changes proposed to be made in the bankruptcy laws, as they affect commercial |