A strange site on the roof

Bank notes 1: Senate finance committee chairman Manuel Villar has an interesting observation: Why should banking experience be one of the qualifications of a finance secretary?

To Manny Villar’s mind – a linear one that has parlayed a small gravel and sand business to one of the country’s largest property developer – the finance secretary should have experience in borrowing money (because that’s what the Philippines does) rather than in lending money (because the finance secretary would more easily understand the side of the country’s creditor banks).

The Department of Finance raises money for government to spend. The DoF raises the money through the collection of taxes and, if the tax collected is not enough to meet government expenditures, through borrowings.

And yes, the current Finance Secretary, Jose Isidro Camacho was a banker, more specifically an investment banker, for about 20 years before joining government.

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Bank notes 2: Bank of Commerce chairman Antonio Cojuangco is one to maximize his assets.

There’s a huge advertisement of The Economist on the flat roof of the BanCommerce Bldg. The name of the London-based magazine (and what it stands for, in a phrase) is visible only from one of the upper floors of nearby buildings.

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Bank notes 3: For the second week, Vicente Valdepeñas didn’t report for the weekly Monetary Board meeting. You see, the formal reappointment papers of Vic Valdepeñas as MB member has been announced but hasn’t been signed yet by his former student, President Macapagal-Arroyo.

What with the absence of Mr. Valdepeñas (out of delicadeza) and Juan Quintos (who is on an official trip to Mexico) and the guessing game on who will replace Teodoro Montecillo, only four of the seven-man MB met last Thursday – just enough to make a quorum for the setting of routine monetary policy but not enough to close a bank. (Under the law, the decision must be made by five MBMs, voting unanimously.)

At any rate, one of the nominees (to replace, presumably, Teddy Montecillo) is said to have a track record which may not even pass the Bangko Sentral’s "fit and proper" rule for directors of banks that it monitors. The nominee is, however, said to have the strong backing of the President’s political party.

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Bank notes 4: It’s probably a coincidence that Asian Institute of Management president Roberto de Ocampo had dinner with Rene Bañez a week or so before Mr. Bañez resigned as Internal Revenue Commissioner. Equally coincidental was Bobby de Ocampo’s dinner with Guillermo Parayno a day before Mr. Bañez resigned.

During his stint as Finance Secretary, Mr. De Ocampo was the boss of both Mr. Bañez and Willy Parayno. At that time, Mr. Bañez was BIR deputy commissioner and Mr. Parayno was Customs commissioner.