J Paul Getty: Owing the Bank
on Saturday, March 19, 2011Funny Money Quotes: The balance of power shifts dramatically when the bank needs you more than you need the bank. J Paul Getty said:
“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem” — J Paul Getty
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J. Paul Getty seems to be pointing out that different scales of debt create different power dynamics between lender and borrower. If an individual owes a small amount like $100, resolving that debt problem falls solely on the individual, as the bank is not greatly impacted.
However, if the amount owed is as massive as $100 million, then resolving it becomes the bank’s problem rather than solely the borrower’s, since such a large default would significantly affect the bank’s balance sheet.
Getty’s quote suggests that at extremely high debt levels, the borrower gains negotiating leverage because protecting its own interests becomes the priority for the deep-pocketed lender as well. So in essence, Getty acknowledges that the level of debt owed can shift the balance of responsibility and influence between two parties in a financial relationship.
Birthday: December 15, 1892 – Death: June 6, 1976