Back at the X. Banks premises, Norbert told us the he had examined the transaction and was satisfied it was an ordinary trade deal. In the circumstances, we decided he could go ahead. Both Freddie and I felt relieved.
At 4 pm, Norbert rang up Hendra. He confirmed the receipt of the funds but added that the bank had exercised its set-off. In consequence, the account balance was well below the amount Hendra had ordered the Bank to remit.
Hendra exploded but, after some empty threats, fixed an appointment to discuss the matter. When he arrived, Norbert and I were ready to face him. At this stage, our compliance officer – Freddie – thought it best to keep out of the picture.
To my relief, Hendra did not query the Bank’s right of set-off. He did not ask us to produce the original of the set-off agreement. Further, Hendra acknowledged that he had received his monthly statements. Without any tussle, he asked Norbert to approve the ensuing overdraft.
“I can’t grant you such an amount. Two hundred and fifty thousand dollars is well above my authorised margin. And you know: your account has been the subject of concern.”
“But if I don’t pay up, the supplier of the phones may try to seize them before they are unloaded. I must pay!”
“But then, Bang Bang,” Norbert addressed his client informally, “why don’t you remit the money from your wife’s account? You have moved it to another bank. But we know you have a substantial credit balance there.”
Hendra didn’t claim that the money belonged to his wife rather than to himself. He knew we were familiar with his trading patterns. Instead, he told Norbert candidly that this money was required for his ongoing dealings. If he lost control over these funds he would be “commercially finished”.
“I understand, Bang Bang. And you know I always try to help you. But the head office would chop my head off if I authorised the remittance. Why don’t you give us a cheque for, say, S$200,000?”
“I can’t, Norbert: honestly. It would be my ruin. You can’t let this happen, my friend. How about a cheque for S$75,000?”
For a while they haggled. Hendra tore his hair and pretended to break down. Norbert did his best to appear supportive and understanding; but the twinkle in his eye remained unchanged throughout the scene. I was relieved when, after some twenty minutes of pantomime, Hendra agreed to give us a cheque for S$125,000. Norbert promised to order the remittance of the funds as soon as the cheque had cleared. Smiling supportively, he proffered Hendra his own pen.
“This was used to sign the ASEAN Treaty, Bang Bang,” he advised proudly.
“Can I have it?” asked Hendra eagerly.
“Of course!” said Norbert magnanimously, whilst I hid my face in a sheaf of papers and did my best to suppress a fit of laughter.
To my relief, Freddie was happy with the arrangement. All in all, it meant that Hendra’s overdraft was reduced to some S$125,000. Like the rest of us, Freddie knew that to win some you could not help losing others. In the instant case, the loss was moderate. The head office, too, was satisfied.