Tavakoli Structured Finance LLC

The Financial Report

By Janet Tavakoli

Queen Elizabeth II: Credit and Character

On September 8, Bloomberg News published an article about the unfortunate resurgence of Liar Loans in the mortgage market. Character is the most important of all of the four C’s of credit: character, capacity, collateral, and capital. Even if misfortune destroys the latter three, people of good character will find a way to pay you back. For those with bad character, one often finds that capacity, collateral and capital were a mirage.

I agree with the late J.P. Morgan. Character is paramount. Money cannot buy it.

The Queen’s Decision

On September 9, 2015, Queen Elizabeth II became the longest reigning monarch in British History, outlasting her great-great grandmother, Queen Victoria. She has been queen more than 63 years. The Queen is not celebrating, because her rise immediately followed the death of her father, and Queen Victoria’s reign ended with her death. She will celebrate other events next year. Her 90th birthday is April 21, and her coronation anniversary is June 2.

At the beginning of May, shortly before the 60th anniversary of VE Day, I sent The Queen a copy of Decisions: Life and Death on Wall Street and added: “…on a personal note, during WWII, my mother’s brother was a paratrooper killed in action on D-Day. My late mother was a U.S. Army nurse tending burn victims in England, and my late father was a U.S. Army Major and Chief of Surgical Services in the Central Europe Campaign. Your family’s decision to stay in England, and your decision to join the Women’s Auxiliary Territorial Service, were a great source of strength to their spirits at a time when the outcome was uncertain and one did one’s duty in difficult circumstances. You have touched many lives in the best possible way.”

The Queen’s lady-in-waiting replied with a short note:

“The Queen was very touched to learn of your family’s involvement during World War II. I am to tell you, Her Majesty is second to none in her admiration for all those who have given their lives, or put their lives at risk, in the service of their country and The Queen was very touched by the sentiments you expressed.

“Her Majesty is most grateful for your kind support and I am to thank you for your thoughtfulness in writing as you did…and I am to thank you very much for remembering The Queen at this time.”

I can take no credit for the hard work of my late parents. My parents were U.S citizens born and raised so they were not The Queen’s subjects, but they were fans of doing one’s duty and of good people. Leadership matters.

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