James V. Baker

James V. Baker new article content ... (born January 20, 1941 in Monessen, Pennsylvania to James V. and Helen Frances Gojsic Baker. He attended Monessen High School where he earned nine letters in baseball, volleyball and tennis. He was a member of the WPIAL and State Championship volleyball team in 1956. In 1957 and 1958 he was a member of the winning WPIAL tennis doubles team. In 1958 helped lead Monessen High to the WPIAL Team tennis title and also won the Pennsylvania State High School doubles championship. In 1957 he was ranked in the top 10 in squash among juniors in the USA.
His tennis accomplishments earned him a scholarship to Pennsylvania State University. It was the first tennis scholarship ever awarded by Penn State. While there he captained the tennis team, was Vice President of the Varsity “S” Club, a member of the Druids and Parmi Nous Hat Societies, and a brother in the Theta Delta Chi fraternity.
Immediately following his graduation he took over as head tennis professional at the Youngstown Country Club in Youngstown, Ohio. He remained the head professional through the 1966 summer season.
In the fall of 1962 he was named Freshman Tennis Coach and Assistant Head Coach at Florida State University (FSU) in Tallahassee, Florida. At FSU he also taught courses in economics and finance while earning a masters degree in economics and a doctorate degree in finance. He also taught at the University of Southern Mississippi in Hattiesburg, Mississippi and the University of Oklahoma (OU) in Norman, Oklahoma. At OU he was the Oklahoma Bankers Association Professor of Banking and taught courses in money and banking, financial institutions and monetary theory.
He left university life in 1970 and joined Fidelity National Bank in Oklahoma City, Oklahoma as head of investments and a member of its board of directors and executive committee. Baker remained there until 1979 when his spirit of entrepreneurship encouraged him to found James Baker & Company, a nationwide broker dealer and investment advisory firm. He was the first person in the United States to establish a brokerage firm as a subsidiary of a bank holding company and his approach became commonplace as leading bank holding companies throughout the nation followed the path he had established.
While a resident of Oklahoma City, Baker was treasurer of the City of Nichols Hills, president of the Economic Club of Oklahoma, chairman of the Oklahoma Development Authority, a member of the Bond Club and the Oklahoma City Golf & Country Club. He was also chairman of the Kerr Foundation and Roman Catholic Archdiocese of Oklahoma’s finance committees.
Throughout his academic and business careers Baker remained a prolific writer authoring numerous articles on accounting, banking and investments. He is perhaps best known as the father of Asset Liability Management, which is a theory he developed in the 1970s to define, measure and manage interest rate risk. His theory was espoused in a book he authored for the American Bankers Association (ABA) entitled Asset Liability Management. That book, which was published in 1980, became the biggest selling book issued by the ABA and it was translated in several other languages. The principles developed by Baker became generally accepted worldwide and made him a sought after speaker and adviser.
Baker’s blend of academic and practical experience and his teaching background provided a valuable resource to the America Bankers Association. He served on that organization’s commercial lending division and investment division executive committees. He was a member of the faculties of the ABA Commercial Lending, Investment, Instalment Lending, and Commercial Lending Graduate Schools. He served as chairman of the Certified Commercial Lending accreditation board. Baker received numerous awards from the ABA for his contributions to continuing education.
Baker is an active tennis player who competes in local, state, national, and international tournaments. He has frequently been ranked in top 10 by the United States Tennis Association in his age division and in 2016 he was ranked as high as #5 in the world by the International Tennis Federation (ITF). He has won over 100 tournaments in Pennsylvania, Florida, Oklahoma, Louisiana, Oregon, Croatia, Mexico and Chile.
References
Baker, James V. “Viewpoint: Resist the Temptation to Nationalize Banks,” American Banker, February 20, 2009.
_ “Preserving Banks’ Ability, Desire to Make Loans,” American Banker, October 31, 2008.
Baker, James V. and Zweig, Philip L. “Viewpoint: Legislators and Treasury Ignoring Simpler Solution,” American Banker, September 26, 2008.
Baker, James V. “Money Market Funds Need Insurance, Too,” American Banker, September 19, 2008.
Baker, Dr. James V. “Testing Portfolio Strategies Through Simulation,” Outlook of the Federal Home Loan Bank System, February 28, 1987, pp. 17-19.
_ “This is Decade of Financial Assets, Says James V. Baker,” The Journal Record, February 18, 1987, p. 5.
_ “Everything You Ever Wanted to Know About A/L Management….And Weren’t Afraid to Ask,” ABA Banking Journal, (October, 1986), pp. 66, 69, 70.
_ “Beyond the GAP,” Mid-Continent Banker, (August, 1986), pp. 10, 12, 13, 14.
_ The Prison of Passive Investment Portfolios,” American Banker, March 7, 1985, pp. 4, 6.
_ “Some Shortsighted Bankers Persist in Playing Deadly Game of ‘Chicken’,” American Banker, February 14, 1984, pp. 26, 28.
_ “Investors Should Watch Treasury Bill Rates, Says Baker,” The Journal Record, November 7, 1984, pp. 1, 6.
_ “Computers in Banking,” Texas Banker, July 1984, pp. 33-34.
_ “We Should Cry For Oklahoma, Not Argentina,” American Banker, July 5, 1984, p. 4.
_ “A Beginner’s Guide to Proper Use of Interest Rate Futures,” ABA Banking Journal, February, 1982, pp. 129, 130, 132, 134.
_ “Bank Profitability In Texas,” Texas Bankers Record, October, 1982, pp. 14-16, 32- 33.
_ “Investment Portfolio Strategies, The Southern Banker, July, 1982, p. 39.
_ “Statistical Relationships Are Key To Banks’ Use of Interest Rate Futures,” ABA Banking Journal, March, 1982, pp. 88, 90, 93, 95.
_ Asset/Liability Management, Washington, D.C.: American Bankers Association, 1981.
_ “The Impact of Volatile Interest Rates,” Oklahoma Business, (December, 1980), pp. 11-15.
_ “Riding the Rates, or Asset/Liability Management Revisited,” Banking, the Journal of The American Bankers Association, (August, 1980), pp. 57-62.
_ “Asset/Liability Planning for the 80’s,” The Southern Banker, (February, 1980), pp. 23-25.
_ “Asset/Liability Management (V): A Model Asset/Liability Management Policy,” Banking, the Journal of the American Bankers Association, (October, 1978), pp. 82, 84, 86, 88.
_ “Asset/Liability Management (IV): System Method of Asset/Liability Management: What it is, How it Works,” Banking, the Journal of the American Bankers Association, (September, 19780, pp. 114-116, 118, 120, 122, 124, 126, 158, 162.
_ “Asset Liability Management (III): The Liability Namangement Method Demonstrates Six Principles……,” Banking, the Journal of The American Bankers Association, (August, 1978), pp. 74, 77-78.
_ “Asset Liability Management (II): Three Ways to Get There - and How to Read ‘Road Signs’ Along the Way,” Banking, the Journal of The American Bankers Association, (July, 1978), pp. 78, 82, 84, 90, 92, 112, 114.
_ “To Meet Accelerating Change: Why You Need a Formal Asset/Liability Management Policy,” Banking, the Journal of The American Bankers Association, (June, 1978), pp. 33-38, 40, 43.
_ “Model Investment Policy.” Oklahoma City: Fidelity Bank, N.A., 1977. This Model Investment Policy was incorporated as one of the two such policies in the American Bankers Association publication, A Guide to Developing A Written Investment Policy.
_ “Model Asset Liability Management Policy.” Oklahoma City: Fidelity Bank, N.A., 1977.
_ “Loan Losses in Perspective: Oklahoma and The Nation,” Oklahoma Banker, October, 1976, pp. 6-26.
_ “Modern Bank Management - A Systems View,” Bank News, July 15, 1976, pp. 9-18.
_ “Traditional View of Loan Portfolio Quality Neglects Factors of Significant Importance,” Mid-Continent Banker, May 1, 1976, pp. 49-50.
_ “New Professionalism for Loan Officers,” Banking, April 1976, pp. 86-89.
_ “I Guess We Made It,” Oklahoma Banker, May, 1975, pp. 17-28.
_ “Bank Profitability in Oklahoma,” Oklahoma Banker, February, 1974, pp. 15-17.
_ “Summer - Interns Return to Campus,” Oklahoma Banker, October, 1971, pp. 6-7.
_ “Commercial Lending Fundamentals,” Oklahoma Banker, August, 1971, pp. 12-24.
_ “Bank Profitability,” President’s Conference for Bank Chief Executive Officers (Oklahoma City, Okla: Oklahoma Bankers Association, 1970) pp. 57-81.
_ “Functional Cost Analysis is Here!,” Oklahoma Banker, August, 1970, p. 9.
_ “Retention and Destruction of Bank Records - Part I,” Oklahoma Banker, September, 1970, pp. 17-36.
_ “Retention and Destruction of Bank Records - Part II,” Oklahoma Banker, September, 1970, pp. 24-29.
_ “Manpower Needs, Salaries, and Fringe Benefits of the baning Industry in Oklahoma” (Oklahoma City: Oklahoma Bankers Association, 1970), 148 pages.
_ “Measuring Bank Profits,” Oklahoma Banker, November, 1969, pp. 7-20. A revised version was reprinted as “A Note on Measuring Bank Profits,” Oklahoma Business Bulletin, February, 1970, pp. 12-24.
_ “A Comparison of the Prime Rate and Real Rate of Interest,” Oklahoma Banker, August, 1969, pp. 36-37. A revised version was reprinted as “A Note on the Truth About Interest Rates,” Oklahoma Business Bulletin, October, 1969, pp. 6-9.
_ “An Empirical Examination of Inter-Regional Bank Profitability Differences in Oklahoma,” Oklahoma Banker, March, 1968, pp. 44-47. A revised version was reprinted as “Bank Profitability Differences in Oklahoma: An Empirical Analysis,” Oklahoma Business Bulletin, June, 1969, pp. 4-7.
_ “Synopsis of Bank Protection Regulations,” Oklahoma Banker, February, 1969, pp. 7-8.
_ “Bank Profitability in Oklahoma,” Oklahoma Banker, December, 1968, pp. 14-16. A revised version was reprinted as “Profitability of Oklahoma Bank,” Oklahoma Business Bulletin, April, 1969, pp. 13-15.
PUBLICATIONS - Case Studies:
Interim Case, American Bankers Association National Commercial Lending Graduate School. This case is approximately 200 pages and has been revised four times sine I developed it in 1974. It includes fifty actual loan offering memoranda covering a range of commercial loans, such as construction, retail, manufacturing, and financial corporation credits. Students are given six months to analyze the liquidity, diversification, policy compliance, profitability, and quality of the loan portfolio. Students must also appraise the performance of the loan officers who granted the credits and the philosophy and performance of the bank.
Douglas, Inc., American Bankers Association National Instalment Credit School, 8 pages. This case requires the student to evaluate the profitability of a car dealer relationship.
Empire, Inc., American Bankers Association National Commercial Lending School, 18 pages. This case focuses on assessing the cash-flow requirements to service debt and appropriate loan agreement restrictions along with collateral considerations.
Buckskin, Inc., American Bankers Association National Commercial Lending School, 8 pages. Focuses on cash-flow considerations under different sales forecasts. It is an accounts receivable situation.
Making the Credit Decision - Knight, Inc., American Bankers Association National Commercial Lending School, 8 pages. This case requires the lender to determine the maximum amount of debt that can be serviced.
RELEVANT NEWSPAPER AND MAGAZINE ARTICLES:
“Special Report: Commercial Lending,” Banking, March 1977, pp. 27-29, 84-94, 122-126. This issue features a roundtable discussion on commercial lending with Dr. Baker as one of seven panelists.
Matthews, Gordon, “74 Viewed as year of Loan Officer ‘Baptism’,” American Banker, March 4, 1975, pp. 1-14. Coverage of speech delivered by Dr. Baker at the American Bankers Association 1975 National Credit Conference.
“Economic Uptrend Predicted,” The Daily Oklahoman, January 14, 1975, p. 11. Coverage of speech delivered by Dr. Baker to the Junior League of Oklahoma City.
Bayless, Glen, “City Economist Predicts Economic Upturn in 1975,” The Sunday Oklahoman, December 8, 1974, p. B-1.
“Outlook Grim - Economist Says Recession Already Under Way in U.S.,” The Daily Oklahoman, November 28, 1973, p. 19. Coverage of speech delivered by Dr. Baker at Oklahoma City Downtown Rotary Club.
“Recession Near, Expert Says,” The Daily Oklahoman, November 20, 1973, p. 11. Coverage of speech delivered by Dr. Baker to Oklahoma Farm Bureau Annual Convention.

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