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To: Chip McVickar who wrote (923)	10/21/1998 4:34:00 PM
From: Paul Berliner	Respond to of 3536

Robert, Chip, the banks will lend lend lend till the cows some home, though I have heard some faint moooing in the past month. Almost every bank is public. In addition to the banks listed on the NYSE and the NASDAQ, there are hundreds more on the OTCBB/Pink Sheets. These banks are mostly small town S&L's with only a few branches. How else is a bank, from Nationsbank down to Great Lakes Bancorp supposed to grow revenues? Thus, they all lend lend lend in hope of catching wall streets eye or a suitors eye. They also lend lend lend in fear of losing ground to there peers. Every business cycles begins the same way - banks lend lend lend, it soon reaches a terminal velocity, and the credit dries up. A lot of headlines this month have been crying how the junk bond market is dead and companies can't get financing. However, even the smallest pieces of sh-- can still get lines of credit from any willing bank - and there's always one willing bank. And I'm not talking $2/share tech comapnies on the NASDAQ. I'm talking NYSE legitimate Cos. Here's a prime example I recently came across from SEC archives: In December 1997 the Company's bank line of credit agreement was amended. The facility was increased from $40 million to $100 million and extended one year to expire on December 23, 1998. The line of credit is governed by a borrowing base of eligible accounts receivable and is secured by the Company's assets. Interest is charged at the lender's prime rate plus 0.25 percentage points. The agreement includes various financial covenants which make reference to the Company's profitability and liquidity. If the Company fails to satisfy these covenants, all outstanding amounts immediately become due and payable. Currently, the Company is not in compliance with these Bank covenants. I won't mention what bank increased the credit line, but you've all heard of it!