Banker bashing rules the day.
Consequently, it was a surprise Tuesday when President Barack Obama used a moment in his address to Congress to praise Leonard L. Abess Jr., the CEO of City National Bank of Florida.
Obama hailed the banker as someone who “reportedly cashed out of his company, took a $60 million bonus, and give it to all 399 people who worked for him, plus another 72 who used to work for him.”
The president went on to mention that Abess didn’t talk about his generosity publicly until a newspaper found out about it.
Explaining himself then, Abess said, “I knew some of these people since I was 7 years old. I didn’t feel right getting the money myself.”
The anecdote prompted all members of Congress - Republican and Democratic, alike - to leap to their feet and applaud Abess, who was sitting in the balcony as a guest of First Lady Michelle Obama.
Abess, in turn, gave a thumbs-up sign to the president.
The nationally televised tribute cast light on a man who is a fixture in the Miami financial and philanthropic community.
According to The Miami Herald, Abbess’ father co-founded City National Bank of Florida in 1946 and led it until it was sold in 1980 to an investment group.
The bank was then sold to a Colombian coffee magnate whose legal troubles eventually sent the institution into bankruptcy.
In 1985, Abess bought the bank out of bankruptcy for $21 million, all of it borrowed. Over time, City National prospered to the point that it had $2.76 billion in assets and a net profit of $68.5 million at the end of 2007.
The bank was sold last year to Caja Madrid, a Spanish bank, for $927 million in cash. Caja Madrid acquired 83 percent of the bank.
Abess didn’t “cash out of the company,” as Obama suggested. Rather, he retained a minority share of the bank, and continues as CEO and board chairman.
Abess told the Herald that long before the sale he had been trying to come up with a way to reward employees for their service. Hence the bonuses, which meant more than $100,000 to some employees.
“I always thought some day I’m going to surprise them,” Abess said. “I sure as heck didn’t need (the money).”
Abess, 60, was wealthy even before the sale of the bank.
The Herald reported that he purchased an 11.8-acre estate, valued at $23 million, from actor Sylvester Stallone in 1999.
Abess and his wife, Jayne, have given millions to a variety of causes, including $5 million to the University of Miami in 2006.
Leonard Abess has also contributed thousands of dollars to political candidates, most of them Democrats.
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