An Italian walked into a bank in New York City and asked for the loan officer. He needed to borrow $5,000 for two weeks, but he was not a depositor of the bank. The loan officer said that the bank would need some form of security for the loan, so the Italian handed over the keys to a new $250,000 Ferrari out front and they could hold it until the loan was paid off in two weeks. The title was produced and everything checked out, the car was driven into the bank’s underground garage and parked, and the loan granted at 12%.
Later, the bank’s president and officers all enjoyed a good laugh on the Italian for using a $250,000 Ferrari as collateral for a $5,000 loan.
Two weeks later, the Italian returned, repaid the $5,000 plus interest of $23.07. The loan officer said, “Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is, why would you bother to borrow $5,000?”
The Italian replied: “Where else in New York City can I park my car for two weeks for only $23.07 and expect it to be there when I return?”
