Miller closes long career at Commerce Department

Northwestern Financial Review, Jan 10, 1998 by Bengtson, Tom

For the last several years, many banker meetings in Minnesota have featured a presentation by Jim Miller, Deputy Commissioner of Financial Institutions. There will be no more meetings for Miller after Jan. 20. That is the day the 30-year veteran of the Commerce Department will retire.

Miller, who turned 62 years old on Jan. 10, told Commerce Commissioner Dave Gruenes of his plans on Dec. 16. By Miller's own admission it was a sudden decision, but Miller said a number of factors had come together in his personal and professional life that make retirement at this time very attractive.

"We just sold our home," Miller said. "Things are going well in the banking industry in Minnesota. The department is running smoothly; much of the technology we need is in place. It just seems like a good time for a transition.

"I'm not walking away from any major projects," Miller added during an interview conducted in his St. Paul office, where Minnesota Twins memorabilia decorates the walls. "I like the idea of leaving at the top of my game."

No successor to Miller has been named. Miller said he doubts that he will have input into the decision for a replacement, although he called the opening a "great opportunity for someone."

Miller joined the Minnesota Department of Commerce in 1968. Ten years earlier, he had graduated from the University of Minnesota School of Business Administration. He served in the military and worked eight years in the finance and insurance businesses. After working in a variety of divisions within the Commerce Department, Commerce Commissioner Mike Pint named Miller Deputy Commissioner in June, 1985.

The mid-1980s proved to be a difficult time for a banking regulator. Economic pressure drove many farmers, and their bankers, to their financial limits. During his tenure, Miller was involved with the closing of 30 Minnesota banks. Remarkably, none of the closings proved excessively disruptive to the communities involved. In fact, Miller counts as his chief accomplishment his effort to keep the news related to the banking crisis "on the back page" of the newspapers. In most cases, the banks were closed on a Friday afternoon and on Monday they reopened under new ownership, with assistance from the FDIC.

Miller never shied away from the tough part of his business. Although associates took care of the supervision of strong banks, Miller personally handled all cases involving banks with CAMELS ratings of 4 or 5. When a bank was closed, it was Miller who put the notice on the bank's front door.

Many Bosses

Miller has reported to eight different commissioners during his tenure. Regardless of their political affiliation, Miller won their respect. Miller said he did this by putting his best effort into his job. Part of Miller's job, he said, "was making sure the commissioner knows what's going on."

During the latter part of his career, Miller became known as a virtual walking library because of his vast experience.

"During his more than 12 years as Deputy Commission, Mr. Miller has been an invaluable resource for the employees of the Department," Gruenes commented. "Having Jim at the Commerce Department is much like a researcher being able to work every day in the same building as the Library of Congress. His wealth of knowledge and historical perspective will be missed by the department, as well as folks in the financial services industry."

Miller said it has been interesting observing the style of the various commissioners. Because they remain active in the banking industry, Miller said he maintains contact with former commissioners Mike Hatch, Bert McKasy and Pint.

Miller credits former commissioner Tom Borman with the initiative to obtain accreditation for the department. In 1990, the department was accredited by the Conference of State Bank Supervisors, a national organization in which Miller has been active that supports the dual banking system. The five-year accreditation was renewed in 1995.

Miller said that as a regulator, he had to keep his interaction with bankers professional and somewhat distant. "In government, you don't get the chance to cajole as you may have with others in the past," Miller said. "You don't get to establish the relationships. I miss that." Miller joked that the last time anything funny happened to him was in 1968, before he joined the department.

That's not entirely true, however. Miller tells the story of how he was counting cash during the examination of a Minneapolis bank in 1970. Although he started well before the bank was to open, as a new examiner the process was taking longer than he expected. He was working behind the teller counter when the bank opened for business. A line of customers had formed in front of him with the first person in line being a police officer. As he was counting, Miller apparently had pulled some bait money that triggered an alarm.

Miller said that although the industry is doing well, regulators are "not out of a job." Miller said that regulators serve an important advisory function. He also said economic conditions tend to be cyclical, and the department will be ready if the banking industry again enters a difficult time, as it did in the 1980s.