24
THE STORY OF THE DEPOSITORY TRUST & CLEARING CORPORATION
They used a Honeywell high-speed reader that had the capability of reading 3,000 cards per minute. As the cards were inserted into the reader, they were supposed to go down a belt and be read by a photocell reader. Instead, all 3,000 cards went flying across the room. Other tests with other readers showed similar problems. “The crushing of the fibers in this card made it something different,” Jaenike said. “We gave it to IBM. IBM put it through their labs and concluded that it was not a punch card. This was a famous story that not many people remember— on purpose.”
Leading the Way
In 1972, William Dentzer was tapped as chairman and CEO as the new entity that would become CCS began its step toward independence. Dentzer had just announced plans to retire from his role as New York State Superintendent of Banks, which regulated the banking industry in the state. Dentzer believed he was nominated for the role as chairman and CEO “because of my background, including a two-year public record as state bank regulator, and because I was not likely to be opposed by the constituencies involved. Many banks thought well of my regulatory tenure, though some felt otherwise. These mixed feelings may have helped assuage securities industry officials who might have opposed appointing a banker as CEO,” Dentzer wrote in a history of The Depository Trust Company (DTC). Diran Kaloostian was named president and chief operating officer, bringing his expertise in depository operations along with him, something Dentzer admitted he knew nothing about.
BILL DENTZER: FOUNDING CEO
When he was named the first CEO of the Central Certificate Service (CCS) in 1972, Bill Dentzer brought a tremendous amount of state, federal and international experience. As student body president at Muskingum College in New Concord, Ohio, he began to work with the National Student Association and later became president after his graduation. Dentzer’s job was to travel to colleges and universities to “help make them more relevant.” He visited more than 30 states, all for the salary of $2,000 per year. Dentzer soon joined the Army and was assigned to the CIA and later worked for the Foreign Aid Task Force overseeing US foreign aid programs. Shaken by the problems
in the United States in the late 1960s, he turned his attention toward home, becoming director of the New York Council of Economic Advisors. In 1970, Dentzer was named New York State Superintendent of Banks, a position he held for two years. One of his signature achievements was the Bank Redistricting Bill of 1971, which allowed banks to expand beyond protected markets. “That was a recipe for a lack of competition, and breaking down those barriers to competition was important to me,” he would later say. In 1972, Dentzer announced plans to retire from the state role and was asked to lead CCS, later The Depository Trust Company, a position he would hold for 22 years.
Made with FlippingBook. PDF to flipbook with ease