Kris Siebel Reflects on Standout Standby LC Career

I’ve worked in trade and letters of credit since 14 February 1977, when I was hired by Charles Del Busto at Manufacturers Hanover Trust Company. My dad, Walter Anderson, was in the business, at both Morgan Guaranty (JPMorgan) and then Bankers Trust, so I guess I followed in his footsteps. The only difference being that he focused on commercial credits and I found my niche in standby LCs. I had always enjoyed history and global affairs while in high school and college — originally intending to be a teacher — and letters of credit allowed me to apply these interests to a real-world scenario.

I began as a document checker for export LCs, moved to issuance, and then on to standbys. At Manufacturers Hanover, I worked my way up to supervisor, then Assistant Manager, Assistant Secretary, and Assistant Vice President. My focus ended up being on standby risk. In this capacity, I totally enjoyed working through a deal to protect the bank, our client, and then the beneficiary.

Over the years I wrote many different and unusual standby LCs. I could write a standby covering any situation, from ensuring that a boxer entered the ring for his fight to issuing an LC in favor of a spouse to ensure that they stayed in a marriage. Standbys are simply a secondary means of payment in case the primary means fails and there were many and varied situations, especially when working in a bank such as Manufacturers Hanover. In 1989, I signed the Several But Not Joint Standby Letter of Credit Issuance on behalf of numerous banks, which covered the Exxon Valdez oil spill and the “guarantee” of cleanup. This LC in the USD 7 billion range was the largest I ever issued.

In 1991, I went into labor on the day that our merger with Chemical Bank was announced and my first child was born the next day. It was certainly an interesting maternity leave!

On my return, my job continued to evolve as standbys became far more widely used. In 1994, IFSA (predecessor to BAFT) made the decision to create a Standby LC Committee separate from its Commercial LC Committee due to the rapid growth of the standby market. I was added as a founding member of the committee which was headed by Anthony Capasso of Chemical Bank. After another merger (Chemical with Chase), in 1996 the bank sent me to visit clients within and outside the US to help structure their standby LCs. Structuring and working out deals was something I truly enjoyed and Chase created the position of Standby Risk Officer for me.

As a member of the Standby LC Committee, I was involved on workshops and presentations on Standbys beginning in the 90s and continuing throughout my career. In 2000, Chase announced they were moving Trade Services from New York to Tampa, Florida, I opted not to move but visited Tampa training staff and helping set up the new offices. After Chase’s relocation, I joined Royal Bank of Canada (RBC) as a Senior Credit Officer responsible for a line of business out of the Cayman Islands which supported reinsurance business with LCs issued in our favor or in favor of the relevant insurance companies. This job offered me a different perspective on LCs and honestly opened my eye to a new vantage point. We bankers are used to issuing LCs but to think in reverse helps enhance your view of the business. (An advantage here was that I had to visit our clients in the Cayman Islands!) While at RBC, I continued on the BAFT Standby LC Committee as both Vice Chair and then eventually Chair, and did presentations and workshops.

When RBC closed its New York office, I went to work for Societe Generale as a Vice President and Team Leader for Corporate Trade Finance. I continued to work in the area of standbys and as Chair of BAFT’s North American Standby/Guarantee Committee and as Co-Chair of the Workshop Committee. In 2020, I was named BAFT Ambassador of the Year which was an unexpected honor. With BAFT I was able to assist in developing its virtual platform which has been very successful in bringing BAFT workshops directly to the desktops of many specialists unable to travel due to the covid pandemic. Working through the pandemic has made me realize how lucky I have been to work 45 years in LCs doing what I enjoyed doing, knowing each day brought a new challenge and always needing to adapt to new trends and challenges.

“Kris is a true professional, a ‘doer’ who leads by example and is a true master of her discipline. It has been a privilege to work along side of her for the last 30 years with CIB, USCIB and BAFT. I know her dad is proud of her.”
– Don Smith, retired LC banker and consultant

In retirement, my husband and I are planning to do some long desired travel both inside the United States as well as in Europe. In fact, we will begin an East Coast road trip a few days after 17 August 2022, my last day at Societe Generale.. We are also looking forward to welcoming our first grandchild in the coming months and having time to enjoy family and friends; time which has become more precious in view of the last few years.

I have now resigned as Chair of the North American Standby/Guarantee Committee but will remain on that committee and the workshop committee with the permission of BAFT. Outside of BAFT, I would be open to doing consulting work in the field as I truly enjoy figuring out solutions to the various dilemmas clients constantly encounter.

Standby LCs have changed dramatically over my 45 years in the industry. Initially treated as a fringe product in the LC world, standby LCs have become a major force with USD billions outstanding and are used to support so many different projects. I am very proud to have been part of this progress and look forward to seeing how it develops further in the future. Remember, a standby letter of credit is a secondary means of payment in case the primary means fails. It can – and has been — written for ANY scenario!

— Kris Siebel