One of the most important of all Machiavelli principles a banker could learn from is the Machiavelli principle of generosity.  Appearing generous is a key factor in acquiring new clients in the banking business, but not necessarily something that is honored in most situations. Machiavelli illustrates what will happen through excessive generosity by saying, “…in doing so a prince will always use up all his resources … (43)”, meaning if a prince develops a reputation for generosity, he will ruin his state. This quote can be proven true in the banking business today by example of the recent mortgage crisis, which was created through careless generosity. Furthermore, future similarities of mortgage failure can be avoided by bankers who heed Machiavelli’s advice on the importance of educating oneself on history. Just as Machiavelli writes, “   … generosity used in such a manner as to give you a reputation for it will harm you … (43)” remains true for a prince; it is also true for a banker, as being known for giving careless loans will harm a banker’s reputation on Wall Street. Machiavelli mentions Pope Julius II, “…who made use of his reputation for generosity in order to gain the papacy, then decided not to maintain it in order to be able to wage war…(44)”, which explains that one may appear to be generous in order to accomplish a greater agenda.  Through rewards programs, incentives, and low interest rates, banks can appear generous in order to attract new customers, but later abandon that generosity to assess fees, penalties and adjust loan rates. Another factor within Machiavelli’s principles of generosity that can be utilized by a banker is the notion of being generous with other’s money; one he explains when he writes, “…spending the wealth of others does not lessen your reputation but adds to it … (44)”. Spending the wealth of others is essential to banking business which relies on other’s money for investments.  Foreclosures and repo sales are other instances of when banks can be generous with the property of others. Through hidden fees, deceiving loan programs, and fluctuating interest rates, bankers and Machiavelli’s principles of generosity work together harmoniously.

Another important principle that can be utilized by a banker is Machiavelli’s view on being honest and keeping one’s word. Machiavelli sais “And therefore, it is necessary that he have a mind ready to turn itself according to the way the winds of Fortune and the changeability of affairs require him…(49)”. Banker’s seldom keep their word in today’s banking world which can be seen in the risky loan programs that were associated with the mortgage melt down. These dishonest programs with deceivingly low interest rate that later ballooned were used by bankers as a way to flip loans quick and make some easy cash.  Machiavelli mentions the harm of being honest when he said, “…appearing to have them and practicing them [honest behaviors] is harmful; and appearing to have them is useful… (49)”. This is true for a banker in the sense that they appear to be honest but in reality are working towards their own best interests at all times. Although bankers must appear honest in order for customers to trust them with their money, there have been repeated cases, for example the recent subprime mortgage crisis, which have left evidence of the contrary. One could exemplify the possibility behind a banker taking advantage of so many people with Machiavelli’s quote, “…and men are so simpleminded and so controlled by their present necessities that one who deceives will always find another…(48)”. People’s greed and simpleminded necessities led to the ease in which people became frivolous with loans. Human’s natural greediness made it an easy and accessible task for bankers to accomplish. In conclusion, it is evident that because of both greediness and dishonesty on behalf of both parties, such an event is possible, which was also illustrated in Machiavelli’s teachings.