USA
USA
I. American Bankers Association (ABA)
a) A national trade association for US commercial banks.
b) Enhances the role of commercial banks through federal legislative and regulatory activities.
c) Headquarters in Washington DC.
d) ABA policy is developed through a committee process.
e) ABA maintains liaison relationships with federal bank regulators.
f) Under the Committee on Uniform Securities Identification Procedures (CUSIP) a number is assigned to each security, both corporate and governmental.
II. Bankers Association for Foreign Trade (BAFT)
a) Multinational - US banking organisations with international departments; associates are foreign banks with offices in the US.
b) Enhances the role of members through lobby efforts.
c) Separate from ABA - yet shares many of the same members.
d) Operates through committee process.
e) Hosts an annual conference.
f) Headquarters in Washington DC.
_III. Securities and Exchange Commission (SEC) _
Background
a) A federal agency created by the Securities Exchange Act of 1934, and organised in 1934 to carry out the provisions of that act and to take over from the Federal Trade Commission the administration of the act. The SEC has responsibilities under the Public Utility Holding Co Act; the Investment Advisors Act; the Securities Investor Protection Act; and the Foreign Corrupt Practices.
b) Headquarters in Washington DC.
c) William J Casey - Chairman of SEC from March 1971-February 1973. Credited with the broadest revitalisations in agency’s thirty-eight year history. Personal history - with OSS-US Army Intelligence 1941-46; Under Secretary of State for Economic Affairs - 1973-74; Chairman of Export-Import Bank - 1974-75; President Ford’s Foreign Intelligence Advisory Board, Washington DC - 1976; Director of Central Intelligence Agency from 1981.
d) George Bradford Cook - Chairman of SEC from February 1973 to May 1973. SEC, April 1973 - New York Times - “SEC urged Congress to authorise the creation of a new type of mutual fund to be known as foreign portfolio sales corp or foreign unit investment trusts as the selling arms of the underlying mutual fund. Organised in the US and registered with the SEC, the new companies would sell only to non-resident foreign investors (note - see full article, April 4, 1973). Resigned May 16, 1973 “in wake of allegations that he had deleted references to a secret $200,000 contribution to President Nixon’s re-election campaign from a commission complaint against Robert L Vesco , a New Jersey financier” (note - see full article, May 17, 1973 - New York Times). Text of letter of resignation - May 17, 1973 - “...due to outside forces....”
e) M F Cohen - Former SEC chairman, tells the House of Representatives Sub-Committee that the administration is having a difficult time finding replacement for B G Cook (see June 7, 1973, New York Times). Also see various articles on Robert Vesco - May 22, May 23, 1973. See various articles on International Telephone & Telegraph (ITT) in which ITT files were suddenly shifted from SEC headquarters to the Justice Department - May 21, May 23, 1973.
f) R D Garrett - Senate approval, chairman July 28, 1973 - September 1975.
g) Mitchell-Stans Trial re: Vesco contribution, March 1974. Nixon’s comments about Jews at SEC, May 1974.
h) Equity Funding Corporation of America - SEC suspends trading in stock March 28, 1973. Major scandal unfolds with daily headlines in 1973 and 1974. Major commercial banks & investment banks involved. Discussed in numerous New York Times articles. President Nixon’s former law firm, Mudge, Rose, Guthrie & Alexander represented Equity Funding New York operations. Ray L Dirks uncovered financial scandal at Equity Funding. SEC & New York Stock Exchange charge Ray Dirks with fraud - case continues for years - eventually goes to Supreme Court (note - see 1995 & 1996 file, as per document index, for information regarding Charter Trading, Tom Woodall, Bill Comee).
IV Department of the Treasury
a) David M Kennedy - US Treasury Secretary 1969-70. Ambassador at Large, President’s Cabinet 1971-73; Ambassador to Nato 1971-73; Advisor to Michele Sindona 1973; Board of Directors Private Export Funding Corporation 1973-74; Talcott National Corp 1975-76; Continental Illinois Bank & Trust, Chicago 1946-69; Federal Reserve System 1930-46. (Note - see file on Franklin National Bank & the involvement of Talcott National Corp, plus file on PEFCO, as referenced in document index).
b) John B Connally - Personal history - Governor of Texas (note - was shot with JFK in Dallas); US Treasury Secretary 1971 - May 1972 (note - $ off gold standard August 1971); Special Advisor to President Nixon May 1973 - see New York Times article May 12, 1973.
c) George P Shultz - US Treasury Secretary, May 26, 1972 - May 1974.
d) William E Simon - US Treasury Secretary, May 1974-77. Investment banker - Salomon Brothers 1964-74 (Note The longest bio in Who’s Who 1997) Note - New York Times article September 7, 1974 “Saudi Arabia has decided to purchase several billion dollars of a special bond issue by the US Treasury, Government financial sources said.” (See full article for more details, as referenced in document index).
V Department of Commerce
Headquarter in six-storey limestone & granite building that occupies an entire block of downtown Washington DC. The Department’s mission - to advance the interests of industry & trade. Note - Commerce is the source of economic statistics for the big business community.
a) Maurice H. Stans - US Commerce Secretary 1969 - January 1972. Resigned to run fund raising for Nixon’s re-election. See SEC articles 1973 re: Vesco contribution. On Board of directors, Nixon Presidential Library 1985 - date.
b) Peter G Peterson - US Commerce Secretary January 1972 - December 1972. Assistant to the President for International Economic Affairs 1961-63; Assistant to the President for Foreign Economic Policy 1970-72; CEO & Chairman of the board of Lehman Brothers & Lehman Brothers Kuhn Loeb Inc NYC 1973-84; Chairman of the Blackstone Group NYC 1985-date; Board of directors Federal Reserve Bank NY - January 1996-date.
c) Frederick B Dent - US Commerce Secretary - January 1973 - March 1975. Board of directors (before 1973) - General Electric. President Ford’s special representative for trade negotiations - March 1975.
d) Rogers C B Morton - US Commerce Secretary - March 1975 - December 1975.
e) Elliot L Richardson - US Commerce Secretary - December 1975 - 77. US Under Secretary of State 1969-70; US Secretary of Health, Education, Welfare 1970-73; US Attorney General 1973; US Ambassador to England 1975; Special Ambassador at Large 1977-80; Senior Partner Milbank, Tweed, Hadley & McCloy law firm, Washington DC 1980-92; Special representative of President of US for multi-lateral assistance in the Philippines 1989-94; Retired partner Milbank, Tweed, Hadley & McCloy 1992-date.
VI Department of State
a) See file (as referenced in document index) for complete listing of ambassadors 1969-75.
b) William P Rogers - Secretary of State 1969 - September 1973. See file for foreign travels. Note - May 27, 1973 - Netherlands Antilles Curacao. (Note - reference to Curacao as offshore company registration for capital investment used as loophole by US investment banks). Note - Monarchy ended in Greece, June 1973.
c) Henry A Kissinger - Secretary of State September 1973 - January 1977. See file for foreign travels - peace process Vietnam, Middle East, Cyprus - War between Greek & Turkish Cypriots. US Ambassador, Rodger Paul Davies, killed in Cyprus August 19, 1974, by Greek Cypriots. Note - Implied numerous times by various individuals that bonds were part of Greek-Turkish peace process. Also part of Israel-Egypt peace process.
d) Walter H Annenberg - US Ambassador to Great Britain 1969 - January 1975. See file on Annenberg family - rather colourful Down Bar history.
e) George Herbert Walker Bush - US liaison, Peking, China 1974-75; Director Central Intelligence Agency 1976-77; Vice President of US 1980-88; President of US 1988-92.
VII Central Intelligence Agency
a) New York Times news article, May 12, 1975:-
CIA Reported to Be Easing Use of Businesses in Spy Activities _ _
_Washington, May 11 - The Central Intelligence Agency is cutting back on the size and number of companies that it owns and has used in past clandestine activities, but it appears to retain the power to revive them if needed, Newsweek magazine said today. The agency’s Washington-based Pacific Corporation, with 11,200 employees in 1970 - compared with 16,500 in the agency itself - is down to little more than 1,100, the magazine said. _
_Other companies are being sold, Newsweek said, some possibly in the manner that the agency disposed of Southern Air Transport. It reportedly was sold at a “bargain rate” to the man who operated it for the agency for a decade. _
_The agency operates and maintains a number of contingency funds in connection with the companies it owns, including a $26-million insurance fund, the magazine said. Much of that money is reportedly invested in stocks and securities chosen by CIA economists in Langley, Va., partly on the basis of classified information not available to ordinary investors. _
_In addition, the magazine said an “old-boy” network of former CIA agents, officials and co-operative private businessmen was found to include connections with 16 banks and investment houses, including New York’s Manufacturers Hanover Bank and the Chemical Bank. _
Connections also lead to two dozen major corporations, Newsweek said, including
_I T & T, United Aircraft and W R Grace & Co, as well as some prestigious law firms, including Boston’s Hale & Dorr and Ropes & Gray. _
Note: New York Times 30 April 1996 – Ex-Director of C.I.A disappears while canoeing on choppy river (?) - William E. Colby the spy-master who led the CIA through it’s worst years in the mid seventies.
b) New York Times - July 10, 1975 - “Information from House of Representatives’ Select Intelligence Committee indicates that there was CIA ‘infiltration’ into Management & Budget Office, Treasury Department & Commerce Department.”
VIII A REVIEW OF THE OFFICE OF MANAGEMENT AND BUDGET (OMB)
1967 NYTIMES: Bureau of Budget: F S Hoffman named asst dir. January 20, (40:6)
1968: NYTIMES : Bureau of Budget: Nixon names R.P Mayo as Director
December 12, (1:8) / article on role of M.H Stans (See Department of Commerce Vesco contribution), budget director in Eisenhower Adm./ comment on the Bureau's key role in budget policy and expectation that Mayo's direction of bureau will keep it an exceptionally powerful agency, Dec. 15, (84:5)
1969: NYTIMES : Bureau of the Budget: R Nathan assist dir. Jan 23, (22:2)/
M. Mann named asst dir. with primary responsibility for economic analysis, Feb 4, (58:7) / J.R Schlesinger named Assist Dir. specialising in military and international programs, Feb 11, (9:1) / R.W Jones appointed Assist Dir., brought in from retirement of 35 years government service, March 3, (20:4) / Deputy director Hughes retires after 21yrs with bureau, Oct 23, (42:2) / Advisory Council on Executive Organisation proposes that the Bureau be given greater authority to oversee the management of specific domestic programs, and to provide regular evaluations of effectiveness of programs in progress, Oct29, (23:1)
1970: NYTIMES : Bureau of the Budget replaced by the new Management
and Budget Office: Director Mayo appointed to White House staff as
Counsellor to President Nixon June 11, (1:18) / Proposed by Nixon
to carry out policy developed by proposed Domestic Council, reorganise message to Congress; would replace Budget Bureau; would prepare annual Federal budget and also take on management duties typical of large corporation; overall plan was developed by Executive Organisation Advisory Council; office would provide White House with ability to evaluate and co-ordinate programs crossing dept lines, recommend future changes in dept organisation and seek to settle interagency disputes in field offices; speculation that Budget Director Mayo will head office noted, March 13, (1:5). (Note: several articles on plan as it is passed by Congress)
1970:NYTIMES: OMB; Casper Weinberger appointed deputy director with primary responsibility for budget; Shultz seen playing powerful role in policy creation,
June 11, (1:8)
Who's Who : Casper Willard Weinberger born 1917, ChM FTC 1970,
deputy director OMB 1970-1972, counsellor to the President 1973;
Secretary HEW 1973-1975; Bechtel Corp 1975-1980
Numerous articles on OMB: reporting on the change and merits of the change, as well as the appointees and whether or not too much power is under the control of the president, as well the possible conflicts which may occur within the administration.
Who’s Who: George Pratt Schultz, born 1920, US Secretary of Labour 1969-70;
Dir. OMB 1970-72; US Sec Treasury, also asst to Pres. Nixon 1972-74, dir. Bechtel Corp, San Francisco 1974 –
1971: NYTIMES: OMB, assist dir. Schlesinger appointed to Atomic Energy
Comm post, July 22, (1:5); Frank Charles Carlucci III appointed assoc. director,
July 28, (16:4); assistant director Richard Perle Nathan resigns to take HEW post,
Sept 17, (16:3); Paul Henry O'Neill appointed assist director, Sept 25, (16:5);
Who's Who : Frank Charles Carlucci III born 1930, Foreign service officer
US Department of State 1956; vice counsel economic officer Dept State, Johannesburg SA 1957-1959;various posts - 1968; assist director Office Econ Activity, 1969, dir. 1970; OMB 1971-1972; HEW 1972-1974; ambassador to Portugal 1975-1978 deputy director CIA 1978-1981; deputy secretary. Defence 1981-1982;
Who’s Who: Richard Perle Nathan, born 1935, director domestic policy
research for Nelson A Rockkefeller; Brookings Institute 1966-1969;
assist director OMB 1969-1971; deputy under secr HEW 1971-1972;
Brookings Institute 1972-
1972 NYTIMES: OMB, President Nixon appt. George Schultz as Treasury
Secretary, appt. Weinberger Director of OMB, May 17, (1:1);
F Carlucci appt deputy dir. OMB, July 8, (15:3); President Nixon on Nov 28 nominates Roy Ash to succeed Weinberger as director of OMB, Nov 29, (1:8);
Numerous articles regarding appointment of Roy Ash, many critical
charging that the military industrial complex has invaded the executive branch;
Who's Who : Roy Lawrence Ash , born 1918, chief fin officer Huges Aircraft Co 1949-1953; co-founder Litton Industries, inc. 1953-1972; chmn Presidents Advisory
Coun. on Executive Organisation 1969-1971; assistant assistant to President Nixon; Director OMB 1973-1975;
1973 NYTIMES: OMB, numerous articles critical of appointment of Roy Ash
during January; Frederick Vincent Malek appointed Deputy Director OMB, Jan 11, (20:4); Numerous articles on issue of Congressional approval for Dir. and deputy Dir. of OMB; Senate Votes to require Confirmation for both dir. and dep. director OMB;
Feb 6; (1:2); BA Bridgewater Jr is named for assoc. director OMB for national security and international affairs, March 10, (29:3); President Nixon, accusing congress of "backdoor" assault on Pres. authority, on May 18 vetoes bill that would require Senate
confirmation of director and deputy director OMB, May19, (1:4); US Senate on
May 22 overrides Nixons veto, May 23, (1:5); Both Senate and House of Rep pass bills requiring all future OMB 1 and 2 posts be approved by Senate, but Ash and Malek do will not require Senate Approval;
Who's Who: Frederick Vincent Malek , born 1936, deputy under sec HEW
1969-1970; spl assist to President 1970-1973; dep dir. OMB 1973-1975; Marriott Corp 1975-1988; pres. Northwest Airlines 1989-1990
1974 NYTIMES: OMB, John Herbers article 'The other Presidency -Ash,
Malek, O'Neill, Zarb & Co: Not household names but their power is growing,
March 3, section 6 page 16.
_See Addendum _
Note: This is an expansive article herewith some highlights:
"In many respects OMB has become a surrogate president, administering the Nixon policies as its top officials see them." "Frederick V. Malek was one of the tough young pragmatists whom H.R. Haldeman elevated to authority." Speaking of Ash and Malek..." They have made an odd but apparently effective pair: Mr Ash who serves as assistant to the President as well as boss of 660 people
in his agency"... "Mr. Malek a product of U S Military Academy and Harvard Business School, who readily acknowledges his reputation as an 'ass kicker' has furnished the top levels of the agency with bright young wizards of the business
world"....
"Because the Administration has been so shaken by the Watergate disclosures, OMB has become deeply involved in some phases of the day to day operations of the
government under the circumstances it could hardly avoid doing so. In the recent fumbling attempts by the Government to get a grip on the energy crisis, it was
OMB that supplied most of the initiative, and information, because frequently it had the only expertise available." "To carry out (Nixons policies) OMB is equipped with
the staff and computers to make the necessary analyses, and it has access to every study and piece of information gathered by the departments and agencies."
"In OMB one could learn virtually all there is to know about any branch of the Federal Government, however remote from the centre of power." "In exercising their authority (they) have adhered closely to the Nixon philosophy...as perceived by the
bureaucracy, boils down to this: Strengthen the Military and civil police power, but look askance at all else.... Free enterprise is basically good, worthy of emulation
and should be interfered with as little as possible." "Ash is proud that he has brought some of his venturesome ways to government." "Some who worked there (Committee to Reelect the President) said that in many ways Malek actually ran the committee. After the election his services were recognised......, and it was decided he should have a key role in imposing the Nixon policies and control on the Government."
"Paul O'Neill...a young associate director...is virtually unknown outside the bureaucracy. While studiously avoiding publicity....Mr. O'Neill has negotiated
agreements with Congress, initiated programs, blocked proposals from agencies, decided disputes between departments, brought about the impounding or release of funds and precipitated Presidential vetoes." "O'Neill provides an excellent example of how much clout a key OMB official can have (he) came to the agency in 1967, has an enormous store of knowledge about the vast array of programs in (agencies)"
"It is not unusual for O'Neill to negotiate directly with Congressional leaders in any number of areas, bypassing the department or agency that formerly would have been responsible" "asked if the President had accepted his recommendation in (a) matter, O'Neill said 'I never say what I recommend to the President'." "The special division for drug enforcement set up within the OMB brought about, for the sake of efficiency a very difficult consolidation of agencies, reduced the flow of heroin into the US through a stepped-up police effort..."
"...the agency (OMB) is deep into policy. 'If you are doing anything important,' O'Neill said, 'there is no way to stay away from policy'." NY times continued: Malek resigns as dep. dir. OMB, he will join business organisation of D K Ludwig, Aug 13, (22:7);
President Ford's transition team has recommended that OMB be stripped of its policy-making power, implies that Ford approved plan, Aug 23, (1:6); OMB has retained its powers despite, Nov 11, (16:4); Roy Ash resigns on Dec 18 as director...saying that he had intended to serve in government for only 2 years. Ash is scheduled to be succeeded by James T Lynn, Dec 18,(1:5);
1975 NYTIMES: OMB, ... Frederick Malek never joined Daniel K Ludwig,
Jan 7, (45:1); Rep R.W Kasten jr says he read information from HR Select Intelligence Committee's staff indicating there was CIA infiltration into OMB,
Treasury, and Commerce departments, July 10, (1:6);
Who's Who: Robert Porter Mayo , born 1916 economist
US Treasury 1941-1947;assist to Secretary of Treasury 1959-1960;
vp Continental Illinois National Bank and Trust 1960-1969;
dir. US Bureau of Budget 1969-1970; counsellor to President US 1970;
Pres. Federal. Reserve Bank of Chicago, 1970-. Methodist (1972/73)
Note: CEO David Kennedy (Fasco Holdings – M. Sindona CEO of Conti for period)
Who's Who: James Rodney Schlesinger, born 1929, RAND Corp 1963-1969; assistant director then deputy director Bureau of Budget 1969-1970;
assistant director Office of Management and Budget 1970-1971;
ChM AEC, 1971-1973; dir. CIA Feb-July 1973; US Secretary of Defence 1973.
Nixon appoints Labour Secretary Shultz dir. (Bechtel); office will assume extensive management responsibilities, including monitoring performance of Cabinet officials, their departments and programs, and will give Shultz and, by extension, Nixon - substantial operating authority over individual Cabinet departments; office will replace Budget Bureau and take over responsibility for preparing annual budget; director's post does not require Senate confirmation; Shultz seen playing powerful role in policy creation; Budget Director Mayo will join White House Staff, on 'quadriad' of top level economic advisors, June 11, (1:8). OMB will have a staff of 100 plus Budget Bureau staff, June 15, (42: 1). Nixon signs Executive Order implementing reorganisation, July 2, (20:11).
Designated Secretary of Treasury in the Bush Administration: Paul H. O’Neill.
Who’ Who 2000: Paul Henry O’Neill, Born 1935, 1967 – 69 Bureau of Budget, Washington DC, 1969 – 70 US Government, Office of Management and Budget, 1971-72 US OMB, assistant Director, 1973 –74 US OMB, associate Director,
1974 – 77 US OMB, deputy Director, 1977-87, International Paper NYC, 1987-99 CEo Alcoa Inc, Pittsburg, PA,
1981 – date Bd. Directors Gerald R. Ford Foundation.,Bd Directors: Rand Corp, Lucent Technologies, Eastman Kodak Co., Bd of Governers: National Association
Securities Dealers, Inc.
IX Export-Import Bank
a) The key federal international banking organisation. It was originally authorised in 1934 as a banking corporation per executive order 6581, February 2, 1934.
b) The Export Expansion Finance Act of 1971 (12 U.S.C. 635 note) removed the receipts and disbursements of the Bank from the budget of the US Government and increased its overall lending authority.
c) The headquarters are located in Washington DC.
d) The Export Import Bank Act provides for a five person board of directors: the president of the Eximbank serves as chairman, the first vice president as vice chairman and three additional directors - all appointed by the President of the US by and with the advice and consent of the Senate.
e) Stephen Davison Bechtel, Sr - on advisory committee, Export-Import Bank 1969-74.
f) Henry Kearns - Chairman, Export-Import Bank, 1969-73, Bechtel 1973 -
g) William J Casey - CIA, Chairman, Export-Import Bank, 1974-75 (note - see New York Times article April 1, 1974 and September 20, 1975, as referenced in document index).
h) James Allen Harmon - President Clinton named investment banker James Harmon to be president and chairman of Eximbank May 7, 1997. General partner of Wertheim & Co, Inc, 1975 to date. Board of directors Schroders PLC, London (see file as referenced in document index).
X Federal Reserve System
a) Board members normally serve a fourteen year term.
* Dr Arthur F Burns was born in Stanislau, Austria. Began term in February 1970; chairman of Board of Governors.
* James Louis Robertson - began term in 1952 - vice chairman of Board of Governors 1966-73 (resigned). Senior member of Board. (Note - was replaced by Robert C Holland in May 1973 who began with Federal Reserve, Chicago in 1949).
* George Wilder Mitchell - Federal Reserve Bank of Chicago 1944-61. Began term in 1961; vice chairman of Board 1973 - January 1976 (retired).
* James Dewey Daane - Federal Reserve Bank in 1939; began term in 1963-74 (resigned); he was the “man about the world” - the principal representative in International Monetary Affairs (note - replaced by Professor Henry C Wallich, January 1974).
* Andrew F Brimmer - Began term in 1966-74 (resigned). (Note - replaced by Philip E Coldwell, November 1974).
* John Eugene Sheehan - Began term in January 1972 - April 23, 1975 (resigned). Executive officer with Corning Glass Works 1966-72; Chief operating officer White Motor Corp 1975. (Note - replaced by Philip C Jackson - May 23, 1975).
* Jeffrey M Bucher - Began term in 1972 - January 1976 (retired).
b) Major issues addressed re: Federal Reserve System in media:
1971
* Suggestions of rift between Nixon & Burns - that Nixon wanted Federal Reserve under Executive Branch - rumours denied by Nixon.
_1972 _
* Federal Reserve Board expands authority to Federal Reserve banks to expedite handling of applications received under Bank Holding Company Act.
* House of Representatives Banking Committee approves, on August 16, requirement that Federal Reserve System be audited by the general accounting office like other government agencies.
_1973 _
* House of Representatives Banking Committee recommends creation of new Federal Banking Committee to take over regulatory function of Federal Reserve Board - suggests reducing terms from fourteen years to five years.
* House issue continued over audit by GAO - Federal Reserve lobbies against audit - Chairman Burns says Fed is clearly accountable to Congress - that it publishes more detailed information about its activities than any other central bank in the world. He said that many in Congress share his view that GAO audit may carry dangers to the integrity of monetary policy.
* House Rules Committee blocks action on August 16, 1972 Bill. Chairman of House Banking Committee Chairman responds saying Burns is exposing the very kind of secretive, unaccountable government decision making which has shocked the US public.
_1974 _
* President Nixon re-names Arthur Burns Federal Reserve Board Chairman.
* Andrew Brimmer resigns Board of Governors.
* House of Representatives passes Bill calling for limited audit of the Federal Reserve limited only to administrative expenses.
* NB - Philip Coldwell , President of Federal Reserve Bank, Dallas, Texas, replaces Andrew Brimmer.
1975
* House Banking Committee approves Bill requiring annual audit of Federal Reserve Board operations by GAO - audit cannot contain recommendations on monetary policy or reports on individual bank transactions - June 1975.
* “President Ford attends swearing-in of Philip Jackson Jar as member of seven man Federal Reserve Board; Ford is the first President in thirty-eight years to visit Federal Reserve headquarters.” New York Times, July 14, 1975.
* “Alfred Hayes , retiring president of the Federal Reserve, New York, does not feel Federal Reserve should become involved in helping troubled municipalities such as New York City - his views are seen as reflecting those of Federal chairman Burns.” New York Times, July 31, 1975.
* House Rules Committee blocks Bill requiring GAO audit of Federal Reserve system. September 1975.
* Senator Humphrey introduces legislation that would require labour, agriculture, consumer and small business representation on seven-member Federal Reserve Board - seeks to restrain Board’s independence.
* “Paul A Volcker is named to head Federal Reserve Bank of New York...his duties will include execution of Reserve’s operations in government securities markets and foreign exchange markets.” New York Times, May 2, 1975.
(Note - P A Volcker - Undersecretary for Monetary Affairs, US Treasury 1963-65 and 1969-74; Trilateral Commission 1992 - date; Nestlé SA - board of directors; also Swiss Banks representative on World War II issues 1997).
* “Alan Greenspan , Chief Economic Counsellor to President Ford said that a reversal of the recession might come with surprising rapidity. ...... ‘There is a possibility we may be surprised by the rapidity of the rise’ from recession.” New York Times, May 13, 1975.
XI The Investment Bankers - The Merchant Bankers
Note - Most of the US Government’s Debt has passed through the computers - and in pre-computer times the ledgers of the investment bankers. The investment bankers’ world is very private - their deals by nature involve secrecy. In 1997 terms the line between investment and commercial banker is blurred - this study, however, focused on the banks’ history during the 1970’s: this is a very broad subject in terms of the history of the last four hundred years......suffice it to say, it has been the investment bankers’ role in Western society to create wealth for nations, for monarchies and for industrialists. They have financed wars and they have created monarchies and countries. The commercial banker takes the deposits. The merchant banker is the master of the paradox.
a) Goldman Sachs & Co.
* Headquarters in New York.
* Strong ties to Washington DC -
John C Whitehead 1947-84 Goldman Sachs
1985-89 State Department
Henry H Fowler 1965-69 Secretary of Treasury –1969 Goldman Sachs
* In 1974 - assisted Greece with a $100 million loan. Opened new office in Zurich, Switzerland.
* In 1975 - Opened new office in Houston, Texas.
* In 1978 - Former Secretary of State Henry Kissinger becomes part-time consultant and advisor.
* In 1992 - Robert Rubin - Deputy Secretary of Treasury.
b) Lazard Freres & Co.
* Headquarters in New York and Paris.
* Close connection with the Kennedy family, the Rockefellers.
* ITT’s investment banker during 1970’s and to date.
* Robert Ellsworth - General partner 1971-74
US ambassador to NATO 1969-71
US Defense Department 1974-77
* André Meyer - Senior partner in 1970’s - powerful worldwide.
* Felix G Rohatyn - directed financial restructuring of NYC 1976-77. Appointed US Ambassador to France by President Clinton in 1997.
* Company hires Federal Reserve ex-chairman Arthur Burns as consultant - 1978.
_Note: Consortium called Triad (70’s) – Lehman Kuhn Loeb , Lazard Freres and Warburgs. _
(See Guardian 25 Nov. 2000 article “ Lazard finds ally to beef up defence against predators” with Credit Agricole / UBS Warburg.)
c) Lehman Brothers Inc.
* J R Petty joins firm in February 1972 after resigning from US Treasury as Assistant Secretary for International Affairs. He opens a new Washington office. From 1953 to 1966 he was with Chase Manhattan in New York and Paris.
* Peter G Peterson joins firm in June 1973 after resigning as US Secretary of Commerce 1972-73.
Note - Article in New York Times, January 29, 1974 - “Lehman Brothers has completed a study of its roles in the government securities market and has decided not to trade Treasury bills, notes and bonds”....instead the firm is going to “put all its energy into trading Government National Mortgage Association certificates of such federal agencies as the home loan banks and the intermediate credit banks.”
* Two European banks invest in Lehman Brothers holding - September 1974 -
Banque Francaise et Italienne pour l’Amerique de Paris
Banca Della Svizzera Italiana of Lugano, Switzerland (M. Sindona)
* Lehman Brothers and Kuhn Loeb Inc. merge December 1977, linking two old line investment banking firms.
Note: The Wall Street Journal 1979 – James R. Schleslinger joined the firm as “Senior Advisor” – Former Secretary of Defence, Director of the CIA, Chairman of the Atomic Engergy Commission, Secretary of Energy, Director Strategic Studies 1967-69, Assistant Director OMB 1970-71, Counsellor. Centre for Strategic & International Studies, Georgetown.
d) Dillon, Read & Co.
* Top level changes announced December 29, 1970:-
Frederic H Brandi retires as chairman - but continues as director.
August Belmont named president.
* Company history -
C Douglas Dillon -
Director Dillon, Read - 1938-53
Ambassador to France - 1953-57
State Department - 1958-61
Secretary of Treasury 1961-65
Chairman of Executive Committee/Director - Dillon, Read - 1971
Chairman Rockefeller Foundation 1972-75
Chase Manhattan Bank Int’l Advisory Committee - 1973
James V Forrestal - was the chairman of Dillon, Read before C D Dillon.
Dillon Family was the major shareholder of firm during the 1970’s.
* Nicholas F Brady - President & CEO, March 1971
* C Douglas Dillon - returns to firm September 1971
* March 1971 - Dillon, Read completes work on creating Private Export Funding Corporation.
* Nicholas F Brady assumes additional post of chairman
* Peter M Flanigan - assistant to President Nixon 1969-72 and then became both assistant to President for International Economic Affairs and Director of the Council on International Economic Policy until August 1974. Appointed Managing Director of Dillon, Read - January 1975.
* In 1980 Skandinaviska Enskilda Banken acquires a 20% stake in Dillon, Read.
* In 1981 the Dillon family sells majority interest to the Bechtel family.
* In 1984 the Bechtel family sell most (not all) shares to managing directors of firm.
* Travelers Corp acquires Dillon, Read in 1986.
* 1988 - Nicholas Brady nominated Secretary of Treasury by Reagan Administration.
* In November 1991, Dillon, Read & Co joined with Barings PLC to buy out half of its relationship with Travelers Inc (see files as referenced in document index regarding Travelers subsidiaries as institutional holders of Treasury Bonds - May 15, 1975).
* 1995 - Barings PLC failure - Dillon, Read buys half of the 40% owned by Baring Holding (the ING stake formed to hold Baring PLC assets) with option to buy other half - June 1997.
* May 1997 - Swiss Banking Corp announces plan to buy Dillon, Read - maintaining management in US.
* Note : U.K. Govt. lawyer Stephen Pollard acted for D.Green in 1992 and 1993 and also for Nick Leeson and his release in 1999 regarding the Barings Bank collapse.
e) Hambros Plc.
* Headquarters in the City of London.
* Scandinavian family doing banking before 1800AD.
* Shipowners and shipbuilders are major clients.
* Old Clubs - White’s, Brooks, Pratt’s.
* The Queen of England came to lunch in the City.
* Involved in financing the Danish Crown in 1849 - made lots, plus title.
* Very involved in the formation of what is now Italy.
* Arranged for a Danish noble to become the Monarch of Greece. In March 1863 the 18 year-old Danish prince was nominated to the Greek throne - King George I and Hambros issued its first Greek loan.
* In 1941 when the German invasion of Belgium and Holland destroyed the historic diamond centres - Hambros reorganised the centre in London.
* In the mid-1960’s, E E Mocatta sat in the Foreign Exchange Department of Hambros PLC. Mocatta became a subsidiary of Hambros in the late 1950’s. Mocatta and Goldsmith have been bullion brokers since 1684.
* Hambros PLC directors sit on boards of Anglo American Corp of South Africa Ltd; De Beers Centenary AG.
* Sir (John) Chippendale (Lindley) Keswick - chairman Hambros Bank Ltd, deputy chairman Hambros PLC - also on board of directors De Beers Consolidated Mines Ltd, Anglo American Corp of SA Ltd.
* Rupert Nicholas Hambro - chairman J O Hambro & Co. Also on board of directors Anglo American Corp of SA Ltd.
Note - also see “St Peter’s Banker” (as referenced in document index) re Hambros.
Also see directors for Great Peter Nominees (Crown Agents) - Mocatta - as referenced in document index.
Special Note: White Weld and Company
1970
New York Times 1970 - London Multinational Bank Ltd (Great Britain) to be formed by Chem Bank, Baring Bros, Credit Suisse and Northern Trust Co. will focus on medium and long-range Eurocurrency financing.
New Euro commercial paper introduced by J.H Schroeder Wagge & Co.
Swiss Credit Bank to take substantial parternership interest in a new organisation that firms is setting up in Switzerland to expand its European securities business.
White Weld was one of the largest Eurobond underwriters and secondery market makers for Eurobonds.
1972
John Cattier (Banker Brussels, Chmn. bd. European.Am.Banking Corp., European-Am. Bank & Trust Co.) Vice Chairman of White Weld & Co Ltd “ I definetly see a move to American investments by Europeans from the way that the American bond market has been functioning.” Echoing Mr Bischoff of the Swiss Bank Corp. who said: “Frankly it will take a good active New York stock market to bring the Europeans in.”
1973
Wall Street Journal 1973 – Sumitomo Bank Ltd, White Weld British unit formed joint
U.S – Japanese venture.
1974
Acquired G.H Walker Laird Inc., Drexel Burnham & Co are discussing forming jointly owned concern to handle securities processing operations.
1975
Chairman Paul Hallingby Jr., dir. S.A Financiere du Credit Suisse et de White Weld, Zurich, Switzerland., gov. Am. Stock Exchange 1969-72
Emery L. Katzenbach Chairman White Weld & Co Inc.,NYC, S.A Financiere du Credit Suisse et de White Weld Zug, Banque Francaise de Depot et de Titres, Paris Liggett & Myers Inc.
07 May 1975 – NY Times -George L. Shinn , President of Merrill Lynch & Co left to become president of First Boston Corporation. In 1973 he became the president of Merrill Lynch, Pierce Fenner & Smith Inc. the securities subsidiary of the holding company.
11 May 1975 – NY Times – C.I.A covert activities abroad shielded by major U.S companies. (Use of Howard R. Hughes organisation).
15 May 1975 – NY Times -George L. Shinn whilst being chairman of First Boston exercised an option to buy 30 000 shares of Merrill Lynch stock last month.
15 October 1975 – NY Times – Merrill Lynch & Co. reported yesterday that profits fell nearly 19 percent during the third quarter of 1975 but soared more than three fold in the first 9 months of the year to a record. “Government bonds fell during the third quarter but rose in the 9 months.” (!)
Thomas Donald Regan chmn., CEO 1973-81, Merrill Lynch & Co. Inc. , Sec. of Dept of Treasury, Washington 1981-85, dir. NY Stock Exchange 1972-75.
1976
Charles C. Tillinghast Jr , chmn of Trans World Airlines and chief operating officer since 1961 joined White Weld & Co. (See SUMMA Corp. (Howard Hughes)).
03 June 1976 – NY Times – Merrill picks 3 to aid expansion. Roger E. Birk, Donald T. Regan and Thomas J. Cassady.
04 June 1976 – NY Times – William A. Schreyer chairman and CEO for government securities who became executive vp for Capital Markets.
1977
SummaCorp. (Howard Hughes) president Frank Gay testifies that two of Watergate burglers Howard Hunt and G. Gordon Liddy once approached officials of Corp about braking into the safe of Greenspun.
1978
Merrill Lynch, Pierce, Fenner & Smith Inc., US largest security firm, bought White Weld & Co. As part of the merger transition ML acquired a 30 % interest in Financiere du Credit Suisse et de White Weld and then granted an option to Credit Suisse to purchase this interest.
15 April 1978 – NY Times
While the two concerns have been operating in many of the same fields in the securities business, the two have emphasised different aspects that should complement each other. In corporate finance, White Weld emphasised innovative deals while Merrill Lynch is most powerful in distributing securities. White Weld has been strong internationally.
Although Merrill Lynch in the 1970’s has led all major investment banking firms in value of stocks and bonds sold to raise money for corporations and governments White Weld has been on of the major firms ranking not far below the giants of the industry.
17/19 April 1978 - NY Times
For 1977 Merrill Lynch’s earnings plunged to about $43.9 million or $1.25 a share, from $106.6 million or $3.01 a share in 1976. Revenue was about $1.12 billion in each year. The size of the acquisition may arouse government intervention. White Weld was a privately held firm up to 1977. Asked if this meant that the company’s government securities operations had run at a loss during the quarter, a Merrill Lynch spokesman confirmed that they had, although he declined to specify the size of the loss. A separate unit, Merill Lynch Government Securities Inc, handles those operations.
01 May 1978 – NY Times
Merrill Lynch merger with White Weld causes talk, often critical.
“Justice department eyeing an increasingly powerful ‘thundering herd’, has initiated a study of the merger – Civil Investigative Demand.” Procedure to obtain documents. Much of the controversy surrounding the merger has sprung from Credit Suisse White Weld, known in the trade as CSWW, which is 31 % owned by White Weld Holdings, Credit Suisse owns 47 % of the joint venture and the rest reportedly belongs to the Ludwig Foundation for Cancer Research (12 %).
Note: Daniel K. Ludwig – NY Times 02 May 1976 – America’s biggest and probably the world’s third biggest shipping lord. His principal corporate vehicle is National Bulk Carriers Inc. He is the sole owner – Howard Hughes’ landlord. Private Merchant Banking Firm, European American Securities Inc. John L. Notter pres. of the board.
_11 May 1978 – NY Times _
Credit Suisse to buy interest of Merrill and increase the stake in CSWW to 77 % the rest belongs to Ludwig Foundation for Cancer Research.
10 July 1978 – NY Times
William A. Schreyer responsible for recent merger with White Weld into Merrill Lynch.
18 July 1978 – NY Times
Credit Suisse negotiates with First Boston the New York securities firm, for First Boston to acquire a share in CSWW, the European banking organisation.
Note : John Cattier the White Weld / European American link.
XII Gold: South Africa - United States - England - Foreign Exchange
a) December 1969 - January 1970:
Dr Nicholaas Diederichs , South African Minister of Finance reports on talks held in Rome in mid-December that led to the new Washington agreement on the sale of newly mined gold.
b) Described as a chapter in monetary history - a compromise agreement in which neither side won.
c) South Africa regained the right to sell gold through the International Monetary Fund and did not surrender the right to sell to other monetary authorities, i.e. not all monetary authorities are members of the IMF.
d) The agreement removed the element of uncertainty and ended any question that South Africa would be unable to meet its foreign exchange requirements.
Note - US Ambassador to South Africa was John Gavin Hurd , a lawyer from Texas. He was Ambassador from 1970 - 1975.
Note - Frederic Brandi leaves Dillon Read in 1971 and is appointed CEO of ASA Ltd - for more detail, see History document as referenced in document index.
XIII American South African Investment Co Ltd (ASA Ltd)
1. Incorporated in Republic of South Africa - June 12, 1958
2. Registered with the Securities Exchange Commission in USA as a non-diversified, closed-end management investment company under the US Investment Company Act. It was permitted to register under the Act as a foreign investment company pursuant to the provisions of Section 7(d) of the Act and Rule 7d-1 thereunder.
3. One million, two hundred thousand shares were underwritten on September 18, 1958 @ $28.00 per share by Dillon, Read & Co.
4. South African Investment Advisor Pty Ltd (SAIA) is a South African corporation and conducts no business other than acting as ASA Ltd’s investment advisor.
5. ASA’s investment policy does not permit it to invest in the securities of any company other than those doing the major portion of their business in South Africa. Securities transactions are arranged for by SAIA acting as the advisor and, with very rare exceptions are executed on the Johannesburg Stock Exchange (for exceptions see file on March 1975).
6. ASA Ltd is authorised for 24,000,000 shares; outstanding as of November 30, 1995 - 9,600,000 shares. Offered 1,200,000 shares in 1958 - split 2 for 1 in 1966, 1973 and 1975 accounts for the outstanding 9,600,000 shares.
7. Counsel - in New York,Shearman & Sterling; in Johannesburg,Werksmans
8. Custodian - Citibank, NA, New York
9. Directors of ASA Ltd. 1996 of note (see file for complete list, as referenced in document index):-
* Charles William Englehard (USA) - precious metals company executive; Anglo American Corp, Prudential Insurance Co.
* Frederic H Brandi (USA) - replaced C W Engelhard on ASA board (upon his death) at the same time was Chairman of the board of Dillon, Read & Co - March 1971.
* John Henry Farrell Haskell Jar (USA) - Managing director Dillon, Read & Co; member - Links Club, New York; Bohemian Club, San Francisco.
* Grayson Mallet-Provost Murphy (USA) - Shearman & Sterling; Director of Celanese Corp.
* William Levi Wearly (USA) - Ingersoll-Rand Co; Director Bank of New York since 1976.
* Gavin Walter Hamilton Relly (South Africa) - Director Anglo American Corp of SA Ltd; South Africa Foundation since 1975; De Beers Consolidated Mines Ltd; Standard Bank Investment Corp Ltd.
* A Michael Rosholt (South Africa) - Director South African Breweries Ltd.
* Robert A Pilkington (Great Britain) - unable to identify, possibly connected to Pilkington PLC, the huge glass products holding company.
The political and economic history for the US, UK and South Africa is attributed to the transnational interests of the interlocking board directors involving the commercial interests of PEFCO, ASA and the Crown Agents for Overseas Governments.
XIV Shearman & Sterling
1. Founded in 1873 - has more than 500 lawyers in 15 offices throughout the world. The firm is also engaged in the practice of French, German and Hungarian law (see file for complete listing, as referenced in document index).
2. Of Counsel:-
* Edward Bransilver - General Counsel, Federal Deposit Insurance Corporation 1973-75 , Washington DC. (Note - see “The Failure of the Franklin National Bank”, as referenced in document index, re: FDIC).
* Robert Carswell - Chairman Private Export Funding Corporation 1993 - date; Deputy Secretary of the Treasury 1972-81. (Former Senior Partner - term expired January 1991).
* Robert H Knight - General Counsel of Treasury 1961-62. (Former Senior Partner). Note - see my involvement with Robert Knight, Andy Hanlon, Jim Sargent - 1996 file, as referenced in document index).
* Stephen R Volk - Elected to six-year term as Senior Partner, January 1991.
3. General Information:-
* Robert Carswell as partner in Shearman & Sterling was integral in the formation of Private Export Funding Corporation.
* Shearman & Sterling was contracted by the Saudi Government to review all contracts signed with the Royal Commission in the building of the huge Jubail Industrial Centre , a project of global undertaking (see New York Times, February 13, 1978 - see document index).
* Shearman & Sterling collected $4,900,168 in fees in 1973 from thirteen corporations on whose board’s partners of the firm served. First National City Corp (Citicorp) paid the firm $3.6 million in 1973 (see New York Times article, December 1, 1974 - see document index).
* “Shearman & Sterling, a prominent law firm that represents large financial institutions, said it agreed to affiliate with Golembe Associates, a financial consulting firm based in Washington....restructuring and other banking issues - interstate of international - today require sophisticated legal, regulatory and financial know-how,” said Robert Carswell, Senior Partner - New York Times, March 27, 1987.
* “About 25% to 30% or $45 million to $54 million of Shearman & Sterling’s billings come from Citicorp....Shearman & Sterling billed about $180 million gross revenue in the year ended September 30, 1987.” (Wall Street Journal, December 9, 1988).
* “...Shearman & Sterling plan to expand its office in Washington, which was opened in 1987. ....Specialists in securities and litigation will be transferred from other offices to Washington.” Note - “Four international trade lawyers with a large portfolio of foreign and domestic clients” will join the Washington office. (Wall Street Journal, March 22, 1989).
* “Stephen R Volk was elected to a six-year term as Senior Partner. He succeeds Robert Carswell, whose term expired. Mr Carswell will resume practising corporate and banking law full-time. Mr Volk has represented Merrill Lynch & Co, First Boston Corp, andMorgan Stanley.” (New York Times, January 14, 1991).
* “The Kuwaiti Government hired a consortium, which includes Shearman & Sterling to prepare claims against Iraq for environmental damage inflicted during the Gulf War.” (Wall Street Journal, June 3, 1994).
XV Private Export Funding Corporation
a) History - Incorporated in Delaware on April 9, 1970; was established with the support of the US Department of Treasury and Eximbank to assist in the financing of exports of US goods and services through mobilising sources of private capital as a supplement to the financing already available through Eximbank, commercial banks and other lending institutions.
b) Its shareowners consist of commercial banks involved in export financing; manufacturing companies involved in exporting US products and services and, until 1991, one investment bank. During 1991, three financial services companies became shareholders, i.e. the category of stock for investment bank became expanded. A financial services company expands the definition of the type of company that can own this stock.
Note - PEFCO Bonds Series JJ, dated June 5, 1991; due October 31, 1997
Series KK, dated June 25, 1991; due December 31, 2003
Series LL, dated September 9, 1991; due September 30, 2000
Series MM, dated none?????; due October 30, 1996
Series NN, dated January 16, 1992; due January, 2002
These five series total authorised $550,000,000. Unlike all other series there is no denomination listed, no trustee listed, no security listed, no indenture modification listed, no rights on default listed, no purpose listed and no (underwriter) offers listed. Bonds were always rated as AAA.
c) Business - PEFCO’s sole business is to make loans to foreign importers to finance purchases of goods and services of United States manufacture or origin. PEFCO also has a programme under which it purchases existing Eximbank guaranteed loans from banks and other sanctioned institutions. The purpose of this activity is to provide a secondary market for such loans (Note - therefore PEFCO could purchase country debt).
d) The creation of PEFCO had its origin in work done in the early and mid-1960’s by the Bankers Association for Foreign Trade (BAFT). The study was concerned with the problem of financing jet exports - especially the Boeing 747’s. A rough outline of a proposal was developed by a group headed by August Maffry (of the Irving Trust Company until 1967; deputy general manager International Commercial Bank Ltd, London 1967-68; senior consultant Bank of America, NYC 1968). Mr Maffry was an official of the US Department of Commerce 1935-45 and vice president & economic advisor at the Export-Import Bank, Washington 1945-47, before joining the Irving Trust Company in 1948. He was the technical advisor for the US delegation at Bretton Woods in 1944.
Mr Maffry’s role was taken over by James W Bergford of Chase Manhattan Bank who in turn hired the investment banking firm of Dillon, Read & Co to make a thorough study. By April of 1967 Dillon, Read presented a confidential report to the commercial banks.
The essence of the Dillon, Read plan was that a private corporation owned by private stockholders would sell commercial bonds which were backed by Government guaranteed obligations, and not limited by the restraints of the federal budget, i.e. Congress.
The plan required endorsement by the State Department , the Treasury Department , the Commerce Department , the Securities Exchange Commission, the Federal Reserve Board and the White House. Because this private corporation inevitably would involve the association among banks and exporters who are competitors, compliance with federal anti-trust laws would require clearance from the Justice Department. Private Export Funding Corporation was incorporated on April 9, 1970 and obtained Justice Department anti-trust clearance in March of 1971.
e) Private Export Funding Corporation received virtually no public attention from 1971 forward (see document index for all articles in New York Times and Wall Street Journal 1968 to date). A short note in the New York Times on March 22, 1973 states that David M Kennedy was elected a director of PEFCO and that C Douglas Dillon had been appointed to the Chase Manhattan Bank’s International Advisory Committee. Mr Kennedy’s election to the board of PEFCO is quite interesting in that he was also the advisor to Fasco International at the same time. Fasco was the giant complex holding company of Michele Sindona (see - “St Peter’s Banker” and “The Failure of the Franklin National Bank”, as referenced in the document index).
f) Shearman & Sterling has been Counsel for PEFCO from the beginning and with exception to the four years when he was deputy secretary of the US Treasury under President Carter, Robert Carswell has been on the board of directors. He is currently the chairman.
g) The first entry into Moody’s Bank & Finance Manual of Private Export Funding Corporation is in the 1977 manual (see document index for details on 1977 to date). From this first filing forward the secured notes are identified by series letter. Series A (apparently the first ever?) was dated June 15, 1975. This is interesting in that CUSIP 912810 BU1 is dated May 15, 1975 - one month before the Series A PEFCO Bonds which were secured by government-secured obligation.
h) PEFCO stock was made available to US commercial banks and to foreign banks with offices in the US. This is interesting in context to the failure of the Franklin National Bank in 1974 and the subsequent acquisition by European American
Bank & Trust, which was a consortium of European banks. The Federal Reserve approved European American as a member bank in November, 1974 (see “The Failure of the Franklin National Bank” - as referenced in document index).
This made European American the first foreign bank to be a member of the Federal Reserve System and since European American was actually a consortium of six European banks, with combined assets of $112 billion, who needed Franklin National or Michele Sindona?
The reasons for the creation of PEFCO provide an understanding of the co-ordinated network in the commercial sector. Conclusions have been derived through an analysis of people involved. A notable example is Mr J W Weiser, senior vice president and treasurer for the Bechtel group (see “Friends in High Places”, as referenced in document index) and a director with PEFCO from 1978-84 - the crucial beginning years for the huge Jubail Industrial Centre in Saudi Arabia.
Note - the 1996 PEFCO board of directors include:-
S G Thieke - J P Morgan - management/managing director
G J Vojta - Bankers Trust - vice chairman of board of directors
D A Coulter - Bank America - president & CEO
J.W.Weiser – Bechtel Group – Vice President and Treasurer
J E Rohr - Pittsburg National Bank - chairman
T F Donovan - Midland Marine (HSBC Corp)
D A Jaeger - Boeing Corp
W R Rhodes - Citicorp
R K Wilmouth - Lasalle National Bank (ABN AMBRO NV)
Note: American Express International Development Co. London,NY Times 21 March 1973 – Cordell Hull named MD from Bechtel Overseas Corp. 4 months ago. Nephew of the late Cordell Hull who was Secretary of State under President Franklin D. Rooseveldt. He was there from 1973-75 thereafter he was v.p treas. Bechtel Corp and Becthel Power, San Francisco 1975-80, pres. Bechtel Fin. Services, San Francisco 1975-82, v.p Chief fin. officer Bechtel Group Inc. 1980-85, Pres. Bechtel Power Corp 1987-89, dir. chmn. Bechtel Enterprises, 1990-95.
bd. dirs. mem.exec. com. Sequoia Ventures Inc., bd. dirs. Darby Overseas Ltd.
XVI The Commercial Banks
In a New York Times article dated January 8, 1970, about the creation of PEFCO, there is a boardroom photograph of three men - the investment banker, the lawyer and the commercial banker. In the article Arthur L Wadsworth of Dillon, Read, is quoted “Never before has such an attempt been made to try to marshal the resources of the long-term capital market in the United States to finance exports.” The task of creating a corporation with shareholders most of whom are bankers competing with each other is paradoxical.
(See index)