All the Presidents' Bankers (91 page)

15
. Zweig,
Wriston,
324.

16
. Richard Nixon, “Address to the Nation Outlining a New Economic Policy,” August 15, 1971, American Presidency Project, at
www.presidency.ucsb.edu/ws/index.php?pid=3115#axzz1xglSWGWB
.

17
. Lewis E. Lehrman, “The Nixon Shock Heard ’Round the World,”
Wall Street Journal,
August 15, 2011.

18
. John Butler,
The Golden Revolution: How to Prepare for the Coming Global Gold Standard
(Hoboken, NJ: Wiley, 2012), 13.

19
. Ibid., 19.

20
. Memo for Secretary Connally from Peter Flannigan, September 24, 1971, WHCF, Subject: Finance FI-9, monetary system, Box 55, Nixon Library.

21
. Memo for Henry Kissinger from David Rockefeller on International Monetary Arrangements, October 5, 1971, WHCF, Subject: finance FI 9, monetary system, Box 55, Nixon Library.

22
. Burton Gordon Malkiel,
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
(New York, NY: W.W. Norton, 2007), 69–70.

23
. The Learning Network, “Jan. 23, 1973: Nixon Announces End of U.S. Involvement in Vietnam,”
New York Times,
January 23, 2012.

24
. Sam Zuckerman, “Way the World Was When Dow Broke 1,000,”
San Francisco Chronicle,
March 30, 1999.

25
. Note from Gabriel Hauge, May 2, 1969, WHCF, Subject: Finance (FI), Box 54, Nixon Library.

26
. Memo for the President, September 13, 1971, WHCF, Subject: Finance (FI), Box 55, Nixon Library.

27
. Memo for Henry Kissinger from Robert Hormats, October 5, 1971,WHCF, Subject: Finance (FI), Box 55, Nixon Library.

28
. Memo from Peter Flanigan, November 29, 1971, WHCF, Subject: Finance (F1), Box 55, Nixon Library.

29
. Rockefeller,
Memoirs,
486.

30
. Erich H. Heinemann, “Patman Says Loan Board Makes ‘Ambitious Grabs’: House Committee Head Has Reservations on Conversion Ideas,”
New York Times,
November 14, 1972.

31
. Erich H. Heinemann, “Float Weighed for Prime Rate: National City Is Considering Letting Loan Charge Move with Yields in Market,”
New York Times,
October 19, 1971.

32
. Walter Wriston, “Currency of Change,” October 18, 1971, Walter B. Wriston Papers 1918–2006, Tufts Digital Library, at
http://hdl.handle.net/10427/36021
.

33
. Zweig,
Wriston,
350.

34
. Edwin L. Dale Jr., “Connally Doubts Accord on Monetary System Soon,”
New York Times,
November 14, 1971.

35
. International Monetary Fund, IMF Chronology, at
www.imf.org/external/np/exr/chron/chron.asp
.

36
. Barry Eichengreen, “Managing a Multiple Reserve Currency World” (paper), University of California, Berkeley, 2010, at
http://aric.adb.org/grs/papers/Eichengreen.pdf
.

37
. Oral history interview with George Shultz, December 18, 2002, University of Virginia Miller Center.

38
. Zweig,
Wriston,
369.

39
. Memo for Secretary Shultz, October 11, 1972, WHCF, Subject: Finance FI 1, Box 9, Nixon Library.

40
. Walter Wriston, “Freedom and Controls,”
New York State Bar Journal,
April 1973, at
http://dl.tufts.edu/catalog/tei/tufts:UA069.005.DO.00231/chapter/title
.

41
. Martin Douglas, “Walter Wriston, 85, Citicorp Innovator Who Redefined Banking,”
International Herald Tribune
(New York), January 22, 2005.

42
. “The Chase Manhattan Corporation Annual Report, 1973,” America’s Corporate Foundation, 1973, 6–7.

43
. “David Rockefeller Backs Soviet Trade,”
New York Times
, July 17, 1973.

44
. “Chase and Bank of China to Establish Ties,”
Wall Street Journal
, July 5, 1973.

45
. Gene Theroux, “The Founding of the US-China Business Council,”
China Business Review
, December 22, 2002, 2.

46
. Rockefeller,
Memoirs,
257.

47
. Ibid.

48
. Ibid.

49
. Buzz Theberge, “U.S. Base in Bahrain: Guarding the Gulf,”
MERIP Reports,
March/April 1972.

50
. Rockefeller,
Memoirs,
280.

51
. Bird,
The Chairman,
637.

52
. The abruptness of this conversation, as Rockefeller depicts the encounter, strains credibility.

53
. Rockefeller,
Memoirs,
282.

54
. “Citibank Offers Arabs $1 Billion Assistance,”
New York Times,
September 15, 1973.

55
. “1973: Arab States Attack Israeli Forces,” BBC News, June 10, 1973, at
http://news.bbc.co.uk/onthisday/hi/dates/stories/october/6/newsid_2514000/2514317.stm
.

56
. Sampson,
The Money Lenders,
151.

57
. Bird,
The Chairman,
635.

58
. Jacob Heilbrunn, “The Real McCloy,”
New Republic,
May 11, 1992.

59
. Bird,
The Chairman,
635.

60
. Ibid., 639.

61
. Daniel Yergin,
The Prize: The Epic Quest for Oil, Money, and Power
(New York, NY: Simon & Schuster, 1991), 587.

62
. Andrew F. Brimmer, “Capital Flows, Bank Lending Abroad, and the U.S. Balance of Payments” (lecture), July 17, 1974, at
https://fraser.stlouisfed.org/docs/historical/federal%20reserve%20history/bog_members_statements/brimmer_19740717.pdf
.

63
. Paul O. Flaim and Gilroy F. Thomas, “Employment and Unemployment in 1974,”
Monthly Labor Review,
February 1975.

64
. Rockefeller,
Memoirs,
285.

65
. Ibid., 286.

66
. Ibid., 360.

67
. “Chase Manhattan Says Iran, Egypt Ventures Are Approved by Fed,”
Wall Street Journal,
November 27, 1974.

68
. “Oil Nations Cash Surging into U.S.,”
New York Times,
February 13, 1975.

69
. Sampson,
The Money Lenders,
153.

70
. Memorandum of Conversation, January 17, 1975, Box 8, Document #NODIS/XGD-3, Gerald R. Ford Presidential Library, at
www.geraldrfordfoundation.org/memorandums-of-conversation/#Box8
.

71
. “Citicorp Merchant Bank Being Established in London,”
Wall Street Journal,
January 19, 1973.

72
. Sampson,
The Money Lenders,
402.

73
. John H. Makin,
The Global Debt Crisis
(New York, NY: Basic Books, 1984), 133–134.

74
. In 1999–2000, Banzer was in power during the Cochabamba protests, or Water Wars, a civil uprising in response to the privatization of the municipal water supply by
Bechtel, Suez Lyonnaise, and the World Bank requiring the privatization in return for renewing a $25 million loan.

75
. Jeffrey Sachs, ed.,
Developing Country Debt and the World Economy
(Chicago, IL: University of Chicago Press, 1989).

76
. Zweig,
Wriston,
448. See also Nicholas Lemann, “The Man Who Freed the Banks,”
New York Times,
May 12, 1996.

77
. John M. Broder and David E. Sanger, “Rubin Resigning as Treasury Secretary,”
New York Times,
May 13, 1999. “Robert E. Rubin,” Robert Rubin News, Times Topics,
New York Times,
at
http://topics.nytimes.com/top/reference/timestopics/people/r/robert_e_rubin/index.html
.

78
. “Milestones,” Bechtel Corporation website, at
www.bechtel.com/milestones.html
.

79
. “William E. Simon (1974–1977),” US Department of the Treasury, at
www.treasury.gov/about/history/pages/wesimon.aspx
.

80
. Sampson,
The Money Lenders,
392.

81
. Walter Wriston, William Simon, and George Schultz, “Who Needs the IMF?”
Wall Street Journal,
February 3, 1998.

82
. A note on tapes and presidents: after Watergate, there were no more tapes. The difference between Nixon’s memoir and the words on the tape should make one think carefully about what people say when they are candid versus when they want to self-aggrandize—as with David Rockefeller’s
Memoirs.

83
. Howard Zinn, “The Seventies: Under Control?”
A People’s History of the United States: 1492–Present
(New York, NY: HarperCollins, 2003), 545.

84
. “Appointment of Seventeen Persons to Serve on the President’s Labor-Management Committee,” Office of the White House Press Secretary, September 28, 1974, at
www.fordlibrarymuseum.gov/library/document/0248/whpr19740928–009.pdf
.

85
. “Chase Overvalued Bonds,”
Lowell Sun,
October 3, 1974.

86
. John H. Allan, “Chase Overvalued Bonds by $34 Million,”
New York Times,
October 3, 1974.

87
. Thayer Watkins, “The 1974–1975 Recession in the U.S.,” San Jose State University Economics Department, at
www.sjsu.edu/faculty/watkins/rec1975.htm
.

88
. Peter Milius, “$10 Billion Reduction Considered,”
Washington Post,
January 11, 1975.

89
. Multinational Oil Corporations and U.S. Foreign Policy, Report to the Committee on Foreign Relations, United States Senate, by the Subcommittee on Multinational Corporations, US Government Printing Office, January 2, 1975.

90
. Sampson,
The Money Lenders,
157.

91
. Rockefeller,
Memoirs,
272.

92
. Jerry W. Markham, “1 Financial Turmoil,” in
A Financial History of the United States Vol. 2
(Armonk, NY: M. E. Sharpe, 2002).

93
. Wilson,
The Chase,
314.

94
. Ibid., 240.

95
. CMART filed for bankruptcy in 1979.

96
. Steven Weisman, “Mayor Seeking New Delay for Submitting of Budget,”
New York Times,
May 24, 1975.

97
. “State Oversight: The New York Approach,” Citizens Research Council of Michigan, March 2012.

98
. Rockefeller,
Memoirs,
502.

99
. Martin Tolchin, “Buckley Opposes U.S. Intervention in City’s Crisis: Says He Fears an Erosion of the Federal System,”
New York Times
, September 23, 1975.

100
. Summary document of New York City situation, October 20, 1975, WHCF, Box 5, Folder: New York City, October 1975, Unit Files, Gerald R. Ford Presidential Library, at
www.fordlibrarymuseum.gov/library/document/0010/1554451.pdf
.

101
. “Ford to City: Drop Dead,”
New York Daily News,
October, 30, 1975.

102
. Donna E. Shalala and Carol Bellamy, “A State Saves a City: The New York Case,”
Duke Law Journal
1976, no. 1119 (1977): 1,129–1,130.

103
. Thomas E. Mullaney, “Anxious Wait of Business for Carter’s Economic Lineup,”
New York Times,
November 5, 1976.

Chapter 14. The Late 1970s: Inflation, Hostages, and Bankers

1
. Jimmy Carter, Inaugural Address, January 20, 1977, American Presidency Project, at
http://www.presidency.ucsb.edu/ws/?pid=6575#axzz2h4CdjPzZ
.

2
. Memo from Eugene R. Black to Cyrus Vance, January 1977, Council of Economic Advisers, Box 180, Folder: General Correspondence [B][3], Jimmy Carter Presidential Library and Museum.

3
. FDIC,
An Examination of the Banking Crises of the 1980s and Early 1990s,
192, at
www.fdic.gov/bank/historical/history/191_210.pdf
.

4
. Message to Cyrus Vance from Eugene R. Black, January 1977, Council of Economic Advisers, Box 180, Folder: General Correspondence [B][3], World Financial Markets Report, Morgan Guaranty Trust Company of New York, Carter Library.

5
. Dialogue between Walter Wriston and John Reed with Franklin D. Raines regarding EFT, May 19, 1977, WHCF, Name File: Reed, John S., Carter Library.

6
. Internal Memo on Regulatory Reform Program to Carter, June 29, 1977, Council of Economic Advisers, Charles L. Schultze Subject Files, Box 75, Folder: Regulatory Reform [1], Carter Library.

7
. Memo from Cyrus Vance, November 10, 1977, RAC Project Number: NLC-5–5–7–9–5, Brzezinski Matl: VIP Visit File, Carter Library.

8
. Ibid.

9
. Memo between Rockefeller and White House (Fran Voorde and Zbigniew Brzezinski), March 23 and March 31, 1978, Carter Presidential Papers, WHCF, Carter Library.