All the Presidents' Bankers (94 page)

23
. Robert A. Bennett, “Citicorp’s Defiant Leader: John Shepard Reed,”
New York Times,
May 21, 1987, at
www.nytimes.com/1987/05/21/business/man-in-the-news-citicorp-s-defiant-leader-john-shepard-reed.html?pagewanted=all&src=pm
.

24
. Tom Redburn, “Banks Led Way in Easing Crisis on Mexico Debt,”
Los Angeles Times,
January 10, 1988, at
http://articles.latimes.com/1988-01-10/business/fi-34708_1_commercial-bank
.

25
. “2-Bank Rivalry Key to Mexico Breakthrough,”
Chicago Sun-Times,
February 16, 1988.

26
. Woodward,
The Maestro,
20.

27
. Alan Greenspan,
The Age of Turbulence
(New York, NY: Penguin, 2008), 28.

28
. Ibid.

29
. “Interview with Charles Geisst,”
Frontline
(PBS), February 5, 2003, at
www.pbs.org/wgbh/pages/frontline/shows/wallstreet/interviews/geisst.html
.

30
. Woodward,
The Maestro,
25.

31
. Swearing-in Ceremony for Alan Greenspan as Chairman of the Federal Reserve Board, August 11, 1987, WHORM, PHF: Box 28, Presidential Speeches, Folder 572, No. 5187295C, Reagan Library.

32
. Ibid.

33
. “Fed Boss Urges Bank Changes,” Associated Press (
Boston Globe
), October 6, 1987.

34
. Economic Briefing for the President, “Record-Breaking Peacetime Expansion: A Summary of Economic Accomplishments,” October 15, 1987, BE Business-Economics (50000–533999), Case No. 527983SS, Reagan Library.

35
. Ibid.

36
. Adam M. Zaretsky, “Learning the Lessons of History: The Federal Reserve and the Payments System,”
The Regional Economist,
July 1996, at
www.stlouisfed.org/publications/re/articles/?id=1805
.

37
. Woodward,
The Maestro,
45.

38
. Alan Murray, “Fed’s New Chairman Wins a Lot of Praise Handling the Crash,”
Wall Street Journal,
November 5, 1987, at
http://online.wsj.com/article/SB112404015636012610.html
.

39
. Susan F. Rasky, “Blue-Chip Leader for Task Force: Nicholas Brady,”
New York Times,
October 23, 1987, at
www.nytimes.com/1987/10/23/business/man-in-the-news-blue-chip-leader-for-task-force-nicholas-frederick-brady.html?pagewanted=all&src=pm
.

40
. “Report of the Presidential Task Force on Market Mechanisms,” January 1988, Internet Archives, at
http://archive.org/stream/reportofpresiden01unit/reportofpresiden01unit_djvu.txt
.

41
. Woodward,
The Maestro,
48.

42
. Executive Order 12631: Working Group on Financial Markets, March 8, 1988, at Reagan Library, at
www.reagan.utexas.edu/archives/speeches/1988/031888d.htm
.

43
. Ibid.

44
. Report from the Working Group on Financial Markets, May 1988, Sprinkel, Beryl Box 6, OA17742, Folder: Working Group on Financial Markets (2 of 2), Reagan Library.

45
. Ronald Reagan, “Remarks Announcing the Resignation of James A. Baker III as Secretary of the Treasury and the Nomination of Nicholas F. Brady,” August 5, 1988, American Presidency Project, at
www.presidency.ucsb.edu/ws/?pid=36215
.

46
. Michael Quint, “The Financier ‘Who Knows What Is Going On,’”
New York Times,
August 6, 1988, at
www.nytimes.com/1988/08/06/us/the-financier-who-knows-what-is-going-on.html
.

47
. Tom Redburn, “Overhaul of Bank System Indicated: Deregulation,”
Los Angeles Times,
July 26, 1990, at
http://articles.latimes.com/1990-07-26/news/mn-944_1_federal-deposit-insurance
.

48
. According to the Bush archives in College Station, Texas, the banker relationships within archival material had been unexplored until I visited them. Many files will remain unopened until my FOIA requests are processed.

49
. George Bush, “Remarks at the Swearing-in Ceremony for James A. Baker III as Secretary of State,” January 27, 1989, American Presidency Project, at
www.presidency.ucsb.edu/ws/?pid=16630
.

50
. David E. Rosenbaum, “The Treasury’s ‘Mr. Diffident,’”
New York Times,
November 19, 1989, at
www.nytimes.com/1989/11/19/business/the-treasury-s-mr-diffident.html?pagewanted=all&src=pm
.

51
. “The Official Confidant,”
Washington Post,
April 22, 1986, WHORM, Files, Alpha File, B: Folder: Brady, Nicholas, F., Reagan Library. Brady was a member of the Armed Services Committee and the Banking, Housing and Urban Affairs Committee.

52
. White House Office of Media Affairs, Subject File: Nicholas Brady, September 21, 1988, Treasury News Press Release, Reagan Library.

53
. Bush Presidential Records: Staff and Office Files, Category FG134, Richard Breeden Files, Issues and Analysis, Folder: Notebook: United States Chamber of Commerce Meeting—Economic Policy Committee and Task Force on the Thrift Industry, March 10, 1989, at
http://archive.org/stream/blueprintforrefo01unit#page/n1/mode/2up
.

54
. WHORM, Alpha File, Folder: Greenspan, Alan (1), Reagan Library.

55
. John M. Berry, “Fed’s Greenspan Disagrees with Bush Economic Forecast; Strong Growth Is Called Not ‘Probable,’”
Washington Post,
February 1, 1989.

56
. FDIC, “The S&L Crisis: A Chrono-Biography,” at
www.fdic.gov/bank/historical/s&l/
.

57
. US Chamber of Commerce meeting, Economic Policy Committee and Task Force on the Thrift Industry, March 10, 1989, Staff and Office Files, Category FG134, Richard Breeden Files: Issues and Analysis, George H. W. Bush Presidential Library and Museum.

58
. Remarks by Nicholas F. Brady, Dallas Chamber of Commerce, Sheraton Park Central Hotel, Dallas, Texas, March 28, 1989, Staff and Office Files, Category FG134, Richard Breeden Files, Folder: S&L Rescue, Brady’s Statement, Bush Library.

59
. “Fed Gives Moran Subsidiary Permission to Underwrite Corporate Debt,” Associated Press, June 20, 1989, Associated Press News Archives at
www.apnewsarchive.com/1989/Fed-Gives-Morgan-Subsidiary-Permission-to-Underwrite-Corporate-Debt/id-7070c63aa99efb3c913d7dc66e897ecd
,
http://www.riskglossary.com/link/united_states_financial_regulation.htm
.

60
. “J. P. Morgan Unit Wins Lead in Savannah Electric Offer,”
New York Times,
October 11, 1989.

61
. Nomi Prins,
Other People’s Money,
paperback ed. (New York, NY: New Press, 2006), 35.

62
. Stephen P. Farrar files, Folder: Debt, Files: Brady Plan, White House Office of Policy Development.

63
. Remarks by Treasury Secretary Nicholas F. Brady to the Brookings Institution and the Bretton Woods Committee conference on third world debt,
Treasury News,
US Treasury Department, March, 10 1989.

64
. Redraft of Bretton Woods Committee speech, sent from Brady to Sununu, March 9, 1989, WHORM, Subject File: C.F., FO 0004-02, Folder: Loans—Funds, Bush Library.

65
. Robert Devlin, “From Baker to Brady: Can the New Plan Work?,”
Revista de Economia Politica
10, no. 2 (38): April–June, 1990.

66
. Haluk Unal, Asli Demirguc-Kunt, and Kwok-Wai Leung, “The Brady Plan, the 1989 Mexican Debt Reduction Agreement, and Bank Stock Returns in the United States and Japan,” Policy Research Working Papers, Debt and International Finance, World Bank, November 1992, WPS 1012, at
www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1992/11/01/000009265_3961003160143/Rendered/PDF/multi_page.pdf
.

67
. Hobart Rowen, “Is It Time for a ‘Debt Czar’?”
Washington Post,
December 28, 1989.

68
. Peter T. Kilborn, “Mexico and Banks Reach Accord to Lower Debt; Pact Includes Big Cut in Amount Owed—New Loans Are Set,”
New York Times,
July 24, 1989, at
www.nytimes.com/1989/07/24/world/mexico-banks-reach-accord-lower-debt-pact-includes-big-cut-amount-owed-new-loans.html?pagewanted=all&src=pm
.

69
. Ibid. See also “Participants in the Marathon Talks,”
New York Times,
July 31, 1989, at
www.nytimes.com/1989/07/31/business/international-report-participants-in-the-marathon-talks.html
.

70
. Letter to John S. Reed from John H. Sununu, March 31, 1989, WHORM, FI 009, Box 49, Document 021813, Bush Library.

71
. Paul Blustein and Hobart Rowen, “Brady Urges New Debt Policy; Some Forgiveness Sought on 3rd World Loans,”
Washington Post,
March 11, 1989.

72
. Letter from William F. Gorog, of Arbor International in Virginia, forwarding Moore’s thoughts to Roger Porter, assistant to the president for economic and domestic affairs, April 1, 1989, WHORM, Bush Library.

73
. The LDC Debt Problem and the Banks, a supplement to the “Banker Initiative” by George S. Moore sent to Roger Porter, April 14, 1989, WHORM, Box FI 002, Folder: 021324-032804, Document 029414, Bush Library.

74
. Ibid.

75
. Richard Lawrence, “World Bank Unveils Three-Year Program for LDC Debt Relief,”
Journal of Commerce,
June 2, 1989, White House Office of Policy Development, Stephen P. Farrar Files, Folder: Debt Files: Brady Plan, Bush Library.

76
. Steven Mufson, “Morgan Adds $2 Billion to Loss Reserves; Largest Set-Aside of 3 Banks in Week,”
Washington Post,
September 22, 1989.

77
. Testimony by Alan Greenspan Before the Subcommittee on Securities of the Committee on Banking, Housing, and Urban Affairs, US Senate, June 14, 1989, at
http://fraser.stlouisfed.org/docs/historical/greenspan/Greenspan_19890614.pdf
.

78
. “Citicorp Chairman Recommends Cut in Deposit Insurance,”
Albany Times Union,
July 14, 1989.

79
. “Banking Officials Call for Restructuring of U.S. Financial System,”
Deseret News,
July 17, 1989.

80
. Statement of Citicorp Chairman John S. Reed Before the Committee on Banking, Housing, and Urban Affairs, US Senate, July 13, 1989. Summary of Testimony, Reed, WHORM, FI 002, Document 58025, Bush Library.

81
. Timothy Curry and Lynn Shibut, “The Cost of the Savings and Loan Crisis: Truth and Consequences,”
FDIC Banking Review,
December 2000, at
www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf
.

82
. Ibid.

83
. Withdrawal/Redaction Sheet, WHORM, FI 002 112877-119799, Bush Library.

84
. Michael K. Frisby, “Bush Sons’ Ventures Expose Him to Scrutiny,”
Austin American-Statesman,
May 17, 1992.

85
. “Keating Five” (Times Topics),
New York Times,
at
http://topics.nytimes.com/topics/reference/timestopics/subjects/k/keating_five/index.html
.

86
. FDIC, “The S&L Crisis: A Chrono-Bibliography.”

87
. Nathaniel C. Nash, “Showdown Time for Danny Wall,”
New York Times,
July 9, 1989, at
www.nytimes.com/1989/07/09/business/showdown-time-for-danny-wall.html
.

88
. Brady to Republican Leader Robert H. Michel, US House of Representatives, June 14, 1989, Staff and Office Files, Category FG134, Richard Breeden Files, Folder: S&L Rescue, Bush Library.

89
. Internationalization of Securities Markets, June 14, 1989, Senate Committee on Banking, Housing, Urban Affairs, Subcommittee Hearings, C-SPAN Video Library, at
www.c-spanvideo.org/program/Securiti
(beginning at 47.30). See also “Greenspan Says Bank Law Dated Urges Wider Securities Business to Help U.S. Compete,”
Albany Times Union,
June 15, 1989.

90
. “Banks in Insurance Reports,” January 1989, Staff and Office Files, Banking and Insurance 1989, Category FG134, Files: Richard Breeden, Folder: S&L Rescue, Bush Library.

91
. Ibid., Economic Policy Committee and Task Force. The plan entailed merging the New Deal–created FSLIC into the FDIC, increasing S&L capital requirements, and increasing commercial bank and thrift insurance premiums to the FDIC insurance fund for the first time since 1935.

92
. Bill Summary and Status, 101st Congress (1989–1990), H. R. 1278, Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Library of Congress, at
http://thomas.loc.gov/cgi-bin/bdquery/z?d101:h.r.01278
.

93
. The act also abolished the Federal Home Loan Bank Board (FHLBB) and created both the Federal Housing Finance Board (FHFB) and the Office of Thrift Supervision (OTS) to take its place.

94
. Mayer,
Greatest-Ever Bank Robbery,
276.

95
. Curry and Shibut, “The Cost of the Savings and Loan Crisis.”

96
. Ibid.

97
. Ibid.

98
. Federal Open Market Committee, Federal Reserve Bulletin A96, June 1989, at
http://fraser.stlouisfed.org/download-page/page.pdf?pid=62&id=308766
.