Annual Report

ru fThirty, Washington, D.C.Group of 2012–2013 Annual Report

30 Group of Thirty Copies of this paper are available from:

Group of Thirty 1726 M Street, N.W., Suite 200 Washington, D.C. 20036 Tel.: (202) 331-2472

E-mail: [email protected] Web: www.group30.org The Group of Thirty Annual Report 2012–2013

Published by Group of Thirty© Washington, D.C. 2014

Table of Contents

Chairman’s Message...... 5 I. Introduction...... 7 II. The Group of Thirty Membership...... 9 Membership...... 11 Structure...... 15 III. The Work of the Group of Thirty during FY 2012 and FY 2013...... 17 International Banking Seminars...... 17 Plenary Sessions...... 18 Study Group Activities...... 18 Publications...... 20 I V. Finances of the Group of Thirty...... 23 Support and Revenue...... 23 Expenditure...... 24 Notes to Financial Statements...... 33 Annex 1. Past Membership of the Group of Thirty...... 38 Annex 2. Schedule of Meetings and Seminars:...... 39 Annex 3. International Banking Seminars...... 43 Annex 4. Plenary Meetings, FY 2012 and FY 2013...... 45 Annex 5. Corporate Governance Working Group...... 49 Annex 6. Long-term Finance Working Group...... 50 Annex 7. Banking Supervision Working Group ...... 51 Annex 8. Group of Thirty Publications, 1990–June 30, 2013...... 52 Annex 9. Contributors to the Group of Thirty, FY 2012–FY 2013...... 58

Chairman’s Message

Dear friends,

Let me begin by thanking those of you who support the mission of the Group of Thirty (G30). Thirty-six years after our formation in 1978, we continue our work to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to market practitioners and policy makers. Thanks to your institutional, intellectual, and personal commitment to our mission, the last two years have been productive and impactful. In 2012, the G30 applied its collective might to the problem of long- term finance, culminating in our study,Long-Term Finance and Economic Growth, released in early 2013. As is our practice, we recommended a series of actions to help plug a forecasted US$7.1 trillion gap in long- term finance by 2020, because we recognize that a reasonably priced supply of long-term finance is essential to underpin economic stability, sustainable growth, and employment. I am pleased to report that this work stream has had an ongoing impact influencing the agenda and output of the G20, the Financial Stability Board, and other institutions and actors. Once again the G30 has addressed a major issue, stood as a bridge between the public and private sectors, and delivered recommendations to the community that are considered, workable, and potentially durable. In 2012 and 2013, the G30 tackled thorny issues surrounding the governance of global systemically important financial institutions (G-SIFIs) in Toward Effective Governance of Financial Institutions. That work drew upon the views of scores of leaders within the financial community. Thanks to your collective commitment and engagement, we have directly affected the debate over governance, supervision, and culture. This work stream continues in 2014, urged on by the official supervisory and private sector financial community. It encapsulates why the G30 is so effective: We identify crucial issues of importance to the global

5 economic and financial community, and address them in a manner that draws on diverse viewpoints, while being beneficial to all concerned. In addition, you can rest assured that the G30 will continue to provide forums for the frank exchange of views between leaders of the financial and central banking community. It is indeed a pleasure to welcome you to those events, and to witness the numbers attending our seminars increase, year after year. Finally, let me most wholeheartedly thank the growing number of institutions, both public and private, that choose to support our mission. Without that backing, the G30 could not be effective, and we would not achieve our goals. Thank you all. With your constant commitment, the G30 can continue to build its influential voice and impact the global policy-making debate in 2014 and beyond.

With warmest personal regards,

Jean-Claude Trichet Chairman and CEO

6 I. Introduction

This report covers the programs and activities of the Group of Thirty (G30) during fiscal years 2012 and 2013, which comprises July 1, 2011 through June 30, 2013. Section II of the report discusses the G30’s membership and activities, and includes a full membership list and a description of the organiza- tional structure. Section III provides an account of the G30’s work during FY 2012 and FY 2013 and includes a description of the G30’s meetings, public events, and publications. Section IV describes the financial position of the G30 during the two fiscal years covered by the report. The annexes provide details on a variety of activities and aspects of the G30, including membership; meetings and seminars; composition of our Working Groups; publications; and contributors to the work program of the G30, whose support makes our work possible. All inquiries regarding this report, G30 activities, or its publications should be made to:

The Group of Thirty 1726 M Street, N.W., Suite 200 Washington, D.C. 20036 Tel: 202-331-2472 Fax: 202-785-9423 E-mail: [email protected] Web: http://www.group30.org

II. The Group of Thirty Membership

The Group of Thirty, established in 1978, is a private, nonprofit, international body composed of very senior representatives of the private and public sectors and academia. Its aim is to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to market practitioners and policy makers. A defining feature of the G30 is that the senior individuals who form its membership also serve as its principal workforce. Whereas many organizations devoted to scholarly and public policy studies have senior boards that offer guidance and add gravitas to their work, the G30’s members themselves make the presentations at plenary meetings and seminars, and serve actively on study groups. In fact, active involvement in the program is a condition of membership in the Group of Thirty. To ensure that the G30 has access to the widest range of expertise and informed opinion, senior public officials and private executives are regularly invited to meetings and recruited to participate in the G30’s projects. The pro bono service of members and invitees is the G30’s principal resource. The work program is managed by a small staff based in Washington, D.C. that provides policy guidance and admin- istrative support for the meetings and projects that the membership decides to pursue. Despite its small size, the organization has global reach and considerable impact. In 2013, the Group published a report on long-term finance, which has now been reflected in policy outputs from the G20,

9 the Financial Stability Board, and ad-hoc committees, such as the Martin Commission. As the Financial Times notes, “Group of Thirty is the slim- mest of organizations, but punches well above its weight.” The Times of London recognizes that the Group of Thirty is “highly influential.” Under a heavyweight Board of Trustees, the Group of Thirty continues to grapple with some of the most intractable issues facing the international banking and financial communities.

10 Membership*

At the end of FY 2013, the membership of the Group was: Paul A. Volcker Chairman Emeritus, Group of Thirty Former Chairman, President Barack Obama’s Economic Recovery Advisory Board Former Chairman, Board of Governors of the Federal Reserve System Jacob A. Frenkel Chairman of the Board of Trustees, Group of Thirty Chairman, JPMorgan Chase International Former Governor, Bank of Israel Former Professor of Economics, University of Chicago Former Counselor, Director of Research, International Monetary Fund Jean-Claude Trichet Chairman & CEO, Group of Thirty Former President, European Central Bank Former Governor, Banque de France Geoffrey L. Bell Executive Secretary & Treasurer, Group of Thirty President, Geoffrey Bell & Company, Inc. Leszek Balcerowicz Professor, Warsaw School of Economics Former President, National Bank of Poland Former Deputy Prime Minister and Minister of Finance, Poland Mark Carney Chairman, Financial Stability Board Former Governor, Bank of Canada Member, Board of Directors, Bank for International Settlements Jaime Caruana General Manager, Bank for International Settlements Former Financial Counsellor, International Monetary Fund Former Governor, Banco de España Former Chairman, Basel Committee on Banking Supervision Domingo Cavallo Chairman and CEO, DFC Associates, LLC Former Minister of Economy, Argentina E. Gerald Corrigan Managing Director, Goldman Sachs Group, Inc. Former President, Federal Reserve Bank of New York Guillermo de la Dehesa Vice Chairman and Member of the Executive Committee, Grupo Santander Chairman, Aviva Grupo Corporativo Former Deputy Managing Director, Banco de España Former Secretary of State, Ministry of Economy and Finance, Spain Mario Draghi President, European Central Bank Member, Board of Directors, Bank for International Settlements Former Governor, Banca d’Italia Former Vice Chairman and Managing Director, Goldman Sachs International

* Membership list reflects titles as of June 30, 2013.

11 William C. Dudley President, Federal Reserve Bank of New York Former Partner and Managing Director, Goldman Sachs and Company Roger W. Ferguson, Jr. President and CEO, TIAA-CREF Former Chairman, Swiss Re America Holding Corporation Former Vice Chairman, Board of Governors of the Federal Reserve System Stanley Fischer Governor, Bank of Israel Former First Managing Director, International Monetary Fund Arminio Fraga Founding Partner, Gávea Investimentos Former Chairman of the Board, BM&F-Bovespa Former Governor, Banco Central do Brasil Timothy F. Geithner Former US Secretary of the Treasury Distinguished Fellow, Council on Foreign Relations Former President, Federal Reserve Bank of New York Gerd Häusler Chief Executive Officer, Bayerische Landesbank Former Managing Director and Member of the Advisory Board, Lazard & Co. Former Counselor and Director, International Monetary Fund Former Managing Director, Dresdner Bank Philipp Hildebrand Vice Chairman, BlackRock Former Chairman of the Governing Board, Swiss National Bank Former Partner, Moore Capital Management Mervyn King Governor, Bank of England Member, Board of Directors, Bank for International Settlements Former Professor of Economics, London School of Economics Paul Krugman Professor of Economics, Woodrow Wilson School, Princeton University Former Member, Council of Economic Advisors Guillermo Ortiz President and Chairman, Grupo Financiero Banorte Former Governor, Banco de Mèxico Former Chairman of the Board, Bank for International Settlements Former Secretary of Finance and Public Credit, Mexico Raghuram G. Rajan Chief Economic Advisor, Ministry of Finance, India Professor of Economics, Chicago Booth School of Business Economic Advisor to Prime Minister of India Kenneth Rogoff Thomas D. Cabot Professor of Public Policy and Economics, Harvard University Former Chief Economist and Director of Research, IMF Tharman Shanmugaratnam Deputy Prime Minister & Minister for Finance, Singapore Chairman, Monetary Authority of Singapore Chairman of International Monetary & Financial Committee, IMF

12 Masaaki Shirakawa Former Governor, Bank of Japan Former Professor, Kyoto University School of Government Lawrence H. Summers Charles W. Eliot University Professor, Harvard University President Emeritus, Harvard University Former Director, National Economic Council Former US Secretary of the Treasury Adair Turner Senior Fellow, Institute for New Economic Thinking Former Chairman, Financial Services Authority Member of the House of Lords, United Kingdom Axel A. Weber Chairman, UBS AG Former Visiting Professor of Economics, Chicago Booth School of Business Former President, Deutsche Bundesbank Yutaka Yamaguchi Former Deputy Governor, Bank of Japan Former Chairman, Euro Currency Standing Commission Ernesto Zedillo Director, Yale Center for the Study of Globalization, Yale University Former President of Mexico Zhou Xiaochuan Governor, People’s Bank of China Member, Board of Directors, Bank for International Settlements Former President, China Construction Bank

Senior Members Abdlatif Al-Hamad Chairman, Arab Fund for Economic and Social Development Former Minister of Finance and Minister of Planning, Kuwait Martin Feldstein Professor of Economics, Harvard University President Emeritus, National Bureau of Economic Research Former Chairman, Council of Economic Advisers David Walker Chairman, Barclays PLC Former Senior Advisor, Morgan Stanley International Former Chairman, Morgan Stanley International Former Chairman, Securities and Investments Board, UK

Emeritus Members Jacques de Larosière President, Eurofi Conseiller, BNP Paribas Former President, European Bank for Reconstruction and Development Former Managing Director, International Monetary Fund Former Governor, Banque de France Richard A. Debs Advisory Director, Morgan Stanley Former President, Morgan Stanley International Former COO, Federal Reserve Bank of New York

13 Gerhard Fels Former Director, Institut der deutschen Wirtschaft Toyoo Gyohten President, Institute for International Monetary Affairs Former Chairman, Bank of Tokyo John G. Heimann Founding Chairman, Financial Stability Institute Former US Comptroller of the Currency Erik Hoffmeyer Chairman, Politiken-Fonden Former Chairman, Danmarks Nationalbank William J. McDonough Former President, Federal Reserve Bank of New York Shijuro Ogata* Deputy Chairman, Pacific Asia Region, the Trilateral Commission Former Deputy Governor, Bank of Japan Former Deputy Governor, Japan Development Bank Sylvia Ostry Distinguished Research Fellow, Munk Centre for International Studies, Toronto Former Ambassador for Trade Negotiations, Canada Former Head, OECD Economics and Statistics Department William R. Rhodes President & CEO, William R. Rhodes Global Advisors LLC Senior Advisor, Citigroup, Inc. Former Senior Vice Chairman, Citigroup, Inc. Ernest Stern Former Partner and Senior Advisor, The Rohatyn Group Former Managing Director, JPMorgan Chase Former Managing Director, World Bank Marina v N. Whitman Professor of Business Administration & Public Policy, University of Michigan Former Member, Council of Economic Advisors

During the period of this report, Timothy F. Geithner rejoined the group after completing his tenure as Secretary of the United States Treasury. The Group welcomes his return and looks forward to his contributions to our work program. Long-standing G30 members Andrew Crockett and Peter Kenen passed away in the fall of 2012. Their contributions both to the Group and the wider financial community will always be remembered. They are missed by all in the G30 for whom they were intellectual colleagues and, most importantly, friends. A list of former members of the Group of Thirty is available in Annex 1.

* Shijuro Ogata passed away on April 14, 2014. He will be missed by all in the G30. As this report covers the G30 membership through June 30, 2013, Mr. Ogata remains on the Group’s Emeritus members list.

14 Structure

At the end of FY 2013, the Officers of the Group were: Paul A. Volcker, Chairman Emeritus Jacob A. Frenkel, Chairman of the Board of Trustees Jean-Claude Trichet, Chairman and CEO Geoffrey L. Bell, Executive Secretary and Treasurer Martin Feldstein, Trustee Roger W. Ferguson, Jr., Trustee Arminio Fraga, Trustee Axel A. Weber, Trustee Stuart P.M. Mackintosh, Executive Director

In December 2011, Jacob A. Frenkel completed his term as Chairman and CEO of the G30. We thank Dr. Frenkel for his many years of dedi- cation and guidance. We look forward to his continued leadership as Chairman of the Trustees. The G30 thanks Paul A. Volcker for his years of leadership as Chairman of the Trustees. His support of the G30’s work is invaluable. The G30 was honored to have Jean-Claude Trichet assume the duties of Chairman & CEO in December 2011. We thank him for his continued service to the G30 and look forward to his tenure at the helm of our work program. On January 1, 2013, Sir David Walker concluded his term as Trustee of the Group of Thirty. We thank him for his service to the G30 and his continued participation in our work program. G30 member, Axel A. Weber, began his term as Trustee of the Group of Thirty that same month. We thank him for his willingness to serve on the board and his continued contribution to the Group. We thank all Trustees for their commitment to the objectives of the G30 and appreciate their willingness to serve in this important capacity. In formal terms, The Group of Thirty is a committee of the legal entity, the Consultative Group on International Economic and Monetary Affairs, Incorporated. The corporation is registered in the United States as a nonprofit, tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. Day-to-day decisions regarding the operations of the G30 are taken by the Executive Director in consultation with the Officers, as appropriate. Decisions regarding leadership, membership, and policy are taken by the Board of Trustees. Now under the leadership

15 of Dr. Jacob A. Frenkel, the Trustees consist of the Chairman of the Trustees and the Officers of the G30. All important matters affecting the membership and policies of the G30 are brought to the full membership for review at biannual plenary meetings of the Group. The head office of the G30, and the location of the Executive Director and support staff, is in Washington, D.C.

16 III. The Work of the Group of Thirty during FY 2012 and FY 2013

International Banking Seminars The Group’s International Banking Seminars, held at the time of the International Monetary Fund and World Bank fall annual meetings, offer one of the most authoritative discussions of global economic and financial developments available anywhere. Each Seminar features presentations by the key decision makers and opinion leaders from across the globe. (The full schedule of meetings and seminars is listed in Annex 2.) The FY 2012 Seminar, held on Sunday, September 25, 2011, was hosted by Luis Alberto Moreno, President of the Inter-American Development Bank, in Washington, D.C. The FY 2013 Seminar, held on Sunday, October 14, 2012, was hosted by Masaaki Shirakawa, Governor of the Bank of Japan, in Tokyo, Japan. The speakers at both seminars are listed in Annex 3. The Group of Thirty thanks the Inter-American Development Bank and Bank of Japan, and acknowledges with gratitude the hospitality of our hosts. The Seminars held in FY 2012 and FY 2013 set records for attendance. Both events were attended by over 300 guests, including min- isters of finance, central bank governors, leaders from the major financial institutions, and top academics in the fields of finance and economics.

17 Plenary Sessions The G30 meets twice a year in plenary session. Most members attend each meeting, and a small number of distinguished guests are invited to participate in the discussions. The G30’s FY 2012 and FY 2013 fall plenary meetings were generously hosted by the Federal Reserve Bank of New York (on December 1–3, 2011, and November 29–December 1, 2012, respectively). The Group’s spring plenary meetings were hosted by Bank of England (May 31–June 2, 2012) and the People’s Bank of China (May 30–June 1, 2013). The G30 wishes to express its gratitude to these institutions. Certain subjects are a regular focus of the G30’s attention. Generally, the plenary opens with a discussion of the international economic outlook over the next 12 to 24 months. In FY 2012 and 2013, the plenary debates centered on regional developments following the financial crisis, and on the extraordinary measures taken by central bankers. The plenary meetings debated imbalances and challenges to global recovery, measures to ensure sustained economic growth, and policy tools available to central banks postcrisis. Regional focuses included the eurozone, the Middle East during the Arab Spring, and the economic outlook for China. The plenary meetings also touched on corporate governance, banking regulation, developments in emerging markets, and other subjects of concern. A list of plenary speakers can be found in Annex 4.

Study Group Activities In FY 2012 and FY 2013, the G30 completed work on the report, Toward Effective Governance of Financial Institutions, which commenced in FY 2011. The G30 completed one additional study group on long-term finance. The report, Long-Term Finance and Economic Growth, was published in February 2013. The G30 commenced an additional study group in FY 2013. The project built upon the conclusions from the special report, Toward Effective Governance of Financial Institutions, and focused on corporate governance and bank supervisors. The final report stemming from the project was published during FY 2014.

Corporate Governance In January 2011, the Group of Thirty established the Working Group on Corporate Governance led by Roger W. Ferguson, Jr., and vice chairs John G. Heimann, William R. Rhodes, and David Walker. The project aims to make a series of specific observations and recommendations

18 regarding effective implementation of governance reforms by the board of directors of financial firms. The result was a new special report entitled, Toward Effective Governance of Financial Institutions. The report was released on April 12, 2012, at a press conference at the TIAA-CREF offices in both New York and London, led by Jean-Claude Trichet and Roger W. Ferguson, Jr. The launch generated considerable press coverage. Since then, more than 1,500 copies of the report have been distributed. Drawing lessons from the financial crisis, the report calls on boards of directors of financial institutions to do far more to strengthen corporate governance. The report is based on the examination of governance arrangements at 36 global financial institutions, including interviews with the leadership. The Working Group generated recommendations in seven areas including the role of boards of directors, risk governance, the role of management in governance, the role of supervisors, and the importance of values and culture. The Group of Thirty and the project leadership thank Tapestry Network and Ernst & Young for their contributions to the project. A list of all participants in the study group can be found in Annex 5.

Long-Term Finance In March 2012, the G30 launched the Working Group on Long-term Finance. The group was chaired by Guillermo Ortiz and co-chaired by Tharman Shanmugaratnam, Adair Turner, and Axel A. Weber. The project was launched to address growing concerns among policy makers about the sufficient provision of long-term finance. The final report, Long-term Finance and Economic Growth, was released on February 11, 2013, at a press conference at the Bank of England in London. The report examines critical constraints on the supply of long-term finance and calls for reforms that can strengthen the flow of capital into long-term investments by governments and by institutional and individual investors. The study quantifies future financing needs and identifies the barriers that are likely to hinder the supply of long-term finance. The publication highlights fifteen sets of proposals for international and national policy makers that would, if acted upon, help create a system of long-term finance. The G30 and the Working Group thank McKinsey Global Institute for their participation. The report drew from research conducted by McKinsey under the direction of Charles Roxburgh. A list of all participants in the study group can be found in Annex 6.

19 Banking Supervision The G30 determined in February 2013 to undertake a follow-up report to the 2012 publication, Toward Effective Governance of Financial Institutions. The G30 had been approached by multiple institutions and organizations, including the Financial Stability Board, to build upon the findings from the corporate governance report, and focus more narrowly on the relationship between financial institution boards and supervisors. In early 2012, the Steering Committee from the corporate governance report, Roger W. Ferguson, Jr. (chair), John G. Heimann, William R. Rhodes, and David Walker, agreed to launch the study. During the spring of 2013, the Working Group selected the project director, Nicholas Le Pan, former Superintendent of Financial Institutions in Canada, to lead the interview process and his drafting team, which comprised senior partners from the consulting group, Oliver Wyman. The project began with an interview phase of board members and senior supervisors from more than fifteen countries. At the close of FY 2013, the interview and drafting process was ongoing. The project was scheduled for a fall 2013 release. The Working Group hopes the report conclusions will directly impact the working relationship between boards and supervisors, and that it will be taken under consideration by international bodies such as the Financial Stability Board and the Senior Supervisors Group. A list of all participants in the Working Group can be found in Annex 7.

Publications In FY 2012, the G30 hosted the final William Taylor Memorial Lecture. It was the Group’s honor to present the lecture series dedicated to the memory of William Taylor, whose work at the Federal Reserve and FDIC benefited all in the financial community. We thank all the series speakers for their participation and contribution to the discussion on ensuring the strength and stability of the financial system. During FY 2012 and 2013, the group published the following monographs: The William Taylor Memorial Lecture: Three Years Later: Unfinished Business in Financial Reform, by Paul A. Volcker (2011). In the lecture, Mr. Volcker looks at reforms to the financial system since the 2008–09 crisis, and structural changes that are still needed.

20 Occasional Paper 83: Macroprudential Policy: Addressing the Things We Don’t Know, by Alistair Clark and Andrew Large (2011). The publication outlines the ten chief considerations that remain as national authorities address macroprudential policy. Occasional Paper 84: Long-term Outlook for the European Project and the Single Currency, by Jacques de Larosière (2012). This publication examines short-term and long-term solutions to ensure the future outlook of the European single currency, including more fiscal responsibility and integration. Occasional Paper 85: Policies for Stabilization and Growth in Small Very Open Economies, by DeLisle Worrell (2012). Dr. Worrell, Governor of the Central Bank of Barbados, examines small very open economies and their need for specific policy responses that differ from those of large economies. Occasional Paper 86: A Self-Inflicted Crisis: Design and Management Failures Leading to the Eurozone Crisis, by Guillermo de la Dehesa (2012). The paper discusses five design and eight management failures that contributed to the economic crisis facing the eurozone, and urges policy makers to move toward the creation of a fiscal union to better stabilize the monetary union in the future. Occasional Paper 87: Debt, Money, and Mephistopheles: How Do We Get Out of This Mess?, by Adair Turner (2013). The publication looks at both the causes of the financial crisis and the drivers of the postcrisis reces- sion, and argues that central banks and governments need to consider radical policy options. A list of G30 publications since 1990 is presented in Annex 8.

IV. Finances of the Group of Thirty

The Group of Thirty is supported from private sources: banks, nonbank corporations, central banks, individuals, and, for specific projects, foundations. A list of contributors in cash and in kind for FY 2012 and FY 2013 is presented in Annex 9. The G30’s total net assets were $2,092,112 in FY 2013, an increase of $287,772 from the FY 2012 level of $1,804,340, which was itself an increase of $134,971 over the previous year. The G30’s net financial position in any given year is largely determined by the number of papers and reports produced in that year. Despite the variability of project expenses, the G30 has exceeded its net assets goal of at least 1.3 times annual operating expenses, with total net assets at the end of FY 2013 equaling 3.7 times annual operating expenses. Since the G30 has no endowment, its assets are maintained in a relatively liquid form as a ready reserve to fund future project activities.

Support and Revenue Total Support and Revenue was $691,073 in FY 2012 and $839,640 in FY 2013, an increase of $148,567. Contributions and pledges were $671,192 in FY 2012 and $818,305 in FY 2013, an increase of $147,113. Investment income rose from $11,232 in FY 2012 to $11,571 in FY 2013. The increase in contributions from 2012 to 2013 can be explained in part by successful fundraising from new targets in the financial community. Overall, in FY 2012 and FY 2013, contributions were on target as the

23 organization secured new contributions from 29 new private sector and public sector sources during this period, exceeding our fundraising goals. Sales of publications increased 4 percent in 2013 to $8,969 from $8,649 in 2012. In 2011, the Trustees decided that, going forward, all electronic versions of publications would be distributed free of charge, which accounts for the smaller overall share of revenue from G30 publications in the last two years. The Trustees believe that the G30’s mission is aided by this approach and by the widest possible dissemination of the results of the G30’s endeavors. As a result of this policy change, publications income will continue to decrease, but readership of G30 material will increase.

Expenditure Expenses for FY 2013 increased by 4.8 percent to $556,868 after a 3.6 percent increase in FY 2012 to $530,639. The increase in expenses stemmed, in part, from increasing rent costs and other operating expenses related to the major project on corporate governance, for which much of the research took place in FY 2011. We expect that current projects will result in a modest increase in project costs and costs associated with publications in FY 2014.

24 Berlin Ramos Certified Public Accountants 11200 Rockville Pike, Suite 400 Rockville, MD 20852 Main: 301-589-9000, Fax: 301-589-5464 www.berlinramos.com

INDEPENDENT AUDITOR’S REPORT

TO THE BOARD OF TRUSTEES CONSULTATIVE GROUP ON INTERNATIONAL ECONOMIC AND MONETARY AFFAIRS, INC. WASHINGTON, DC

We have audited the accompanying financial statements of the Consultative Group on International Economic and Monetary Affairs, Inc. (the Group) (a nonprofit organization), which comprise the statements of financial position as of June 30, 2013, and 2012, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

25 the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Consultative Group on International Economic and Monetary Affairs, Inc. as of June 30, 2013 and 2012, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

BERLIN, RAMOS & COMPANY, P.A. January 31, 2014

26 CONSULTATIVE GROUP ON INTERNATIONAL ECONOMIC AND MONETARY AFFAIRS, INC. STATEMENTS OF FINANCIAL POSITION

JUNE 30 2013 2012

Assets

CURRENT ASSETS Cash and Cash Equivalents $ 276,024 $ 265,146 Unconditional Promises to Give 179,805 183,500 Inventory, at cost 13,642 10,715 Prepaid Expenses 5,555 6,621 Accrued Interest Receivable 3,194 3,019

TOTAL CURRENT ASSETS 478,220 469,001

CERTIFICATES OF DEPOSIT 1,642,579 1,352,785

FURNITURE AND EQUIPMENT, net of accumulated depreciation of $9,024 and $12,486, respectively 5,680 5,429

DEPOSITS 3,966 3,966

TOTAL ASSETS $ 2,130,445 $ 1,831,181

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES Accounts Payable and Accrued Expenses $ 38,333 $ 21,841

TOTAL CURRENT LIABILITIES 38,333 21,841

NET ASSETS Unrestricted 2,092,112 1,804,340 Temporarily Restricted 5,000

TOTAL NET ASSETS 2,092,112 1,809,340

TOTAL LIABILITIES AND NET ASSETS $ 2,130,445 $ 1,831,181

The accompanying notes are an integral part of these financial statements.

27 CONSULTATIVE GROUP ON INTERNATIONAL ECONOMIC AND MONETARY AFFAIRS, INC. STATEMENTS OF ACTIVITIES For the Year Ended June 30, 2013

Temporarily Unrestricted Restricted Total

SUPPORT AND REVENUE Contributions $ 818,305 $ 818,305 $ 818,305 Investment Income 11,571 11,571 Sales of Publications and Subscriptions 8,969 8,969

Net Unrealized Gain on Certificate of Deposit 795 795

Net Assets Released from Restrictions 5,000 (5,000)

TOTAL SUPPORT AND REVENUE 844,640 (5,000) 839,640

EXPENSES Program Services Meetings and Seminars 118,604 118,604 Projects 142,560 142,560 Publications 130,742 130,742 Supporting Services Management and General 123,508 123,508 Fundraising 41,454 41,454

TOTAL EXPENSES 556,868 556,868 change IN NET ASSETS 287,772 (5,000) 282,772

NET ASSETS, BEGINNING OF YEAR 1,804,340 5,000 1,809,340

NET ASSETS, END OF YEAR $ 2,092,112 $ 2,092,112

The accompanying notes are an integral part of these financial statements.

28 CONSULTATIVE GROUP ON INTERNATIONAL ECONOMIC AND MONETARY AFFAIRS, INC. STATEMENTS OF ACTIVITIES For the Year Ended June 30, 2013

Temporarily Unrestricted Restricted Total

SUPPORT AND REVENUE Contributions $ 666,192 $ 5,000 $ 671,192 Investment Income 11,232 11,232 Sales of Publications and Subscriptions 8,649 5,000 8,649

TOTAL SUPPORT AND REVENUE 686,073 691,073

EXPENSES Program Services Meetings and Seminars 119,336 119,336 Projects 163,888 163,888 Publications 56,494 56,494 Supporting Services Management and General 161,427 161,427 Fundraising 29,494 29,494

TOTAL EXPENSES 530,639 530,639

Other Losses Net unrealized loss on certificate of deposit 6,215 6,215

Total Other Losses 6,215 6,215

Total Expenses and Losses 536,854 536,854 change IN NET ASSETS 149,219 5,000 154,219

NET ASSETS, BEGINNING OF YEAR 1,655,121 1,655,121

NET ASSETS, END OF YEAR $ 1,804,340 $ 5,000 $ 1,809,340

The accompanying notes are an integral part of these financial statements.

29 Total 6,722 4,250 1,653 1,479 93,039 50,940 43,832 40,749 37,112 36,697 29,077 16,933 17,386 13,999 Expenses $ 163,000 $ 556,868

864 3,261 2,177 2,236 11,183 $ 21,733 $ 41,454 Fundraising 879 185 9,164 9,722 4,377 2,215 2,274 1,694 4,250 1,653 17,194 24,524 29,077 Supporting Services $ 16,300 $ 123,508 and General Management Total 4,979 1,294 64,662 41,776 30,849 16,225 32,735 36,697 12,541 12,876 12,305 $ 124,967 $ 391,906 E YEAR ENDED JUNE 30, 2013 H 982 2,473 2,539 1,045 15,665 10,291 12,187 29,360 34,467 $ 21,733 $ 92,838 Publications 375 641 249 4,038 5,212 5,351 6,587 2,069 18,363 28,006 11,223 Projects Program Services Program $ 60,446 $ 60,446 $ 142,560

9,335 3,000 1,589 4,856 4,986 5,718 1,928 30,634 13,770 Seminars $ 42,788 $ 118,604 Meetings and STATEMENT OF FUNCTIONALSTATEMENT EXPENSES FOR T CONSULTATIVE GROUP ON INTERNATIONAL ECONOMIC AND MONETARY AFFAIRS, INC. AFFAIRS, MONETARY AND ECONOMIC INTERNATIONAL ON GROUP CONSULTATIVE Other Salaries and Wages Officer/Key Employee Compensation Officer/Key Travel Occupancy Office Expenses Office Consultants and Temporary Services Consultants and Temporary Printing Accounting and Auditing Pension Plan Contributions Payroll Taxes Payroll Meetings and Continuing Education Other Employee Benefits Insurance Depreciation Advertising EXPENSES TOTAL The accompanying notes are an integral part of these financial statements. The accompanying notes are

30 Total 2,000 1,097 3,200 6,847 39,381 37,670 32,336 30,739 21,749 18,644 17,673 14,011 42,683 105,040 Expenses $ 530,639 $ 157,569 46 287 1,672 1,585 2,373 10,925 $ 29,494 $ 12,606 Fundraising 533 2,000 9,656 3,102 2,941 1,680 8,487 6,409 3,664 33,713 32,336 25,014 12,984 $ 18,908 Supporting Services $ 161,427 and General Management 438 Total 1,097 3,957 2,380 12,093 13,870 13,147 12,331 22,252 69,101 27,326 35,671 $ 339,718 $ 126,055 E YEAR ENDED JUNE 30, 2012 H 597 532 290 2,754 1,691 1,603 9,605 4,544 1,486 19,211 $ 56,494 $ 14,181 Publications 587 438 1,170 6,374 6,555 6,213 1,125 11,108 27,640 13,182 24,893 Projects Program Services Program $ 64,603 $ 163,888 500 965 2,255 2,454 2,965 5,624 5,331 1,223 9,600 9,292 31,856 Seminars $ 47,271 $ 119,336 Meetings and STATEMENT OF FUNCTIONALSTATEMENT EXPENSES FOR T CONSULTATIVE GROUP ON INTERNATIONAL ECONOMIC AND MONETARY AFFAIRS, INC INC AFFAIRS, MONETARY AND ECONOMIC INTERNATIONAL ON GROUP CONSULTATIVE Advertising EXPENSES TOTAL Depreciation Officer/Key Employee Compensation Officer/Key Other Salaries and Wages Expenses Office Accounting and Auditing Services Consultants and Temporary Printing Pension Plan Contributions Taxes Payroll Meetings and Continuing Education Insurance Other Employee Benefits Occupancy Travel The accompanying notes are an integral part of these financial statements. The accompanying notes are

31 CONSULTATIVE GROUP ON INTERNATIONAL ECONOMIC AND MONETARY AFFAIRS, INC STATEMENT OF Cash Flows

FOR THE YEARS ENDED JUNE 30 2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $ 282,772 $ 154,219 Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities: Depreciation 1,653 2,000 Unrealized (Gain)/Loss on Certificates of Deposit (795) 6,215 Changes in Assets and Liabilities: Unconditional Promises to Give 3,695 18,501 Accounts Receivable 2,477 Accrued Interest Receivable (175) (1,464) Inventory (2,927) (3,556) Prepaid Expenses 1,066 (3,822) Accounts Payable and Accrued Expenses 16,492 7,593

NET CASH PROVIDED BY OPERATING ACTIVITIES 301,781 182,163

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of Certificates of Deposit (724,000) (799,000) Redemption of Certificates of Deposit 435,001 206,830 Purchases of Equipment (1,904) (3,273)

NET CASH USED IN INVESTING ACTIVITIES (290,903) (595,443)

NET CHANGE IN CASH AND CASH EQUIVALENTS 10,878 (413,280)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 265,146 678,426

CASH AND CASH EQUIVALENTS, END OF YEAR $ 276,024 $ 265,146

The accompanying notes are an integral part of these financial statements.

32 NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities – The Consultative Group on International Economic and Monetary Affairs, Inc., also known as the Group of 30 (the Group), was established in 1978 as a group of thirty private, independent nonpartisan members. The Group aims to deepen the understanding of international economic and financial issues, explore the international repercussions of decisions made in the public and private sectors, and examine the choices available to market practitioners and policy makers. The Group is supported primarily by contributions from private sources: foundations, banks, non-bank corporations, central banks, and individuals. The Group’s major programs consist of meetings and seminars, projects and publications. Basis of Accounting – The financial statements of the Group have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. Basis of Presentation – As required by the Not-for-Profit Topic of the FASB Accounting Standards Codification, the Group is required to report information regarding its financial position and activities according to three classes of net assets; unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Expense Allocation – The costs of providing various programs and supporting services have been summarized on a functional basis in the Statements of Activities and in the Statements of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Cash and Cash Equivalents – For purposes of the statement of cash flows, the Group considers all highly liquid investments with an initial maturity of three months or less to be cash and cash equivalents. Certificates of Deposit – Certificates of deposit are recorded at market value using level 1 input. The certificates bear interest ranging from 0.30% to 1.10% (0.25% to 1.10% at June 30, 2012) and have original maturities ranging from 1 month to 31 months at June 30, 2013. The Group currently maintains the certificates in accordance with their investment policy at a rolling average duration of a 12 month maturity.

33 Furniture and Equipment – All acquisitions of furniture and equipment in excess of $1,000 are capitalized. Furniture and equipment are carried at cost, if purchased or at fair value on the date of donation, if contributed. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Inventory – Inventories consist of published reports held for resale to customers and are stated at the lower of cost or market (determined on a first-in, first-out basis). Unconditional Promises to Give – Unconditional promises to give are recorded at their net realizable value. Income Tax Status – The Group is incorporated under the laws of the State of Delaware for charitable, educational, and scientific purposes as defined by Section 501(c) (3) of the Internal Revenue Code (the Code). However, income from certain activities not directly related to the Group’s tax-exempt purpose is subject to taxation as unrelated business income. In the opinion of management, the Group has no unrelated business net income. Accordingly, no provision for federal income taxes has been reflected in the accompanying financial statements. In addition, the Group qualifies for the charitable contribution deduc- tion under Section 170(b)(1)(A) and has been classified as an organization other than a private foundation under Section 509(a)(2). The Group evaluates uncertainty in income tax positions based on a more likely than not recognition standard. If that threshold is met, the tax position is then measured at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. The Group evaluates uncertain tax positions such that the effects of the tax positions are generally recognized in the financial statements consistent with amounts reflected in returns filed, or expected to be filed, with taxing authorities. As of June 30, 2013, the Group has evaluated its material tax positions and determined that no accruals for uncertain tax positions are required as the Group has no tax obligations at this time. If appli- cable, the Group records interest and penalty expense as a component of income tax expense. Returns filed for tax periods ending after June 30, 2010 are “open” to examination and any changes proposed by the taxing authorities may affect the Group’s income tax liability. Contributions – Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire

34 (that is, when a stipulated time restriction ends or purpose restriction is accomplished) in the reporting period in which the revenue is recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Estimates – Management uses estimates and assumptions in preparing financial statements in conformity with general accepted accounting principles in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reported period. Actual results could differ from those estimates. Office Rent – The Group extended their sub leasing arrangement for office space for five years which expires on May 31, 2016. The Group also receives rental income from a sub tenant. This began in November 2007 in the amount of $800 per month. Rent expense, less rental income received, for the years ended June 30, 2013 and 2012 totaled $43,832 and $42,683, respectively. Future minimum lease commitments on the non- cancelable operating lease are as follows for the years ending June 30: 2014 $ 53,064 2015 54,390 2016 50,998 Total $ 158,452 Fair Value Measurements – The fair value of financial assets and liabilities is measured according to the Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification. Fair value is required to be evaluated and adjusted according to the following valuation techniques. Level 1 – Fair value is determined using quoted market prices in active markets for identical assets and liabilities. Level 2 – Fair value is determined using quoted market prices in active markets for similar assets and liabilities. Level 3 – Fair value is determined using unobservable market prices in a market that is typically inactive.

35 NOTE 2 – CONCENTRATION OF CREDIT RISK The Group maintains its cash balances in various financial institutions. The balance is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 by the bank for interest bearing accounts. As of December 31, 2010 and through December 31, 2012, all non-interest bearing accounts are 100% insured without limit by the FDIC. The Group has not experienced any loss in such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents. As of June 30, 2013 and 2012, the Group held cash of $0 and $0, respectively, in excess of FDIC insurance limits. At June 30, 2013, the Group held 15 certificates of deposit with ten separate banks. All certificates of deposit were insured by the FDIC at June 30, 2013 and 2012, respectively. NOTE 3 – PENSION PLAN The Group maintains a simplified employee pension plan (the Plan) for the benefit of all employees with a minimum term of service of two years within the last 5 years. Contributions to the Plan are allocated to eligible and participating employees on the basis of compensation. For the years ended June 30, 2013 and 2012, contributions to the Plan totaled approximately $16,933 and $18,644, respectively. NOTE 4 – PROGRAM SERVICES The following programs services are included in the accompanying financial statements: Meetings and Seminars – Meetings are held on a regular basis with current members and with a wider audience. These events allow the discussion of international economic and monetary affairs, and the global and regional economic outlook, with a forward looking focus and orientation towards the identification of emerging trends and risks, as well as policy areas where proactive work may be required. Projects – Study projects are organized to address matters identified by the Group as posing risks and challenges to the financial system as a whole or to particular sectors, markets. Membership of project working groups can include members and non-members. The general goal is to identify weaknesses and inefficiencies, and to design actionable recommendations for the policy making community and the wider financial community. Project reports are aimed at impacting policy making and outcomes not simply to add to the debate.

36 Publications – Publications include the final reports of working groups, and occasional papers on diverse issues of international economics and monetary policy of interest to the global financial community. All publications are provided electronically free-of-charge and are disseminated as widely as possible. Where appropriate they are translated into major languages in addition to English. NOTE 5 – SUBSEQUENT EVENTS The date to which events occurring after June 30, 2013, the date of the most recent statement of financial position, have been evaluated for possible adjustment to the financial statements or disclosure is January 31, 2014, which is the date on which the financial statements were available to be issued.

37 Annex 1 Past Membership of the Group of Thirty

Members Josef Ackermann Michiya Matsukawa* Montek Ahluwalia José Antonio Mayobre* Pedro Aspe C.W. McMahon Abdul Aziz Al Quraishi Saburo Okita* Roberto Campos* Suliman Olayan* Sir Roderick Carnegie Tommaso Padoa-Schioppa* Max Corden I.G. Patel* Andrew D. Crockett* Rupert Pennant-Rea Dirk de Bruyne Claude Pierre-Brossolette André de Lattre Karl Otto Pohl Otmar Emminger* Jacques J. Polak* Janos Fekete* Gordon Richardson*† Victor K. Fung Robert Roosa* Alan Greenspan William Ryrie* Wilfried Guth* Anthony M. Solomon* Armin Gutowski* Robert Solomon* Jawad Hashim Herbert Stein* Thomas Johnson Tasuku Takagaki* Peter Kenen* Cesar Virata Yoh Kurosawa* Rod Wagner* Alexandre Lamfalussy Henry Wallich* Anthony Loehnis Sir Peter Walters Fritz Machlup* Dennis Weatherstone* Jacques Maisonrouge* Johannes Witteveen† Stephen Marris* Janet Yellen José Martínez de Hoz*

Past Executive Directors David Holland* Robert Pringle Charles Taylor John Walsh

* Deceased. † Past chairman.

38 Annex 2 Schedule of Meetings and Seminars FY 2012 and FY 2013

Corporate Governance Working Group. This conference call took place on July 14, 2011, and was hosted by Roger W. Ferguson, Jr.

Corporate Governance Drafting Team. This conference call took place on September 21, 2011, and was hosted by Roger W. Ferguson, Jr.

Corporate Governance Working Group. This meeting took place on September 24, 2011, and was hosted by Roger W. Ferguson, Jr. at the TIAA-CREF offices in New York.

The International Banking Seminar. This seminar took place on September 25, 2011, and was hosted by Luis Alberto Moreno, and the Inter-American Development Bank in Washington, D.C.

Corporate Governance Steering Committee. This conference call took place on October 10, 2011, and was hosted by Roger W. Ferguson, Jr.

Corporate Governance Steering Committee. This conference call took place on November 1, 2011, and was hosted by Roger W. Ferguson, Jr.

Long-term Finance Exploratory Meeting. This conference call took place on November 22, 2011, and was hosted by Guillermo Ortiz.

Corporate Governance Steering Committee. This meeting took place on December 1, 2011, and was hosted by Roger W. Ferguson, Jr. at the TIAA-CREF offices in New York.

66th Plenary Meeting of the Group of Thirty. This meeting took place December 1–3, 2011, and was hosted by William C. Dudley and the Federal Reserve Bank of New York in New York City.

39 Meeting of the Trustees of the Group of Thirty. This meeting took place December 3, 2011, at the Federal Reserve Bank of New York in New York City.

Corporate Governance Drafting Team. This conference call took place on December 17, 2011, and was hosted by Roger W. Ferguson, Jr.

Corporate Governance Drafting Team. This conference call took place on January 6, 2012, and was hosted by Roger W. Ferguson, Jr.

Corporate Governance Steering Committee. This conference call took place on January 12, 2012, and was hosted by Roger W. Ferguson, Jr.

Corporate Governance Working Group. This conference call took place on February 3, 2012, and was hosted by Roger W. Ferguson, Jr.

Corporate Governance Steering Committee. This conference call took place on March 8, 2012, and was hosted by Roger W. Ferguson, Jr.

Long-term Finance Steering Committee. This conference call took place on March 19, 2012, and was hosted by Guillermo Ortiz.

Toward Effective Governance of Financial Institutions Press Con ference. This press launch took place on April 12, 2012, at the TIAA- CREF offices in both New York and London.

Long-term Finance Steering Committee. This meeting took place on April 21, 2012, and was hosted by Guillermo Ortiz. The meeting took place at the Group of Thirty office in Washington, D.C.

Long-term Finance Steering Committee. This conference call took place on May 25, 2012, and was hosted by Guillermo Ortiz.

Long-term Finance Working Group. This meeting took place on May 31, 2012, and was hosted by Guillermo Ortiz. The meeting took place at the Bank of England in London.

40 67th Plenary Meeting of the Group of Thirty. This meeting took place May 31–June 2, 2012, and was hosted by Mervyn King and the Bank of England in London, United Kingdom.

Meeting of the Trustees of the Group of Thirty. This meeting took place on June 1, 2012, at the Bank of England in London, United Kingdom.

Corporate Governance Steering Committee. This conference call took place on July 2, 2012, and was hosted by Roger W. Ferguson, Jr.

Long-term Finance Steering Committee. This conference call took place on July 27, 2012, and was hosted by Guillermo Ortiz.

Long-term Finance Working Group. This meeting took place on September 12, 2012, and was hosted by Guillermo Ortiz. The meeting took place at UBS AG Head Offices in Zurich, Switzerland.

The International Banking Seminar. This seminar took place on October 14, 2012, and was hosted by Masaaki Shirakawa and the Bank of Japan in Tokyo, Japan.

Long-term Finance Steering Committee. This conference call took place on October 22, 2012, and was hosted by Guillermo Ortiz.

Long-term Finance Drafting Team. This conference call took place on November 14, 2012, and was hosted by Guillermo Ortiz.

Long-term Finance Working Group. This meeting took place on November 29, 2012, and was hosted by Guillermo Ortiz. It took place at the Federal Reserve Bank of New York in New York City.

68th Plenary Meeting of the Group of Thirty. This meeting took place November 29–December 1, 2012, and was hosted by William C. Dudley and the Federal Reserve Bank of New York in New York City.

Meeting of the Trustees of the Group of Thirty. This meeting took place on December 1, 2012, at the Federal Reserve Bank of New York in New York City.

41 Long-term Finance Steering Committee. This conference call took place on December 6, 2012, and was hosted by Guillermo Ortiz.

Long-term Finance Steering Committee. This conference call took place on December 17, 2012, and was hosted by Guillermo Ortiz.

Long-term Finance Working Group. This conference call took place on January 11, 2013, and was hosted by Guillermo Ortiz.

Banking Supervision Steering Committee. This conference call took place on February 6, 2013, and was hosted by Roger W. Ferguson, Jr.

Long-Term Finance and Economic Growth Press Conference. This press launch took place on February 11, 2013, at the Bank of England in London, United Kingdom.

Banking Supervision Steering Committee. This conference call took place on March 1, 2013, and was hosted by Roger W. Ferguson, Jr.

Banking Supervision Drafting Team. This conference call took place on March 19, 2013, and was hosted by Roger W. Ferguson, Jr.

Banking Supervision Steering Committee. This conference call took place on April 8, 2013, and was hosted by Roger W. Ferguson, Jr.

Banking Supervision Working Group. This meeting took place on May 23, 2013, and was hosted by Roger W. Ferguson, Jr. at the TIAA- CREF offices in New York.

69th Plenary Meeting of the Group of Thirty. This meeting took place May 30–June 1, 2013, and was hosted by Zhou Xiaochuan and the People’s Bank of China in Shanghai, China.

Meeting of the Trustees of the Group of Thirty. This meeting took place on May 31, 2013, at the People’ Bank of China, Shanghai Office in Shanghai, China.

42 Annex 3 International Banking Seminars FY 2012 and FY 2013

AGENDA 2011 G30 International Banking Seminar Hosted by Luis Alberto Moreno and the Inter-American Development Bank Washington, D.C. Sunday, September 25, 2011

9:00–9:05 a.m. Introduction Jacob A. Frenkel Chairman & CEO, Group of Thirty

9:05–10:45 a.m. World Economic Challenges Ben S. Bernanke Chairman, Board of Governors of the Federal Reserve System Jean-Claude Trichet President, European Central Bank Masaaki Shirakawa Governor, Bank of Japan Tharman Shanmugaratnam Deputy Prime Minister & Minister of Finance, Singapore

10:45–11:30 a.m. Financial Markets and Regulation Mark Carney Governor, Bank of Canada Stefan Ingves Chairman, Basel Committee of Banking Supervision Governor, Sveriges Riskbank

11:30 a.m.–12:30 p.m. A View from the Multilateral Institutions Christine Lagarde Managing Director, International Monetary Fund Robert Zoellick President, World Bank Luis Alberto Moreno President, Inter-American Development Bank

12:30 p.m. Adjourn

43 AGENDA 2012 G30 International Banking Seminar Hosted by Masaaki Shirakawa and the Bank of Japan Tokyo, Japan Sunday, October 14, 2012

8:30–8:45 a.m. Introduction Jean-Claude Trichet Chairman & CEO, Group of Thirty

8:45–10:10 a.m. The Global Outlook Ben S. Bernanke Chairman, Board of Governors of the Federal Reserve System Mario Draghi President, European Central Bank Masaaki Shirakawa Governor, Bank of Japan Tharman Shanmugaratnam Deputy Prime Minister & Minister of Finance, Singapore

10:10–10:50 a.m. Issues of Supervision and Governance Mark Carney Chairman, Financial Stability Board Mervyn King Governor, Bank of England

10:50–11:30 a.m. Issues of Global Economic Governance Agustín Carstens Governor, Banco de México Christine Lagarde Managing Director, International Monetary Fund

11:30 a.m. Adjourn

44 Annex 4 Plenary Meetings FY 2012 and FY 2013

66th Plenary Meeting Federal Reserve Bank of New York New York, New York December 1–3, 2011

CHAIRMAN Jacob A. Frenkel Group of Thirty

HOST William C. Dudley Federal Reserve Bank of New York

SPEAKERS Ernesto Zedillo Paul Krugman Yale Center for the Study of Globalization Princeton University Tharman Shanmugaratnam Lawrence H. Summers Ministry of Finance, Singapore Harvard University Philipp Hildebrand Ibrahim Dabdoub Swiss National Bank National Bank of Kuwait Jean-Claude Trichet Frank Wisner Banque de France Patton Briggs José Viñals Charles E. Cook International Monetary Fund Cook Political Report Axel A. Weber Mark Carney Chicago Booth School Bank of Canada Masaaki Shirakawa Adair Turner Bank of Japan Financial Services Authority Stanley Fischer Jacques de Larosière Bank of Israel Eurofi Martin Feldstein William R. Rhodes Harvard University William R. Rhodes Global Advisors

45 67th Plenary Meeting Bank of England London, United Kingdom May 31–June 2, 2012

CHAIRMAN Jean-Claude Trichet Group of Thirty

HOST Mervyn King Bank of England

SPEAKERS George Osborne Guillermo Ortiz HM Treasury Grupo Financiero Banorte David Lipton Ngozi Okonjo-Iweala International Monetary Fund Ministry of Finance, Nigeria Mario Draghi Maria Ramos European Central Bank Absa Group Jacob A. Frenkel Neil MacGregor Group of Thirty British Museum Axel A. Weber Forrest Capie UBS AG Cass Business School Jacques de Larosière David Kynaston Eurofi Author Tharman Shanmugaratnam Jaime Caruana Ministry of Finance, Singapore Bank for International Settlements Raghuram G. Rajan Paul Tucker Chicago Booth School Bank of England

46 68th Plenary Meeting Federal Reserve Bank of New York New York, New York November 29–December 1, 2012

CHAIRMAN Jean-Claude Trichet Group of Thirty

HOST William C. Dudley Federal Reserve Bank of New York

SPEAKERS Lawrence H. Summers Janet Yellen Harvard University Board of Governors of the Federal Reserve System Ernesto Zedillo Yale Center for the Study of Globalization Stanley Fischer Bank of Israel Min Zhu International Monetary Fund Richard Haas Council on Foreign Relations Olli Rehn European Commission Mark Carney Bank of Canada Philipp Hildebrand BlackRock Axel A. Weber UBS AG Jaime Caruana Bank for International Settlements Kevin Warsh Hoover Institution Jacques de Larosière Eurofi William R. Rhodes William R. Rhodes Global Advisors Gerd Häusler Bayerische Landesbank David Walker Barclays PLC Masaaki Shirakawa Bank of Japan Arminio Fraga Gávea Investimentos

47 69th Plenary Meeting People’s Bank of China Shanghai, China May 30–June 1, 2013

CHAIRMAN Jean-Claude Trichet Group of Thirty

HOST Zhou Xiaochuan People’s Bank of China

SPEAKERS Xiang Songzuo Gail Kelly Agricultural Bank of China Westpac Banking Corporation Haruhiko Kuroda Douglas Flint Bank of Japan HSBC Holdings PLC Tharman Shanmugaratnam Jaime Caruana Ministry of Finance, Singapore Bank for International Settlements Mario Draghi Wang Zhaoxing European Central Bank China Banking Regulatory Commission Martin Feldstein William C. Dudley Harvard University Federal Reserve Bank of China Raghuram G. Rajan Janet Yellen Ministry of Finance, India Board of Governors of the Federal Reserve System Choongsoo Kim Bank of Korea Axel A. Weber UBS AG Fang Xinghai Shanghai Municipal Financial Services Office Christian Noyer Banque de France Glenn Stevens Reserve Bank of Australia

48 Annex 5 Corporate Governance Working Group

CHAIRMAN Roger W. Ferguson, Jr. TIAA-CREF

Vice-cHAIRMeN John G. Heimann Financial Stability Institute William R. Rhodes William R. Rhodes Global Advisors David Walker Morgan Stanley International

project director Thomas M. Woodward Tapestry Networks

Members Jacob A. Frenkel William J. McDonough Group of Thirty Federal Reserve Bank of New York Geoffrey L. Bell Guillermo Ortiz Group of Thirty Grupo Financiero Banorte Guillermo de la Dehesa Ernest Stern Grupo Santander The Rohatyn Group Richard A. Debs Ernesto Zedillo Morgan Stanley Yale Center for the Study of Globalization Arminio Fraga Zhou Xiaochuan Gávea Investimentos People’s Bank of China Gerd Häusler Bayerische Landesbank

Experts William Schlich Christopher McDonnell Ernst & Young Tapestry Networks Mark Watson Jon Feigelson Tapestry Networks TIAA-CREF Dennis Andrade Stuart P.M. Mackintosh Tapestry Networks Group of Thirty

49 Annex 6 Long-term Finance Working Group

CHAIRMAN Guillermo Ortiz Grupo Financiero Banorte

Vice-cHAIRMeN Tharman Shanmugaratnam Ministry of Finance, Singapore Adair Turner Financial Services Authority Axel A. Weber UBS AG

project director Charles Roxburgh McKinsey Global Institute

Members Jacob A. Frenkel Domingo Cavallo John G. Heimann Group of Thirty DFC Associates, LLC Financial Stability Institute Jean-Claude Trichet E. Gerald Corrigan Philipp Hildebrand Group of Thirty Goldman Sachs Group, Inc. BlackRock Geoffrey L. Bell Jacques de Larosière William J. McDonough Group of Thirty Eurofi Federal Reserve Bank of New York Leszek Balcerowicz Richard A. Debs Warsaw School of Economics Morgan Stanley Peter Sands Standard Chartered Plc Mark Carney Guillermo de la Bank of Canada Dehesa Martin Senn Grupo Santander Zurich Insurance Group Ltd. Jaime Caruana Bank for International Roger W. Ferguson, Jr. José Viñals Settlements TIAA-CREF International Monetary Fund Gerd Häusler David Walker Bayerische Landesbank Barclays PLC Obeservers Peter Buomberger Steven Hottiger Anna Marrs Zurich Insurance Group Ltd. UBS AG Standard Chartered PLC

Experts Toos Daruvala Georg Hartmann Stuart P.M. Mackintosh McKinsey & Company, Inc. McKinsey Global Institute Group of Thirty Elizabeth Foote Susan Lund McKinsey Global Institute McKinsey Global Institute

50 Annex 7 Banking Supervision Working Group

CHAIRMAN Roger W. Ferguson, Jr. TIAA-CREF

VICE CHAIRMEN John G. Heimann Financial Stability Institute William R. Rhodes William R. Rhodes Global Advisors David Walker Barclays PLC

PROJET DIRECTOR Nicholas Le Pan Canadian Imperial Bank of Commerce

MEMBERS Jacob A. Frenkel Gerd Häusler Group of Thirty Bayerische Landesbank Jean-Claude Trichet Philipp Hildebrand Group of Thirty BlackRock Geoffrey L. Bell William J. McDonough Group of Thirty Federal Reserve Bank of New York Richard A. Debs Guillermo Ortiz Morgan Stanley Grupo Financiero Banorte Guillermo de la Dehesa Axel A. Weber Grupo Santander UBS AG

EXPERTS Davide Taliente James Wiener Oliver Wyman Oliver Wyman Dominick Treeck Stuart P.M. Mackintosh Oliver Wyman Group of Thirty

51 Annex 8 Group of Thirty Publications 1990–June 30, 2013

SPECIAL REPORTS Long-term Finance and Economic Growth Long-term Finance Working Group. 2013 Toward Effective Governance of Financial Institutions Corporate Governance Working Group. 2012 Enhancing Financial Stability and Resilience: Macroprudential Policy, Tools, and Systems for the Future Macroprudential Policy Working Group. 2010 The Reform of the International Monetary Fund IMF Reform Working Group. 2009 Financial Reform: A Framework for Financial Stability Financial Reform Working Group. 2009 The Structure of Financial Supervision: Approaches and Challenges in a Global Marketplace Financial Regulatory Systems Working Group. 2008 Global Clearing and Settlement: Final Monitoring Report Global Monitoring Committee. 2006 Reinsurance and International Financial Markets Reinsurance Study Group. 2006 Enhancing Public Confidence in Financial Reporting Steering & Working Committees on Accounting. 2004 Global Clearing and Settlement: A Plan of Action Steering & Working Committees of Global Clearing & Settlements Study. 2003 Derivatives: Practices and Principles: Follow-up Surveys of Industry Practice Global Derivatives Study Group. 1994 Derivatives: Practices and Principles, Appendix III: Survey of Industry Practice Global Derivatives Study Group. 1994 Derivatives: Practices and Principles, Appendix II: Legal Enforceability: Survey of Nine Jurisdictions Global Derivatives Study Group. 1993 Derivatives: Practices and Principles, Appendix I: Working Papers Global Derivatives Study Group. 1993 Derivatives: Practices and Principles Global Derivatives Study Group. 1993 Clearance and Settlement Systems: Status Reports, Autumn 1992 Various Authors. 1992

52 Clearance and Settlement Systems: Status Reports, Year-End 1990 Various Authors. 1991 Conference on Clearance and Settlement Systems. London, March 1990: Speeches Various Authors. 1990 Clearance and Settlement Systems: Status Reports, Spring 1990 Various Authors. 1990

REPORTS Sharing the Gains from Trade: Reviving the Doha Study Group Report. 2004 Key Issues in Sovereign Debt Restructuring Study Group Report. 2002 Reducing the Risks of International Insolvency A Compendium of Work in Progress. 2000 Collapse: The Venezuelan Banking Crisis of ‘94 Ruth de Krivoy. 2000 The Evolving Corporation: Global Imperatives and National Responses Study Group Report. 1999 International Insolvencies in the Financial Sector Study Group Report. 1998 Global Institutions, National Supervision and Systemic Risk Study Group on Supervision and Regulation. 1997 Latin American Capital Flows: Living with Volatility Latin American Capital Flows Study Group. 1994 Defining the Roles of Accountants, Bankers and Regulators in the United States Study Group on Accountants, Bankers and Regulators. 1994 EMU After Maastricht Peter B. Kenen. 1992 Sea Changes in Latin America Pedro Aspe, Andres Bianchi and Domingo Cavallo, with discussion by S.T. Beza and William Rhodes. 1992 The Summit Process and Collective Security: Future Responsibility Sharing The Summit Reform Study Group. 1991 Financing Eastern Europe Richard A. Debs, Harvey Shapiro and Charles Taylor. 1991 The Risks Facing the World Economy The Risks Facing the World Economy Study Group. 1991

The William Taylor Memorial Lectures Three Years Later: Unfinished Business in Financial Reform Paul A. Volcker. 2011

53 It’s Not Over ‘Til It’s Over: Leadership and Financial Regulation Thomas M. Hoenig. 2010 The Credit Crisis: The Quest for Stability and Reform E. Gerald Corrigan. 2008 Lessons Learned from the 2008 Financial Crisis Eugene A. Ludwig. 2008 Two Cheers for Financial Stability Howard Davies. 2006 Implications of Basel II for Emerging Market Countries Stanley Fisher. 2003 Issues in Corporate Governance William J. McDonough. 2003 Post Crisis Asia: The Way Forward Lee Hsien Loong. 2001 Licensing Banks: Still Necessary? Tomasso Padoa-Schioppa. 2000 Banking Supervision and Financial Stability Andrew Crockett. 1998 Global Risk Management Ulrich Cartellieri and Alan Greenspan. 1996 The Financial Disruptions of the 1980s: A Central Banker Looks Back E. Gerald Corrigan. 1993

Occasional Papers 87. Debt, Money, and Mephistopheles: How Do We Get Out of This Mess? Adair Turner. 2013 86. A Self-Inflicted Crisis? Design and Management Failures Leading to the Eurozone Crisis Guillermo de la Dehesa. 2012 85. Policies for Stabilization and Growth in Small Very Open Economies DeLisle Worrell. 2012 84. The Long-term Outlook for the European Project and the Single Currency Jacques de Larosière. 2012 83. Macroprudential Policy: Addressing the Things We Don’t Know Alastair Clark and Andrew Large. 2011 82. The 2008 Financial Crisis and Its Aftermath: Addressing the Next Debt Challenge Thomas A. Russo and Aaron J. Katzel. 2011 81. Regulatory Reforms and Remaining Challenges Mark Carney, Paul Tucker, Philipp Hildebrand, Jacques de Larosière, William Dudley, Adair Turner, and Roger W. Ferguson, Jr. 2011 80. 12 Market and Government Failures Leading to the 2008-09 Financial Crisis Guillermo de la Dehesa. 2010

54 79. Lessons Learned from Previous Banking Crises: Sweden, Japan, Spain and Mexico Stefan Ingves, Goran Lind, Masaaki Shirakawa, Jaime Caruana, Guillermo Ortiz Martinez. 2009 78. The G30 at Thirty Peter Kenen. 2008 77. Distorting the Micro to Embellish the Macro: The Case of Argentina Domingo Cavallo and Joaquin Cottani. 2008 76. Credit Cruch: Where Do We Stand? Thomas A. Russo. 2008 75. Banking, Financial, and Regulatory Reform Liu Mingkang, Roger Ferguson, and Guillermo Ortiz Martinez. 2007 74. The Achievements and Challenges of European Union Financial Integration and Its Implications for the United States Jacques de Larosiere. 2007 73. Nine Common Misconceptions About Competitiveness and Globalization Guillermo de la Dehesa. 2007 72. International Currencies and National Monetary Policies Barry Eichengreen. 2006 71. The International Role of the Dollar and Trade Balance Adjustment Linda Goldberg and Cédric Tille. 2006 70. The Critical Mission of the European Stability and Growth Pact Jacques de Larosière. 2005 69. Is It Possible to Preserve the European Social Model? Guillermo de la Dehesa. 2005 68. External Transparency in Trade Policy Sylvia Ostry. 2004 67. American Capitalism and Global Convergence Marina V.N. Whitman. 2003 66. Enron et al: Market Forces in Disarray Jaime Caruana, Andrew Crockett, Douglas Flint, Trevor Harris, Tom Jones. 2002 65. Venture Capital in the United States and Europe Guillermo de la Dehesa. 2002 64. Explaining the Euro to a Washington Audience Tomasso Padoa-Schioppa. 2001 63. Exchange Rate Regimes: Some Lessons from Postwar Europe Charles Wyplosz. 2000 62. Decisionmaking for European Economic and Monetary Union Erik Hoffmeyer. 2000 61. Charting a Course for the Multilateral Trading System: The Seattle Ministerial Meeting and Beyond Ernest Preeg. 1999 60. Exchange Rate Arrangements for the Emerging Market Economies Felipe Larraín and Andrés Velasco. 1999

55 59. G3 Exchange Rate Relationships: A Recap of the Record and a Review of Proposals for Change Richard Clarida. 1999 58. Real Estate Booms and Banking Busts: An International Perspective Richard Herring and Susan Wachter. 1999 57. The Future of Global Financial Regulation Sir Andrew Large. 1998 56. Reinforcing the WTO Sylvia Ostry. 1998 55. Japan: The Road to Recovery Akio Mikuni. 1998 54. Financial Services in the Uruguay Round and the WTO Sydney J. Key. 1997 53. A New Regime for Foreign Direct Investment Sylvia Ostry. 1997 52. Derivatives and Monetary Policy Gerd Hausler. 1996 51. The Reform of Wholesale Payment Systems and Impact on Financial Markets David Folkerts-Landau, Peter Garber, and Dirk Schoenmaker. 1996 50. EMU Prospects Guillermo de la Dehesa and Peter B. Kenen. 1995 49. New Dimensions of Market Access Sylvia Ostry. 1995 48. Thirty Years in Central Banking Erik Hoffmeyer. 1994 47. Capital, Asset Risk and Bank Failure Linda M. Hooks. 1994 46. In Search of a Level Playing Field: The Implementation of the Basle Capital Accord in Japan and the United States Hal S. Scott and Shinsaku Iwahara. 1994 45. The Impact of Trade on OECD Labor Markets Robert Z. Lawrence. 1994 44. Global Derivatives: Public Sector Responses James A. Leach, William J. McDonough, David W. Mullins, Brian Quinn. 1993 43. The Ten Commandments of Systemic Reform Vaclav Klaus. 1993 42. Tripolarism: Regional and Global Economic Cooperation Tommaso Padoa-Schioppa. 1993 41. The Threat of Managed Trade to Transforming Economies Sylvia Ostry. 1993 40. The New Trade Agenda Geza Feketekuty. 1992 39. EMU and the Regions Guillermo de la Dehesa and Paul Krugman. 1992

56 38. Why Now? Change and Turmoil in U.S. Banking Lawrence J. White. 1992 37. Are Foreign-owned Subsidiaries Good for the United States? Raymond Vernon. 1992 36. The Economic Transformation of East Germany: Some Preliminary Lessons Gerhard Fels and Claus Schnabel. 1991 35. International Trade in Banking Services: A Conceptual Framework Sydney J. Key and Hal S. Scott. 1991 34. Privatization in Eastern and Central Europe Guillermo de la Dehesa. 1991 33. Foreign Direct Investment: The Neglected Twin of Trade DeAnne Julius. 1991 32. Interdependence of Capital Markets and Policy Implications Stephen H. Axilrod. 1990 31. Two Views of German Reunification Hans Tietmeyer and Wilfried Guth. 1990 30. Europe in the Nineties: Problems and Aspirations Wilfried Guth. 1990 29. Implications of Increasing Corporate Indebtedness for Monetary Policy Benjamin M. Friedman. 1990 28. Financial and Monetary Integration in Europe: 1990, 1992 and Beyond Tommaso Padoa-Schioppa. 1990

57 Annex 9 Contributors to the Group of Thirty FY 2012–FY 2013

The Group of Thirty wishes to express its appreciation to the following institutions and individuals for the donations they generously made to support the G30’s general program during FY 2012 and FY 2013.

ABN AMRO Banque de France Absa Group, Ltd. Banque Nationale de Belgique AIG, Inc. Barclays PLC Allied Irish Bank BBVA Arab Fund for Economic BCM International Regulatory and Social Development Analytics Asociación Española de Banca BlackRock AXA Japan Holding Co. Ltd. BM&F Bovespa AXIS Capital Holdings Ltd. BMCE Bank Banca d’Italia BNP Paribas Banca Sella Holdings Brevan Howard Banco Central de Chile Brown Brothers Harriman & Co. Banco de Galicia BTG Pactual Banco de Mèxico Central Bank of Barbados Banco de Portugal Central Bank of Iceland Banco Hipotecario Central Bank of Ireland Banco Sabadell Central Bank of Jordan Banco Santander Central Bank of Malta Bank al-Maghrib Central Bank of the Philippines Bank Hapoalim CIB Bank Ltd. Bank Leumi le Israel BM Citigroup, Inc. Bank of Albania Credit Suisse Bank of East Asia, Ltd. Dah Sing Financial Group Bank of Finland Danmarks Nationalbank Bank of Ireland Debs Foundation Bank of Mauritius Deutsche Bank AG Bank of Tokyo-Mitsubishi UFJ Dubai Financial Services Authority BANKIA First International Bank of Israel Banque Centrale du Luxembourg Gávea Investimentos

58 Goldman Sachs and Co. People’s Bank of China Gulf International Bank Promontory Financial Group Henry and Elaine Kaufman Reserve Bank of Australia Foundation Reserve Bank of India Hong Kong Monetary Authority Roger Ferguson & Annette Nazareth HSBC Holdings PLC Scotiabank Indian Banks’ Association Singapore Government Itau Unibanco Investment Corporation Japan Credit Rating Agency South African Reserve Bank JPMorgan Chase & Co. Standard and Poor’s Financial Magyar Nemzeti Bank Services, Ltd. Mercantil Servicios Financieros Standish Mizuho Financial Group, Inc. Sullivan & Cromwell Monetary Authority of Singapore Sveriges Riksbank Moore Capital Management Swiss National Bank Morgan Stanley Swiss Reinsurance Company National Bank of Kuwait TEMASEK National Bank of Poland The Challenger Foundation Nomura Holdings America Tudor Investment Corporation Norges Bank UBS AG Oesterreichische Nationalbank Union Bank of Israel Olayan Group Whitehead Foundation Palestine Monetary Authority

The Group of Thirty also wishes to thank the following institutions for their valuable assistance in the provision of accommodations, meeting facilities, and other services during FY 2012 and FY 2013.

Bank of England McKinsey Global Institute Bank of Japan Morgan Stanley British Museum Oliver Wyman CPC Shanghai Municipal Committee People’s Bank of China, Credit Suisse Shanghai Office Ernst & Young Tapestry Networks Federal Reserve Bank of New York The National Gallery, London Inter-American Development Bank TIAA-CREF JPMorgan Chase & Co. UBS AG

Group of Thirty Annual Report 2012–2013

Group of Thirty 1726 M Street, N.W., Suite 200 Washington, D.C. 20036