A New Look ... the Same Old Bird
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The UCSD Guardian University of California, San Diego / Volume 48, Number 8 / Thursday, January 27, 1983 A new look... By THOMAS RANKIN I:!I":~~~~~~,.....-~~.....,.----., ... , per UOlt, in essence transfer· News Editor ing profits under the table and Under the towering ceilings keeping the ledgers In a neat. of the Hotel Del Coronado's profit and loss context. Crystal Continental Room Citibank even went so far as (once the site of a meeting to keep two sets of books, one between then·president to show government auditors. Richard Nixon and the and the other (known as the president of Mexico),John S.R. MPR, or Management Profit Shad spoke last Friday at a Report) for use in·house to get luncheon sponsored by UCSD an accurate representatIOn of Extension's Securities which branches were actuallv Regulation Institute. pulhng a profit. - Shad, chairman of the Edwards, after futile effort Securities and Exchange to alert top· level management Commission (SEC), discussed and institute a return to above the commissions's recent board operations. compiled a performance and briefly packet of memos, letters and touched on the increasingly other eVidence of infractIOn complex interplay of financial and pre ented it to the SEC. services offered by banks, ~ Nothing happened. S&Ls, thrifts and brokerage Thomas von Stein, an SEC houses. lawyer who had worked on the A bizarre sidelight to his commis ion's case agamst speech was the filming of the Robert Vesco, took on the TV series Hart to Hart in the Citibank case and found hotel's lobby. The series' evidence of parking, as well as stars, Robert Wagner and numerous other violations. On Stephanie Powers, each spoke the basis of this evidence, the briefly to the audience, which Enforcement Division felt that was primarily of lawyers it had grou nds to ta ke specializing in securities. Citibank to court for failing to After an awkward "hello, di close information to hello" from Wagner, Powers stockholders. Fedders , made a plea for contributions however, killed that action, to a group she represents stating that since Citibank dedicated to the preservation had not told stockholder that of wildlife in Africa. its senior management Once the ball got rolling possessed .. hones t y or again, Shad poured forth a integrity," it wa not bound to staggering list of facts and disclose unlawful actions. figures in a dull monotone that Citibank did not fare as well stood in sharp contrast to the overseas, where the French brilliance of his personal and Swiss governments have accomplishments. A graduate levied demands for millions of of USC, Harvard Business dollars in back taxes lost as a School, and New York result of parking. University's law school, Shad From behind the oak and has sat on a total of 17 boards brass podium at the Hotel Del. of directors, having had to John S.R. Shad agelyavoided resign f.rom no .less than seven b U t mention of the Citibank upon hiS appomtment to the the same old bird incident and his commis IOn's SEC. decision to relax di clo ure Shad's success in business a matter of time before fi scal and legal blunders in maga zll1e article. In a laws to that bank' benefit. In has been carried over into the brokerage firms are allowed to recent years, raising questions confidential memo, he wrote, the Hou e of Representative . SEC since his appointment. In offer more banking services to in and out of government " I do not sub cribe to the however, the EC deci ion is the face of a five percent customers. He did not about their ability to act in a theory that a company that till under tudy by a cutback in per onnel, the SEC speculate on how this might respon ible and financially violate' tax and exchange subcommittee headed bv brought about last year a 30 affect consumers, already sound manner. "Banking" and control regulation i a bad Congres. man John Dmgeli. percent increase in enforce· baffled by · the increas ing "logic" seem to have become corporation, and that the providing a ou rce of ment case, a 25 percent variety of financial service ,as mutually exch.i ive terms. disclosure of legal conduct embaras 'ment for Citibank increase in investment well as the multitude of In the area of fin a nce, the hould be forced as a and the po. Sibilit}' of a company inspections and a 25 different industries offering evidence is already in. In the prophylactic measu re." rhetoncal "pankmg for the percent gain in full·di closure them. 1970s, American banks made In that same article David EC. filings. billions of dollars in loans to Edward', a former Citibank had closed hI" speech by The commission ha s In fi cal 1982, 94 percent of developing nations on the executive working in Pari, . tating, "The CommiSSIOn IS the SEC's $83 million budget garnered a lot of attention strength of those countrie ' outlined activities hiS receiving excellent cooper· was offset by registration and lately as it steps up efforts to projected oil export revenues employ r engaged in dunng ation and a"';Jstance ... in other fees, a opposed to 81 prevent brokers from trading (see the Guardian 1·20·83). his tenure. Edwards claim.., complying \\ Ith ..,ecuntie percent in 1981. Shad on inside information. had With the worldwide oil glut that Citibank, a subsldlarv of laws and in exposing tho:-t' attributed the gain in confirmed that his people have and the inability of OPEC to Citicorp, regularly engaged m \\ho \\()uld (InJure) tht efficie ncy to newly in stituted made this a priority, but said stabili ze pnces, the price of a pract ice known as "parkmg" mtegnty of the be"t ..,ecuntlt'" computer formats such as that enforcement cases crude has plummeted. Wh ile in order to avoid paying taxes market<; the world has ever CATS (Case Analysis and dealing speci fi call y with this this will please customers at in countries that had known " Tracking System), which problem wtill make up only the gas pumps, the decline in particularly high corporate Aftel a IXll! te round of gives a weekly follow·up and about eight percent of the profits to producers rai, es the taxes. appla U'it.'. I he audience made SEC's total. review of enforcement. The spectre of these goverments "Parking" IS a term that an orderl) nllgratlOn through higher budget offset was a All is not wine and roses in defaulting on their loans, an refers to a pnx'ess of profil the Cn..,tal Contlnenlal result of increased revenues the finance industry. however, action that could nu h banks transfer t hat works somet hmg ~O(lIl1 ' " double d()()r..; and into from Money Market funds. as thorny problems have right down the toilet. like thiS: bank's Zunch I he lobb~ Tht grou p. In the area of regulation, the a risen bot h in terms of In the area of law, hard facts office \vill "ell ,'WISS currenn com pnsed of t he bright t'",t "pendulum has swu ng," regulation a nd the current are difficullt to pin down.John to its sister branch 111. sa\', \t'gal minds In the secunlle" according to Shad. With new economic depression. Ameri· Fedders. the SEC\ nc\\ Nassau, usually after regular industn , ~klfled cable~. klteg rules allowing banks to offer can banks, long infamous for Reagan·appointed Enforce· bllsmes~ hou rs. The ne, t da v, Itghts and ramera~, makmglb secured funds at money their international mischief. m nt Division head, was Zunch will buy the curr('nc~ \\ a \ rcwren t I ~ through the market rates, he feels it's only have made some dangerous quoted m a recent Forlune back at a slightly hlghcr rate empt \ "t'l of Hal'l 10 Harl. Gandhi's thoughts on disarmament. Page 6 Sunday's Super Bowl caps asterisked season. Page 9 Profiling the "Rock of the 80' ." Hialzl Thursday,January 27,1983 Thursday,January 27, J98:i The UCSD Guardian 2 The UCSD Guardian The UCSD Guardian The Bird, the legend, Letters to the Editor ( to be er-ected today Muir representative speaks out ~.l By ROBERT "Don't Call bird if it goes up. Editor: college akin ro high school to the off-campus ..,t udent to Me Bob" LEONE A cheeseburger from the As a Muir College Council football rivalries, and it is partICIpate In college Opinion activities. Rat keller has to be sacrificed me mber who responded most prevalent among college The much·faulted, long to the Bird every academic honestl y to questions asked by cou nci lmembers and their AS A much more eqUitable and awaited Sun God by Niki de lOgical way toorgantzestudenl Unsigned editorials represent tile opiliiollS of tile editorial '!Oard of Ih e L'C:SD quarter or it will come to life The Guardian for an article representatives. Saint Phalle will be arriving at and eat all the Muir resident appearing in the January 17 The logic of structuring government would be on the Guardiall. Tile ('.diloriol board ;s mil/Posed of Scoll rOllllg. L,sa U'P"I, alld 7 om this campus soon. It will be Ranklli. A II oll'nartieles ill 1I,;s sectioll are solely Iil eopi//;oll oj Ihe wrller (lild du //01 students, issue, I was di smayed 10 see student government on the basis of major or area of officially bolted onto its pillar lIecessarily represelll /III' I'iews uf tire Guurdiu //, lis edilori(ll board, ils adt'crl/sers.