DOCSLIB.ORG

Pallavicini Funds Found in West German Banking Scandal

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Pallavicini Funds Found in West German Banking Scandal Click here for Full Issue of EIR Volume 6, Number 22, June 5, 1979 BANKING Pallavicini funds found in West German banking scandal This week's issue of Der Spiegel slyly canism which Italy has been subject­ those African interests were directly leaked an important piece of infor­ ed to fQr half a millennium. Members threatened by Ponto's efforts to mation in connection with the recent of the Pallavicini family have been pump West German and French in­ series of West German banking, scan­ named in Italian press reports as un· vestment capital into Africa, with the dals. der suspicion by police authorities aim of drawing black African na­ In a news item on Ludwig Poul­ investigating Moro's murder. tions and South Africa into a joint lain, the former chairman of West­ N ow Palla vicini- Pro Deo development effort. Ponto, more­ deutsche Landesbank (WdL), who is funds-which come from the fami­ over, was murdered just after he presently under investigation for ly's involvement in international nar­ made a tour of u.S. business centers shady real estate dealings, the West cotics trafficking-haveturned up in in the hope of attracting U.S. corpo­ German magazine noted in passing connection with Poullain's shady rate and banking support for his that in one instance funds channeled dealings. This should be incorporat­ plan. into a Poullain-organized financial ed as a crucial lead in tracking down The obvious point that the Bel­ operation had come from the .. Pro how Black Guelph aristocratic fami­ gian monarchy and its international Deo" faction of the Roman Catholic lies throughout Europe have been Black Guelph allies had every reason Church. increasingly attempting to manipu­ to push Ponto out of the European Spiegel's reference to Pro Deo late and maneuver their way into key banking picture is underlined by Bel­ will only be appreciated by a few behind-the-scenes controlling posi­ gian monarchy sponsorship of Rob­ individuals among its multi-million tions in West German banking op­ ert Triffin as a major economic poli­ readership: a small number of Euro­ erations since 1974. cymaker. pean bankers, and also the official The two most important events In a forthcoming article on the investigators involved in tracking setting the stage for these maneuver­ Gessler Report issued by West Ger­ down the murderers of former Ital­ ings, in which Poullain's resignation man banking authorities this year to ian Prime Minister Moro. as WdL chairman was actually a sec­ review national banking' legislaion, Before letting our readers in on ondary development, were the 1974 we will review Triffin's direct in­ the secret, we would like to make two collapse of the Herstatt Bank in Co­ volvement in trying to abort Ponto's comments. First, that the Executive logne and the 1977 murder of Ponto. efforts. For present purposes, we Intelligence Review researchers read One of the most important effects shall merely point out that when the Pro Deo reference as another of the Herstatt bankruptcy was the Poullain resigned from WdL in 1977, confirmation of a hypothesis we have reorganization it provoked in Bel­ he was replaced by a long-term col­ been working on since 1977 as to gium's private banking system. As laborator of Triffin's, Walter Seipp, who ordered the terrorist assassina­ one result of the Herstatt's foreign both of who{l1 coordinated their fi­ tion of West Germany banker Jiir­ exchange losses, Belgium'S largest nancial warfare against Ponto from gen Ponto in July, 1977. Secondly, discount bank, the Banque de Bru­ their positions as directors of the Bel­ that although we never agreed with xelles, also lost large sums and nearly gian Kredietbank. Ludwig Poullain's goals, we suspect closed down. It was saved by a loan -Renee 5igerson now that he was probably a victim of from, and eventual merger with, the blackmail. interests of the Lambert family­ Belgium's Rothschild branch-who From Rome to Brussels are financial minions of the Belgian Pro Deo is a factional arm within the monarchy. Vatican run by the Pallavicini family. The Bruxelles-Lambert merger The Pallavicinis are the crown of It­ enormously strengthened the Bel­ aly's black nobility, the command gian monarchy's international finan­ center for every feudalistic attack on cial power, backed by its mining in­ economic development and republi- terests in Africa. Leading up to 1976, June 5-June 11, 1979 EXECUTIVE INTELLIGENCE REVIEW Economics 11 © 1979 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited..
Load more

Recommended publications
  • FX Liquidity and Market Metrics: New Results Using CLS Bank Settlement Data Joel Hasbrouck NYU Stern Richard M. Levich NYU Stern
    FX Liquidity and Market Metrics: New Results Using CLS Bank Settlement Data Joel Hasbrouck Richard M. Levich NYU Stern NYU Stern September 30, 2019 Joel Hasbrouck, NYU Stern School of Business, 44 West 4th Street, New York, NY 10012. E-mail: [email protected] Richard M. Levich, NYU Stern School of Business, 44 West 4th Street, New York, NY 10012. E-mail: [email protected] This paper reflects the views of the authors and should not be interpreted as reflecting the views of CLS Bank International or New York University. We thank Rob Franolic, Dino Kos, and Irene Mustich for their assistance in obtaining data for this study, discussing institutional background, and comments. We are also indebted to Alex Ferreira, Yalin Gündüz, Carol Osler, Angelo Ranaldo, Andreas Schrimpf, and audiences at the 2019 CEBRA / Federal Reserve Bank of New York Conference, the 2019 INFINITI Conference, the International Conference on High Frequency Exchange Rate Dynamics (National Graduate Institute for Policy Studies, Tokyo), Cubist Systematic Strategies, Vanderbilt University, Università della Svizzera Italiana, the University of Utah, the Carey School at Johns Hopkins, the Stockholm School of Business, and Lund University for comments on earlier drafts. We take responsibility for all remaining errors. Online Appendix 1 presents supplemental tables and figures. Online Appendix 2 discusses the reconciliation of activity measures constructed from CLS settlements BIS survey, and EBS. This paper supersedes an earlier manuscript entitled “FX Market Metrics: New Results Using CLS Bank Settlement Data.” Disclosures: One of us (Hasbrouck) teaches a course for a financial institution that engages in FX market making.
    [Show full text]
  • The Basel Games 2012
    June 25, THE BASEL GAMES 2012 The Basel Games As the 2012 summer Olympic Games descends upon London, England, national pride and attention grows around the world in anticipation of an elite few chasing international glory. Organization of such an international affair takes a great deal of leadership and planning. In 1894, Baron Pierre de Coubertin founded the International Olympic Committee. The IOC is the governing body of the Olympics and has since developed the Olympic Charter that defines its structure and actions. A similar comparison can be made in regards to the development of The Basel Accords. Established in 1974, The Basel Committee on Banking Supervision, comprised of central bankers from around the world, has taken a similar role as the IOC, but its objective “is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide.” The elite participants of “The Basel Games” include banks with international presence. The Basel Accords themselves would be considered the Olympic Charter and its purpose was to create a consistent set of minimum capital requirements for banks to meet obligations and absorb unexpected losses. Although the BCBS does not have the power to enforce the accords, many countries have adopted their recommendations on banking regulations into law. To date there have been three accords developed. The Bronze Metal Our second runner up is Basel I, also known as the 1988 Basel Accord, which culminated as the result of the liquidation of the Herstatt Bank in 1974. With the development of technology and risk management techniques Basel I is considered obsolete by today’s standards.
    [Show full text]
  • “Corporate Governance in Financial Institutions: Historical
    1 The early development of prudential supervision of international banking: information, innovation, crisis and response in the 1970s1 Catherine R. Schenk University of Glasgow Since the global financial crisis of 2008, there has been a scramble to enhance prudential supervision and regulation of the international financial system. This has progressed in a confusion of national, international and supranational platforms, many of which date back to the 1970s, such as the Basel Committee on Banking Supervision. This article explores how the architecture of international banking supervision was developed in response to a series of banking scandals in the summer of 1974 drawing on archives of banks and regulators. This new evidence shows the reluctance with which the British authorities grappled with new risks in the global banking system and the influence this approach had on the operations of the Basel Committee from its origins in 1975. The relationship between regulators and the regulated in financial services has attracted considerable academic attention, partly because banking systems operate differently from other markets.2 The systemic macroeconomic importance of national banking systems makes a strong case for prudential supervision by an outside body, but information asymmetry in financial services, and the importance of reputation and private information as key bank assets all complicate the ability to engage in transparent prudential supervision. The potential for regulatory capture is particularly strong between central banks and the banking system because of the close connections that are required to supervise complex financial transactions where highly specialized knowledge is needed for identification and diagnosis of problems.3 In many financial markets the complexity of transactions and speed of innovation has prompted forms 11 Research was funded by the Economic and Social Research Council, RES-062-23-2423.
    [Show full text]
  • Origins and Implications of the Basle Accord / by Ethan B
    ESSAYS IN INTERNATIONAL FINANCE ESSAYS IN INTERNATIONAL FINANCE are published by the International Finance Section of the Department of Economics of Princeton University. The Section sponsors this series of publications, but the opinions expressed are those of the authors. The Section welcomes the submission of manuscripts for publication in this and its other series. Please see the Notice to Contributors at the back of this Essay. The author of this Essay, Ethan B. Kapstein, is John M. Olin Research Associate at the Center for International Affairs, Harvard University, and Assistant professor of Inter- national Relations, Brandeis University. A former interna- tional banker, he is the author of The Insecure Alliance: Energy Crises and Western Politics Since 1944 (1990), The Political Economy of National Security (1991), and many articles in the field of international political economy. GIUSEPPE BERTOLA, Acting Director International Finance Section INTERNATIONAL FINANCE SECTION EDITORIAL STAFF Peter B. Kenen, Director (on leave) Giuseppe Bertola, Acting Director Margaret B. Riccardi, Editor Lillian Spais, Editorial Aide Lalitha H. Chandra, Subscriptions and Orders Library of Congress Cataloging-in-Publication Data Kapstein, Ethan B. Supervising international banks: origins and implications of the Basle Accord / by Ethan B. Kapstein. p. cm.—(Essays in international finance, ISSN 0071-142X ; no. 185) Includes bibliographical references. ISBN 0-88165-092-7 (pbk.) : $6.50 1. Banks and banking, International. 2. International finance. I. Title. II. Series. HG136.P7 no. 185 [HG3381] 332.1′5—dc20 91-43451 CIP Copyright © 1991 by International Finance Section, Department of Economics, Princeton University. All rights reserved. Except for brief quotations embodied in critical articles and reviews, no part of this publication may be reproduced in any form or by any means, including photocopy, without written permission from the publisher.
    [Show full text]
  • “The German Banking System. a Possible Model for Prospective New EU- Members”
    “The German Banking System. A possible model for prospective new EU- members” AUTHORS Klaus F. Bröker ARTICLE INFO Klaus F. Bröker (2006). The German Banking System. A possible model for prospective new EU-members. Banks and Bank Systems, 1(2) RELEASED ON Monday, 05 June 2006 JOURNAL "Banks and Bank Systems" FOUNDER LLC “Consulting Publishing Company “Business Perspectives” NUMBER OF REFERENCES NUMBER OF FIGURES NUMBER OF TABLES 0 0 0 © The author(s) 2021. This publication is an open access article. businessperspectives.org 4 Banks and Bank Systems / Volume 1, Issue 2, 2006 THE GERMAN BANKING SYSTEM. A POSSIBLE MODEL FOR PROSPECTIVE NEW EU-MEMBERS Klaus F. Bröker Abstract A substantial number of new members joined the EU recently. The list of prospective new EU- members is growing at a rapid rate. A crucial aspect in joining the EU, is a banking system that is up to par with all relevant EU-regulations. Aside from the implementation of EU-regulations, the most important issue is a well-regulated banking system that operates efficiently, is reliable and trusted. The German banking system has an extensive history that dates back centuries. Being in compliance with the essential EU-regulations, the German Baning System could very well be a guideline for prospective new EU-members. Germany might also be well considered a country to establish a banking subsidiary. Keywords: German Banking System, EU-banking regulations, banking license, banking supervi- sion, credit institutions, compliance, rules of conduct, record keeping, deposit guarantees. JEL classification: G21, G28 1. Introduction In recent years the EU with currently 25 members1, a population of nearly 460 million and the largest gross domestic product in the world2 appears to be more attractive for new members to join.
    [Show full text]
  • CLS Delivers Lower Costs with Lower Risks
    Mesirow Currency Management CLS delivers lower costs with lower risks Since its launch in 2002, Continuous Linked Settlement (CLS) has grown into the industry standard to mitigate settlement risk in foreign exchange transactions. In an environment of enhanced scrutiny of transaction costs, an ancillary benefit of the product has emerged: CLS has proven to be a Paul Meier Senior Vice President valuable technology in minimizing OTC spot and forward trading costs. Currency Management It is an essential addition for any institutional entity frequently engaged in the foreign exchange market. From the trading desk perspective, after • Rolling positions: Instead of transacting addressing settlement risk, minimizing with the bank holding the existing trading costs has become the most crucial position, rolls can be competitively priced and relevant benefit of CLS. Since CLS across multiple counterparties. manages cross-party settlement risk, traders Without CLS, a client’s position with a gain more options in seeking out the best counterparty can be effectively ‘locked’; liquidity, competing trades, and obtaining there is no way to move the position to a best execution. competing bank without incurring a cost. Competitive Pricing Any open positions with a counterparty that is not consistently providing the best While CLS is not a requirement for execution available could create a situation competitive pricing, it greatly increases both with three main outcomes: flexibility and the amount of competitive pricing that can be delivered to the client. • Continue to roll the position with the CLS provides the ability to execute trades existing counterparty and potentially with any execution venue or counterparty, receive subpar pricing subject to client constraints.
    [Show full text]
  • Continuous Linked Settlement (CLS): Then and Now (Including a Snapshot of the BIS Triennial Central Bank Survey 2013)
    ARtICLE Continuous Linked Settlement (CLS): Then and Now (Including a snapshot of the BIS Triennial Central Bank Survey 2013) Seema Ganapathy* CLS - Growth story: Owned by 77 of the world's leading financial institutions, CLS plays a fundamental role in the The currency markets are the largest and most FX market - it operates the largest multicurrency liquid markets in the world with an estimated cash settlement system to mitigate settlement $5.3 trillion changing hands each day (BIS risk for the FX transactions of its Members and Triennialsurvey 2013). Steering this large, mostly their customers. The CLS system facilitates real volatile market that straddles most of the time settlement of the payments associated with countries across the globe into safer waters is a currency trades among the world's major trading fairly unknown entity called the CLS Bank. institutions in the foreign exchange markets on a Continuous Linked Settlement (CLS) is one of payment versus payment mechanism. the eight financial market utilities in the world - Instructions from counterparties to an FX trade entities that engage in risk management activities are authenticated, matched and settled on an such as clearing and settlement to have been agreed date in 17 currencies. designated as systematically important by the US Financial Stability Oversight Council (FSOC). Funds are settled irrevocably in a 5 hour window during which trade funding, settlement and CLS was launched in 2002 with 39 direct payment are executed among participants. The participants and 7 currencies to eliminate Central institution, CLS Bank, has links with the settlement risk, one of the biggest dangers in the real time gross settlement RTGSpayment systems FX markets.
    [Show full text]
  • Bank Failures in Mature Economies
    Basel Committee on Banking Supervision Working Paper No. 13 Bank Failures in Mature Economies April 2004 The Working Papers of the Basel Committee on Banking Supervision contain analysis carried out by experts of the Basel Committee or its working groups. They may also reflect work carried out by one or more member institutions or by its Secretariat. The subjects of the Working Papers are of topical interest to supervisors and are technical in character. The views expressed in the Working Papers are those of their authors and do not represent the official views of the Basel Committee, its member institutions or the BIS. Copies of publications are available from: Bank for International Settlements Information, Press & Library Services CH-4002 Basel, Switzerland Fax: +41 61 / 280 91 00 and +41 61 / 280 81 00 This publication is available on the BIS website (www.bis.org). © Bank for International Settlements 2004. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISSN 1561-8854 Contributing authors Ms Natalja v. Westernhagen Deutsche Bundesbank, Frankfurt am Main Mr Eiji Harada Bank of Japan, Tokyo Mr Takahiro Nagata Financial Services Agency, Tokyo Mr Bent Vale Norges Bank, Oslo Mr Juan Ayuso Banco de España, Madrid Mr Jesús Saurina Banco de España, Madrid Ms Sonia Daltung Sveriges Riksbank, Stockholm Ms Suzanne Ziegler Schweizerische Nationalbank, Zurich Ms Elizabeth Kent Bank of England, London Mr Jack Reidhill Federal Deposit Insurance Corporation, Washington, D.C. Mr Stavros Peristiani
    [Show full text]
  • Basel Ii: the Roar That Moused
    1 Revised Draft October 6, 2003 BASEL II: THE ROAR THAT MOUSED George G. Kaufman (Loyola University Chicago and Federal Reserve Bank of Chicago) In 1999, the Basel Committee on Banking Supervision issued a consultative paper describing proposed modifications to the capital standards for commercial banks, which had first been introduced by the Committee in 1988 and implemented in many industrial countries starting in 1991 (Basel Committee, 2003a). The new proposal became known as Basel II to differentiate it from the earlier Basel I. To a large extent, the proposed Basel II was in response to widespread criticism of Basel I. But it also reflected additional thought and analysis of the role of bank capital regulation. In particular, Basel II added two new “pillars” - supervisory review (pillar 2) and market discipline (pillar 3) — to the single pillar of minimum capital requirement of Basel I. In response to public comments, the Committee revised its proposal twice and issued a third consultative paper (CP3) in early 2003. If approved, the proposed standards are scheduled for implementation in most countries at the beginning of 2007. In preparation, in August 2003, U.S. regulators circulated an Advance Notice of Proposed Rulemaking (ANPR) for the application of Basel II to U.S. banks for public comment by November and the major features have been incorporated by the European Union in a proposed revision of its Capital Adequacy a I am indebted to Bill Bergman, Robert Bliss, Douglas Evanoff and Richard Herring for their helpful comments on earlier drafts of this paper. Prepared for presentation at the annual meetings of the Financial Management Association, Denver, October 10, 2003.
    [Show full text]
  • The Financial Stability Board
    (The Herstatt Bank collapse shocks the world) Manager Graf von der Goltz gibt vor dem Haupteingang Unter Sachsenhausen die Pleite der Herstatt-Bank bekannt. (Manager Graf von der Goltz in the main entrance (Unter Sachsenhausen) as the bankruptcy of the Herstatt Bank is announced.) Are Any Creditors “Particularly Deserving?” On the Enduring Attraction of the Ring Fence Approach to Cross-Border Insolvencies of Financial Institutions Jonathan Macey Die Herstatt-Pleite schockte die Bankwelt “There has been no progress towards the development of a framework for cross-border enforcement of resolution actions.” -- Basel Committee on Banking Supervision, Bank for International Resolutions Policies and Frameworks From a regulatory perspective, there is a great deal of cooperation in banking. The Basle Capital Standards comprise a “global regulatory regime” (Wallison, 2011) and “There is extensive international regulatory co-operation in financial services regulation, coordinated through several global regulatory committees,” OECD, International Regulatory Co-operation: Case Studies, Vol. 2: Risk Assessment and Banking Supervision, May 13, 2013. There appears to be an international consensus in favor of international cooperation in cross- border bank failure resolution. The Financial Stability Board, which includes among its members the Board of Governors of the Federal Reserve System (U.S.), the Central Bank of the Russian Federation, The Bank for International Settlements, the European Central Bank, the Banks of Canada, China, England, France
    [Show full text]
  • 07372-9781455296798.Pdf
    This is a Working Paper and the author would welcome any IMF WORKING PAPER comments on the present text. Citations should refer to a Working Paper of the International Monetary Fund, men- tioning the author, and the date of issuance. The views © 1993 International Monetary Fund expressed are those of the author and do not necessarily represent those of the Fund. WP/93/64 INTERNATIONAL MONETARY FUND Monetary and Exchange Affairs Department The Use of Foreign Exchange Swaps by Central Banks: A Survey Prepared by Catharina J. Hooyman I/ Authorized for distribution by Tomas J.T. Balino August 1993 Abstract The paper discussed the use of foreign exchange swaps by central banks. Such use has aimed at affecting domestic liquidity, managing foreign exchange reserves, and stimulating domestic financial markets. It discusses these different uses and present evidence for a selected group of countries. The paper cautions about the use of foreign exchange swaps to defend a particular exchange rate at a time when foreign exchange reserves are under pressure. It notes, finally, that use of foreign exchange swaps by central banks has been losing importance. JEL Classification Numbers: E52, E58, F33, G15 !/ University of Amsterdam and Tinbergen Institute, the Netherlands. This paper was written during a summer internship in the Monetary and Exchange Affairs Department, Monetary Operations Division, of the International Monetary Fund. The author wishes to thank Tomas J.T. Balino, Tom Nordman, Anton Op de Beke, Steve Gilmore, Sohail Qureshi, numerous desk officers, and, especially, Daniel Hardy for valuable comments and support. ©International Monetary Fund. Not for Redistribution - ii - Table of Contents Page Summary iii I.
    [Show full text]
  • Interview with E. Gerald Corrigan
    Federal Reserve Board Oral History Project Interview with E. Gerald Corrigan Former President, Federal Reserve Bank of Minneapolis Former President, Federal Reserve Bank of New York (and Former Vice Chairman, Federal Open Market Committee) Date: July 14, 2009; November 18, 2009; and March 24, 2010 Location: New York, New York Interviewers: For July 14, 2009, and November 18, 2009, David H. Small and Jeffrey Ernsthausen; for March 24, 2010, David H. Small Federal Reserve Board Oral History Project In connection with the centennial anniversary of the Federal Reserve in 2013, the Board undertook an oral history project to collect personal recollections of a range of former Governors and senior staff members, including their background and education before working at the Board; important economic, monetary policy, and regulatory developments during their careers; and impressions of the institution’s culture. Following the interview, each participant was given the opportunity to edit and revise the transcript. In some cases, the Board staff also removed confidential FOMC and Board material in accordance with records retention and disposition schedules covering FOMC and Board records that were approved by the National Archives and Records Administration. Note that the views of the participants and interviewers are their own and are not in any way approved or endorsed by the Board of Governors of the Federal Reserve System. Because the conversations are based on personal recollections, they may include misstatements and errors. ii Contents July 14, 2009 (First Day of Interview) ......................................................................................... 1 Personal and Educational Background ........................................................................................... 1 Early Years at the New York Fed ................................................................................................... 2 Arthur Burns (Fed Chairman) and Alfred Hayes (New York Fed President) ...............................
    [Show full text]