Tower of Basel: The Shadowy History of the Secret Bank that Runs the World

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Tower of Basel: The Shadowy History of the Secret Bank that Runs the World Page 35

by Adam LeBor


  Baranski, Leon, 79

  Basel Committee on Banking Supervision, xxi–xxiv, 207–208, 240, 256–257, 271

  BASF, 225

  Bayer, 225

  Bear Sterns, 239

  Beevor, Antony, 218

  Behn, Sosthenes, 37, 75

  Belgian gold reserves, fate of, 85–86

  Belgium, xvii, 20, 79, 146, 167, 188, 217

  Bell, Geoffrey, 225

  Beneduce, Alberto, 29

  Beneduce Committee, 29

  Bernanke, Ben, xi, 230, 251, 263

  Berner Tagblatt, on insider trading by BIS officials, 39, 41

  Bernstein, Bernard, 187

  Bevin, Ernest, 45

  Beyen, Johan Willem, 39, 50, 60–62, 73, 122, 124, 266

  Biddle, Francis, 162

  BIS. See Bank for International Settlements

  The BIS at Work (Eleanor Dulles), 32

  BIS committees

  Basel Committee on Banking Supervision, xx, xxi–xxii, 207–208, 240–242, 256, 257

  Committee on Gold and Foreign Exchange, 189

  Economic Consultative Committee, xii–xiii, 259

  German Credits Arbitration Committee, 74, 76

  Global Financial System, xxii, 239, 250

  Markets Committee, xvi, 189

  Black, Edwin, 105

  Black, Eugene, 142, 144, 192

  Blair & Company, 169

  Blessing, Karl

  arrest and imprisonment of, 185

  as board member of Kontinental-Öl, 184–185

  Coombs’ opinion of, 181

  on own career, 194

  powerful allies of, 185, 186, 187

  role of in Nazi Germany, 182–183

  view of BIS as political institution, 27–28

  Blondheim, David, 32

  Bod, Peter Akos, xiii, xxi, 248

  Bogni, Rudi, 265

  Boisanger, Yves Bréart de, 85

  Bonaparte, Napoleon, 29

  Booktab, 102

  Bosch company, 118

  Boughton, James M., 141

  Bracken, Brendan, 62

  Brazil, xi

  Bretton Woods Accord, xvi

  Bretton Woods Conference (1944), 121–125

  Brinckmann, Rudolf, 149–151, 176, 192, 197–198

  Brinckmann, Wirtz and Company bank, 149–150, 176, 197

  Britain

  BIS, attitude toward, 89, 123–124, 139

  in European Payments Union, 167

  as founding member of BIS, xvii, 20

  gold reserves of, 55

  gold standard and, 42

  n London Gold Pool, 188

  Spanish civil war, view of, 56

  World War I reparations, 5, 28, 39

  British Security Coordination, 101–102

  British Treasury, 110

  Brown Brothers Harriman bank, 145–146

  Bruning, Heinrich, 28

  Bütefisch, Heinrich, 184

  Bulgaria, 87, 184

  Buna, 100

  Bundesbank, xx, 191, 219, 244, 263, 264

  Burckhardt, Martin, 199

  Burgess, W. Randolph, 50

  Buro IG, 51, 101

  Bush, Prescott, 145

  C

  Caesar, Hans, 107

  Canada, xi, 198

  Carney, Mark, 249–250, 263

  Caruana, Jaime, xi, 259–260

  Casey, William, 186

  Catto, Thomas, 1st Baron Catto, 125, 139

  Cecchetti, Stephen, 254, 259, 260, 272

  CEEC (Conference for European Economic Cooperation), 140, 146

  Central bankers

  economic and political power of, 43–44

  growing prominence of, 249

  need for awareness of concerns of public, 251

  responsibility for financial stability, 250, 253

  Central banks, argument for, 31

  Chamberlain, Neville, 48, 70

  Chase National Bank, 106–108, 133, 144

  Château de Rougemont, 81

  Château d’Oex, 81

  Chemnyco, 101

  China, xi, xxii, 228, 257

  Churchill, Winston, 173

  Cicero, “sinews of war” quote from, 66

  City of London, deregulation of, 227–228

  Clay, Lucius, 138

  Clements, Piet, 60, 85, 259

  Cochran, Merle, 41, 49, 54, 73, 80, 106

  Cold War, 201–202

  Committee for Foreign Economic Affairs, 153

  Committee for the Study of Economic and Monetary Union, 210

  Committee on Global Financial System, xxii, 239, 250, 257

  Committee on Gold and Foreign Exchange, 189

  Committee on Payment and Settlement Systems, xxii, 257

  Concentration camp inmates, use of in industry, 184, 185

  Conference for European Economic Cooperation (CEEC), 140, 146

  Connolly, Frederick, 145, 146

  Coombs, Charles, xv, 179–181, 188, 189–191

  Craig, Bruce, 142

  Cravath law firm, 142, 169

  Credit Anstalt bank, 44

  Croatia, 184

  Crockett, Andrew, 225–226, 243, 258–259

  Czechoslovak gold affair, 59–63

  Czechoslovakia Act, 62

  D

  Daily Herald, on transfer of Czech gold, 61

  Dalziel, Charles, 76

  Das Reich, on BIS, 124–125

  Dawes, Charles, 9

  Dawes Committee (1924), 9–10

  Dawes Plan German External Loan, 74

  De Gaulle, Charles, 194

  The Death of a Diplomat (Jacobssen), 52

  Degesch, 104

  Delors, Jacques, 210, 215, 226, 233

  Delors Committee, xxi, 210–214

  Denmark, 8, 245, 246

  Deutsche Bank, 74, 153, 154

  Deutschmark, 151–152

  Devisenschutzkommando (DSK), 86

  Dodd, Thomas, 106, 177

  Donovan, William J. “Bill,” 97, 161, 173

  Doose, Hugo, 86

  Draghi, Mario, xi, 246–248, 249, 252, 263

  Dresdner Bank, 8, 9

  Dreyfus, Paul, 77

  Duisenberg, Willem, 210

  Dulles, Allen

  American Committee for a United Europe, role of in, 173

  background, 15–16

  continuation of U.S. links with German industry, 119

  Jacobssen, introduction to, 127

  Japanese peace proposal, relay of to Stimson, 131

  Marshall Plan, view of, 140

  McKittrick, friendship with, 75, 113, 132

  at Office for Strategic Services, 94, 113

  as partner at Sullivan & Cromwell, 16

  recommendation of Germans for posts in new administration, 185–186

  refinancing of Germany, role of in, 17–18

  request of assistance for sister Eleanor, 18

  use of BIS contacts in intelligence-gathering, 19, 113

  whitewashing of former Nazis by, 186

  Dulles, Eleanor Lansing, 18, 32–33

  Dulles, John Foster

  as attorney for BIS, 96

  cartel agreements, role of in, 37

  on German elections (1930), 24

  influential friends of, 18–19

  Jean Monnet, friendship with, 169, 170

  legal work for businesses with financial links to Germany, 143, 144

  refinancing of Germany, role of in, 17

  unified Europe, belief in, 170–171

  Dustbin (Kransberg Castle), 149

  E

  Eccles, Marriner, 64–65

  “Economic and Monetary Union and Launching the Construction of Europe” (Delors), 215

  Economic Consultative Committee (ECC), xiii, xxi, xxi, 259

  “Economic Reorganization of Europe” (Funk), 221

  Economist

  on central bankers’ power, xvi

  on London Gold Pool, 189

  ECSC (European Coal and Steel Community), 167–168, 171–1
72, 210

  Eggers, Constanza von, 8

  Einsatzgruppe D, 154

  Einzig, Paul, 61, 97

  Elliot Management, 260

  Enabling Act (1933), 33

  Enskilda Bank, 74, 106, 109, 116, 117, 118

  EPU (European Payments Union), xxi, 166–167, 176, 222

  Erhard, Ludwig, 152, 153–154, 171–172

  Ernst & Young, 249

  Estonia, 25

  Euro

  benefits of, 230–231

  BIS and, 258, 263

  genesis of, 210

  lack of confidence in, 264

  as political compromise, 232–233

  problem with, 235

  Europe, plans for unification of, 165–166, 173–174

  European Central Bank (ECB), xxi–xxii, 230, 231, 243–245, 257, 258

  European Coal and Steel Community (ECSC), 167–168, 171–172, 210

  European Commission, 210, 257

  European Cooperation Administration (ECA), 141, 165

  European Currency Unit (ECU), 210

  European Economic Community, 192, 219

  European Economic Community Governors’ Committee, 209

  European Monetary Cooperation Fund, 210

  European Monetary Institute (EMI), xxi, 225, 226, 230

  European Monetary System (EMS), 215, 222

  European Monetary Union (EMU), xxi, 210–213

  European Movement, 173

  European Parliament, 217, 244, 245, 258

  European Payments Union (EPU), xxi, 166–167, 176, 222

  European Stability Mechanism, 248

  European System of Central Banks (ESCB), 216, 231

  European Union (EU)

  BIS, role of in, 208–211, 258

  founding of, 219

  similarities of to Nazi postwar plans, 220–223

  Eurotower, 226

  Eurozone, 225, 234–235

  Eurozone crisis, xx–xxi, 252

  Extraordinary General Meeting, 268

  F

  Fannie Mae. See Federal National Mortgage Association

  Federal Home Loan Mortgage Corporation (FHLMC), 238

  Federal National Mortgage Association (FNMA), 238–239

  Federal Open Market Committee, xiii, 244, 269

  Federal Reserve System

  accountability of, 244, 268

  blockage of BIS transactions by, 95, 111

  contrast with BIS meetings, xiii

  currency swap network of, 190

  dual mandate of, 244

  Financial Stability Board, membership in, 257

  loan to Bank of England, 193

  membership in BIS, xviii, 229–230

  refusal of directorship in BIS, 32

  representation at BIS meetings, 180

  rescue packages, participation in, 206–207

  See also New York Federal Reserve

  Fekete, János, 203, 204

  Financial News, on transfer of Czech gold, 61–62

  Financial Stability Board, xxii, 250, 257

  Finland, 129

  Finlayson, H. C. F., 23

  First Eagle Funds, 242

  First National Bank of Chicago, xviii, 21, 32

  First National Bank of New York, xviii, 21, 96

  Flick, Friedrich, 35

  Ford, Edsel, 36

  Ford, Henry, 104

  Foreign Policy Association, 140

  Fournier, Pierre, 65

  France

  Belgian gold in, 85

  economic instability of, 230

  euro, acceptance of, 231

  as founding BIS member, 13, 19–20

  gold reserves of, 55–56

  gold standard and, 42

  incorporation into Third Reich, 79

  loan from Bank Deutscher Lander, 175

  in London Gold Pool, 188

  Marshall Plan payments to, 146

  referenda on European Union, 245–246

  silver reserves, 56

  Treaty of Paris (1951), signing of, 167

  Treaty of Rome (1957), signing of, 217

  World War I reparations payments to, 5–6, 9, 11, 28, 39

  Franco, Francisco, 54, 56

  Frank, Hans, 153

  Franklin National Bank, 207

  Fraser, Leon, 15, 18, 34, 38, 88, 96, 99, 123, 147

  Freddie Mac. See Federal Home Loan Mortgage Corporation (FHLMC)

  Free Territory of Trieste, 166

  Frere, Maurice, 132, 167

  Friedman, Milton, 68–69

  Fromm, Bella, 48–49

  Funk, Walther

  imprisonment for war crimes, 159

  Karl Blessing, protection of, 186

  Kontinental-Öl, membership of board of, 184

  Reichsbank, president of, 70, 98

  unified Europe, prediction of, 219, 220–223

  G

  G10 governors’ meeting. See Economic Consultative Committee

  G10 states, 191, 193–194, 207

  G30 advisory group, 225

  GAF. See General Aniline and Film

  Gehlen, Richard, 182

  General Agreement to Borrow, 191

  General Aniline and Film (GAF), 36, 100–102

  General Motors, 104–105

  George, Eddie, 242

  German Credits Arbitration Committee, 74, 76

  German Potash Syndicate, 120

  Germany

  1930 elections, economic consequences of, 28

  American investment in, 10, 19, 37

  autarky, desire for, 35

  Bank of Portugal, importance of in financial transactions, 114

  Chase National Bank, relationship with, 106–108

  Czechoslovakia, takeover of, 60

  Enabling Act (1933), 33

  European confederation, plans for, 221

  as founding member of BIS, xvii, 20

  Franco, provision of financial aid to, 55

  gold, acquisition of, 86

  industrial espionage in U. S., 101

  industrialists, postwar fate of, 157–163

  modern economy, 223

  Nazi party, postwar strategy of, 156–157, 220–224

  Nazi relationship with BIS, xviii–xx, 33, 51, 78–79, 84–87, 114–115, 123, 125–127, 258

  Poland, invasion of, 71

  post–World War I conditions in, 6

  postwar financial continuity in, 152–156

  repatriation of gold reserves by, 263–264

  SS (Schutzstaffel), financial empire of, 154–155

  Treaty of Rome (1957), signing of, 219

  See also Reichsbank; reparation payments

  Gewirtz, Paul, 107

  Gilbert, Seymour Parker, 10

  Gisevius, Hans Bernd, 160–161

  Glass-Steagall Act (1933), 225, 238

  Global Economy Meetings, xii, 247

  Globke, Hans, 182

  Goering, Hermann, 105, 183

  Gold

  Baltic gold, management of by BIS, 79–80

  Bank of Greece’s missing gold, 23

  Belgian gold reserves, fate of, 85–86

  Czechoslovak gold affair, 59–63

  gold exchange standard, 42

  gold standard, 42

  London Gold Pool (LGP), xvi, 188–189

  looted, xix, 53, 61, 78, 85, 87–88, 132, 262–266

  new emphasis on, 264

  repatriation of German gold, 263

  reserves of, xxii, 55–56

  storage of in Switzerland, 115

  Swiss-German gold-for-coal arrangement, 87

  Gold Discount Bank, 9, 106

  Goldman Sachs, 257

  Governors’ Meeting, xii–xiii, 49–50, 256

  Graffman, J. Holgar, 118

  Grand Hôtel et Savoy Hôtel Univers, 22

  Gray, Prentiss, 17

  Greece, xx, 23, 25, 79, 167, 223, 248, 265

  Greenspan, Alan, 228, 243

  Grose, Peter, 16

  Gunston, Charles, 154, 187–188

  H

/>   Hackworth, Green, 160

  Haeften, Werner Karl von, 99

  The Hague Arbitral Tribunal, 242

  Hague Conference (1929-1930), 13

  Hague Convention, 20

  Haldane, Andrew, 269, 271

  Hall, Richard, 167, 176, 198–199, 209

  Hamburg-American Line, 156

  Hanes, John Wesley, 64

  Hanfstaengel, Ernst, 76–77

  Hansard, 63

  Harriman, Averell, 137, 140, 144, 145

  Harriman, E. Roland, 145

  Harrison, George, New York Federal reserve president, 24, 32, 64–65

  Harrison, Leland, 77, 95, 114, 161

  Hárshegyi, Frigyes, 202, 204

  Harvard Plan, 119, 121, 138, 173, 224

  Hayes, Alfred, 191

  Hechler, Paul, xix, 49, 66, 81, 84, 90, 128, 131

  Hess, Rudolf, 35

  Hesse state central bank, 153

  Hewitt, Abram, 117, 118–119

  The Hidden Enemy (Pol), 22, 224

  Hilton, Andrew, 251, 257

  Himmler, Heinrich, 17, 35–36, 118

  Himmlerkreis, 35, 183

  Hitler, Adolf

  American financiers, meeting with, 37

  as author of Mein Kampf, 24

  economic autarky, plans for, 35

  Henry Ford, admiration for, 104

  Hjalmar Schacht, admiration for, 45–47

  Jews, emigration help for, 48

  Kurt von Schröder, friendship with, 35

  notification of impending bankruptcy, 70

  overthrow of, plans for, 48, 99, 117, 186

  on unification of Europe, 221

  Hitler’s Secret Bankers: The Myth of Swiss Neutrality During the Holocaust (Lebor), 259

  Hoffman, Paul, 165

  Hollerith machine, 105

  Holocaust, 87–88, 105, 145, 258

  Holthrop, Marius, 192

  Hoover, Herbert, 28

  Hoover Moratorium, 41

  Horthy, Míklos, 162

  Hülse, Ernest, 24, 185

  Hungarian National Bank, 44, 98, 205

  Hungary, 25, 184, 202–205

  I

  IBM, 105, 109

  IG Auschwitz, 51, 88, 100, 102

  IG Chemie, 95

  IG Farben, 35–37, 50–51, 88, 100–104, 129, 143, 158

  IMF. See International Monetary Fund

  Imperial Chemical Industries, 143

  Independent newspaper, obituary of Hermann Abs, 192–193

  India, xi

  Institute of Pacific Relations, 99

  International Bank for Reconstruction and Development, 121

  International Centre for Investment Disputes, 260

  International Chamber of Commerce (ICC), 110, 144–145

  International Labor Organization (ILO), 90

  International Monetary Fund (IMF), 121, 139, 141, 176, 206, 257

  International Nickel Company (INKO), 37

  International Telephone and Telegraph Company (ITT), 37

  Ireland, 167, 246, 248

  Irving Fisher Committee, xxii

  Iselin, Felix, 95

  Italy

  Argentine bond dispute, 260

  BIS, as founding member of, xviii, 20

  Economic Consultative Committee, membership in, xi

 

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