Tower of Basel: The Shadowy History of the Secret Bank That Runs the World (46 page)

4.
Toniolo, 229.

5.
Laughland, 17.

6.
Ibid.

7.
Ibid., 17–18.

8.
Walter Funk, “Economic Reorganization of Europe,” translation dated July 26, 1940. BIS archives, Thomas McKittrick papers.

9.
Op. cit.

10.
Ibid.

11.
Laughland, 30.

12.
Ibid., 33.

13.
Heinz Pol,
The Hidden Enemy: The German Threat to Post-War Peace
(New York: Julian Messner, 1943), 256.

14.
Ibid., 257.

15.
Author interview with Geoffrey Bell, in New York, April 2012.

16.
Interview with Alexandre Lamfalussy, in Brussels, March 8, 2010. “The BIS, the Committee of Governors of the Central Banks of the EEC, and the Delors Committee,” available at
http://www.cvce.eu
.

17.
Ibid..

18.
Bank for International Settlements, 1987 Annual Report (Basel: BIS, 1987), 81.

19.
Interview with William White, December 2012.

20.
Japan, a founding member of the BIS, had left in 1951. It rejoined in 1970 when the Bank of Canada also became a BIS member.

21.
Charles J. Siegman, “The Bank for International Settlements and the Federal Reserve,”
Federal Reserve Bulletin
, vol. 80, no. 10, October 1994, 900.

22.
Author interview with Karen Johnson, in Washington, DC, May 2012.

23.
Ibid.

24.
Author interview with Paul Volcker, in New York, May 2012.

25.
Ibid.

26.
Author interview with Zsigmond Járai, in Budapest, November 2011.

27.
Author interview with Rupert Penannt-Rea, in London, July 2012.

28.
Ibid.

29.
Author interview with Malcolm Knight, in New York, May 2012.

30.
Author interview with Nathan Sheets, in New York, April 2012.

31.
Ibid.

32.
Author interview with Zsigmond Járai.

CHAPTER FIFTEEN: THE ALL-SEEING EYE

1.
Author interview with William White, December 2012.

2.
White interview.

3.
Author interview with Rupert Pennant-Rea, in London, July 2012.

4.
Author interview with William McDonough, in New York, May 2012.

5.
Ibid.

6.
Ibid.

7.
“Withdrawal of privately held shares of the BIS: Final decision of the Hague Arbitral Tribunal,” BIS, September 23, 2003, available at
https://www.bis.org/press/p030922.htm
.

8.
“A BIS Embarrassed,”
Central Banking Journal
, May 13, 2003.

9.
Author interview with Charles de Vaulx, December 2012.

10.
“Trichet Backs Disputed BIS Share Buyback Plan,”
Central Banking Journal
, December 20, 2000.

11.
The European Central Bank’s monetary policy is available at
http://www.ecb.int/mopo/html/index.en.html
.

12.
Author interview with William White.

13.
Patricia S. Pollard, “A Look Inside Two Central Banks: The European Central Bank and the Federal Reserve,”
Federal Reserve Bank of St. Louis
, January/February 2003, 24.

14.
Prof. Anne Sibert, “Accountability and the ECB,”
European Parliament, Directorate General for Internal Policies, Policy Department A: Economic and Scientific Policies, Economic and Monetary Affairs
, September 2009.

15.
Ibid.

16.
“The Accountability of the ECB,”
ECB Monthly Bulletin
, November 2002.

17.
Thomas McKittrick to Oliver Knauth, October 30, 1941. BIS archive, Thomas H. McKittrick papers.

18.
Author interview with confidential source, 2012.

19.
“Australian Central Banker Uncomfortable Over Capital Flow Surge,”
Market News International
, Sydney, December 11, 2012.

20.
Author interview with confidential source.

21.
“Challenges for Central Banks, Wider Powers, Greater Restraints,” Official Monetary and Financial Institutions Forum and Ernst and Young, November 2012.

22.
Ibid.

23.
“A Superhuman to Push the Old Lady,”
Sunday Times
, December 2, 2012.

24.
Ben Chu, “Why I’m Worried about Mark Carney’s Governorship,”
The Independent
, December 3, 2012.

25.
Author interview with Malcolm Knight.

26.
Author interview with Nathan Sheets.

27.
Author interview with Peter Akos Bod.

28.
Author interview with confidential source, 2012.

29.
Jon Hilsenrath and Brian Blackstone, “Inside the Risky Bets of Central Banks,”
Wall Street Journal
, December 11, 2012.

30.
Author interview with Andrew Hilton, in London, April 2012.

31.
Jean-Claude Trichet, “Lessons from the crisis: Challenges for the Advanced Economies and for the European Monetary Union,” Eleventh Annual Niarchos Lecture, Petersen Institute for International Economics, Washington, DC, May 17 2012, available at
http://www.iie.com/publications/papers/transcript-20120518niarchos-trichet.pdf
.

32.
Author interview with Dean Baker, in Washington, DC, May 2012.

33.
Ibid..

34.
Author interview with Stephen Cecchetti, e-mail to author, December 19, 2012.

CHAPTER SIXTEEN: THE CITADEL CRACKS

1.
Rabbi Nosson Scherman,
The Chumash: The Torah, Haftoras and Five Megillos With a Commentary Anthologised from the Rabbinic Writings
(NY: Mesorah Publications, 2001), 49.

2.
The BIS replaced the gold franc with the Special Drawing Right (SDR) as its unit of account in 2003. The SDR is not a currency but an international reserve asset and is based on a basket of major currencies: the euro, Japanese yen, British pound, and the US dollar. In January 2013 one SDR was equivalent to $1.53.

3.
Profit and loss account for the financial year ended March 31, 2009,
BIS 79th Annual Report
, 182,183.

4.
Profit and loss account for the financial year ended March 31, 2012,
BIS 82nd Annual Report
, 135.

5.
See the speech of Christine Lagarde, IMF managing director, IMF direct, January 24, 2012, available at
http://blog-imfdirect.imf.org/2012/01/24/driving-the-global-economy-with-the-brakes-on
.

6.
“Presenting the Second Annual Wonky Awards,” The Wonkblog Team,
Washington Post
online, December 28, 2012, available at
http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/28/presenting-the-second-annual-wonky-awards
.

7.
“Sharing of Financial Records Between Jurisdictions in Connection with the Fight Against Terrorist Financing,” BIS, Basel Committee on Banking Supervision, April 2002, available at
http://www.bis.org/publ/bcbs89.htm
.

8.
Matt Taibbi, “The Great American Bubble Machine,”
Rolling Stone
, July 9, 2009.

9.
Author interview with Andrew Hilton, in London, July 2012.

10.
Author interview with William White, December 2012.

11.
Author interview with Stephen Cecchetti, e-mail to author, December 17, 2012.

12.
The press conference for the BIS 2010–2011 annual report can be seen on webcast at
http://www.bis.org/events/agm2011/pcvideo.htm
.

13.
“Gauchos and Gadflies,”
Economist
, October 22, 2011.

14.
Lisa Weekes, “The Argentinean Money and Banking Immunity,”
Wall Street Journal
, July 27, 2011.

15.
Claudio Loser, “Destabilizing Force,” Forbes online, available at,
http://www.forbes.com/2010/01/20/bank-of-international-settlements-argentina-stagnation-opinions-contributors-claudio-m-loser.html
.

16.
Author interview, 2012.

17.
Author interview with Malcolm Knight, in New York, May 2012.

18.
Author interview with Sir Mervyn King, in London, February 2013.

19.
Toniolo, 131.

20.
Izabella Kaminska, “Apropos Those BIS Gold Swaps,” FT Alphaville blog, June 25, 2012, available at
http://ftalphaville.ft.com/2012/06/25/1058101/a-propos-those-bis-gold-swaps
.

21.
BIS 82nd Annual Report
, 148.

22.
Author interview with Rudi Bogni, in London, 2012.

23.
Author interview with Sir Mervyn King, in London, February 2013.

24.
Ibid.

25.
Ibid.

26.
Lisa Weekes e-mail to author, January 25, 2013.

27.
Author interview with Sir Mervyn King, in London, February 2013.

28.
Andrew Haldane, “A Leaf Being Turned,” Occupy Economics, London, October 29, 2012, available at
http://www.bankofengland.co.uk/publications/Documents/speeches/2012/speech616.pdf
.

29.
Cecchetti and Kharroubi, “Reassessing the Impact of Finance on Growth,” BIS Working Papers, 381, July 2012, 14.

30.
Author interview with Sir Mervyn King, in London, February 2013.

ARCHIVES CONSULTED

Baker Library, Harvard Business School (HUBL)

Bank of England, London (BE)

Bank for International Settlements, Basel (BISA)

Centre for European Studies, Luxembourg (CVCE)

Cinematic Arts Library, University of Southern California, Los Angeles, California (USCCAL)

Columbia University Rare Book and Manuscript Library, New York, New York. (CU)

European University Institute, Brussels (EUI)

Federal Reserve Bank of New York, New York (FRBNY)

Franklin D. Roosevelt Presidential Library, Hyde Park, New York (FDRPL)

Harry S. Truman Library and Museum, Independence, Missouri (HTLM)

Seeley G. Mudd Manuscript Library, Princeton University (SGMML)

Special Collections Department, University of Delaware (UDSCD)

UK National Archives, London (UKNA)

US National Archives and Records Administration, College Park, Maryland (NARA)

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