David Rockefeller and the Chase Manhattan Bank
David Rockefeller, the youngest of the five brothers, is the largest individual stockholder (one percent of the outstanding stock) and board chairman of the Chase Manhattan Bank. 1 The...
...Translated from El Espectador, Bogota, Colombia, January 28, 1968...
...Thus Chase can acquire a controlling share of the undervalued stock for a greatly reduced price...
...Served as an Army intelligence officer in North Africa and France during World War II...
...By this method, Chase acquires a controlling interest in an already-established local bank...
...In 1968, the bank purchased the Housing In- vestment Corporation, a Puerto Rican-based mortgage banking firm, and will operate it as a wholly-owned subsidiary...
...Museum of Modern Art Chairman Partner Trustee Downtown-Lower L'Enfant Plaza $65 million John F. Kennedy ULibrary Manhattan Association office-hotel complex in Washington...
...3 The bank has expanded in the United States and British-dominated Caribbean area primarily through the use of simple branch banking...
...got his Ph.D...
...vice chairman and director, 1956...
...The annual re- ports for 1967 and 1968 add that the CIIC has recently invested in a Bolivian tin mine and a Costa Rican rice plantation...
...The long-term security of the United States is linked directly to the development of backward nations into stable political entities" [to the Council on Foreign Relations, as quoted in The New York Times, April 19, 1967...
...Such contacts are beyond the scope of most bank presidents and they can give the Chase a formidable jump on its competition" (Newsweek, April 3, 1967...
...PERUINVEST - Compania de Fomento e Inversiones, S.A., Peru...
...Banco del Comercio, Colombia (Colombia's fourth largest private bank with 120 branches in Colombia and Panama...
...Although he has never held a cabinet post, in the words of Finance magazine (January 1969), he "...has long held the equivalent of a cabinet status in the society of his peers...
...branch years to obtain...
...3 1967 Annual Report...
...Considered for the post of Secretary of the Treasury by both Presidents Kennedy and Nixon...
...Charles Fiero, vice president of the Chase Manhattan Overseas Banking Corporation, became director of the Commerce Department's Office of Foreign Direct Investments (OFDI) in May 1968, and rejoined Chase as senior vice president in charge of corporate planning the following year...
...companies as one means of improving the balance of payments...
...Quotes from some of David's speeches: "The private capital which Latin America so badly needs will be attracted to the area only if it is given credible guarantees against expropriation and discriminatory treatment as well as credible assurance that equitable repatriation of profits will be possible" (to the Inter-American Press Association, as quoted in The New York Times, October 28, 1967...
...Among Schroeder's many ventures in Latin America was its interest in four of pre-Revolutionary Cuba's largest sugar combines, including Francisco Sugar Company and Manatf Sugar Company...
...John Petty, vice president of Chase and head of its world-wide projects management division, was named Deputy Assistant Secretary of the Treasury for International Affairs in September 1966...
...Desarrollo Industrial, S.A., Panama...
...Chase acquired a controlling interest in 1964...
...LITTLE DISTINCTION BETWEEN PRIVATE AND PUBLIC Chase officials and directors frequently migrate between the bank and various high posts in the financial branches and agencies of the U.S...
...On Cuba and "progress": "Citing Cuba, Guinea and Burma as examples, he argued [in the Jacobsson Memorial Lectures to the International Monetary Fund in Rio] that 'it is in precisely those developing nations that have been most suspicious of private foreign investment that progress has been slowest'" (quoted in The New York Times, September 23, 1967...
...In yet another foreign banking venture, Chase has set up a wholly-owned subsidiary, the Chase International Investment Corporation (CIIC) which, according to the provisions of the Edge Act, provides services to foreign clients that commercial banks cannot legally provide to clients in the United States...
...is interested in the idea of taking advantage of the San Juan and Atrato rivers in forming two lakes in the Choc6 Department in the northeast of the country to develop that rain forest region....In a press conference, Rockefeller stated that tomorrow, on his return flight to New York in his private jet, he will fly over the Choco to get a better idea of the conditions...
...Rockefeller and his associates then rehabilitate the bank to meet their own standards and to serve their own purposes while maintaining and taking advantage of the bank's original outlets, clients and contacts...
...Banco Lar Brasileiro, Brazil (34 branches...
...David Rockefeller himself has served on literally scores of advisory committees...
...2 From the bank's 60-story Wall Street skyscraper, David oversees his institution's domestic and international banking operations...
...This review will not deal with operations of the Stillman Rockefellers, who are family descendants of William Rockefeller, brother of the ori- ginal John D. Rockefeller...
...Vice-president of Chase, 1952...
...The OFDI was created in 1968 to administer a program of restrictions on overseas expansion by U.S...
...To cite a few examples: -- Both John J. McCloy and Eugene Black have gone to the presidency of the World Bank from the chairmanship of Chase...
...Under the program, financing for capital goods exports, such as machinery and other basic equipment, will be through lines of credit extended by Chase and the Deutsch-Sudamerikanische Bank of Hamburg through the six Chase-controlled Latin American affiliates: Banco Mercantil y Agracola, Venezuela (17 branches...
...In the 1950's, David Rockefeller himself was a board member, and attended board meet- ings in Cuba of the Punta Alegre Sugar Company, the second largest of the U.S.-owned sugar operations in Cuba...
...While Chase, with $20 billion in assets (as of April 1969) ranks second in the United States behind San Francisco's Bank of America, it is probably the most influential U.S...
...The program is the first such venture organized in the private sector (in the past, the Inter-American Development Bank has provided some such loans for regional trade...
...Corporaci6n Interamericana, S.A., Mexico...
...Ever since he served as an 'elector for Thomas Dewey in the 1948 Presidential election, Rockefeller [David] has carefully avoided any political activities...
...Schroeder is a powerful international banking house of German origins, which by the 1930's had become closely allied with the Rockefellers...
...In-16this way, Chase quickly acquires the banking infrastructure in the foreign country it would otherwise take a regular U.S...
...executive vice-president, 1955...
...Became assistant manager of Chase's foreign department in 1946 while his uncle, Winthrop Aldrich, headed the bank...
...Director-Vice President EDUCATIONAL Council on Foreign Relations Partner Embarcadero Center Chairman Chairman $125 million office-hotel Rockefeller University International Executive complex in San Francisco Service Corps President Partner Board of Overseers With brother Laurance Harvard College PHILANTHROPIC 4.000-acre resort development on St...
...Chase acquired a 51 percent interest in 1967...
...NEW FRONTIERS FOR CHASE IN THE CHOCO "Bogota, January 27....David Rockefeller declared that the financial group he heads...
...When he visits a foreign country, he normally pays at least a courtesy call on the head of state...
...all figures are as of December, 1967...
...commercial bank in international operations and holds a commanding lead over all rivals in two of the chief hallmarks of major league banking: 1) Loans to business - an estimated $9 billion in loans outstanding in 1967...
...Once Chase established affiliates in several countries, it began to use them not only for the usual local banking services but also for financing large international loans...
...a recent example is his appointment to the President's (LBJ's) General Advisory Com- mittee on Foreign Assistance Projects which prepared a report for the incoming Nixon administration.-17Another method Chase has for extending its international banking activities is through "representatives," which in Latin America are located in Buenos Aires, Rio, Bogota, Mexico City and Caracas...
...Chase acquired a majority share in 1962...
...in economics from the Rockefeller-endowed University of Chicago in 1940 with a thesis on the "Theory of Unused Corporate Resources...
...2 Newsweek, April 3, 1967...
...It usually moves in on a prospective affiliate when the local bank, controlled by national interests, is in financial difficulties...
...Lnco Atlantida, Honduras (24 branches...
...2) Correspondent banking - Chase performs assorted chores for 5,900 correspondent banks around the world that "range from representing them in the New York money market to arranging, as it did recently, a Manhattan wedding and even provoding the best man, for an out-of-town banker...
...Robert W. Cavanaugh, former treasurer of the World Bank, resigned in February 1969, after 29 years with the World Bank, to become chairman and chief executive officer of the Chase Manhattan Trust Corporation, Ltd., Nassau, a wholly owned Chase subsidiary...
...1 The Rockefeller family as a whole owns a solid 5 percent (a controlling interest) of the bank's outstanding stock...
...For details of the Choco' development project see the October 1967 NACLA ewsletter and the December 1967 issue of Fortune-18BRIEFS ON DAVID ROCKEFELLER * Graduated from Harvard, 1936...
...president and chairman of the executive committee, 1960...
...4 Figures from the Chase Multinational Banking Directory, April 1968...
...Banco Continental, Peru (Peru's fourth largest bank, with 42 branches...
...The CIIC has controlling interests in several Latin American finance institutions, including: * Interamericana de Arrendamientos, S.A., Mexico...
...Neither will it deal with the Schroeder banking and trust interests...
...Croix Vice President Rockefeller Brothers Fund Partner 15500-acre sheep ranch President in Australia Sealantic Fund...
...Newsweek, April 3, 1967...
...Rockefeller Center, Inc...
...These representatives arrange loans from Chase headquarters in New York for local clients...
...The bank's branches in Cuba were nationalized in the early 1960's...
...Chase purchased a controlling interest in 1967...
...Chase recently announced a $25 million program to finance trade in capital goods between Latin American countries (The New York Times, April 9, 1969...
...and board chairman, 1969...
...Source: Newsweek, April 3, ,1967 THE WORLD OF DAVID ROCKEFELLER President Chase Manhattan Bank CIVIC BUSINESS CULTURAL Director DIrector Chairman Morningside Heights, Inc...
...Banco Argentino de Comercio, Argentina (Chase acquired a controlling interest in 1968...
...government and various international organizations...
...4 Footnotes 1 Until 1967, David's cousin, James Stillman Rockefeller, was chairman of the board of The First National City Bank of New York, the nation's third largest commercial bank and Chase's main rival...
...But it has penetrated the more difficult continental regions by acquiring "affiliates" (see list below...
...Chase has 147 domestic (New York Metropolitan area) and 42 foreign branch banks (including 28 in Panama, Puerto Rico, the Virgin Islands, Trinidad and Guyana...
Vol. 3 • April 1969 • No. 2
