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Federal Reserve Bank of St. Louis
ABA INTERNATIONAL MONETARY
CONFERENCE, VANCOUVER - 5/90.2.-
Collection: Paul A. Volcker Papers
Call Number: MC279
Box 13
Preferred Citation: ABA International Monetary Conference, Vancouver, 1982 May; Paul A.
Volcker Papers, Box 13; Public Policy Papers, Department of Rare Books and Special Collections,
Princeton University Library
Find it online: http://findingaids.princeton.edu/collections/MC279/c240 and
https://fraser.sdouisfed.org/archival/5297
The digitization ofthis collection was made possible by the Federal Reserve Bank of
St. Louis.
From the collections of the Seeley G. Mudd Manuscript Library, Princeton, NJ
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States copyright law. By accessing this file, all users agree that their use falls within fair use as
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Inquiries about this material can be directed to:
Seeley G. Mudd Manuscript Library
65 Olden Street
Princeton, NJ 08540
609-258-6345
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Federal Reserve Bank of St. Louis
•
INFORMATION TO ASSIST IN YOUR
TRAVEL PLANS TO VANCOUVER
A.
BEFORE DEPARTURE
•
until May 14:
Telephone (202) 467-4104
Telex
89-2787 ABA WSH
after May 14:
Telex
04-55289
•
Arrival/Transfer and Passport Information
If you have not already returned the arrival/transfer form or the passport information form, please do so as soon as possible. Our hosts have made extensive
arrangements with Customs and Immigration officials to insure the ease of your
entry into Canada. In order to facilitate these arrangements, the IMC Secretariat
must have both current arrival/transfer information and passport information.
•
Hotel Addresses:
So that you may be reached during the Conference.
•
B.
Hotel Reservations
The IMC Secretariat is making hotel reservations based on your requests; suite
assignments are being made according to pre-established criteria. The hotels will
send confirmations directly to all attendees by late April. All room reservations
are guaranteed by the IMC. If you make any changes in your plans which will affect
your reservations, please contact the IMC Secretarfa:
Four Seasons Hotel
791 West Georgia Street
Vancouver, B.C., V6C 2T4
Canada
Telephone: (604) 689-9333
Telex: 04-55289
The Westin Bayshore
1601 West Georgia Street
Vancouver, B.C., V6G 2V4
Canada
Telephone: (604) 682-3377
Telex: 04-51442
Hyatt Regency Vancouver
655 Burrard Street
Vancouver, B.C., V6C 2R7
Canada
Telephone: (604) 687-6543
Telex: 04-55475
Luggage Tags
Please use the enclosed tags on all luggage to help porters quickly identify
your belongings for efficient clearance of the baggage areas. If you need more
tags, please call or telex the IMC Secretariat in Washington.
CUSTOMS & IMMIGRATION AT CANADIAN PORT OF ENTRY
•
Through the auspices of our Host Bank Liaison Committee, Customs officials will
provide special assistance to all IMC members at their Canadian port of entry,
as well as in Vancouver. We are preparing an IMC Lapel Emblem which will identify
conference participants for Customs and Immigration officers. We suggest that
you attach it to your lapel, or in an easily seen place, as you disembark the
plane. The lapel emblems will be mailed to attendees in late April.
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b__
Federal Reserve Bank of St. Louis
2C.
ARRIVAL IN VANCOUVER
•
Airport Welcome - International and Domestic Flights
As in previous years, Host Bank representatives wearing red and white "IMC
Welcome" sashes and the familiar IMC shoulder patches, will meet arriving flights.
Through an unprecedented arrangement with Canadian airport authorities, the escorts will be allowed to meet passengers at the gate, and provide assistance
through immigration and customs and to a waiting limousine.
Sufficient porters will be provided to assist with baggage claim; again,
luggage tags will make it easier to sort out bags. Should there be a short
wait while baggage is being claimed, attendees may enjoy light refreshments
in the Air Canada Lounge.
D.
•
Private Planes
If you plan to arrive by private plane, please provide us with your plane call
letters/numbers, and your estimated time of arrival. Also please identify which
landing area at the Vancouver airport you will use. The same assistance through
Immigration and Customs procedures will be given.
•
Transfer to Vancouver
It is approximately a 20-minute trip from the airport to downtown Vancouver.
In response to the number of participants who have indicated a Saturday arrival,
the IMC transfer service will now begin on Saturday, May 22 and continue throughout the Conference.
•
Arrivals prior to Saturday, May 22
For those who plan to arrive prior to Saturday, taxi service is available from
the airport to the Four Seasons for approximately $20 (Canadian). Airport bus
service also runs downtown every half-hour, departing from the domestic terminal
entrance. Buses drop passengers at the Hotel Georgia, directly opposite the Four
Seasons. Transfer charge is $4.50 per person.
•
Changes in Arrival Plans
To facilitate your arrival and transfer to the hotels, it is necessary for us
to have the most recent, accurate arrival information--both for your port of
entry and for your arrival in Vancouver. Please notify the IMC Secretariat by
by telephone or telex if any of your plans change prior to your departure.
until May 14:
Telephone:
Telex:
(202) 467-4104
89-2787 ABA WSH
after May 14:
Telex:
04-55289
HOTEL ARRIVAL (Beginning Saturday, May 22)
Four Seasons
All INC members will be pre-registered. Host bank personnel and a member of the
•
hotel's management staff will welcome you at the door and provide you with Conference materials. You will then be escorted directly to your rooms. As a VIP
gesture, the Four Seasons has arranged to offer valet maid service to each guest
shortly after arrival, for unpacking, pressing, etc.
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Federal Reserve Bank of St. Louis
•
-3D.
Hotel Arrival (continued)
•
As you will
celebrating
day, May 24
to ensure a
recall, the weekend preceding the Conference is a long holiday weekend
Victoria Day. Since many normal services will be suspended for the Monholiday, the Four Seasons Vancouver has taken the following precautions
pleasant arrival weekend.
-
Sufficient cash reserves for necessary currency exchange over the holiday
weekend. The Four Seasons uses the daily bank exchange rate and can exchange
currencies of all IMC member countries.
-
Le Pavilion, named by Travel/Holiday magazine as one of the world's outstanding
restaurants for dining distinction in 1982, will be open Sunday evening. Reservations should be made with the maitre d' upon arrival.
-
Through the cooperation of Holt/Renfrew, hairdressers will be on call Sunday
and Monday. Appointments should be made upon your arrival through the Four
Seasons concierge.
Hyatt Regency Vancouver and Bayshore Inn
•
Members residing in these two Conference hotels will be pre-registered. Host bank
personnel and a member of the hotel's staff will welcome you upon arrival and provide
you with Conference materials before escorting you to your rooms.
E.
DURING YOUR STAY
•
Hospitality Lounge
The Hospitality Lounge, in the Arbutus Room, will be open on Saturday, May 22,
from 12:00 noon to 5:00 p.m. Beginning Sunday, May 23, it will be open from
9:00 a.m. to 5:00 p.m. throughout the Conference, closing at noon on Thursday,
May 27. Light refreshments will be available, and hostesses representing the
Canadian member banks will provide suggestions for shopping, sightseeing, and
recreational activities.
At scheduled times, a representative from Gray Line Tours and the Greater Vancouver
Convention and Visitors Bureau will be available in the Lounge to assist with suggestions and arrangements for optional excursions. Air Canada, the official IMC Airline,
is establishing a desk in the Lounge and will be able to book and reconfirm reservations for all airlines.
•
Tours
We are enclosing Travel Times, provided by Air Canada, which describes a number of
the best pre- and post-conference tours available. Although your itinerary may
already be firm, this magazine may provide some further information on the regions
in which you will be traveling.
As noted before, Gray Line Tours and the Greater
Vancouver Convention and Visitors Bureau can help with information about shorter tours
and excursions during the Conference. Participants will find much to enjoy in
Vancouver--Stanley Park, the Vancouver Art Gallery, the H. R. MacMillan Planetarium,
and many, many other special points of interest.
•
Climate and Weather
The temperature in Vancouver in May ranges from mid-50's to high 60 degrees F
(12 -20 degrees C). Evenings will be cool, so bring a warm wrap. A raincoat shoul
also be on your packing list.
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Federal Reserve Bank of St. Louis
J
-4-•
Dress
-
Reception/Dinner - Monday and Wednesday evening
Informal attire; cocktail/evening dress appropriate for the ladies.
-
Please note for the Host Evening on Wednesday: The Champagne Reception at the
Museum of Anthropology will be followed by a short walk (500 yds.) through the
beautiful Rose Garden to the Faculty Club at the University. Ladies may want to
keep this in mind when selecting shoes for that evening. (Buses will be available for those who desire and in case of inclement weather.)
-
-
•
"Canadian Wilderness Adventure" - Tuesday evening
This unusual party at the Arbutus Centre is a true "adventure." To fully enjoy
its uniqueness, we suggest that you wear comfortable, casual attire. During the
reception you will have the opportunity to circulate among demonstrations of worldclass logging, gold panning, ice carving, totem pole carving in a forest setting
created with hundreds of trees, small ponds, and native birds and animals. The
seated dinner will include special food presentations and entertainment.
Ladies Program - English Bay Cruise
We suggest casual attire with comfortable shoes to facilitate boarding of yachts,
buses,and for the walking tours of Queen Elizabeth Park.
Hotel Facilities
Located above Pacific Centre in the heart of Vancouver, the Four Seasons Hotel offers
an indoor-outdoor pool, a sauna and whirlpool, a glass-doomed garden lounge--all
within just a few steps of shopping, theater and nightlife, gourmet restaurants.
The hotel also offers 24-hour room service.
•
F.
Recreational Facilities
The Canadian host banks have made arrangements at nearby private clubs for golf and
tennis. Hostesses in the Hospitality Lounge will have complete information about
these facilities.
DEPARTURE
•
Credit
The hotel will accept major credit cards or your personal check in payment of your
account.
•
Reconfirmation of Travel Arrangements
The IMC Secretariat will request your departure plans again when you arrive in
Vancouver for reconfirmation and transfer arrangements to the Vancouver Airport.
Air Canada will provide ticketing and reconfirmation services during the Conference.
Transfer will be provided on Thursday and Friday, May 27 and 28 only.
We wish you a safe and comfortable journey and look forward to greeting you in Vancouver!
Reminders
•
Provide passport information as soon as possible if you have not yet done so.
Keep IMC Secretariat up to date on changes to your travel plans both for Canadian
•
Port of Entry and arrival in Vancouver.
•
Pack comfortable dress shoes, as well as casual attire, as suggested for the host
evenings.
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Federal Reserve Bank of St. Louis
INTERNATIONAL MONETARY COIFE7R kj\i
r
1120 Connecticut Avenue, N.W., Washington, D. C. 20E
;Ica7=
BOARD OF DIRECTORS
President
Luc V. Wauters
Chairman, Almanij-Kredietbank Group
Kredietbank N.V.
Brussels, Belgium
Vice-President
Richard D. Hill
Chairman of the Board
The First National Bank of Boston
Boston, Massachusetts
Immediate Past President
Roger E. Anderson
Chairman of the Board
Continental Illinois National Bank
and Trust Company of Chicago
Chicago, Illinois
Executive Vice President
Willis W. Alexander
Executive Vice President
American Bankers Association
Washington, D.C.
Alessandro Alessandrini
Managing Director
Banco di Roma
Rome, Italy
The Rt. Hon Lord Barber
Chairman
Standard Chartered Bank Limited
London, England
William B. Eagleson, Jr.
Chairman
Girard Bank
Philadelphia, Pennsylvania
Richard J. Flamson
Chairman of .the Board and Chief
Executive Officer
Security Pacific National Bank
Los Angeles, California
Yusuke Kashiwagi
President
The Bank of Tokyo, Ltd.
Tokyo, Japan
TO:
Attendees of the
1982 International Monetary Conference
Michael G. R. Sandberg
Chairman
The Hongkong and Shanghai Banking
Corporation
Hong Kong
Arthur Schmiegelow
Chairman of the Board of
Managing Directors
Privatbanken A/S
Copenhager, Denmark
Thomas I. Storrs
Chairman of the Board
North Carolina National Bank
Charlotte, North Carolina
Hans Strasser
Chairman of the Board
Swiss Bank Corporation
Basel, Switzerland
M. Brock Weir
Chairman and Chief Executive Officer
AmeriTrust of Cleveland
Cleveland, Ohio
Consultant to the Board
Herbert V. Prochnow
Former President
The First National Bank of Chicago
Chicago, Illinois
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Federal Reserve Bank of St. Louis
om
ur
-5
t saw
Enclosed are the Advance Program, Ladies Program and current
Lists of Conference Participants and Press Participants.
Also enclosed are the IMC emblems which will identify Conference
partipants to customs and immigrations officers, for expeditious
entry to Canada. We suggest that you attach the emblem to your
lapel or in an easily seen place, as you disembark the plane.
Although only one member of the party needs to wear the emblem,
t we have enclosed sufficient numbers for those you have indicated
\will be travelling with you.
The arrival greeting plan has been altered slightly to ease your
passage through the flight arrival hallways. INC escorts will
now meet Conference attendees at the entrance to the Customs
& Immigration Hall (international terminal); and at the entrance
to baggage claim (domestic terminal). From these points assistance
will be provided through baggage claim and to a waiting limousine.
Hotel confirmations are being sent
participants by the hotel. In the
recommend that all changes in your
vations be made to us via telex or
Donald C. Platten
Chairman
Chemical Bank
New York, New York
Lewis T. Preston
Chairman
Morgan Guaranty Trust Company
of New York
New York, New York
of")
until May 14:
Telephone:
Telex:
after May 14:
Telex:
directly to all Conference
short time that remains, we
arrival plans or hotel resertelephone.
(202) 467-4104
89-27878 ABA WSH
04-55289
You will note that with one exception, all evening functions of
the Conference are informal, with business suits for gentlemen
and cocktail or evening dress appropriate for the ladies. Casual
dress is recommended for the "Canadian Wilderness Adventure"
Tuesday evening, May 25. Our Canadian hosts suggest sweaters or
sports jackets and slacks for the gentlemen, with sweaters and
skirts for the ladies, would be appropriate for the unique atmosphere and participative mood of the evening. Once again, a reminder to the ladies that comfortable walking shoes may be desired
for the ladies tour; as well as the insurance of an umbrella.
We wish you a safe and pleasant trip and look forward to greeting
you in Vancouver.
Since
er414"‘
xan(
Willis Ale4
E
ADVANCE PROGRAM
1982 International Monetary Conference
(All functions in Four Seasons Vancouver unless otherwise noted)
HOSPITALITY LOUNGE
Arbutus Room
This pleasant gathering place will feature special events
at various hours during the Conference. Hostesses from the
Canadian member banks will welcome you to the Lounge for
light refreshments, while discussing sightseeing, shopping
and recreational possibilities.
HOURS
Saturday, May 22
12 Noon - 5:00 p.m.
Sunday through Wednesday
Thursday, May 27
8:00 a.m. - 12:00 Noon
MONDAY, MAY 24
7:00 p.m.
Opening Reception
Park Ballroom Foyer
8:00 .in.
President's Dinner
Park Ballroom
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Federal Reserve Bank of St. Louis
(Informal)
Presiding
Luc V. Wauters
President
International Monetary Conference
Welcoming Remarks
The Honorable Allan J. MacEachen
Deputy Prime Minister and
Minister of Finance of Canada
460.
2
CONFERENCE PROGRAM
TUESDAY, MAY 25
8:45 a.m.
Session I
Park Ballroom A/B
Presiding - Luc V. Wauters
Opening Statement
Luc V. Wauters
President
International Monetary Conference
IMPORTANT CURRENTS IN MODERN SOCIETY:
OUR ENVIRONMENT
Chairman
Richard D. Hill, Chairman of the Board,
The First National Bank of Boston
Address
Dr. Kurt H. Biedenkopf, MdL, Deputy Chairman,
Christian Democratic Party, and Leader of the
Opposition State Parliament, Dusseldorf
Address
Dr. Paul W.
Professor
School of
Michigan,
McCracken, Edmund Ezra Day University
of Business Administration, Graduate
Business Administration, University of
Ann Arbor
Response
Jean-Maxime Lgveque, Chairman,
IBI Holding Company N.V., Paris
Willard C. Butcher, Chairman of the
Board and Chief Executive Officer,
The Chase Manhattan Bank, N.A., New York
I.M.C. Business Section
12:00 Noon
Social Hour
Park Ballroom Foyer
12:30 p.m.
Special Luncheon
Park Ballroom B/C
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Federal Reserve Bank of St. Louis
Presiding - Luc Wauters
Address
The Honorable A. W. Clausen
President, The World Bank, Washington, D.C.
-3
TUESDAY, MAY 25 continued
2:15 p.m.
SESSION II
Park Ballroom A/B
Presiding - Luc V. Wauters
STRATEGIC CHALLENGES FOR BANKING
Chairman
Rowland C. Frazee, Chairman and
Chief Executive Officer, The
Royal Bank of Canada, Montreal
Remarks
Wilfried Guth, Managing Director,
Deutsche Bank, A.G., Frankfurt
Shuzo Muramoto, President, The
Dal-Ichi Kangyo Bank Ltd., Tokyo
Richard M. Rosenberg, Vice Chairman,
Wells Fargo Bank, N.A., San Francisco
Samuel H. Armacost, President and
Chief Executive Officer, Bank of
America, N.T. & S.A., San Francisco
6:30 p.m.
Buses depart Four Seasons Hotel
Georgia Street Entrance
6:50 p.m.
Canadian Wilderness Adventure
Arbutus Centre
(Casual Attire suggested)
Reception and dinner in a forest setting
with courses representative of the various
areas of Canada.
Continuous entertainment will include
music, displays and a variety of performers.
Sponsored by the Government of British
Columbia and the Canadian Member Banks
of the I.M.C.
11:00 p.m.
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Federal Reserve Bank of St. Louis
Arrive at Four Seasons Hotel
-Apr
4
WEDNESDAY, MAY 26
9:00 a.m.
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Federal Reserve Bank of St. Louis
SESSION III
Park Ballroom A/B
Presiding - Luc Wauters
HOW DOES THE PUBLIC VIEW BANKING?
Chairman
John G. Medlin, Jr., President and
Chief Executive Officer, Wachovia
Bank and Trust Company, N.A., Winston-Salem
Speakers
Andrew S. B. Knight, Editor, The Economist,
London
Ben J. Wattenberg, Senior Fellow,
American Enterprise Institute, Washington, D.C.
H. Frans Van den Hoven, Chairman,
Unilever, N.V., London
I.M.C. Business Session
Social Hour
Park Ballroom Foyer
Luncheon
Park Ballroom B/C
SESSION IV
Park Ballroom A/B
Presiding - Luc V. Wauters
HOW DOES THE PUBLIC SECTOR SEE BANKING?
Chairman
Lars-Erik Thunholm, Chairman of the Board,
Skandinaviska Enskilda Banken, Stockholm
4
5
WEDNESDAY, MAY 26 continued
Remarks
The Honorable Edwin (Jake) Cam,
United States Senator, Utah, and
Chairman, Committee on Banking, Housing
and Urban Affairs, Washington, D.C.
J. Keith Campbell, CBE, FCA, Chairman,
Hooker Corporation Limited, Sydney
Professor Henri Simonet, Depute,
Brussels
6:30 p.m.
Buses depart Four Seasons Hotel
Georgia Street Entrance
HOST EVENING
(Informal)
6:50 p.m.
Champagne Reception at the
Museum of Anthropology
(Northwest Coast Indian Art)
Entertainment by Native people
of British Columbia
8:00 p.m.
Reception and Dinner
Faculty Club of the University
of British Columbia
Music-Miranda Brown
Hosted by the Canadian Member
Banks of the I.M.C.
11:00 p.m.
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Federal Reserve Bank of St. Louis
Arrive at Four Seasons Hotel
6
THURSDAY, MAY 27
8:45 a.m.
SESSION V
Park Ballroom A/B
Presiding - Luc V. Wauters
Address
The Honorable Dbnald
Secretary of the
the United Sta
Rega
ury of
Chairman
Donald C. Platten, Chairman,
Chemical Bank, New York
CENTRAL BANKERS DISCUSSION
ON ISSUES RAISED BY THE CONFERENCE
The Honorable Gerald K. Bouey,
Governor, Bank of Canada, Ottawa
The Honorable Karl Otto P8111,
President, Deutsche Bundesbank,
Frankfurt
The Honorable Paul A. Volcker
Chairman, Board of Governors of
the Federal Reserve System,
Washington, D.C.
The Honorable Lars Wohlin,
Governor, Sveriges Riksbank, Stockholm
Installation of Incoming President
Adjournment
1200 Noon
Social Hour
Park Ballroom Foyer
12:30 p.m
Farewell Luncheon
Park Ballroom B/C
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Federal Reserve Bank of St. Louis
BOARDC
FGOvERw!R s
OF
THE
FEDERAL
RESERVE SYST;'
CEEMICAL
1981MAY 20
of
Donald C. Platten
277 Park Avenue, New York. NY 10172
1-0(212)31cynn
Chairmar
EI
En
OFFICE Of'
. - •HE-- cimiR
MAW
May 17, 1982
The Honorable Paul A. Volcker
Chairman
Board of Governors of the
Federal Reserve System
Washington, D.C. 20551
Dear Paul:
I thought you might appreciate a brief outline of the drill I hope
we can go through next week at the International Monetary Conference in
Vancouver.
As you know, our panel is the last on the agenda, and will take
place on Thursday morning, May 27, right after Don Regan's address. We
should finish by noon.
11
I will open our session with a ten minute or so statement. In that,
I am supposed to accomplish two things: (1) briefly summarize the key
messages and themes that emerged from the four preceding sessions; and (2)
admonish you and your fellow panelists to focus your own remarks as much as
possible on how you as a central banker react to these messages and themes.
I hope that by now you have received directly from Willis Alexander
copies of at least a few of the statements that will be made at the earlier
sessions. I have used those and the general purposes we had in mind in
developing the program to sketch out the general points I plan to make, and
am enclosing a copy of the present version to give you at least a little
advance warning of where I am heading. But obviously, we will all have to
play things somewhat by ear, depending upon what actually comes out of the
discussions in those earlier sessions. Hopefully, we can get together for a
few minutes prior to our session to identify issues a little more specifically. I will get in touch with you in Vancouver to set something up.
I look forward to seeing you next week.
Sincerely,
D.C.P.
Enc.
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Federal Reserve Bank of St. Louis
Outline of Introductory Remarks
By Donald C. Platten
At International Monetary Conference
Session V: Central Bankers Discussion
On Issues Raised by the Conference
I.
The purpose of this session is very simple.
o A number of issues have been raised in the four preceding
sessions of the Conference, and occasionally some conclusions were
reached. Now, we want to go back over those points from a central
banking perspective.
o Basically, we want to find out whether central bankers see these
issues the same way as we commercial bankers do. And perhaps more
importantly, do central bankers think we commercial bankers can or
should respond to the challenges and opportunities ahead in the
ways we say we want to and intend to?
II.
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Federal Reserve Bank of St. Louis
Session I set the general background for our discussions.
O Its premise was: "The current environment is characterized by
the rivalry for preeminence between the public sector and the
private sector, and between labour and capital. At the same time
important claims on the industrial nations are formulated and
pressed by the developing countries. The diversity and magnitude
of the challenges with which the world economy is confronted
(inflation, unemployment, energy and development) make these
rivalries and claims ever more intense to the point that the
stability of our economic system may be threatened."
0 As I listened to Doctors Biedenkopf and McCracken address these
issues, I was particularly struck by the similarity of their
themes: both seemed to feel that perhaps the most crucial
underlying economic issue we face over the coming years is to find
a more appropriate dividing line than we have now between what is
government's responsibility and what should be the role of the
private sector.
O Biedenkopf said: "If government is everywhere, it is nowhere.
...If governmental authority is over-extended the authority of
democratic government is weakened rather than strengthened. As a
consequence efforts have to be made to restrain the expansion of
government, to redefine the jurisdiction of government and thus
decrease governmental activities....What has to be developed is a
kind of private sector-infrastructure, a set-up that can assume
responsibilities which have relevance to the public interest or
the common weal and which have in the past been entrusted to
government to be solved."
o
And as McCracken put it: "We seem to have seen emerging with
accelerating speed in the last decade or so programs whose
objective has been to insulate people from the hardships but this
has also insulated them from the need to change....if the
objective is to raise the material level of living of the people,
then it is a fact that the economic success stories in
contemporary history have been societies that have placed basic
reliance on a liberal, market-organized economic order."
° McCracken made a few other specific points that I also think are
worth noting here.
...the international economic order must adapt to the fact
that it now consists of industrial nations whose per capita
incomes are essentially equal, and the responsibilities for
sustaining an orderly world economy will have to be shared
more broadly....Today the U.S. share of world economic
activity has declined more rapidly than its responsibility
for the international order, political and economic, while
for other major nations their share of world economic
activity has increased more rapidly than the
responsibilities they have assumed for the total system."
...it is essential for both the yen and the D-mark to
become full-fledged international currencies, and
impediments to this role must be eliminated. This logically
should mean that both must be prepared for, on the average,
a slight over-valuation...
(emphasis added)
...we would do well to caution low-income nations against
major reliance on foreign aid as an instrument for economic
development....[But] they should keep pressure on the
industrial countries to keep those markets reasonably open
to the exports, and particularly manufactured exports, of
the low-income countries....capital resources from outside
can be helpful in accelerating the pace of economic
development."
III. Session II discussed the "Strategic Challenges for Banking."
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Federal Reserve Bank of St. Louis
° Here we recognized that: "The dimensions of the challenges in
Session I oblige the banks to make some important choices:
-- in their relations with government in order to express
their views on the proper scope of government regulations
and intervention in their business;
-- in their lending policy;
-- in their pursuit of profitability and capital adequacy."
We also considered: How best to cope with the challenges of
size? Territorial spread? Diversification? Mechanization?
Increased controls? The fast-growing competition by near-banks?
And we asked: Is the pursuit of power the proper way of
positioning? Is performance necessarily a function of size?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o
The advice we got was from our own peers: Wilfried Guth, Sam
Armacost, Dick Rosenberg, and Shuzo Muramoto.
° In Guth's case, I think several things are worth recalling:
He admonished us to "Beware of the 'grand designs' in
connection with strategic plans! Strategy is a continuing
process of individual steps..." where priorities will have
to be chosen based on our own market position and a profit
center approach.
-- He also urged us to "intensify our efforts to bring our
customers to the capital markets" so as to relieve our
balance sheets of inflexibility, and to develop more of a
"branded article" approach to our competition with
non-banks.
-- And he made it very clear that for him "profitability and
personality definitely count for more [than size]," and that
our greatest challenge in the 1980's will be to defend our
freedom and our competitive free market system from the
tendencies towards greater state interference and control.
° Rosenberg, on the other hand, seemed to me to be particularly
effective in pointing out that at least sometimes the "enemy" is
our own lethargy rather than some law or regulation.
"It was not regulation or legislation that handed American
Express the upscale credit card. It was banks' lack of
innovation and recognition of consumer attitudes." "When
the fixed commission schedule [for securities brokerage]
disappeared by government edict, it was the commercial
banking industry that immediately could have become the most
powerful force in the discount brokerage business.
Unfortunately, we didn't...." "The creation of a national
network of payroll preparation and disbursing banks should
have been a natural outgrowth of correspondent banking, but
it was not a correspondent commercial bank that performed
this service, it was ADP."
-- His advice: compete more agressively in those very areas
where non banks have moved in to capture such great profits,
and join with them at least temporarily where we have to.
[° Points raised by other speakers to be added as they become
available.]
° As far as our session here is concerned, the bottom line of all
these comments, I suppose, is this: Will central bankers stand in
our way? Are we talking about things that they find troublesome?
,
IV. In Sessions III and IV we focused first on "How Does the Public..." and
then "How Does the Public Sector See Banking?"
o In both these sessions, I think the message again came across
very clearly.
o As Ben Wattenberg put it: "...no matter how compassionate one
is, there can not be a successful and humane welfare state unless
there is a re-invigorated private sector." But he also pointed
out that approval ratings for banks in public opinion polls have
been shrinking somewhat.
o And Keith Campbell described numerous steps that his Committee
felt should be taken to deregulate the Australian financial
system, in some cases at least apparently despite objections or at
least concerns raised by the monetary authorities.
[0
V.
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Federal Reserve Bank of St. Louis
Other points added as they become available.]
I now want to turn to our four distinguished central banking friends.
Obviously, we will be interested in whatever happens to be on their minds
at the moment. But they have all been forewarned that we especially want
to close the circles on the general topics we have been discussing in the
preceding sessions we have held over the past two days.
BOARD CF
OF GOVERNuns
THE
FEDERAL
RESERVE SYSTE
CFEMICAL ,3ARK
1981 MAY 20
277 Park Avenue, New York NY 10172
Tel(212)310,71
PM S: 09
Donald C. Platten
(Thairman
orprE ()RECEIVED
rHt. cif4fRm
4N
May 17, 1982
The Honorable Paul A. Volcker
Chairman
Board of Governors of the
Federal Reserve System
Washington, D.C. 20551
Dear Paul:
I thought you might appreciate a brief outline of the drill I hope
we can go through next week at the International Monetary Conference in
Vancouver.
As you know, our panel is the last on the agenda, and will take
place on Thursday morning, May 27, right after Don Regan's address. We
should finish by noon.
11
I will open our session with a ten minute or so statement. In that,
I am supposed to accomplish two things: (1) briefly summarize the key
messages and themes that emerged from the four preceding sessions; and (2)
admonish you and your fellow panelists to focus your own remarks as much as
possible on how you as a central banker react to these messages and themes.
I hope that by now you have received directly from Willis Alexander
copies of at least a few of the statements that will be made at the earlier
sessions. I have used those and the general purposes we had in mind in
developing the program to sketch out the general points I plan to make, and
am enclosing a copy of the present version to give you at least a little
advance warning of where I am heading. But obviously, we will all have to
play things somewhat by ear, depending upon what actually comes out of the
discussions in those earlier sessions. Hopefully, we can get together for a
few minutes prior to our session to identify issues a little more specifically. I will get in touch with you in Vancouver to set something up.
I look forward to seeing you next week.
Sincerely,
D.C.P.
Enc.
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Federal Reserve Bank of St. Louis
Ass
04;
A.
Outline of Introductory Remarks
By Donald C. Platten
At International Monetary Conference
Session V: Central Bankers Discussion
On Issues Raised by the Conference
I.
The purpose of this session is very simple.
o A number of issues have been raised in the four preceding
sessions of the Conference, and occasionally some conclusions were
reached. Now, we want to go back over those points from a central
banking perspective.
o Basically, we want to find out whether central bankers see these
issues the same way as we commercial bankers do. And perhaps more
importantly, do central bankers think we commercial bankers can or
should respond to the challenges and opportunities ahead in the
ways we say we want to and intend to?
II.
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Federal Reserve Bank of St. Louis
Session I set the general background for our discussions.
O Its premise was: "The current environment is characterized by
the rivalry for preeminence between the public sector and the
private sector, and between labour and capital. At the same time
Important claims on the industrial nations are formulated and
pressed by the developing countries. The diversity and magnitude
of the challenges with which the world economy is confronted
(inflation, unemployment, energy and development) make these
rivalries and claims ever more intense to the point that the
stability of our economic system may be threatened."
o As I listened to Doctors Biedenkopf and McCracken address these
issues, I was particularly struck by the similarity of their
themes: both seemed to feel that perhaps the most crucial
underlying economic issue we face over the coming years is to find
a more appropriate dividing line than we have now between what is
government's responsibility and what should be the role of the
private sector.
O Biedenkopf said: "If government is everywhere, it is nowhere.
...If governmental authority is over-extended the authority of
democratic government is weakened rather than strengthened. As a
consequence efforts have to be made to restrain the expansion of
government, to redefine the jurisdiction of government and thus
decrease governmental activities....What has to be developed is a
kind of private sector-infrastructure, a set-up that can assume
responsibilities which have relevance to the public interest or
the common weal and which have in the past been entrusted to
government to be solved."
o
And as McCracken put it: "We seem to have seen emerging with
accelerating speed in the last decade or so programs whose
objective has been to insulate people from the hardships but this
has also insulated them from the need to change....if the
objective is to raise the material level of living of the people,
then it is a fact that the economic success stories in
contemporary history have been societies that have placed basic
reliance on a liberal, market-organized economic order."
° McCracken made a few other specific points that I also think are
worth noting here.
"...the international economic order must adapt to the fact
that it now consists of industrial nations whose per capita
incomes are essentially equal, and the responsibilities for
sustaining an orderly world economy will have to be shared
more broadly....Today the U.S. share of world economic
activity has declined more rapidly than its responsibility
for the international order, political and economic, while
for other major nations their share of world economic
activity has increased more rapidly than the
responsibilities they have assumed for the total system."
-- 111...it is essential for both the yen and the D-mark to
become full-fledged international currencies, and
impediments to this role must be eliminated. This logically
should mean that both must be prepared for, on the average,
a slight over-valuation..." (emphasis added)
--
...we would do well to caution low-income nations against
major reliance on foreign aid as an instrument for economic
development....[But] they should keep pressure on the
industrial countries to keep those markets reasonably open
to the exports, and particularly manufactured exports, of
the low-income countries....capital resources from outside
can be helpful in accelerating the pace of economic
development."
III. Session II discussed the "Strategic Challenges for Banking."
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Federal Reserve Bank of St. Louis
° Here we recognized that: "The dimensions of the challenges in
Session I oblige the banks to make some important choices:
-- in their relations with government in order to express
their views on the proper scope of government regulations
and intervention in their business;
-- in their lending policy;
-- in their pursuit of profitability and capital adequacy."
We also considered: How best to cope with the challenges of
size? Territorial spread? Diversification? Mechanization?
Increased controls? The fast-growing competition by near-banks?
And we asked: Is the pursuit of power the proper way of
positioning? Is performance necessarily a function of size?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
o The advice we got was from our own peers: Wilfried Guth, Sam
Armacost, Dick Rosenberg, and Shuzo Muramoto.
o In Guth's case, I think several things are worth recalling:
He admonished us to "Beware of the 'grand designs' in
connection with strategic plans! Strategy is a continuing
process of individual steps..." where priorities will have
to be chosen based on our own market position and a profit
center approach.
-- He also urged us to "intensify our efforts to bring our
customers to the capital markets" so as to relieve our
balance sheets of inflexibility, and to develop more of a
"branded article" approach to our competition with
non-banks.
And he made it very clear that for him "profitability and
personality definitely count for more [than size]," and that
our greatest challenge in the 1980's will be to defend our
freedom and our competitive free market system from the
tendencies towards greater state interference and control.
o Rosenberg, on the other hand, seemed to me to be particularly
effective in pointing out that at least sometimes the "enemy" is
our own lethargy rather than some law or regulation.
"It was not regulation or legislation that handed American
Express the upscale credit card. It was banks' lack of
innovation and recognition of consumer attitudes." "When
the fixed commission schedule [for securities brokerage]
disappeared by government edict, it was the commercial
banking industry that immediately could have become the most
powerful force in the discount brokerage business.
Unfortunately, we didn't...." "The creation of a national
network of payroll preparation and disbursing banks should
have been a natural outgrowth of correspondent banking, but
it was not a correspondent commercial bank that performed
this service, it was ADP."
-- His advice: compete more agressively in those very areas
where non banks have moved in to capture such great profits,
and join with them at least temporarily where we have to.
[0 Points raised by other speakers to be added as they become
available.]
° As far as our session here is concerned, the bottom line of all
these comments, I suppose, is this: Will central bankers stand in
our way? Are we talking about things that they find troublesome?
04
IV. In Sessions III and IV we focused first on "How Does the Public..." and
then "How Does the Public Sector See Banking?"
o In both these sessions, I think the message again came across
very clearly.
o As Ben Wattenberg put it: "...no matter how compassionate one
is, there can not be a successful and humane welfare state unless
there is a re-invigorated private sector." But he also pointed
out that approval ratings for banks in public opinion polls have
been shrinking somewhat.
o And Keith Campbell described numerous steps that his Committee
felt should be taken to deregulate the Australian financial
system, in some cases at least apparently despite objections or at
least concerns raised by the monetary authorities.
[° Other points added as they become available.]
V.
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Federal Reserve Bank of St. Louis
I now want to turn to our four distinguished central banking friends.
Obviously, we will be interested in whatever happens to be on their minds
at the moment. But they have all been forewarned that we especially want
to close the circles on the general topics we have been discussing in the
preceding sessions we have held over the past two days.
INTERNATIONAL MONETARY CONFERENCE
1120 CONNECTICUT AVENUE,N W.WASHINGTON,0 C 20036
SESSION IV
Outline of Remarks
by Senator Jake Garn
Distribution to
Interventionists
Dr. Hannes Androsch
John Milne
Jacques Thierry
Session V
Don Platten
Gerald Bouey
Paul Volcker
Karl Otto Pohl
Lars Wohlin
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Federal Reserve Bank of St. Louis
Circulation
Lars-Erik Thunholm
Prof. Henri Simonet
J. Keith Campbell, CBE
Richard Cooley
Wilfried Janssens
Ogden White
Luc Wauters
OUTLINE OF SENATOR GARN'S REMARKS
I.
Role of Banking
(1) Through deposit-taking and credit-granting, commercial banks and
other financial intermediaries perfoim the fundamental role of
allocating the savings generated by the American economy to the
most productive uses.
(2) The nation also has Charged banks and other intermediaries with
making sure adequate credit is available for certain sociallyimportant sectors of our economy such as small.business and
housing.
(3) Through geographical limitations on baLA expansion, the nation
has sought to avoid excessive concentration of financial resources
and to foster the growth of financial institutions oriented to
the unique credit needs of localities and regions of the country.
II.
Banking's Loss of Market Share
(1) Government regulations, however, can and have caused banks and
othe-r depository institutions to lose market share and, thereby,
prevented them from performing their intended roles as financial
intermediaries.
( ) These regulations have been most onerous when depository institutions
have been forced to compete head-to-head with other intermediaries
not subject to the same regulations.
'(3) The Regulation Q- inspired growth of money market mutual funds from
less than $4 billion at the end of 1977 to almost $200 billion
today -- largely at the expense of deposits in traditional depository
institutions -- is a classic example of this.
(4) While a large portion of the funds flowing into M15-7's are, in
turn, invested in CD's and are, thereby, recycled through the
banking system, I am concerned that this recycling is concentrated
in the money-center banks.
(5) Locally- and regionally-oriented depository institutions are denied
the opportunity to meet their customers'credit needs, and those
customers typically do not have the option of going to money-center
banks.
(6) The solution to this problem, though, is not to impose new regulations
onNti\IF'S and other such financial innovations.
(7)
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low
Federal Reserve Bank of St. Louis
Rather, the solution is to deregulate the already-regulated.
•
III.
Foreign-Bank Competition in the U.S. Market
(1) Foreign banks clearly have been capturing a growing share of the U.S.
commercial-loan market, especially the market for the largest loans.
(2) As of June 30, 1981, foreign banks had over 20 percent of the total
U.S. commercial- and industrial-loan market.
(3) One reason foreign banks have been so competitive for the larger
loans is that the foreign banks' faster growth in asset size -vis-a-vis American banks -- in recent years enables them to offer
larger lines of credit to borrowers.
(4) The dwindling importance of American banks among
can be seen from the fact that, whereas in 1960,
for 44.5 percent of the combined deposits of the
banks, by 1979 -- the most recent date for which
the U.S. share had declined to 13.5 percent.
the world's largest
U.S. banks accounted
world's 100 largest
data are available --
Ichereas 241 American banks ranked among the world's largest 500
in 1961, only 93 U.S. banks ranked in that group in 1980.
One reason advanced for the relatively faster growth of foreign
is that most foreign governments do not impose the same sort of
geographical restrictims on domestic bank expansion as does the U.S.
While statistical proof is difficult to come by, it is also alleged
that foreign-bank competitiveness is enhanced by lower capital
requirements and by government ownership leading to a lower cost
of capital.
II!
Viability of Specialized Financial Institutions
I have already indicated that, rather than impose new regulations
on new competitors like money market mutual funds, what we should do
is to deregulate our traditional depository institutions.
In the Financial Institutions Deregulation and Monetary Control
Act of 1980, Congress set in motion a process for deregulating the
liability side of traditional depository institutions' balance
sheets.
(3) But, as was apparent from seven days of oversight hearings before the
Banking Committee last spring, if today's specialized financial
institutions are to remain viable as their liabilities are deregulated,
their assets must be deregulated as well.
(4) This is Why I introduced S. 1720 last October.
(5) For banks, having thrifts as somewhat more direct-competitors can
be viewed as one of the costs of having their own competitiveness
preserved through liability derezulation.
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Federal Reserve Bank of St. Louis
(6) Of course, S. 1720 provides substantial deregulation for banks as
well.
(7) In essence, S. 1720 reflects my basic belief that every financial
institution should be given the maximum amount of freedom -- consistent
with protecting competitive equity and the soundness of our financial
structure -- to structure its own assets and liabilities as it sees
fit.
V.
Concentration
(1) Deregulation of balance sheets, by removing restrictions on growth
from product-line-limitations, does raise the issue of overconcentration of financial resources.
(2) Should geographic restraints on expansion by traditional depository
institutions also be relaxed to enable them to meet the new competition
from investment banks and others, this would heighten concerns
regarding over-concentration of resources.
(3) I am concerned about the danger from over-concentration of resources,
especially to the extent that it might lead to inadequate attention
to unique local and regional credit needs.
(4) At the same time, I am aware that the United States Attorney General,
in a recent speech to the Reserve City Bankers Association, stated his
belief that the anti-trust laws alone -- without the addition of
geographic restrictions -- are sufficient protection against excessive
concentration.
(5) Moreover, because geographic restrictions keep out new competitors
and also limit the number of potential buyers for a troubled institution,
the Attorney General argued that: "...although McFadden may to some
degree reduce the aggregate concentration of financial resources on
a national scale, it does so by increasing market concentration and
lessening competition in local banking markets."
(6) The anti-trust laws also should be looked at as an important line of
defense against over-concentration of financial resources resulting
from asset deregulation.
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Federal Reserve Bank of St. Louis
.•
•
CONFERENCE PARTICIPANTS
INTERNATIONAL MONETARY CONFERENCE
(As of May 3, 1982)
ALESSANDRO ALESSANDRINI and Lorena
Managing Director, Banco di Roma, Rome
WILLIS W. ALEXANDER and Sandy
Executive Vice President, International Monetary Conference and
Executive Vice President, American Bankers Association, Washington, D.C.
LOUIS G. ALLEN and Cally
President, Manufacturers National Bank of Detroit
ROGER H. ALLOO and Marie-Jose
(
Managing Director, Societ‘. Gngiale de Banque S.A., Brussels
SAMUEL H. ARMACOST and Mary Jane
President, Bank of America, N.T. & S.A., San Francisco
TAGE ANDERSEN and Elly
Chief Executive and Managing Director, Den Danske Bank, Copenhagen
ROGER E. ANDERSON
Chairman of the Board, Continental Illinois National Bank and Trust
Company of Chicago
HANNES ANDROSCH
Chairman of the Board of Managing Directors, Creditanstalt-Bankverein,
Vienna
DEWALT H. ANKENY, JR. and Margie
Chairman of the Board and Chief Executive Officer, First National Bank
•)flst11'I•PlU
lis
J. CARTER BACOT and Shirley
Chairman of the Board and Chief Executive Officer, The Bank of New York
THE RT. HON. LORD BARBER and Lady Barber (Jean)
Chairman, Standard Chartered Bank Limited, London
NORMAN BARKER, JR. and Sue
Chairman of the Board, First Interstate Bank of California, Los Angeles
CLARENCE C. BARKSDALE and Nini
Chairman of the Board and Chief Executive Officer, Centerre Bank, St. Louis
TIMOTHY H. BEVAN and Pamela
Chairman, Barclays Bank Limited, London
PROF. DR. KURT HANS BIEDENKOPF and Ingrid
Deputy Chairman, Christian Democratic Party, and Leader of the Opposition
State Parliament, DUsseldorf
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•4.
2
CHARLES M. BLISS and Margaret
Chairman of the Board and Chief Executive Officer, Harris Trust and
Savings Bank, Chicago
GERALD K. BOUEY and Anne
Governor, Bank of Canada, Ottawa
ENRICO BRAGGIOTTI and Magda
General Manager, Banca Commerciale Italiana, Milan
WILLIAM D. BREEDLOVE and Margaret
Chairman of the Board, First National Bank in Dallas
ALFRED BRITTAIN III and Bea
Chairman of the Board, Bankers Trust Company, New York
GEORGE BROSA
Deputy General Manager, Banco Espaliol de Creaito, Madrid
WILSON M. BROWN, JR. and Betsy
President and Chief Executive Officer, Central National Bank of Cleveland
VINCENT C. BURKE, JR. and Celine
Chairman of the Board, The Riggs National Bank of Washington, D.C.
WILLARD C. BUTCHER and Carole
Chairman of the Board and Chief Executive Officer, The Chase Manhattan
Bank, N.A., New York
GEORGE A. BUTLER and Barbara
Chairman and President, First Pennsylvania Bank, N.A., Philadelphia
JAMES KEITH CAMPBELL, CBE, FCA, and Marjorie
Chairman and Chief General Manager, Hooker Corporation Limited, Sydney
RJ DE ALMEIDA CAPELA
Executive Director, Banco Portuguts do AtlIntico, Lisbon
A. W. CLAUSEN and Peggy
President, The World Bank, Washington, D.C.
OSWALDO ROBERTO COLIN
Chairman, Banco do Brasil S.A., Brasilia
ALVARO CONDE
Managing Director, Bancomer, S.A., Mexico City
RICHARD P. COOLEY
Chairman and Chief Executive Officer, Wells Fargo Bank, N.A., Los Angeles
NIALL CROWLEY and Una
Chairman, Allied Irish Banks Limited, Dublin
JEAN DEFLASSIEUX
/
President, Credit Lyonnais, Paris
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Federal Reserve Bank of St. Louis
3
RAYMOND J. DEMPSEY
Chairman and President, The Fidelity Bank, Philadelphia
ROBERT R. B. DICKSON and Louise
Vice Chairman, International Banking Group, The Toronto-Dominion Bank,
Toronto
G. MORRIS DORRANCE, JR. and Carter
Chairman of the Board, The Philadelphia National Bank
KENNETH L. DOWD and Sheryl
Senior Vice President, Canada Division, The Toronto-Dominion Bank,
Toronto
WILLIAM B. EAGLESON, JR. and Cantor
Chairman of the Board, Girard Bank, Philadelphia
JAN EKMAN
President, Svenska Handelsbanken, Stockholm
JAMES A. ELKINS, JR. and Margaret
Chairman of the Executive Committee, First City National Bank of Houston
JOHN A. ELORRIAGA and Lois
Chairman of the Board and Chief Executive Officer, United States
National Bank of Oregon, Portland
GEORGE T. FARRELL
President, Mellon Bank, Pittsburgh
WILLIAM D. FINLAY and Verette
Governor, Bank of Ireland, Dublin
JOCK K. FINLAYSON and Maddy
President, The Royal Bank of Canada, Toronto
ROWLAND C. FRAZEE and Marie
Chairman and Chief Executive Officer, The Royal Bank of Canada, Montreal
R. DONALD FULLERTON and Judy
Vice Chairman and President, Canadian Imperial Bank of Commerce, Toronto
THE HON. EDWIN (JAKE) GARN
United States Senator, Utah, and Chairman, Senate Committee on Banking,
Housing and Urban Affairs, Washington, D.C.
MERLE E. GILLLAND and Olive Lee
Chairman and Chief Executive Officer, Pittsburgh National Bank
RAINER E. GUT and Josephine
Chief Executive Officer, Credit Suisse, Zurich
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4
WILFRIED GUTH and Ruth-Christiane
Managing Director, Deutsche Bank A.G., Frankfurt
MAX HACKL
Member of the Board of Management, Bayerische Vereinsbank, Munich
JOHN F. HARRIGAN and Barbara
Chairman and Chief Executive Officer, Union Bank, Los Angeles
RUSSELL E. HARRISON and Nancy
Chairman and Chief Executive Officer, Canadian Imperial Bank of Commerce,
Toronto
HELMUT HAEUSGEN and Annelene
Chairman of the Supervisory Board, Dresdner Bank AG, Frankfurt
ROBERTUS HAZELHOFF and Gerharda
Member of the Managing Board, Algemene Bank Nederland N.V., Amsterdam
FREDERICK HELDRING and Colette
Deputy Chairman, The Philadelphia National Bank
FINN B. HENRIKSEN and Anna-Margrete
Managing Director, Bergen Bank A/S
ALFRED HERRHAUSEN and Traudl
Managing Director, Deutsche Bank A.G., Dusseldorf
RICHARD D. HILL and Polly
Vice President, International Monetary Conference, and Chairman of the
Board, The First National Bank of Boston
ERIK HOFFMEYER and Eva
Chairman, Board of Governors, Danmarks Nationalbank, Copenhagen
ROBERT HOLZACH
Chairman of the Board, Union Bank of Switzerland, Zurich
FOPBERTUS HOOGENDIJK
Managing Director, Amsterdam-Rotterdam Bank N.V., Amsterdam
WOLFGANG JAHN and Gabriele
Managing Director, Commerzbank Aktiengesellschaft, Ddsseldorf
WILFRIED JANSSENS and Gaby
General Manager, Kredietbank N.V., Brussels
LLEWELLYN JENKINS and Doris
President, American Bankers Association, and Vice Chairman of the Board,
Manufacturers Hanover Trust Company, New York
WILLIAM M. JENKINS
Chairman, Seattle First National Bank
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5
ARTHUR L. JOHNSON, JR.
Staff Director, Liaison Committee, International Monetary Conference,
and Director, Convention/Meetings Services, American Bankers
Association, Washington, D.C.
NORMAN WILLIAM JONES, T.D. and Evelyn
Group Chief Executive, Lloyds Bank Limited, London
YUSUKE KASHIWAGI and Kazuko
President, The Bank of Tokyo, Ltd.
WILLIAM H. KENNEDY, JR. and Marylena
President-Elect, American Bankers Association, and Chairman of the
Board, National Bank of Commerce, Pine Bluff
WILLIAM A. KENNETT
Inspector General of Banks, Department of Finance, Government of Canada,
Ottawa
J. ROBERT KILLPACK and Norma
President, National City Bank, Cleveland
ANDREW KNIGHT
Editor, The Economist, London
SIR HAROLD KNIGHT K.B.E., D.S.C. and Lady Knight (Gwen)
Governor, Reserve Bank of Australia, Sydney
HAL C. KUEHL and Joyce
Chairman of the Board, First Wisconsin National Bank, Milwaukee
TORU KUSUKAWA and Hiroko
Deputy President, The Fuji Bank, Ltd., Tokyo
ALLEN T. LAMBERT and Marion
Former Chairman, The Toronto-Dominion Bank, Toronto
ALEXANDRE LAMFALUSSY
Assistant General Manager, Bank for International Settlements, Basle
DONALD E. LASATER and Mary
Chairman of the Board and Chief Executive Officer, Mercantile Trust
Company, N.A., St. Louis
AGUSTIN F. LEGORRETA and Martha
Chairman of the Board and Chief Executive Officer, Banco Nacional
de Mexico S.A., Mexico City
ROBERT LEIGH-PEMBERTON and Rosemary
Chairman, National Westminster Bank Limited, London
JEAN-MAXIME LgV2QUE and Anne
Chairman, I. B. I. Holding Company, N.V., Paris
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Federal Reserve Bank of St. Louis
6
ROBERT V. LINDSAY and Nancy
President, Morgan Guaranty Trust Company of New York
LEIF T. LODDESOL
President and Chief Executive Officer, Den norske Creditbank, Oslo
JAMES E. LODGE and Mary Jane
Press Officer, International Monetary Conference, and Executive
Director, Communications, American Bankers Association, Washington,
D.C.
BEN F. LOVE and Margaret
Chairman of the Board and Chief Executive Officer, Texas Commerce
Bancshares, Inc., Houston
GERALD M. LOWRIE and Shirley
Executive Director, Government Relations, American Bankers Association,
Washington, D.C.
ROGER A. LYON and Mary
President and Chief Administrative Officer, The Valley National Bank of
Arizona, Phoenix
THE HON. ALLAN J. MacEACHEN
Deputy Prime Minister and Minister of Finance, Government of Canada
Ottawa
ROBERT M. MacINTOSH and Lynn
President, The Canadian Bankers' Association, Toronto
VEIKKO MAKKONEN and Irja
President, Kansallis-Osake-Pankki, Helsinki
DONALD R. MANDICH and Georgia
Chairman, Detroit Bank and Trust
PAUL McCRACKEN
Edmund Ezra Day University Professor of Business Administration, Graduate
School of Business Administration, University of Michigan, Ann Arbor
W. SCOTT McDONALD and Lois
Vice Chairman and Director, The Bank of Nova Scotia, Toronto
JOHN F. McGILLICUDDY and Constance
Chairman of the Board and Chief Executive Officer, Manufacturers
Hanover Trust Company, New York
JOHN W. McINTYRE and Joan
President, The Citizens and Southern National Bank, Atlanta
FRANK E. McKINNEY, JR. and Katie
Chairman of the Board and Chief Executive Officer, American Fletcher
National Bank, Indianapolis
JOHN G. MEDLIN, JR. and Polly
President, Wachovia Bank and Trust Co., N.A., Winston-Salem
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Federal Reserve Bank of St. Louis
7
JOHN D. MILNE
Managing Director, Australia and New Zealand Banking Group Limited,
Melbourne
GEORGE F. MOODY
President and Chief Operating Officer, Security Pacific National Bank,
Los Angeles
JAY P. MORETON and Lou
Vice President - Government Relations, Canadian Imperial Bank of Commerce,
Toronto
JOHN W. MORRISON and Charlotte
Chairman and Chief Executive Officer, Northwest Bancorporation,
Minneapolis
REBECCA MORTER
Staff Assistant, International Monetary Conference, and Administrative
Assistant, Convention/Meetings Services, American Bankers Association,
Washington, D.C.
TOR MOURSUND and Guni
President and Chief Executive Officer, Christiania Bank og Kreditkasse,
Oslo
WILLIAM D. MULHOLLAND and Nancy
Chairman and Chief Executive Officer, Bank of Montreal
SHUZO MURAMOTO
President, The Dai-Ichi Kangyo Bank, Ltd., Tokyo
J. TERRENCE MURRAY and Suzanne
President, Industrial National Bank of Rhode Island, Providence
FELIPE NAVALPOTRO
Joint General Manager, Banco Central S.A., Madrid
TOMAS F. di C0FAIGH and Joan
Governor, Central Bank of Ireland, Dublin
ROBERT E. PEEL
General Manager, The Bank of Nova Scotia, Toronto
HOWARD C. PETERSEN and Elizabeth
Former Chairman, The Fidelity Bank, Phildelphia
JOHN R. PETTY and Lee
President, Marine Midland Bank, N.A., New York
TREVOR W. PILLEY and Eleanor
Chairman of the Board and Chief Executive Officer, Bank of British Columbia,
Vancouver
CHARLES H. PISTOR and Regina
Chairman of the Board and Chief Executive Officer, RepublicBank Dallas
DONALD C. PLATTEN and Margaret
Chairman, Chemical Bank, New York
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Federal Reserve Bank of St. Louis
8
KARL OTTO i6HL and Ulrike
President, Deutsche Bundesbank, Frankfurt
ROGER PRAIN
Director General Manager, CrLit Commercial de France, Paris
HERBERT V. PROCHNOW
Former President, The First National Bank of Chicago
THE HON. DONALD T. REGAN
Secretary of the Treasury of the United States, Washington, D.C.
GRANT L. REUBER and Margaret
Deputy Chairman, Bank of Montreal
CEDRIC E. RITCHIE and Barbara
Chairman of the Board and Chief Executive Officer, The Bank of Nova Scotia,
To
MARIO RIVOSECCHI
Managing Director, Credito Italiano, Milan
RICHARD M. ROSENBERG and Barbara
Vice Chairman, Wells Fargo Bank, N.A., San Francisco
MICHAEL G. R. SANDBERG and Carmel
Chairman, The Hongkong and Shanghai Banking Corporation, Hong Kong
WILLEM E. SCHERPENHUIJSEN ROM and Verena
Chairman of the Board, Nederlandsche Middenstandsbank N.V., Amsterdam
ARTHUR SCHMIEGELOW and Sonja
Chairman of the Board of Managing Directors, Privatbanken A/S, Copenhagen
CHAUNCEY E. SCHMIDT and Anne
Chairman of the Board and Chief Executive Officer, The Bank of California,
San Francisco
PROF. HENRI SIMONET
D4put‘, Brussels
ANTHONY M. SOLOMON
President, Federal Reserve Bank of New York
THOMAS I. STORRS and Kitty
Chairman of the Board, North Carolina National Bank, Charlotte
HANS STRASSER and Liliane
Chairman of the Board, Swiss Bank Corporation, Basle
ROBERT M. SURDAM and Mary
Chairman of the Board, National Bank of Detroit
PHILIP W. K. SWEET, JR. and Nancy
Chairman of the Board and Chief Executive Officer, The Northern Trust Company,
Chicago
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Federal Reserve Bank of St. Louis
9
CHUSUKE TAKAHASHI and Hideko
Deputy President, The Sumitomo Bank, Ltd., Tokyo
GEOFFREY W. TAYLOR and Joyce
Director and Group Chief Executive, Midland Bank Limited, London
JACQUES THIERRY and Lulette
President, Banque Bruxelles Lambert S.A., Brussels
RICHARD L. THOMAS and Helen
President, The First National Bank of Chicago
RICHARD M. THOMSON and Heather
Chairman and Chief Executive Officer, The Toronto-Dominion Bank,
To
LARS-ERIK THUNHOLM
Chairman, Skandinaviska Enskilda Banken, Stockholm
MIKA TIIVOLA and Satu
Chairman of the Board of Management and President, Union Bank of Finland,
Helsinki
G. ROBERT TRUEX, JR.
Chairman and Chief Executive Officer, Rainier National Bank,
Seattle
SIR ANTHONY TUKE and Lady Tuke (Mila)
Former Chairman, Barclays Bank Limited, London
PENTTI UUSIVIRTA
Member of the Board, Bank of Finland, Helsinki
H. FRANS VAN DEN HOVEN and Mrs. Van den Hoven
Chairman, Unilever N.V., London
MARC VIENOT
General Manager, Soci‘t‘ GeMrale, Paris
PAUL A. VOLCKER
Chairman, Board of Governors of the Federal Reserve System, Washington, D.C.
FRANZ VRANITZKY
Chairman of the Board of Managing Directors, Osterreichische Landerbank A.G.,
Vienna
HENRY C. WALLICH
Member, Board of Governors of the Federal Reserve System, Washington, D.C.
GORDON T. WALLIS and Jean
Chairman of the Board, Irving Trust Company, New York
BEN J. WATTENBERG
Senior Fellow, American Enterprise Institute, Washington, D.C.
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Federal Reserve Bank of St. Louis
LUC WAUTERS and Luce
President, International Monetary Conference, and Chairman,
Almanij-Kredietbank Group, Kredietbank N.V., Brussels
M. BROCK WEIR and Jean
Chainman and Chief Executive Officer, AmeriTrust Company of Cleveland
ANDREW R. WHITE and Linda
Vice President, Domestic Banking, Bank of Montreal, Toronto
OGDEN WHITE, JR. and Bonnie
Senior Vice President, The First National Bank of Boston
ROBERT J. WHITE and Molly
Director and Chief General Manager, Bank of New South Wales, Sydney
THOMAS R. WILCOX and Jane
Chairman of the Executive Committee, Crocker National Bank, San Francisco
P. W. WILKE, JR. and Paula
President and Chief Executive Officer, First Interstate Bank of Oregon, N.A.,
Portland
THOMAS R. WILLIAMS and Loraine
Chairman of the Board, The First National Bank of Atlanta
DOUGLAS C. WILLIAMSON and Effie
Vice President, Operations, The Royal Bank of Canada, Vancouver
ROBERT A. WILLSON and Margaret
Chairman of the Board, Northland Bank, Calgary
LARS WOHLIN
Governor, Sveriges Riksbank, Stockholm
KNUT GETZ WOLD
Governor, Norges Bank, Oslo
WALTER B. WRISTON and Kathryn
Chairman, Citibank, N.A., New York
YUSHIN YAMAMURO and Teiko
Deputy President, The Mitsubishi Bank, Ltd., Tokyo
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Federal Reserve Bank of St. Louis
PRESS PARTICIPANTS
INTERNATIONAL MONETARY CONFERENCE
(as of May 4)
NIGEL ADAM
U. S. Editor, Euromoney Publications, New York
BERNARD BAUMOHL
Economics Reporter, Time Magazine, New York
CHARLES DAVIES
Managing Editor, Canadian Business Magazine, Toronto
MARJORIE DEANE
Deputy Business Editor, The Economist, London
KLAUS C. ENGELEN
Foreign Editor, Handelsblatt, DUsseldorf
WILLIAM B. HUMMER
Partner, Wayne Hummer & Co., Chicago
YOICHIRO ICHIOKA
Bureau Chief, Nihon Keizai Shimbun, Washington, D.C.
RICHARD F. JANSSEN and Jerry
Senior Editor, Business Week, New York
CAROLA KAPS and Franz
Economic Correspondent, Frankfurter Allgemeine,
Washington, D.C.
JOE MARTIN
President, Pacific Rim Publications Ltd., Vancouver
BAILEY MORRIS and Wilson
Washington Economics Correspondent, The Times of London, Washington, D.C.
NEVILLE J. NANKIVELL
Editor-in-Chief, The Financial Post, Toronto
VIC PARSONS
Business Editor, The Canadian Press, Toronto
ART PINE
International Economics Correspondent, The Wall Street Journal,
Washington, D.C.
WILLARD C. RAPPLEYE JR. and Marita
Editor, Financier Magazine, New York
HELMUT REINCKE
Economics Correspondent, Neue Zurcher Zeitung, Washington, D.C.
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Federal Reserve Bank of St. Louis
- 2
JOHN L. STEPHENS
Managing Editor, Reuters North America, New York
HARRY WADDELL and Jamie
Editor, ABA Banking Journal, NFW York
BEN WEBERMAN and Sylvia
Economics Editor, Forbes, New York
ALENA WELS
Editorial Director, Journal of Commerce, New York
ALFRED ZANKER and Kerstin
European Economic Editor, U.S. News & World Report, Geneva
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Federal Reserve Bank of St. Louis
INTERNATIONALACONETARY CONFERENCE
1 120 Connecticat-Avenue, N.W., Washington, D.C. 20036
February 11, 1982
BOARD OF DIRECTORS
President
Luc V. Wauters
Chairman, Almanij-Kredietbank Group
Kredietbank N.V.
Brussels, Belgium
Vice-President
Richard D. Hill
Chairman of the Board
The First National Bank of Boston
Boston, Massachusetts
Immediate Past President
Roger E. Anderson
Chairman of the Board
Continental Illinois National Bank
and Trust Company of Chicago
Chicago, Illinois
Executive Vice President
Willis W. Alexander
Executive Vice President
American Bankers Association
Washington, D.C.
Alessandro Alessandrini
Managing Director
Banco di Roma
Rome, Italy
TU:f11.ii
The Rt. Hon.
rber
Chairman
Standard Chartered Bank Limited
London, England
William B. Eagleson, Jr.
Chairman
Girard Bank
Philadelphia, Pennsylvania
Richard J. Flamson
Chairman of ,the Board and Chief
Executive Officer
Security Pacific National Bank
Los Angeles, California
Yusuke Kashiwagi
•
President
The Bank of Tokyo, Ltd.
Tokyo, Japan
Donald C. Platten
Chairman
Chemical Bank
New York, New York
Lewis T. Preston
Chairman
Morgan
•Guaranty Trust Company
I
f New York
New York, New York
Michael G. R. Sandberg
Chairman
The Hongkong and Shanghai Banking
Corporation
Hong Kong
Arthur Schmiegelow
Chairman of the Board of
Managing Directors
Privatbanken AJS
Copenhagen, Denmark
The Honorable Paul A. Volcker
Chairman
Board of Governors of the
Federal Reserve System
Washington, D.C. 20551
Dear Mr. Chairman:
We are pleased that you will be able to participate in Session V
during the International Monetary Conference, which will convene
May 24-27 at the Four Seasons Hotel in Vancouver. While we realize your schedule is very full, we hope you will be able to attend
the entire Conference.
U.S. Secretary of the Treasury Donald T. Regan and World Bank
president A. W. Clausen are among the distinguished program
participants this year. The enclosed preliminary programs pro
vide an overview of the session topics and social functions
planned both for the Conference attendees and the ladies.
The attendance and arrival forms enclosed should be completed
and returned in the envelope provided at your earliest convenience. We have attempted to provide sufficient information
on tours and flight schedules to enable you to make firm plans.
Because of the holiday weekend which precedes the Conference,
and the efforts of our hosts and the federal and provincial
governments to extend the hospitality of their country, an early
response would be helpful. While a number of items have been
included, I encourage you to review them before completing your
arrangements.
We should also appreciate receiving by March 15 a biography and
photograph for inclusion in the program participants' booklet.
We look forward to your participation in what promises to be
ding meeting.
an outs
Thomas .I
Chairman of the Board
North Carolina National Bank
Charlotte, North Carolina
Hans Strasser
Chairman of the Board
Swiss Bank Corporation
Basel, Switzerland
M. Brock Weir
Chairman and Chief Executive Officer
AmeriTrust of Cleveland
Cleveland, Ohio
Consultant to the Board
Herbert V. Prochnow
Former President
The First National Bank of Chicago
Chicago, Illinois
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Federal Reserve Bank of St. Louis
Willis Alexander
Enclosures for your information and assistance
Preliminary Program and Ladies Program
Suite Assignment Guidelines & Hotel Brochure
Pre- and Post-Conference Tour Information
Air Canada Flight Schedules
•
.
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Federal Reserve Bank of St. Louis
INTERNATIONAL MONETARY CONFERENCE
February 11, 1982
page 2
Enclosures to be completed and returned
Attendance and Accommodations Form
Arrival/Transfer Form
Passport Information
Biography and Photograph Requested
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Federal Reserve Bank of St. Louis
November 3, 1981
Mr. L. Wauters
Chairman
Almanii-Kredietbank Group
Kredietbank N.V.
Brussels, Belgium
Dear Luc:
I have your letter describing the program
for the International Monetary Conference in
Vancouver.
I would be happy to participate,
as you suggest.
Sincerely,
PAV:ccm
Copy to:
Joe Coyne
1
INTERNATIONAL MONETARY CONFERENCE
1120 Connecticut Avenue, N.W., Washington, D.C. 20036
Brussels, October 22, 1981
BOARD OF DIRECTORS
President
Luc V. Wauters
Chairman, Almanij-Kredietbank Group
Kredietbank N.V.
Brussels, Belgium
Vice-President
Richard D. Hill
Chairman of the Board
The First National Bank of Boston
Boston, Massachusetts
Immediate Past President
Roger E. Anderson
Chairman of the Board
Continental Illinois National Bank
and Trust Company of Chicago
Chicago, Illinois
Executive Vice President
Willis W. Alexander
Executive Vice President
American Bankers Association
Washington, D.C.
Alessandro Alessandrini
Managing Director
Banco di Roma
Rome, Italy
The Rt. Hon. Lord Barber
Chairman
Standard Chartered Bank Limited
London, England
William B. Eagleson, Jr.
Chairman
Girard Bank
Philadelphia, Pennsylvania
Richard J. Flamson
Chairman of .the Board and Chief
Executive Officer
Security Pacific National Bank
Los Angeles, California
Yusuke Kashiwagi
President
The Bank of Tokyo, Ltd.
Tokyo, Japan
Donald C. Platten
Chairman
Chemical Bank
New York, New York
Lewis T. Preston
Chairman
Morgan Guaranty Trust Company
of New York
New York, New York
Michael G. R. Sandberg
Chairman
The Hongkong and Shanghai Banking
Corporation
Hong Kong
Arthur Schmiegelow
Chairman of the Board of
Managing Directors
Privatbanken AJS
Copenhagen, Denmark
Thomas I. Storrs
Chairman of the Board
North Carolina National Bank
Charlotte, North Carolina
Hans Strasser
Chairman of the Board
Swiss Bank Corporation
Basel, Switzerland
M. Brock Weir
Chairman and Chief Executive Officer
AmeriTrust of Cleveland
Cleveland, Ohio
Consultant to the Board
Herbert V. Prochnow
Former President
The First National Bank of Chicago
Chicago, Illinois
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Federal Reserve Bank of St. Louis
The Honorable Paul A. Volcker
Chairman
Board of Governors of the
Federal Reserve System
WASHINGTON, D.C. 20551
72+
-
U.S.A.
Dear Mr. Chairman,
Next year's International Monetary Conference will be heldAn
Vancouver, Canada, May 25-27, 1982. For Thursday morning, May 27,
we should like very much to organize the central bankers'panel
discussion, traditionally one of the highlights of the program.
It is for me, as President of the Conference, a priviledge and a
great pleasure to invite you for participation on the panel,
together with Governor Richardson, President Leutwiler, President
Poehl, and Governor Bouey. Donald Platten, Chairman of Chemical
Bank, would be in the chair. Don and Ben Love are the program
committee members in charge of co-ordinating this session.
They will give further details as soon as arrangements are
completed with all concerned.
The Vancouver program is intended to be an intensive exercise of
strategic thinking in the major fields of financial evolution and
banking policy.
In Session I the important currents in modern society, influencing
financial policies and activity, will be analysed. The purpose
statement reads as follows:
"The current environment is characterized by the rivalry
for preeminence between the public sector and the private
sector, and between labour and capital. At the same time
important claims on the industrial nations are formulated
and pressed by the developing countries. The diversity and
magnitude of the challenges with which the world economy
is confronted (inflation, unemployment, energy crisis and
development) make these rivalries and claims ever more
intense to the point that the stability of our economic
system may be threatened."
"IF
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Federal Reserve Bank of St. Louis
INTERNATIONAL MONETARY CONFERENCE
Session II deals with the strategic challenges for banking.
Bank management will have to make some important choices in
the pursuit of their basic activities as to the way in which
they secure growth, profitability, and capital adequacy.
How to cope best with challenges of size, territorial spread,
diversification, mechanization, competition from near-banks,
increased regulation and controls?
The purpose of Session III is a profound analysis of the view
of the public on banking, its performance, its image and its
contribution to economic welfare.
In Session IV publ
wbcthhaineal knl
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ssipeonestopc.
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within the framewo
ffi
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t
nos
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et ake place in the legislation
f national economic policy.
ess
We hope that the central bankers, in the final session, would
accept to discuss issues raised by the Conference inasfar as
they relate to monetary policy and central bank activity.
The Prime Minister of Canada is invited to address the
Conference, and special talks will be given by the Secretary
of the U.S. Treasury Donald Regan and by President Clausen of
tIs_ World Bank.
We are looking forward to a most interesting Conference.
Your participation would greatly enhance its importance,
and therefore we hope that you will accept our invitation
and join us for as muc'_-1 of the program as your time allows.
Sincerely,
-r/
L. Waute---
ng
OUTLINE OF SENATOR GARN'S REMARKS
I.
Role of Banking
(1) Through deposit-taking and credit-granting, commercial banks and
other financial intermediaries perform the fundamental role of
allocating the savings generated by the American economy to the
most productive uses.
(2) The nation also has charged banks and other intermediaries with
making sure adequate credit is available for certain sociallyimportant sectors of our economy such as small.business and
housing.
(3) Through geographical limitations on ha:11: expansicn, the nation
has sought to avoid excessive concentration cf financial resources
and tc foster the grok\'th of financial institutions oriented to
the unique credit needs of localities and regions of the country.
II.
Banking's Loss of Market Share
(1) Government regulations, havever, can and have caused banks and
othe-r depository institutions to lose market share and, thereby,
prevented them from performing their intended roles as financial
intermediaries.
(.) These regulations have been most onerous when depository institutions
have been forced to compete head-to-head with other intermediaries
not subject to the same regulations.
'(3) The Regulation Q-inspired growth of money market mutual funds from
less than $4 billion at the end of 1977 to almost $200 billion
today -- largely at the expense of deposits in traditional depository
institutions -- is a classic exaavle of this.
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Federal Reserve Bank of St. Louis
(4) Wnile a large portion of the funds flowing into MI's are, in
turn, invested in CD's and are, thereby, recycled through the
banking system, I arr concerned that this recycling is concentrated
in ;he money-center banks.
(5) Locally- and regionally-oriented depository institutions are denied
the opportunity to meet their customers' credit needs, and those
custorrers typically do not have the option of going to money-center
banks.
(6) The solution to this problem, though, is not to impose new regulations
on!INIMF'S and other such financial innovations.
(7) Rather, the solution is to deregulate the already-regulated.
III.
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Federal Reserve Bank of St. Louis
Foreign-Bank Competition in the U.S. Market
(1) Foreign banks clearly have been capturing a growing share of the U.S.
commercial-loan market, especially the market for the largest loans.
(2) As of June 30, 1981, foreign banks had over 20 percent of the total
U.S. commercial- and industrial -loan market.
(3) One reason foreign banks have been so competitive for the larger
loans is that the foreign banks' faster growth in asset size -vis-a-vis American banks -- in recent years enables them to offer
larger lines of credit to borrowers.
(4) The dwindling importance of American banks among
can be seen from the fact that, whereas in 1960,
for 44.5 percent of the corrbined deposits of the
banks, by 1979 -- the most recent date for which
the U.S. share had declined to 13.5 percent.
the world's largest
U.S. banks accounted
world's 100 largest
data are available --
Whereas 241 American banks ranked among the world's largest 500
in 1961, only 93 U.S. banks ranked in that group in 1980.
One reason advanced for the relatively faster growth of foreign
banks is that most foreign governments do not impose the same sort of
geographical restrictims on domestic bank expansion as does the U.S.
While statistical proof is difficult to core by, it is also alleged
that foreign-bank competitiveness is enhanced by lower capital
requirements and by government ownership leading to a lower cost
of capital.
Viability of Specialized Financial Institutions
I have already indicated that, rather than impose new regulations
on new competitors like money market mutual funds, what we should do
is to deregulate our traditional depository institutions.
In the Financial Institutions Deregulation and Monetary Control
Act of 1980, Congress set in motion a process for deregulating the
liability side of traditional depository institutions' balance
Sheets.
(3) But, as was apparent from seven days of oversight hearings before the
Banking Committee last spring, if today's specialized financial
institutions are to remain viable as their liabilities are deregulated,
their assets must be deregulated as well.
(4) This is why I introduced S. 1720 last October.
(s)
For banks, having thrifts as somewhat more direct-competitors can
be viewed as one of the costs of having their o.A-n competitiveness
preserved through liability deregulation.
•
(6) Of course, S. 1720 provides substantial deregulation for banks as
well.
(7) In essence, S. 1720 reflects my basic belief that every financial
institution should be given the maximum amount of freedom -- consistent
with protecting competitive equity and the soundness of our financial
structure -- to structure its own assets and liabilities as it sees
fit.
V.
Concentration
(1) Deregulation of balance sheets, by removing restrictions on growth
from product-line-limitations, does raise the issue of overconcentration of financial resources.
(2) Should geographic restraints an expansion by traditional depository
institutions also be relaxed to enable them to meet the new competition
from investment banks and others, this would heighten concerns
regarding over-concentration of resources.
(3) I am concerned about the danger from over-concentraticn of resources,
especially to the extent that it might lead to inadequate attention
to unique local and regional credit needs.
(4) At the same time, I am aware that the United States Attorney General,
in a recent speech to the Reserve City Bankers Association, stated his
belief that the anti-trust laws alone -- without the addition of
geographic restrictions -- are sufficient protection against excessive
concentration.
competitors
(5) Moreover, because geographic restrictions keep out new
and also limit the number of potential buyers for a troubled institution,
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Federal Reserve Bank of St. Louis
the Attorney General argued that: "...although McFadden may to some
degree reduce the aggregate concentration of financial resources an
a national scale, it does so by increasing market concentration and
lessening competition in local banking markets."
(6) The anti-trust laws also should be looked at as an important line of
defense against over-concentration of financial resources resulting
from asset deregulation.
4.*
:4...
INTERNATIONAL MONETARY CONFERENCE
1120 Connecticut Avenue, N.W., Washington, D. C. 20036
May 4, 1982
BOARD OF DIRECTORS
President
Luc V. Wauters
Chairman, Almanij-Kredietbank Group
Kredietbank N.V.
Brussels, Belgium
Vice-President
Richard D. Hill
Chairman of the Board
The First National Bank of Boston
Boston, Massachusetts
Immediate Past President
Roger E. Anderson
Chairman of the Board
Continental Illinois National Bank
and Trust Company of Chicago
Chicago, Illinois
Executive Vice President
Willis W. Alexander
Executive Vice President
American Bankers Association
Washington, D.C.
Alessandro Alessandrini
Managing Director
Banco di Roma
Rome, Italy
The Rt. Hon. Lord Barber
Chairman
Standard Chartered Bank Limited
London, England
William B. Eagleson, Jr.
Chairman
Girard Bank
Philadelphia, Pennsylvania
Richard J. Flamson
Chairman of the Board and Chief
Executive Officer
Security Pacific National Bank
Los Angeles, California
Yusuke Kashiwagi
President
The Bank of Tokyo, Ltd.
Tokyo, Japan
Donald C. Platten
Chairman
Chemical Bank
New York, New York
The Honorable Paul A. Volcker
Chairman
Board of Governors of the
Federal Reserve System
Washington, D.C. 20551
Dear Mr. Chairman:
As you are aware, the Program Committee hopes to include in
Session V some discussion on the issues presented in the
preceding sessions. Because some of the central bank
participants will not be able to attend the full Conference,
it was suggested that texts be circulated in advance to each
of you. Don Platten, chairman of Session V, will also be
able to provide a synopsis of the preceding discussions,
during the Session participants meeting.
If
Enclosed are the first texts received, and a copy of the
program outline developed by the Program Committee. Subsequent texts will be sent without cover letter.
Our thanks for your orienting some of your remarks to the
subjects •iscussed in earlier Conference sessions.
Lewis T. Preston
Chairman
Morgan Guaranty Trust Company
of New York
New York, New York
Michael G. R. Sandberg
Chairman
The Hongkong and Shanghai Banking
Corporation
Hong Kong
Arthur Schmiegelow
Chairman of the Board of
Managing Directors
Privatbanken AJS
Copenhagen, Denmark
Thomas I. Storrs
Chairman of the Board
North Carolina National Bank
Charlotte, North Carolina
Hans Strasser
Chairman of the Board
Swiss Bank Corporation
Basel, Switzerland
M. Brock Weir
Chairman and Chief Executive Officer
AmeriTrust of Cleveland
Cleveland, Ohio
Consultant to the Board
Herbert V. Proch now
Former President
The First National Bank of Chicago
Chicago, Illinois
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Federal Reserve Bank of St. Louis
i us Alexander
Executive Vice President
cc:
Don Platten
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Federal Reserve Bank of St. Louis
4/26/82
IMC PROGRAM 1982
SESSION I
Tuesday morning, May 25, 1982
IMPORTANT CURRENTS IN MODERN SOCIETY:
OUR ENVIRONMENT
Purpose Statement:
The current environment is characterized by the rivalry for
preeminence between the public sector and the private sector, and
between labour and capital. At the same time important claims on
the industrial nations are formulated and pressed by the developing
countries.
The diversity and magnitude of the challenges with which the world economy
is confronted (inflation, unemployment, energy and development) make
these rivalries and claims ever more intense to the point that the stability
of our economic system may be threatened.
Chairman:
Richard D. Hill
Chairman of the Board
The First National Bank of Boston
100 Federal Street
Boston, MA 02110
Contact: F. Heldring
Accepted
Addresses:
Dr. Kurt H.Biedenkopf, MdL
Haus des Landtages
Staendehausstrasse 1
4000 Duesseldorf 1, Germany
Contact: A. Herrhausen
Accepte0
Contact: F. Heldring
Dr. Paul W. McCracken
Edmund Ezra Day University
H. Prochnow
Professor of Business Administration
Accepted
Graduate School of Business Administration
University of Michigan
Monroe at Tappan Street
Ann Arbor, MI 48109
Responses:
Jean-Maxime Leveque
Chairman
I.B.I. Holding Company N.V.
"Cecofin" 17 a. George V
75008 Paris, France
Contact: A. Herrhausen
arrepred
Willard C. Butcher
Chairman and Chief Executive Officer
The Chase Manhattan Bank, N.A.
1 Chase Manhattan Plaza
New York, NY 10081
Contact: F. Heldring
Accepted
PROGRAM COMMITTEE ASSIGNMENTS:
Frederick Heldring
Alfred Herrhausen
INTERVENTIONISTS
Fopbertus Hoogendijk
Agustin Legorreta
SESSION II
Tuesday p.m., May 25, 1982
STRATEGIC CHALLENGES FOR BANKING
Purpose Statement:
The dimensions of the challenges in Session I, oblige the banks to make
some important choices:
- in their relations with government in order to express their views
on the proper scope of government regulations and intervention in
their business
- in their lending policy
- in their pursuit of profitability and capital adequacy.
How to cope best with challenges of size, territorial spread, divsersification,
mechanization, increased controls? The fast-growing competition by near-banks will
be specifically discussed. Is the pursuit of power the proper way of positioning?
Is performance necessarily a function of size?
Chairman:
Mr. Rowland C. Frazee
Chairman and Chief Executive Officer
The Royal Bank of Canada
Box 6001
Montreal, P.Q. H3C 3A9, Canada
Remarks:
Dr. Wilfried Guth
Managing Director
Deutsche Bank A.G.
D-6000 Frankfurt
Grosse Gallusstrasse 10-14
Germany
Agreed
Contact: R. Gut/
A. Herrhausen
Accepted
Contact: R. Frazee/
Samuel H. Armacost
D. Cooley
President and Chief Executive Officer
Accepted
Bank of America N.T. & S.A.
P. O. Box 37000
San Francisco, California 94137
Richard M. Rosenberg
Vice Chairman
Wells Fargo Bank N.A.
P. O. Box 44000
San Francisco, California
Contact: R. Frazee/
D. Cooley
Accepted
94163
Contact: R. Frazee/
Shuzo Muramoto
Y. Kashiwagi
President
Accepted
The Dai-Ichi Kangyo Bank Ltd.
1-1-5 Uchisaiwaicho
Chiyoda-ku, Tokyo, 100
Japan
PROGRAM COMMITTEE ASSIGNMENTS:
INTERVENTIONISTS
Rowland Frazee
Robert Leigh-Pemberton
Rainer Gut
Michael Sandberg
Walter Wriston
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
SESSION III
Wednesday a.m., May 26, 1982
HOW DOES THE PUBLIC VIEW BANKING?
Purpose Statement:
The purpose of the session is a profound analysis of the view
of the public on banking, its performance, its image and its contribution
to economic welfare.
The analysis is applied to different countries and is based on polls
and in-depth interviews of a representative sample.
Chairman:
John G. Medlin, Jr.
President and Chief Executive Officer
Wachovia Bank and Trust Company, N.A.
Winston-Salem, North Carolina
Speakers:
Agreed
27102
Andrew S. B. Knight
Editor
The Economist
25 St. James's Street
London SW1, England
Contact: J. Medlin
Accepted
Ben J. Wattenberg
Senior Fellow
American Enterprise Institute
1150 17th Street, N.W.
Washington, D.C. 20036
Contact: J. Medlin
Accepted
Frans van den Hoven
Chairman
Unilever, N.V.
Unilver House
Black Friars
London EC4P 4BQ, England
PROGRAM COMMITTEE ASSIGNMENTS:
John Medlin
Yusuke Kashiwagi
Contact: J. Medlin
Accepted
INTERVENTIONISTS
Wolfgang Jahn
Timothy Bevan
William Mulholland
Richard Cooley
Chusuke Takahashi
William Eagleson
Robert Holzach
Willem Scherpenhuijsen Rom
SESSION IV
Wednesday p.m., May 26, 1982
HOW DOES THE PUBLIC SECTOR SEE BANKING?
Purpose Statement:
Public officials close to the legislative process express their views
on banking with respect to the important currents and problems discussed
in the first session. They elaborate on the changes they expect to take
place in the legislation on banking and its functioning within the
framework of national economic policy.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Chairman:
Lars-Erik Thunholm
Chairman of the Board
Skandinavisk Enskilda Banken
S-106 ro Stockholm
Sweden
Agreed
Remarks:
The Honorable Edwin(Jake) Garn
U.S. Senator, Utah, and Chairman
Committee on Banking, Housing &
Urban Affairs
5207 DSOB
Washington, D.C. 20510
Contact: W. Alexander/
D. Cooley
Accepted
Prof. Henri Simonet
Depute
Krokussenlaan 1
1070 Brussels, Belgium
Contact:
Accepted
Mr. J. Keith Campbell,C.B.E.
Chairman
Hooker Corporation Limited
Hooker House
175 Pitt Street
Sydney, N.S.W. 2000, Australia
Contact: L-E Thunholm
Accepted
PROGRAM COMMITTEE ASSIGNMENTS:
Richard Cooley
Lars-Erik Thunholm
INTERVENTIONISTS
Dr. Hannes Androsch
John Milne
Lew Preston
Jacques Thierry
L-E Thunholm
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
SESSION V
Thursday a.m., May 27, 1982
CENTRAL BANKERS DISCUSSION ON ISSUES
RAISED BY THE CONFERENCE
Chairman:
Donald C. Platten
Chairman
Chemical Bank
277 Park Avenue
New York, New York
Agreed
10172
Central Bankers:
The Honorable Paul A. Volcker
Chairman
Board of Governors of the
Federal Reserve System
Washington, D.C. 20551
Contact: D. Platten
Accepted
The Honorable Lars vohlin
Governor
Sveriges Riksbank
Box 16283
S-103 25 Stockholm, Sweden
Contact: D. Platten
Accepted
The Honorable Karl Otto Poehl
President
Deutsche Bundesbank
Wilhelm-Epstein-Str. 14
Frankfurt-am-Main
Federal Republic of Germany
Contact: D. Platten
Accepted
The Honorable Gerald K. Bouey
Governor
Bank of Canada
234 Wellington Street
Ottawa, Ontario KlA 0G9
Canada
Contact: D. Platten
Accepted
PROGRAM COMMITTEE ASSIGNMENTS:
Donald C. Platten
Ben F. Love
II
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Federal Reserve Bank of St. Louis
SPECIAL GUEST SPEAKERS
Welcome-President's Dinner
Monday, May 24
Informal Contact: R. Frazee
Invitation: L. Wauters
Accepted
Luncheon
Tuesday,May 25
Accepted
8:45 a.m
Thursday, May 27
Dates reserved on calendar
Contact: W. Alexander
Invited: L. Wauters 10/28
(expect to accept)
The Honorable Allan J. MacEachen
Deputy Prime Minister and
Minister of Finance
Governnment of Canada
House of Commons
Parliament Buildings, Room 209-S
Ottawa, Ontario KlA 0A6
Canada
The Honorable A. W. Clausen
President
The World Bank
1818 H Street, N.W.
Washington, D.C. 20433
The Honorable Donald T. Regan
Secretary of the Treasury
Department of the Treasury
Washington, D.C. 20220
Removal Notice
The item(s) identified below have been removed in accordance with FRASER's policy on handling
sensitive information in digitization projects due to copyright protections.
Citation Information
Document Type: Conference Materials
Citations:
Number of Pages Removed: 81
McCracken, Paul W. "Is Economic Progress Obsolete?" Speech, International Monetary
Conference, Vancouver, Canada, May 25, 1982.
Biedenkopf, Kurt. "Important Currents in Modern Society." Outline of Remarks, International
Monetary Conference, Vancouver, Canada, May 25, 1982.
Guth, Wilfried. "Strategic Challenges for Banking in the Future." Outline of Remarks,
International Monetary Conference, Vancouver, Canada, May 25, 1982.
Rosenberg, Richard M. "Near Banks and Technological Challenges for Banking." Speech,
International Monetary Conference, Vancouver, Canada, May 25, 1982.
Wattenberg, Ben J. Outline of Remarks, International Monetary Conference, Vancouver,
Canada, May 25, 1982.
Campbell, J. Keith. "How Does the Public Sector See Banking?" Remarks, International
Monetary Conference, Vancouver, Canada, May 25, 1982.
Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
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