"John S. Reed, Reuben F. Richards, and Thomas C. Theobold have been
promoted to executive vice presidents at First National City Bank."
(Executive Changes. New York Times, Dec. 22, 1970.) Richards is the son
of Junius A. Richards, a
director of Tobacco and Allied Stocks at the 1953 merger of Benson
& Hedges and Philip Morris. John Shephard Reed has been a director
of Philip Morris since 1975,
and has been a member of the board of managers of the Memorial
Sloan-Kettering Cancer Center at least since 1992. Reed was born in
Chicago in 1939, but grew up in Argentina and Brazil, where his father
was an executive of Armour & Co. (Armour, the meat packing company,
was a client of the Lord & Thomas advertising agency before and
throughout Albert Lasker's time. J. Ogden Armour was a partner with
Lasker and William Wrigley in their acquisition of the Chicago Cubs
baseball team.) Reed joined Citibank in 1965, when it
was First National City Bank. Three years later, he was named vice
president and in 1969, at the age of thirty, he became the youngest
senior vice president in the corporation's history. He was Chairman and
Chief Executive Officer of Citicorp and its main subsidiary, Citibank,
from 1984 until his resignation in 2000. He has also been a director of
the Monsanto Co.; Massachusetts Institute of Technology; the American
Museum of Natural History; The Rand Corporation; and the Spencer
Foundation. Citigroup, the world's largest financial services company,
is the 18th largest donor to the Republican Party. Its subsidiaries
include Salomon Brothers Smith Barney and Travelers. (Reed bio, Duke
University, http://ciber.fuqua.duke.edu/oswc/1997/wc97par4.htm). He is
an emeritus trustee and the chairman of the board of overseers of the
Joan and Sanford I. Weill Medical College and Graduate School of
Medical Sciences of Cornell University.
1986 Reed bio: "Mr. Reed is a trustee of the Russell Sage Foundation, a director of Philip Morris Inc., a director of Monsanto Company, and a trustee of the Memorial Sloan-Kettering Cancer Center (New York). Other boards on which he serves include those of the Massachusetts Institute of Technology (MIT), the Center for Advanced Study in Behavioral Sciences (Palo Alto, California), the New York Blood Center, and United Technologies Corporation." (Contributors. In: The Positive Sum Strategy: Harnessing Technology for Economic Growth. By Ralph Landau and Nathan Rosenberg. National Academy Press, 1986.) A number of other members of the "Anti-Smoker Industrial Complex" contributed to this book as well, such as William O. Baker of Bell Labs, a founding director of the General Motors Cancer Research Foundation and the Health Effects Institute.Reed bio - The Positive Sum Strategy / National Academy Press
Reed was a director of Philip Morris/Altria Group Inc. from 1975 until September 2003, when he resigned to serve as Interim Chairman and Chief Executive Officer of the New York Stock Exchange, and again since 2004. He was a trustee of the Center for Advanced Study in Behavioral Sciences as well. (Director bio, Altria 2006 DEF-14A.)Altria 2006 DEF 14A / Securities and Exchange Commission
Reed is a member of the network around mega-investor Warren Buffett, which included Katharine Graham, the late chairman of the Washington Post, and her son; Capital Cities/ABC Chairman Thomas S. Murphy; former Johnson & Johnson chairman James Burke; James D. Robinson, former chairman of American Express; and Laurence Tisch of CBS.
Reed was a member of the board of overseers and managers of MSKCC in 1987. Other current board members were
James D. Robinson 3d, chairman and chief executive of the American
Express Company; Richard L. Gelb, chairman and chief executive of the
Bristol-Myers Company; and Clifton C. Garvin Jr., former chairman and
chief executive of the Exxon Corporation. The Chairman was Benno C.
Schmidt. (Dr. Marks' Crusade. By Philip M. Boffey. New York Times, Apr.
26, 1987.) He was still a trustee of MSKCC in 2002, but not in 2003.
(Director bio, Philip Morris 2000 DEF-14A.) Mr. and Mrs. Reed donated
between $5 million and $9,999,999
to MSKCC IN 2005. (Campaign for Memorial Sloan-Kettering. 2005 Annual
Reed was a director of the Council on Foreign Relations from 1989 to 1992, along with fellow PM director Harold Brown. Reed and Brown are also on the Board of Trustees of the Rand Corporation, which also includes Frank Carlucci and Arthur Levitt of The Carlyle Group, Newton Minow, and Kenneth Shine, President of the Institute of Medicine. Lasker crony Paul G. Rogers is an Advisory Trustee. Reed previously served on the Rand board from 1987 to 1997, and was a trustee when it produced the Manning study of smoking costs.1999 Historical Roster of Directors and Officers / Council on Foreign Relations (pdf, 3pp)
Reed is on the Strategic Education Research Partnership (SERP) committee of the National Academy of Sciences. While at Citicorp he created the Citicorp Behavioral Sciences Research Council. Joe B. Wyatt of the Washington Advisory Group is the chairman of the committee.Strategic Education Research Partnership Committee / National Academy of Sciences
Irvine H. Dearnley and Christopher C. York, Vice Presidents of Citibank, participated in Work Group 4, "Smoking Control in the Workplace," of the National Conference on Smoking OR Health, Developing a Blueprint for Action, Nov. 18-20, 1981. Other participants included Group Leader Robert Beck, Director of Personnel Benefits and Services of IBM Corp.; Lloyd C. Arnold, director of the Johnson & Johnson Company's Live for Life; Gilbert H. Collings Jr. and Loring Wood of the New York Telephone Company; Willis Goldbeck, Ann Kiefhaber, and Leon J. Warshaw of the Washington Business Group on Health; Marvin M. Kristein of the American Health Foundation; Stanley M. Little of the Boeing Co.; Rebecca S. Parkinson of AT&T; and A. Judson Wells, Special Assistant of the American Lung Association and later ghost author (concealed behind illegal pass-through contracts) of the EPA ETS report.Work Group 4, National Conference on Smoking OR Health, 1981 / UCSF (pdf, 3 pp)
"Bank commits millions in fight against cancer." Citibank press release, Nov 15, 2000. "Citibank USA has introduced two new credit cards that directly contribute to the fight against cancer [sic], America's number one personal health concern. Through a relationship with the American Cancer Society, the nation's leading voluntary health organization, Citibank has also committed to boost the organization's mission reach through Citibank's employees and customers..." It is expected to generate $15 million over a period of five years.Nov. 15 2000 press release / Citigroup
In 1993, American Express under Sanford Weill acquired The Travelers, and Salomon Brothers, whose biggest shareholder was Warren Buffett, in 1997. In 1998, The Travelers acquired Citibank and became Citigroup, and in 2000 Weill kicked Reed out.Chronology of Sandy Weill's Career / Wall Street Journal Books
"In news on the muni front, Salomon Smith Barney was named the lead senior manager for the first two tobacco securitization plans (the transformation of revenue from the large tobacco settlement into bonds) in the summer of 1999" by New York City and Nassau County, NY.Salomon Smith Barney / Iwon.com
"In 1985, Monsanto bought Searle for $2.7 billion. The investment banking work, generating a $1.8-million fee, was handed to William Blair, whose managing partner was Ned Jannotta. On leaving Searle after the sale, [Searle CEO Donald] Rumsfeld was named a senior advisor to Blair while he figured out what to do next." (The Don, by Carol Felsenthal. Chicago Magazine June 2001.) Reed and former EPA Adminstrator William D. Ruckelshaus both joined the board of directors of Monsanto in 1985, and Philip Leder joined them in 1990. Reed was on the board until Monsanto was acquired by Pharmacia in 2000.Monsanto 1999 DEF 14A / Securities and Exchange Commission
"Citibank's private bank is also no stranger to controversy. From the Salinas scandal in 1995, to the Zardari scandal in 1997, to the Carlos Gomez fraud in 1998, if any private bank has had reason to review its anti-money laundering controls, Citibank has. Of the 40 private banks reviewed by the Federal Reserve during its industry wide examination of private banking, only one -- Citibank -- was reviewed in detail by Federal Reserve examiners three years in a row. It is a private bank that has struggled with a wide range of anti-money laundering issues. Citibank private bank has implemented policies, internal systems, and employee training programs to combat money laundering. But its record during the 1990s is marked by years of poor audits, three consecutive years of regulatory criticism, and repeated difficulties related to troubled accounts." (From the Minority Staff Report for Permanent Subcommittee on Investigations, Hearing on Private Banking and Money Laundering, Nov. 9, 1999.)Minority Report / US Senate
Reed testified to the Committee as the Chairman and co-CEO of Citibank. He expressed his regrets that Shaukat Aziz, who had run the Private Bank for the last two years and had put its anti-money laundering programs in place, could not be there because he had been called back to serve as the Pakistani Minister of Finance [the morning after the military coup in October 1999].Reed testimony / US Senate
John Reed announced Shaukat Aziz's promotion and the retirement of Vice Chairman Pei-yuan Chia. (Citicorp News Release, Jan. 12, 1996.) Pei, a 22-year veteran, was Citibank, N.A.'s senior customer contact for corporate banking activities in Asia, and was implicated in the Raul Salinas Money Laundering Affair.Citicorp News Release, Jan. 12, 1996 / UCSF (pdf, 2 pp)
Note that it was the US CIA that funded the Taliban in Afghanistan, through Pakistan's ISI (Inter Services Intelligence). "In 1979 'the largest covert operation in the history of the CIA' was launched in response to the Soviet invasion of Afghanistan in support of the pro-Communist government of Babrak Kamal.:
With the active encouragement of the CIA
and Pakistan's ISI [Inter Services Intelligence], who wanted to turn
the Afghan jihad into a global war waged by all Muslim states against
the Soviet Union, some 35,000 Muslim radicals from 40 Islamic countries
joined Afghanistan's fight between 1982 and 1992. Tens of thousands
more came to study in Pakistani madrasahs. Eventually more than 100,000
foreign Muslim radicals were directly influenced by the Afghan jihad.
After Soviet troops withdrew in 1989, "The CIA continued to support
the Islamic "jihad" out of Pakistan. New undercover initiatives were
set in motion in Central Asia, the Caucasus and the Balkans. Pakistan's
military and intelligence apparatus essentially 'served as a catalyst
for the disintegration of the Soviet Union and the emergence of six new
Muslim republics in Central Asia.'" Jane Defense Weekly said that "half
of Taliban manpower and equipment originate[d] in Pakistan under the
ISI." (Who Is Osama Bin Laden? By Michel Chossudovsky. Centre for
Research on Globalisation (CRG), Montréal, Sep. 12, 2001.)
"Son of a former Pakistani diplomat, Shaukat grew up in
Karachi and joined Citibank in Karachi as a trainee at the age of 21.
“I was just out of business school and they sent me to Philippines for
training.” At 24, he found himself as country manager for Citibank in
Jordan. From Amman, he headed first to Athens in Greece as Citi’s
regional head, then on to New York where he worked in the back office
overseeing processing for Asia. In 1982, he arrived in Kuala Lumpur,
Malaysia, as Citibank chief country officer. By 1984, he had left
Malaysia to head up Saudi American Bank, then an affiliate of Citibank
in Saudi Arabia.
It was in Saudi Arabia that he met and networked with the members of the Saudi royal family. Among the people he got to know fairly well was Prince Al-Waleed bin Talal of Saudi Arabia, currently the world’s fifth-richest man. By 1991, when Shaukat had moved to London as head of Middle Eastern business, Citibank was reeling under tens of billions of bad loans in Latin America. Its stock price plunged and the US Federal Reserve wondered how a global giant like Citi could be saved from disaster. The failure of Citi would have ripple effects throughout the banking world. To save the bank, Citi’s then CEO John Reed put together a massive restructuring plan that included a rights issue that would inject several billion dollars of new equity into the holding company then called Citicorp. A bad stock market and reeling economy just kept derailing Citi’s restructuring. In the end, Reed sent his troops around the world to tap wealthy individuals who might be willing to bet on Citi’s revival.
"Enter Prince Al-Waleed, who injected nearly US$600 million into
Citicorp. The legend goes that a bunch of Citibankers had convinced the
Prince that it was the best bet he’d ever make. Among them: Shaukat
Aziz, who had known Al-Waleed as a friend and client for years. “I
think my role in convincing Prince Al-Waleed has been exaggerated but I
did play a role along with a couple of other Citibank veterans like
Paul Collins and Rick Grant.” The rights issue was a success and Citi
stock zoomed from under US$10 a share to nearly US$100 a share at its
height (before its merger with Travelers Group to form the current
"Al-Waleed sold a lot of his stock early but he still made billions
from his investments. He remains a large Citi shareholder and his
remaining Citi shares are reportedly worth US$3.5 billion at current
prices. Citi’s legend and gossip mill has it that after the Al-Waleed
deal, Reed called Shaukat to say he could have any job he wanted,
something Shaukat vehemently denies. “My meteoric rise at Citi had
absolutely nothing to do with the Al-Waleed deal. Citi’s culture
doesn’t reward one deal. I had a long track record at Citi which got me
to where I was when I quit to join the [Pakistan] government.”
"After a stint as head of Asia-Pacific corporate and investment
banking in Singapore, Shaukat moved to New York in early 1996 to become
Citi’s chief planning officer, answering directly to chairman and CEO
Reed. In 1997, he moved to head Citi’s global private bank, the
third-largest private bank in the world. In the mid-1990s, at a retreat
for top Citi executives, Reed pointed to three or four men who he
thought had CEO material in them: Shaukat was one of the four names,
says one Citi insider. By the time Musharraf summoned Shaukat to
Islamabad and asked him whether he would take up the challenge of
mending Pakistan’s economy, the country was not only under economic
sanctions and a pariah state, but Reed was on his way out of Citi
following his standoff with co-chairman Sandy Weill." (Who is Shaukat
Aziz? DesPardes, June 2004.)
"Abu Faraj al-Libbi, arrested in Pakistan this week, is a Libyan
described by Pakistani officials as the key al-Qaeda operative in the
country... He is also regarded as the prime suspect in a number of
bombing incidents in Pakistan, including last year's attempt to kill
Prime Minister Shaukat Aziz." (Pakistan and the 'key al-Qaeda' man. By
Aamer Ahmed Khan. BBC News, Karachi, May 4, 2005.)
Rubin in UN Finance Panel -- A Case of Fox Guarding the Henhouse? By Lucy Komisar. Pacific News Service Dec. 12, 2000. "Citibank claims its private bankers are 'financial architects, designing and coordinating insightful solutions for individual client needs, with an emphasis on personalized, confidential service.' It might have been more accurate to say, 'We set up shell companies, and secret trusts and bank accounts, and dispatch anonymous wire transfers so you can launder drug money, hide stolen assets, cheat on your taxes, avoid court judgments, pay and receive bribes, loot your country.'"Komisar / Pacific News 2000
During World War II, the Japanese armed forces systematically plundered 12 Asian countries, and the loot was stashed in the Philippines. As US forces approached, it was hidden in underground vaults (whose engineers were entombed within them to keep the secret). Japanese General Yamashita's driver was tortured by a Filipino-American intelligence officer named Severino Garcia Santa Romana, supervised by Captain Edward Lansdale, to force him to reveal their location. "Santy's ensuing recoveries greatly altered America's leverage during the Cold War. According to senior US government officials and high-ranking US Army officers, the Truman administration set this treasure aside along with Axis loot recovered in Europe, as a secret political action fund to fight communism in the Cold War. Crudely put, it would be used to bribe statesmen and military officers, and to buy elections for anti-communist political parties. The idea for a global political action fund based on war loot had originated with US secretary of war, Henry Stimson." Stimson's "brain-trust" group set up the Black Eagle Trust, named for the emblem of Hitler's Reichsbank. In 1960, then-vice president Richard Nixon, a crony of Elmer Bobst, gave one of the funds, worth about $35 billion, to the Japanese Liberal Democratic Party. (From: To the Victor... By Sterling and Peggy Seagrave. South China Morning Post 2001 Aug. 25.) [Note: Henry Lewis Stimson (1867-1950) was Secretary of War under Pres. Taft; Governor-General of the Philippines from 1927-1929, Secretary of State under Pres. Hoover; and Secretary of War again under FDR. He was a member of Skull & Bones, Class of 1888.]
"'What this means is that there is now incontrovertible evidence of collusion between America and Japan, while millions of war victims went without any form of compensation to this day... We were doing research at the Hoover Library in California and the MacArthur Memorial Library in Norfolk, Virginia. At both places we suddenly came across documents, personal notes, diaries, entries and also some annotations that confirmed the link between General MacArthur's staff in Tokyo and the people in the Philippines making these recoveries. That led us to the bank documents that showed the Japanese war loot in bank accounts in the name of Herbert Hoover and of General MacArthur.' How much did they profit from the war? 'We know that when Herbert Hoover died, his son had to get permission from the American Treasury to sell US$100 million in gold bullion that was in his father's bank account,' says Seagrave, adding that he has yet to calculate the exact amount MacArthur had in his account." (From: Secret of Hirohito's hidden billions, by Charmaine Chan. South China Morning Post Oct 31, 1999.)Chan / ldolphin.org
"There was no intention on the part of the OSS/CIA to return any of the plunder to the rightful owners. Instead, Santa Romana set up numerous front companies to launder the gold bullion secretly recovered. In all OSS/CIA gold bullion was secretly deposited in a total of 176 bank accounts located in 42 countries.
"Nor was this a rogue project conducted by a knowing few. The authors reveal that General William Donovan, head of the OSS, knew of the Lansdale-Romana recoveries, as did General Douglas MacArthur, and former US President Herbert Hoover. Knowledge also extended to cold war warrior and later head of the CIA Allen Dulles. Seagrave also believes it likely that President Truman was in the charmed circle of those who were informed.
"The twice-looted gold became 'the basis of the CIA's 'off the books' operational funds during the immediate postwar years, to create a worldwide anti-communist network.' To ensure loyalty to the cause, the CIA distributed Gold Bullion Certificates to influential and well-known people throughout the world." (From Hirohito's Gold. By Andrew Springer. BusinessAge Magazine Oct 1999.)Springer / Rense.com
"Cocke was then asked who the 'dominant participant' was 'in terms of running this project, this vast project.' The General is in no doubt of his reply when he says that, based on his own investigation, it was 'Citibank of New York, in both their Athens, Greece, office and their New York City office.' He also acknowledged that Hammer was part of 'an ongoing long-term type of project.'
"Cocke went on to reveal that Citibank 'Were going to be the trustees. They were going to be running the program. They were going to be the disbursing agency. They were the cheese.'
"Asked to identify which principal officer in Citibank handled Project Hammer, Cocke responded that 'from all records, communications and contacts, John Reed was Vice-President, but he was the lone coordinator, for a better word.'
"Reed, who was Citibank's President and Chairman during this period, has formally denied his involvement in Project Hammer. In a deposition sworn in December 2000, Reed stated that he had 'no recognition or knowledge of anything purportedly known as Project Hammer.' Nor did he have 'any recognition or knowledge' of any person named Erle Cocke. His deposition goes on to list a number of other items, people and allegations that he also had 'no recognition or knowledge' about.
"For their part, Citibank, in a letter dated December 12, 2000, state that they 'never issued commercial instruments on the basis of its possession of quantities of gold made available to it by agencies of the US Government and the Federal Reserve in order to ensure the solvency of Citibank in the '80s and other bullion banks.'
"This denial, although emphatic, is interesting. Research shows that gold recovered by the forerunner to the CIA -- the Office of Strategic Services (OSS) -- was deposited in Citibank (and many other banks, too), not in the name of the OSS or CIA but in the name of one of their operatives, Severino Garcia Santa Romana.
When Santa Romana died in 1974, some of this gold was illegally acquired by Philippine President Ferdinand Marcos, who had once been his attorney. Large quantities remain with Citibank in Romana's name and under one of his aliases, and are the subject of a legal dispute between his heirs and John Reed. Some of the gold was also placed under the control of former CIA covert operator Major General Edward Lansdale, and placed in the Union Bank of Switzerland in his name. (From: Project Hammer - Covert Finance and the Parallel Economy. By David G. Guyatt. Nexus Magazine Dec-Jan 2002;9(1).)Guyatt / Rense.com
Cocke, his father, grandfather, and great-grandfather were all bankers. Erle Cocke Sr. was President of Fulton National Bank in Georgia, which is now BankSouth. Cocke Sr. was an active supporter of President Franklin Delano Roosevelt ('Wouldn't have missed it,' was sentiment of Roosevelt throng, by Frank C. Gilreath, Jr. Atlanta Journal Nov. 30, 1935.)Atlanta Journal 1935 / University of Georgia, Carl Vinson Institute of Government
Erle Cocke Jr. headed the Washington office of the CIA's Nugan-Hand Bank, which was a client of BCCI, the "Bank of Crooks and Criminals International," with which Clark Clifford was involved.<= Back to William J. Donovan
"The other major developing group is a class of the global financial elite... This international bourgeoisie is very aware of itself. For example, Citibank made a list of 5,000 individuals whose net worth was $100 million or more. The bank then proceeded to help the superrich of the Third World get their money into banks in the U.S. Today there are 350 individuals with a worth of a billion dollars or more, their wealth is equal to half the world's population.
"The financial strategy of Citibank is worth some attention. This bank under the leadership of Walter Wriston and then John Reed has innovated some of the most important changes in world financial markets. Corporations now focus on the top 15% of the world market, because the bottom 85% of the world's people simply don't have enough money to be considered important. As Reed stated, 'There are 5 billion people living on Earth. Probably 800 million live within societies that are 'bankable.'' (Global Dreams, p. 383).
"Reed's ideas have strong sway. In a knowledge economy, education becomes the key point of access. To use and buy information products and to be part of the new economy depends on your level of education. In most parts of the world, class and access to good education are closely linked. As Reed observed, 'We made an important discovery that drove everything we did later... Peoples' attitudes about finances are a function of how they're raised, their education, and their values, not their nationalities', (Global Dreams, p. 376). Class, not nationalism is the unifying theme here. A world wide upper middle class ruled and cultivated by an international bourgeoisie is the vision that drives this economy -- a world also divided between information rich and information poor.
"This understanding drove Citibank's credit card strategy in the Third World. When Citibank looked at Asia they saw 10 million people making $30,000 or more outside of China and Japan. The best way to find them was simply the phone book. Over 50% of the world's population has never even made a phone call. Only the wealthy have phones, and of course phone lines are a necessary tool of the new economy. So in looking at markets in India, where computer use is growing at 25% a year, Pei-yuan Chia, head of Citibank's global consumer operations was able to say, 'Forget about 90% of the people, and focus on the top 10%. That's 80 million people.' (Global Dreams, p.377)..." (Globalization and the Technological Transformation of Capitalism, by Jerry Harris, DeVry Institute of Technology.)Harris / cy.Rev
"Because some are smarter than others: The case of Ferdinand Marcos and the Central Bank. By James S. Henry. Chapter 3, The best system of all."Henry / Marcosbillions.com