FOREIGN BANK SECRECY HEARINGS BEFORE THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS OF THE COMMITTEE ON BANKING AND CURRENCY NINETY-FIRST CONGRESS SECOND SESSION ON S. 3678 and H.R. 15073 BILLS TO AMEND THE FEDERAL DEPOSIT INSURANCE ACT COMMITTEE ON BANKING AND CURRENCY JOHN SPARKMAN, Alabama, Chairman WILLIAM PROXMIRE, Wisconsin WALLACE F. BENNETT, Utah EDWARD W. BROOKE, Massachusetts HARRISON A. WILLIAMS, JR., New Jersey JOHN G. TOWER, Texas EDMUND S. MUSKIE, Maine THOMAS J. MCINTYRE, New Hampshire CHARLES H. PERCY, Illinois WALTER F. MONDALE, Minnesota ALAN CRANSTON, California ROBERT W. PACKWOOD, Oregon DUDLEY L. O'NEAL, Jr., Staff Director and General Counsel SUBCOMMITTEE ON FINANCIAL INSTITUTIONS WILLIAM PROXMIRE, Wisconsin, Chairman HARRISON A. WILLIAMS, JR., New Jersey EDWARD W. BROOKE, Massachusetts JOHN SPARKMAN, Alabama EDMUND S. MUSKIE, Maine THOMAS J. MCINTYRE, New Hampshire WALLACE F. BENNETT, Utah CHARLES H. PERCY, Illinois KENNETH A. MCLEAN, Professional Staff Member (II) Will Wilson, Assistant Attorney General, Department of Justice, accompanied by Whitney North Seymour, Jr., U.S. Attorney, Southern District of New York, and Robert Rosthal, Deputy Chief, Government Operations Section, Criminal Division__ Hamer H. Budge, Chairman, Securities and Exchange Commission, accompanied by Irving M. Pollack, Director, Division of Trading and Markets; Stanley Sporkin, Associate Director (Enforcement), Division of Trading and Markets; Philip A. Loomis, Jr., general counsel, and Eugene T. Rossides, Assistant Secretary for Enforcement and Operations, Department of the Treasury, accompanied by Robert Cole, Special Assistant for International Tax Affairs; William L. Dickey, Deputy Assistant Secretary; Bernard Mehan, Special Assistant, Compli- ance Staff, Internal Revenue Bureau; and Robert Rostahl, Deputy Chief, Government Operations Section, Department of Justice. Carl W. Desch, senior vice president, First National City Bank, accom- panied by Roy Haberkern, partner, Millbank, Tweed, Hadley & McCloy, New York City; and John F. Lee, executive vice president, New York C. Coleman McGehee, president, First & Merchants National Bank, Richmond, Va., accompanied by William Boyd, Jr., senior vice president and manager, international banking, Pittsburgh National Bank, Pitts- Frank J. Wilson, vice president and associate counsel, National Association of Securities Dealers, Inc. on behalf of Henri L. Froy, chairman, Foreign Committee, National Association of Securities Dealers, Inc.. ALPHABETICAL LIST OF WITNESSES Boyd, William Jr., senior vice president and manager, international bank- 236 Budge, Hamer H., Chairman, Securities and Exchange Commission__. 73 285 Desch, Carl W., senior vice president, First National City Bank.. Dickey, William L., Deputy Assistant Secretary, Department of the Haack, Robert W., president, New York Stock Exchange_ Lee, John F., executive vice president, New York Clearing House Associa- Cole, Robert, Special Assistant for International Affairs, Department of Page 147 Froy, Henri L., chairman, Foreign Committee, National Association of 306 285 286 186 McGehee, C. Coleman, president, First and Merchants National Bank... Mehan, Bernard, Special Assistant, Compliance Staff, Internal Revenue Pearce, Ira H., Special Counsel, Securities and Exchange Commission Pollack, Irving M., Director, Division of Trading and Markets, Securities Shipley, Carl L... Sporkin, Stanley, Associate Director, Enforcement, Division of Trading Wilson, Frank J., vice president and associate counsel, National Association Wilson, Robert W., Robert W. Wilson Investments, New York. Wilson, Will, Assistant Attorney General, Department of Justice_ 310 73 Cocchi, Raymond W., president, Independent Broker-Dealers Trade 346 Court of Appeals, State of California, opinion in Summers v. Surety Savings 347 First and Merchants National Bank, Richmond, Va., statement of C. 227 First City National Bank of New York, monthly economic letter of, reprint 342 First National City Bank of New York: Carl W. Desch, senior vice president: Answers to questions proposed by Senator Bennett- Herron, S. Davidson, Jr., financial vice president, IN A Corp., statement of_ INA Corp., statement of S. Davidson Herron, Jr., financial vice president_ Independent Broker-Dealers Trade Association, letter to Senator Prox- Metz, Robert, reprint of articles by, in the New York Times.. 329 National Association of Securities Dealers, Inc.: Frank J. Wilson, vice president, statement of. Reprint of cablegram from___ New York Clearing House: Desch, Carl W., statement of___ Reprint of bill S. 3678 with suggested changes_ Page 299 306 309 186 193 Pittsburgh National Bank, Pittsburgh, Pa., statement of William Boyd, 236 Riseley, Jerry B., chairman, National League for Privacy in Bank Accounts, 347 Robert W. Wilson Investments: Comparative financial statement-50 percent net long position with 329 330 Budge, Hamer H., Chairman, prepared statement-- Investment company holdings of the Fund of Funds, Ltd. (table). Management company holdings of the Fund of Funds, Ltd. (table).. Reprint of advertisement from the Wall Street Journal_ 75 130 Combined holdings, FOF Prop. Funds, Ltd., ITT Fund, Fond- Seymour, Whitney North, Jr., prepared statement--- 71 347 Summers v. Surety Savings and Loan Association, opinion, Court of Appeals, Rossides, Eugene T., Assistant Secretary, prepared statement_ Wall Street Journal, reprint of advertisement from....... CHARTS AND TABLES Combined holdings, FOF Prop. Funds, Ltd., ITT Fund, Fonditalia, IOS Venture Fund of Canada, IOS International Ventures Fund, and Regents 170 165 75 |