Winnipeg Free Press

Winnipeg Free Press (Newspaper) - November 27, 1978, Winnipeg, Manitoba 12 Winnipeg free press monday november 27, 1978 Money trading How can it by Larry Kramer the Washington Post Washington in 19g8, there were about billion Worth of eurodollars american dollars floating around the world in currency transactions. Ten years later that amount has swelled to Between billion and billion and it shows no signs of letting up. Meanwhile lightning fast currency transactions have shifted millions of dollars into other currencies within seconds and the growth of multinationals has continued virtually unbridled. And new questions have been raised about the ability of National Banks or Bank regulatory agencies around the world to keep watch Over the Money markets. A former Citibank Money trader has charged his sex employer with parking transactions from european branches in Nassau in an Effort to avoid lax payments charges the Bank denies. Further the same sex banker David Edwards has written a Magazine article depicting the daily life of a currency trader and hinting that trades working in concert have at time beaten Down the Price of the Dollar deliberately in order to make individual profits for their Banks or companies. The Only reason they were beating the Dollar Down he says was because that was the direction in which it was already heading merely making it easier to capitalize and effect Market swings. At some other time they could have manipulated the Dollar up As Well. What he has raised is two different issues that really go to the same question. Are the Banks regulated enough As to the first charge that Citibank itself created transactions Between its european branches and Nassau Branch in an attempt to lower the tax bite in the various countries in which it operates Bank sources say such activity would be clearly illegal if it was indeed happen ing. And according to the Library of Congress which did a study for a congressman the Bank could face criminal charges for violating a never used banking Law More than 50 years old that prohibits any false entry in any Book report of statement of a corporation organized to do foreign banking with intent to injure or defraud any other company body politic or corporate and sees criminal penalties for making such entries or aiding or abetting the making of such though some form of parking is done by virtually every multinational corporation or Bank Citibank just May have gone too far banking sources say. At one Point in november 1976, it has been reported that Citibank had booked Loans totalling s15 billion in Nassau though none were negotiated there. That total reflected one fourth of the assets of the Bank at that time. And despite Citibank claims that there is no tax advantage for parking Loans in Nassau other banking sources say that the Complex tax relationship Between the United states and other countries does provide an advantage for those with their profits shifted to Nassau. When Edwards brought his charges to Citibank Accord ing to sources in the Bank he was essentially told not to worry about them. But his persistence to have it cleared up Cost him his Job and he in turn filed a million suit charging he Bank wih wrongful dismissal. But it was Edwards second More sexy set of allegations about a conspiracy of sorts on the part of Money trades to manipulate transactions to their Benefit that caused an uproar and has attracted the attention of the banking and Bank regulating Community As Well As the Media. Coming at a time when the Dollar was hitting new lows All Over the world the charges that some select few might across by Martin Rossman the Angeles times they re called Multi Media show producers. They Deal in dazzle dazzle. Jim Sant Andrea is one such. What his new York based firm does in essence is put on a closed door spectacular usually for a giant corporation. He has done it for american Telephone Avon products Bank of America. Chrysler Mcdonald subs. And Xerox among others. We Are usually hired to Intro Duce a new product or marketing strategy at an annual sales meet Sant Andrea says. We will Couch the subject in the form of a show with film slides special lighting live Dancs is music literally a Broadway show for a live special the logistics Are probably far More Complex than those for a typical Broadway show As one re cent task illustrates. Sant Andrea s firm was Given the Job of coming up with an extravaganza that would introduce Chrysler s 1979 line of autos. Taking Over a hangar like Struc Ture in Atlanta Sant Andrea s Crevy constructed a theatre with a 200 foot stage. It was an hour and Len minute show and we used 14 slide projectors two Iri mar. Movie projectors an extensive sound system and a lighting setup that included ultraviolet and laser projection i Here were 15 screens and the people were practically surrounded by the show in i lie show live performers appeared to pop out of a screen do their bit and disappear Brick into the screen. After a puff of smoke a new car would seem to suddenly jump from a crate marked be then after a slow revolution on a la rumble the car drove Back into the screen ending up on a san Francisco pier. It was a sophisticated design Sant Andrea says but we did t go too much into he nuts and bolls we wanted to concen trate in the spirit of the despite the complexities of put Ting on such a presentation. Set Andrea May have As Manv As n of i hem in various stages at okie Lime. Alt sukh Chels with a simpler Story to Tell can get Uway with a or s20.000 production Saul Andrea says a Multi Media show will typically Range from to several million dollars. His firm in fact took on a million task for the government of Venezuela spending six months in the country. Sant Andrea traces the Multi Media show to the 1964 world s fair when such giant firms As ism Dapont and Pepsi cola put them on to create excitement in their Pavil ions and they did. The same was line of he Montreal expo in ibs7 3. Sani Andice had been a Frt i Lance Art director hut drifted into the multimedia Field when he began to lie new method to make new presentations. He s been at it for years. One of Iii first jobs Vas for in pm which was introducing a new material Corfam. It was As tiie successor to shoe leather. The show May have been a smash the product bombed. Frank Duffy Sant Ancl Roa s exec wive and a former client when i was with Twa says the whole purpose of u Multi Media show is to make it exciting to make Popi feel Good Anoai their and in can pay off in dollars he adds. If Avon get it women to make just two More Calls i a , that s Calls. they strike on 10 per cent if their Calls Ai i l thai the average Sale is that s Fli More a san Audrea in ainian that a Hiie Are spending Money in this reach of in is anti productive. We have to he very creative at what we Daffy if i say i be Jasi Seta a great show but 1 miss the new products 01 to Iii features or How much is going to be spent the program then the producer has Ion a had Job a u Andrea when a new client comes to see the things we be done be i admit it pal on some Tor him. Almost in variably he will u k if the medium is going Louei in the Way if his Mes i it can it s a run her of Good j or bad do sign. It s like de fusing a bomb ii can Only be Dune right one g of news a the i free press correspondent Ottawa no Mailer what happens to Domestic Oil prices on Jan. 1, there will be a Little bit of Good news for gasoline buyers at the pumps on new year s Day. The Federal government has decided to me Trifi Cate the special gasoline lax charged for non com Mercial uses of the fuel. And in the process o reduce the per gallon lax from the current seven cents to approximately cents. Al the same Lime the Federal Vevenne depart ment is responsible for collecting the gasoline excise tax first imposed at 10 cents a gallon in 1975 and Hen re h ced in seven cents last August has moved in change the Way it collect the tax from Oil refiners. Intro wed As a special As a result of the has i or a or Vatiqi my a ure in imposed three cents a thin they would apply Ion reduction announced a three Ceni rebate last August the depart firn mint has been using a rather round about approach. Involving additional paper the refiners work for the Oil Conigan Consumers v. Ill pay a ibs sir air he seven cents a o before the Oil compan inn through and ies paid the original 10 Ihrer Eair the cents per cents a gallon lax which hire excise a. New York Montreal american motors am airlines. A Morijn Tel a to l arinr.0 Atlan lir a in for Avon it lomb. Beatrice of nov beneficial cd o Blue Coll. Boise Cascade Bristol Morrs Nurlin Aton mini Burroughs Suup. Coa com. Cons fact icon. Crown Zell Eruan Dart met. Deere a co. Dinev Dow chem Eastman Kodak. Al Paw Nat Gas Exxon corp. Torn1 motor. Gay corp game la Skomo. Gen electric. General foods. General motors. Georgia Pac. Gillette Goodrich . Goodyear tire. Gull Oil corp. Heini he. Fin rje.iai-. S 0 a a of i cd win boo Wool to to f crot Corn for Lav nove.-. Fer if a i. Troll pole. In . Twin 5 sonic Ickom res a it fort vol Kiev Coo have been dumping the Dollar for profits served to excite Many who have reason to doubt the intentions of the banking Community. The comptroller has decided to open up a new office to watch multinational transactions the Justice department is investigating Edwards charges of collusion these purities and Exchange commission has opened an inquiry and at least three congressional committees have investigated the situation with the intention of holding hearings to look into the matter. Both Seis of charges raise the same question through different situations can the world Money system Ever be regulated until now there has been enough Confidence in the various local Bank regal atoms from each country. But the attitude of the big Bankers in the face of Edwards charges has been Cue of arrogance toward those who do not understand banking. And that Confidence has begun to erode into confusion. What people Don t said one now York Hank official is that Money must flow around the world 2-1 hours a Day. The various local Laws concerning Money flow Don t recognize the needs of the fast moving of it is that attitude that has inspired the backlash of Congress the Justice department and the Bank Regula tors. And despite the fact that Many governments do not fully understand International Money trading and have Laws reflecting that ignorance there is one fact that the banking Community for the time being will have to contend with people elect governments. People do not elect Bankers. And after the dust settles from All of the racy headlines the key question will still remain. How can International currency trading be regulated f new complaints with Many Wall Streeter taking a Post thanksgiving Holiday and the rest ignoring the latest Rise in the prime Rale the Stock Market chalked up a modest gain in Light trading Friday. Volume totalled just 14.59 million shares the slowest Day since a 11.56 million share Day july 3. The Dow Jones average of 30 industrials managed a 3.12 increase to 810.12, giving it a total gain for the week of 12.39. Nearly twice As Many issues advanced As declined on the new York Stock Exchange where the composite Index of All listed common stocks Rose .20 to 53.44. The Rise came despite the 14th prime rate increase of the year announced by most major Banks As the Day began. The Rise led by no. 2-ranked Citibank put the rate Hanks charge their Best corporate customers at iiy2 percent the highest Point since the 12 percent reached during the credit crunch that accompanied the 1974-75 recession. Is. 3 o Wall Streeter usually look askance at prime rate rises but seemed to take this had been generally stride. The increase latest in a series spurred on by the Federal Reserve in an attempt to strengthen the . Dollar had an immediately positive effect on the beleaguered currency. The Market got some Good news from Treasury Secretary Michael Blu me thai who said he expected the organisation of Petroleum Lix porting countries to raise crude Oil prices 7 or 8 percent at its meeting next month rather than the 10 percent or More which has been predicted. Blumenthal made the pre diction As he returned from a tour of the Mideast. Friday s biggest gainers were the Casino related issues which dominated the most Active list. Airline and aerospace firms were also Strong with Ual up at Delta rising at Twa gaining 1 at Boeing ahead i at and Mcdonnell Douglas up at Over nigh Price Tow Ito pm Al corporate affairs and the fan in a sport ministry have not May Noi Many amp Tuims. Prices for following Imperial s de gasoline 10 the per Lead Shell Canada Ltd., Mormance they expected Sunico jnc., and Texaco re Guir , few Canada i in. Have Intro Irv Compla Iri in 10iciola diced Premium groups. In Nusi areas. Most or Igor Imse in1 re thu started lining Marke Tinl ii the new Premium at Punis have in he sane Price As the Lead Premium id . Aii Houglin one replacing i i irk a a d c Spok in an said h a nov ii expensive pts. A Ino unit ice. is Lilio i i Shell s mvivr.-, so. Chimi i i Paru Ien said for r Vitlar. Nnoli and d a Quilar Fin Vavy ate and in i i ales a a Huld i i i ii in said of be id a Iasi it expect cars per form Tsiu r on Liu. To by or . To j Kruplo Oil i.-. Of up. Per i from a rom ii jv1 per cent in eur. Nredici.1 is of cars to crease Flora p a Fern Era during tiered Kutck Sac Sai leaded premi a n d r n e n Sal 1 Are i 10 gnaw to c. A. Lir. Per per or i if o. I. S of in dealers thai of ti1- sell of ii to Tiv Seii Iii is. Iho Premium and Nisius in Slih k a rags or.ii the Toronto Stock mar Ket moved sharply higher Friday Al the close of its heaviest trading in six weeks. The tse h to Index was up 8.-hi to 1.266.66, highest since oct. 18, with advances in ail four of most heavily weighted groups. Analysts said reports of uranium finds in Newfoundland precipitated the Advance by sending mining issues sharply higher. A m o n y the heavy we Igus metals and minerals climbed 15.-15 to financial services 9.32 to a five week High of 1 Oil and Gas stocks 7.-ic to and Industrial products 2.77 to real Siat and co Siruc icon Shales jumped 2s Points to Lead the seven the Oiler i groups Vii he the composite Index Gold stocks were the biggest of Ine three liners. Volume of i Adim to talled -1.51 million shares from mom advances outnumbered declines by a margin of t w o -1 o n n e As stocks Elini Boi for con re in mud Eute trading on the Montreal std ii ill Clinge i riday. Volu was i Lyl. Hares. Compared Vii tradou1 of . All key indies moved higher the cnmfxisilt.1 Index to Ipri King a gain of 5.23 Points Lor the Wei k Tii Index Ros in 2i ii Uiililr-.-, to Banks 2.32 to Grain heaviest since oct. 16, valued at million com pared with thursday s 3.88 million at million. A of contracts were traded on the options Marl Iel. Up from 2.19-t thursday Burns i my i Ltd., one of the mos Active Industrial issues i spin the trades wit i. 17.1 of shares at two b Oclus 2-i.soo shares at the same Price. Voyager Petroleum Ltd. Took s co Iii place with 000 share. A Fol Lowed by four blocks total Ling shares at and a Block at s23. Alberta Gas trunk line co. I id. Was third with 30. A shares at a share. Burns funds Ltd. Was up o a High of a share in la Sale of i shares Fri a wifi a three Lih or halt fur news that have approved the company s with holdings Ltd. Of t i 23.-1 papers 0 67 to 144.70. The Oil Gas Index dipped to 2ii 70 alter Wisting Stead. Kilns ail week Fol lowing a series of take Over but gains by red Estale issues Elise Ilie a Cine. Aur but civil a s.r.i-iin in the Hank ii Knox this week to a number of Rahs Lunial dividend 1 i ratio and an of improved the a i e no Iuston als i a i in ume of . I. Shar n traded. V.-. Techs at a i of 10 glided. Produce from is re l r i it Zimm id ii Trio tee v Trade of 1. A Barley 2vt a i.n of i. Rve and i.1 Chicago 24. 1978. There Mere . Ali a huli a Rani a. 2 i 2 w is. The 11 . Hog Price was the Manitoba producers mar Clini Board s average Price was j79.75. A thursday s average was is. For for ;