NEWSMAKERS
- News This Issue:Bank Of England Falls Prey To E-Mail Hoax
- Mosul Central Bank Rebuilding Begins
- "Worst Central Banker" In Bid For Presidency
- Drink-Driving Duisenberg Faces Fine
- Greenspan's Discretion Preferred
- Nz's Bollard's Good Cheer Christmas Cards
- Waring Appointed To RBNZ Board
- Trichet Bites Back
- Trichet The Internationalist
- Finland's Matti Vanhala On Sick Leave
- RBA Appoints New Deputy Governor
- Calls For RBA Board To Be 'Rejigged'
- Paul Acquah Elected Chairman Of Wamz
- Peru's Central Bank Chief May Face Fraud Charges
- Central Bank Faces Racism Case
- 3,491 Opt For Early Retirement At RBI
- Banknotes And The Glass Of Water Test
- Hardest Working Man In Central Banking?
- David Carse Stays Offshore
- Gay Huey Evans To Chair The Joint Forum
- Duisenberg At A Discount
- Former Deputy Governor Of The Bank Of England Knighted
- Games Central Bankers Play
BANK OF
ENGLAND FALLS PREY TO E-MAIL HOAX
The Bank of England has become the latest in a line of banking institutions
to experience an e-mail hoax, after 100,000 e-mails purportedly sent out
by the Bank administration bounced back to it in late December. The e-mails
claimed that by downloading an attached software file called "antikeylog2004.exe",
recipients would help prevent credit card fraud. The attachment was later
proved to hold a virus. Experts from the National High Tech Crime Unit
are now trying to ascertain the purpose of the hoax - whether it was a
case of "phishing" (fishing for information by hoax e-mails), a ploy by
fraudsters and organised crime to get customer bank details, or of a less
serious nature.
As yet the number of recipients of the e-mail is unknown, although the
number of bounce-backs alone suggest it could affect a very large number
of people. The Bank of England has issued a news release urging all recipients
to delete any e-mails from the address immediately.
MOSUL CENTRAL
BANK REBUILDING BEGINS
The rebuilding of Mosul Central Bank, the northern Iraq branch of Iraq's
Central Bank has begun and is expected to be complete by early 2005. Although
currently only a ruined shell the two-phase renovation will include the
building of a three metre tall cement and steel wall around the building's
perimeter, the installation of a new marble floor and a security system
that will include new tinted windows and thick, heavy-duty doors for added
protection.
"WORST CENTRAL
BANKER" IN BID FOR PRESIDENCY
Victor Gerashchenko, former head of the Russian central bank is to run
in the presidential elections to be held on March 14 2004, it has been
confirmed. Gerashchenko, once dubbed the "worst central banker" by Jeffrey
Sachs for stoking Russian hyperinflation by turning on the printing presses,
is to run as the official candidate of the Rodina electoral bloc.
Rodina, meaning motherland, ran its first State Duma elections in December
and turned out to be the surprise success story, winning 9.1% of seats,
making it the fourth largest party in the Duma.
DRINK-DRIVING
DUISENBERG FACES FINE
Wim Duisenberg, the former president of the European Central Bank, is
due to appear in court on a drink driving charge. According to a report
in the electronic Telegraph, police stopped Duisenberg on December 18
and took him downtown for a breathalyser test. He was reported to have
two times over the legal drinking limit. Duisenberg had a chauffeur-driven
car until he made way for Jean-Claude Trichet to become head of the ECB
on November 1.
He is to appear in court on May 12. A spokesman for the public prosecutor's
office in Amsterdam said he could be fined up to 
300.
The incident, which occurred on December 18, ends a year of controversy
for Duisenberg. In January his wife, Gretta, caused a row after Dutch
MPs questioned her right to travel on a diplomatic passport to meet Palestinian
leader Yasser Arafat.
GREENSPAN'S
DISCRETION PREFERRED
Federal Reserve Chairman Alan Greenspan and his colleagues got high marks
from private economists for their actions in 2003, a year mired by war,
a falling inflation rate and uncertainty. The main critique from the 60
economists surveyed by USA TODAY was that Fed officials didn't do a good
job communicating to the public. But according to nearly three-quarters
of the economists polled, inflation targeting, was not the answer.
Private economists surveyed Dec. 11-17 said inflation targeting would
restrict the Fed's ability to quickly respond to economic developments.
"It removes flexibility," Banc One Investment Advisors chief economist
Anthony Chan said. Greenspan has opposed inflation targeting. But others
at the Fed, including Fed Governor Ben Bernanke, have advocated adopting
target ranges. They argue that now is the time to impose inflation targets
- while inflation is low and before Greenspan, 77, leaves the U.S. central
bank, potentially taking the Fed's credibility as an inflation fighter
with him. Greenspan's term ends January 2006.
"We have some very good people at the Fed right now (but) they might not
always be there," said Lyle Gramley, a former Fed governor.
NZ'S BOLLARD'S
GOOD CHEER CHRISTMAS CARDS
Reserve Bank Governor Alan Bollard, who raised a few smiles last year
with a witty Christmas card shortly after taking the job, has done it
again this year.
Bollard's card last year depicted Goldilocks sitting at a table sandwiched
between a bull and a bear underneath a sign that said: "Stability is next
to Godliness".
This year's card shows Santa's sleigh flying over the Reserve Bank, spilling
money and with a large percentage sign symbolising the Official Cash Rate,
accompanied by a poem.
Bollard added to Christmas cheer when in a toss-up decision on whether
to raise interest rates last month, he left them on hold.
WARING
APPOINTED TO RBNZ BOARD
Marilyn Waring has been appointed to the Reserve Bank Board to replace
Ruth Richardson whose term is expiring. Waring is currently a professor
of public policy and has written extensively on the economics of women's
work, equality and human rights. Paul Baines, a former Chief Executive
of CS First Boston, is to serve a second five year term, beginning on
1 July.
The Reserve Bank has also appointed Terry McFadgen to take over as a part-time
monetary policy advisor from Ms Kerrin Vautier. The RBNZ employs two people
as external advisors (the other advisor is Malcolm Bailey) to bring an
outside perspective to decision making processes. McFadgen has had a long
involvement in the New Zealand residential and commercial property industries
and is currently acting as Establishment Director of the College of Law
New Zealand.
TRICHET
BITES BACK
Jean-Clause Trichet proved that he can bare his teeth while still
maintaining his legendary charm during his confirmation hearings as president
of the ECB before the European Parliament in September. At the end of
his gruelling two hour inquisition. Charles Tannock, a particularly well
spoken British Conservative MEP, challenged Trichet head on. "As an enarque
(a graduate of ENA, Ecole National d'Administration) the idea that you
are not part of the French political elite - encompassing the civil service
and the political classes - is a little disingenuous to say the least"
was his opening salvo. Then came what Tannock no doubt hoped would be
his killer blow. "You have also, as a haut fonctionnaire, been cautious
in your approach and very supportive of state dirigisme."
Trichet rebutted this, pointing out that as chief of staff at the French
Treasury from 1986 to 1987 he had been extremely active in radically reforming
the French economy: "And as for being a member of some monolithic French
"establishment" that too is a misunderstanding," he continued, "I dare
not ask, Sir, whether you went to Oxford or Cambridge."
Tannock went to Oxford.
TRICHET
THE INTERNATIONALIST
Trichet proved equally adept at dealing with the cut and thrust of his
first press conference. Responding to a question asked in French, the
new ECB president answered first in his mother tongue and then, as "all
journalists do not have access to translation" he switched seamlessly
to finance's lingua franca and answered in his flawless English. This
seemed to rile a French member of the press corps - perhaps hoping that
a French president would mean a more francophone ECB - who replied, en
français naturellement: "I would also like to put my question in French,
which is one of the official languages of the Union, I would like to remind
my colleagues, since they seem to have forgotten that."
But Trichet refused to rise to the bait, replying: "I will respond, if
you permit me, both in English, first, because there are a lot of people
that understand English here, and then in French," later he continued,
when asked again in French, "If you permit me, I will respond in English
in order to avoid any misunderstanding."
Trichet's linguistic tact will be needed even more in the future; with
the ECB's rotational voting there will be enough emphasis on nationality
without linguistic squabbles entering the fray.
FINLAND'S
MATTI VANHALA ON SICK LEAVE
Governor of the Bank of Finland Matti Vanhala had some bad luck while
staying at his holiday home in the archipelago recently. Vanhala broke
his thigh and needed an operation which has kept him at home until the
New Year.
During his absence, Vanhala's duties are handled by Deputy Governor Matti
Louekoski. Louekoski will also stand in for Vanhala on the Governing Council
of the European Central Bank for the duration of the sick leave.
RBA APPOINTS
NEW DEPUTY GOVERNOR
The Reserve Bank of Australia has appointed Philip Lowe as assistant governor
(Financial System). This role oversees the bank's work on issues related
to financial stability and payments system policy, and carries membership
of the payments system board. Lowe succeeds John Laker, who left the Bank
in July to become chairman of the Australian Prudential Regulation Authority.
Lowe joined the bank in 1980, and is currently head of economic analysis
department. Prior to that he spent two years with the Bank for International
Settlements. He will take up his new duties in early 2004. Tony Richards,
currently head of economic research, will move across to be head of economic
analysis department.
Meanwhile, Bob Rankin is to become as Assistant Governor (Business Services)
when Geoff Board moves to head the Bank's European Representative Office
this month. This role oversees three departments - those responsible for
the operation of the payments system, the Bank's note issue function,
and the provision of financial services to the Australian Government.
CALLS FOR
RBA BOARD TO BE 'REJIGGED'
Trouble on the political front. A National Party Senator has called for
the Reserve Bank's board to be "rejigged" following the RBA's recent rate
rise. He called for the make-up of the Reserve Bank board to be broadened
with more rural representation than at present.
Meanwhile, the Federal Government has increased pressure on the Reserve
Bank not to increase interest rates further for fear that the economy
will be being "clobbered" by high interest rates.
PAUL ACQUAH
ELECTED CHAIRMAN OF WAMZ
Paul Acquah, Governor of the Bank of Ghana, is the new chairman of the
committee of governors of central banks of the West African Monetary Zone
(WAMZ). At a summit held in Conakry in November 2002, heads of state of
the five countries decided to defer the introduction of a common currency
from January 2003 to July 2005 to enable the states to satisfy the criteria
set for its introduction. In December 2003 Ghana was nominated to host
the headquarters of the West African Central bank (WACB), although other
members of the WAMZ are still eligible to express interest in hosting
it.
PERU'S
CENTRAL BANK CHIEF MAY FACE FRAUD CHARGES
A Peruvian congressional commission has recommended that Congress pursue
fraud charges against Javier Silva Ruete, president of the central bank.
It is alleged that Silva Ruete and Peru's Vice President, Raul Diez Canseco
sponsored a decree that allowed the father of Diez Canseco's girlfriend
to avoid taxes. Silva Reute is allegedly implicated because he was economy
minister when the decree was drawn up.
It is possible that the two men could be barred from office by a Congress
sanction.
A powerful organisation of people of Indian origin has sued the Central Bank of Trinidad and Tobago for alleged racist practices. Secretary General of the Sanatan Dharma Maha Sabha, Sat Maharaj, yesterday said he had instructed his attorneys to initiate legal actions over the refusal of the bank Governor, Ewart Williams, to hand over certain documents to the organisation under the Freedom of the Information Act. At the heart of the dispute is the presence of Selwyn Cudjoe, a preofessor of literature at Wellesley College, who has reportedly made several statements discriminating against Indo-Trinidadians, as a member of the bank's Board of Directors.
3,491 OPT
FOR EARLY RETIREMENT AT RBI
The Reserve Bank of India's early retirement scheme, which was introduced
recently, has attracted 3,491 applications, out of a total staff of 28884.
The scheme closed at the end of December with official sources saying
the "RBI introduced the early retirement scheme with a view to rationalise
the staff strength".
BANKNOTES
AND THE GLASS OF WATER TEST
In an effort to foil counterfeiters and promote the use of vending machines,
Vietnam said on Thursday it will introduce a 500,000 dong ($32) currency
note, redesign its 50,000 dong note and mint three types of coins. Central
bank governor Le Duc Thuy said the changes were designed "to make the
money structure more reasonable and to better fight against counterfeits".
He also said the new Australian-made polymer-based notes were more durable,
dipping one specimen into a glass of water to demonstrate. "People selling
vegetables and fish in the market will be very happy with this money,"
he said to laughter.
HARDEST
WORKING MAN IN CENTRAL BANKING?
According to Neil Courtis, editor of The Financial Regulator, the title
should go to Jaime Caruana, governor of the Bank of Spain, chairman of
the Basel Committee on Banking Supervision, and a member of the governing
board of the European Central Bank. The frequent flyer miles are piling
up as Mr Caruana shuttles back and forth to Frankfurt, and criss-crosses
the globe spreading the gospel about the Basel committee's new capital
accord. In the last six months Caruana has given speeches in Dubai, Paris,
London, Chicago and New York, chaired the Basel committee's key October
meeting, testified in front of the European Parliament, and joined the
Bank for International Settlements trip to Asia in November where he gave
two more speeches in Tokyo and Beijing.
DAVID CARSE
STAYS OFFSHORE
David Carse OBE has been appointed director general of the Jersey Financial
Services Commission. He took up the position at the beginning of November,
moving from his previous positon as deputy chief executive of the Hong
Kong Monetary Authority (HKMA). Replacing Carse on the HKMA is William
Ryback from the Federal Reserve Board in Washington.
GAY HUEY
EVANS TO CHAIR THE JOINT FORUM
Gay Huey Evans is taking over chairmanship of the Joint Forum, an umbrella
group formed to help coordinate regulation of financial conglomerates
and examine areas of common interest to the Basel committee, the International
Association of Insurance Supervisors and IOSCO. Evans was previously director
of markets at the UK Financial Services Authority, with whom she has worked
since 1998.
DUISENBERG
AT A DISCOUNT
Despite a splendid send-off in October, including a blizzard of awards
from European countries, the image of Wim Duisenberg, the former president
of the ECB, is starting to fade. The ECB itself produced a commemorative
euro coin set that includes a silver medallion bearing a likeness of the
erstwhile president's face as part of the tribute. But it is clearly not
a hot seller. Initially priced at €59, it has been slashed to €49 in the
ECB's own giftshop. Wim is only just out the door but is already going
cheap; and it's not even the January sales.
FORMER
DEPUTY GOVERNOR OF THE BANK OF ENGLAND KNIGHTED
Among the awards given in the New Years honours list is a knighthood for
David Clementi, former deputy governor of the Bank of England. Clementi
is now chairman of Prudential.
GAMES CENTRAL
BANKERS PLAY
There is a growing trend for central banks to use computer games to broaden
understanding about monetary policy.
Click a link to play that central bank's game:
Fed - Peanuts and Crackerjacks
http://www.bos.frb.org/peanuts/leadpgs/intro.htm
Finland
http://www.rahamuseo.fi/english/multi_politiikka.html
Germany - Mission Bundesbank
http://www.bundesbank.de/lern/lern_missionbbk.php
New Zealand - MoPoS
http://www.rbnz.govt.nz/education/0116902.html
Sweden - Stargold
http://www.riksbank.se/stargold/
One economist interviewed by
Blomberg news, Barclays Capital economist Thorsten Polleit, admitted to
spending too long mulling a swathe of data ranging from money supply to
industrial output on his first attempt and was blown off course by a stock
market crash, heralding a deflationary spiral and headlines announcing
his resignation.
But Pollett clearly has the makings of a central banker. Success leads
to price stability and plaudits. Polleit was promoted to the ECB's executive
board on his third attempt, after keeping inflation close to 2 percent
during his 10-year term. "It gives you a greater degree of sympathy for
central bankers," said Frankfurt-based Polleit, a member of two groups
that monitor the ECB.
| How
to Subscribe/Unsubscribe To Subscribe or Unsubscribe go to http://www.centralbanking.co.uk/list.htm Or send an e-mail to listserver@centralbanking.co.uk with the words "SUBSCRIBE NEWSMAKERS" in the body of the text. To Unsubscribe put "UNSUBSCRIBE NEWSMAKERS" in the body of the text. Alternatively, send an email to ncourtis@centralbanking.co.uk with your request. |
| Disclaimer
of Warranty Central Banking Publications assumes no responsibility for errors or omissions in these materials. THESE MATERIALS ARE PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. Central Banking Publications further does not warrant the accuracy or completeness of the information, text, graphics,links or other items contained within these materials. Central Banking Publications shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation, lost revenues or lost profits, which may result from the use of these materials. The information on this server is subject to change without notice and does not represent a commitment on the part of Central Banking Publications in the future. |