WHAT THE BANKS SAY ON SOUTH AFRICA

A Summary of Bank Statements Regarding Lending Policies to South Africa
by Fantu Cheru, Jim Winkler, Interfaith Center on Corporate Responsibility
with Timothy Smith, Carol Somplatsky-Jarman
New York, New York, United States
Undated, 1984?
Publisher: Interfaith Center on Corporate Responsibility
23 pages
Type: Report
Coverage in Africa: South Africa
Coverage outside Africa: United States, Canada
Language: English
Contents: Introduction • AMERICAN EXPRESS COMPANY • BANKAMERICA CORPORATION - San Francisco • BANK OF NEW YORK • BANKERS TRUST COMPANY • THE CHASE MANHATTAN BANK, N.A. • CHEMICAL BANK • CIGNA CORPORATION • CITIBANK • CITIZENS AND SOUTHERN INVESTMENT COUNSELING, INC. • CONTINENTAL ILLINOIS CORPORATION • KRUGERRANDS • FIRST CHICAGO CORPORATION • FIRST INTERSTATE • FIRST NATIONAL BOSTON CORPORATION • IRVING TRUST COMPANY • J.P. MORGAN & CO. (THE MORGAN BANK) • MANUFACTURERS HANOVER TRUST • MANUFACTURERS HANOVER CORP. • MELLON BANK • MERRILL LYNCH • NATIONAL BANK OF DETROIT • NORTH CAROLINA NATIONAL BANK • REPUBLIC BANK CORPORATION – DALLAS • REPUBLIC NATIONAL BANK OF NY (Krugerrands) • SEATTLE-FIRST NATIONAL BANK • SECURITY PACIFIC NATIONAL BANK (Los Angeles) • WELLS FARGO BANK • CANADA • THE ROYAL BANK OF CANADA • BANK OF NOVA SCOTIA • THE CANADIAN IMPERIAL BANK OF COMMERCE • BANK OF MONTREAL • TORONTO-DOMINION BANK • INVESTMENT BANKS • APPENDIX: ESTIMATES OF U.S. PRIVATE BANK LOANS TO SOUTH AFRICA December 31, 1982 • The report includes statement from bank documents and officials, including proxy statements and policy statements. Bank officials quoted include Alfred A. Olbrycht, Robert J. Goebert, Charles G. Salmans, Fraser P. Seitel, John B. Wynne, Robert L. Robinson, Wilfred D. Kaplowitz, Ben Jones, Camillo Bozzolo, Richard S. Brennan, Nat S. Rogers, Norman Baker, Jr., Helen L. Cunneen, G. Denham E. Chaloner, James D. Goodpasture, Martin G. McGuinn, Rodney C. Linton, Joseph B. Martin, William E. Gibson, Randy C. James, Richard A. Warner, and Betty S. Lattie. The report is a revised, updated version of the 1981 edition of this document. It contains a sample of U.S. banks doing business with South Africa, including both large international banks and smaller regional banks. Since the 1981 document, church shareholders have continued to try to persuade major banks to discontinue lending or underwriting bond sales to South Africa. One notable change is BankAmerica Corporation’s decision to prohibit new loans to the South African government and parastatal organizations "unless significant concrete steps have been taken to dismantle the apartheid laws." The combined loan exposure of these banks jumped from $2.2 billion in 1978 to $3.8 billion in 1983. The recent surge in external loans is the result of policy changes in Pretoria which encouraged the switching of trade financing from the domestic to the foreign lending market. Nearly all the banks surveyed stated that they do not and will not make loans to the South African government, its agencies and instrumentalities. However, nearly all of these larger banks refused to apply a similar stringent policy to either loans to the private sector or to trade-related loans. Federal Reserve Board statistics reveal an increase in loans from U.S. banks to South African banks. Sources for this report include Beate Klein, Bank Loans to South Africa, 1979-Mid-1982, UN Center Against Apartheid, Department of Political and Security Council Affairs, (December, 1982); and John E. Lind, The Debt Crisis and Credit Risk in Countries with Human Rights Abuses, Northern California Interfaith Committee on Corporate Responsibility, (1983). The report discusses Bantustans, gold, Shearson/American Express, bond sale, North Carolina National Bank (NCNB), Morgan Stanley & Co. Inc., ESCOM, Morgan Stanley International (UK), Smith Barney, Harris Upham & Co Inc., Dean Witter Reynolds Organizations Inc., Dean Witter Reynolds International, Dean Witter Reynolds Overseas Ltd. (UK), Goldman Sachs & Co., Ina Corp., Blyth Eastman Paine Webber International Ltd., Kidder, Peabody & Co. Inc., Kidder Peabody International Ltd. (UK), Lazard Freres & Co., Minorco (Minerals and Resources Corporation), Citicorp, Crocker National, Mellon National, Marine Midland, Interfirst of Texas, Texas Commerce, First City Bancorp, Seattle First National Bank (Seafirst), and the Country Exposure Lending Survey.
Used by permission of the Interfaith Center on Corporate Responsibility.
Collection: Miloanne Hecathorn papers