T. TJacob Frenkel
Speaking at the Interdisciplinary Center in Herzliya
The Center is a bastion of Israel’s Security Services*
Confessions of an Economic Hit Man
On June 24, 2013, Prime Minister Netanyahu announced that Jacob Frenkel had been appointed to be the next Governor of the Bank of Israel.
“He is the best of the bests, the most excellent among the excellent,” said Netanyahu. Carried away by the frivolity of his own poetry, Netanyahu forgot to mention Frenkel’s involvement in the collapse of USA’s insurance giant AIG.
Shocked by this, I almost forgot to mention that Frenkel’s first two terms were plagued with personal corruption.
Startled by that, I almost skipped the fact that under the current law regularizing the function of the Bank of Israel, no Governor can serve more than two terms. Frenkel was governor in two consecutive terms between 1991 and 2000. Netanyahu must change the law to allow his good friend a way back home.
Let’s be sincere, without the USA, Israel cannot even feed itself. Despite the kibbutz-propaganda, Israel depends on grains imported from the USA. The same goes for oil and several other strategic resources. Expectedly, this led to extensive and intensive economic links between these two organizations, which like to portray themselves as “democracies.”**
Even in the limited topic of today, the links are obvious. The current Governor is an American, Stanley Fischer. Before being appointed in 2005, he served between 2002 and 2005 as Vice Chairman of Citigroup, President of Citigroup International, and Head of the Public Sector Client Group. In 2001, he had joined the Washington-based financial advisory body, the Group of Thirty. From 1994 to 2001, he was the First Deputy Managing Director of the International Monetary Fund (IMF). From January 1988 to August 1990, he was Vice President, Development Economics and Chief Economist at the World Bank. I needed to check twice that he hadn’t been a member of any American Government in this period. Maybe he will run for the American presidency after he leaves the Bank of Israel. He got Israeli citizenship only after having got the exclusive position.
Frenkel and Netanyahu in 2003
The New Conspirators: Creating the Future One Mustard Seed at a Time
Compared to our Stanley, Jacob resume is not less worrying, but for different reasons. Since 2009, he was Chairman of JPMorgan Chase International and Chairman and CEO of the abovementioned Group of Thirty. Between 2004 and 2009, he had been Vice Chairman of American International Group (AIG), role that he filled during the company’s collapse. From 2000 to 2004, he was Chairman of Merrill Lynch International, and Chairman of Merrill Lynch’s Sovereign Advisory and Global Financial Institutions Groups. As mentioned, before that he had been Governor of the Bank of Israel.