By Matthew Russell Lee
UNITED NATIONS, January 13, updated -- When JPMorgan Chase wrote to countries' Missions to the UN and told them accounts would be closed in March 2011, several countries complained, to the UN and to the “host country,” the United States.
Thursday US Under Secretary of State Patrick Kennedy came to the UN in New York to speak to countries' Ambassadors about Chase's move. Afterwards, Inner City Press asked Kennedy if he -- or Hillary Clinton or Treasury Secretary Timothy Geithner, both of whom Kennedy said were involved -- had spoke with JPMorgan Chase.
"We have had discussions with the major banks," Kennedy answered, later confirming that yes, this included Chase. But what was the response of Chase, whose CEO Jaime Dimon is often rumored to be a line for an appointment by the Obama administration?
Kennedy told the press that “we cannot tell a bank what to do.” Inner City Press immediately asked, What about the banks which took bailouts and still owe TARP money to the US and its taxpayers? "Could the government use its leverage?"
Kennedy said he was not “technically competent to get into that level of detail," and told Inner City Press to ask the Treasury Department official who had also come to the UN. Video on Inner City Press YouTube channel here.
While the US Mission later said this Treasury Deparment official was Mark Poncy of the Office of Strategic Policy, Poncy never came to speak to the Press.
Inner City Press asked Kennedy if he thought the UN should go forward and re-rent space inside the UN under its Capital Master Plan to JPMorgan Chase, when this bank was turning its back on Missions of the countries which make up the UN.
“Ask the UN,” said Kennedy, who has responsibility at the State Department for Management, including at the UN. At the US Mission to the UN in New York, the Management position has remained with only an interim person, the genial but part time Professor Joseph Melrose.
At the UN's noon briefing, Inner City Press did ask Ban Ki-moon's spokesman Martin Nesirky if the UN would give space to JPMorgan Chase in the Secretariat building when it re-opens.
“Ask Chase,” Nesirky said. But Chase is already in talks with the UN as to which space to get in the repaired building -- not, apparently, the fourth floor space it previously had, but some other location.
Nesirky now said that he would not comment on negotiations. But is Chase's closing of UN Mission's accounts, Inner City Press asked, even part of the negotiations? Nesirky seemed to say he would look into this.
JPMorgan Chase is not only interested in re-entering the Secretariat building when it re-opens: Chase also has a branch on the first floor of the DC-1 building which houses the UN Development Program. Many countries' Missions to the UN opened accounts at Chase because they were thus inside the UN. Will the UN allow this to continue?
At UN, Patrick Kennedy, spokesman Mark Kornblau & Joseph Melrose: where's Chase? (c) MRLee
After the meeting with Kennedy, Inner City Press asked Iran's Permanent Representative as he came out if he thought Chase should continue to remain in UN buildings. No, the Ambassador said, UN space should go to banks which will deal with UN Missions.
He spoke of the UN Federal Credit Union -- currently embroiled in a dispute about the account of the UN Staff Union -- and was asked if the UN should withdraw its own funds from a bank which in effect redlines Missions, like Chase.
Egypt's Permanent Representative told the Press about “transfer fees” while Turkey's Deputy Permanent Representative shrugged that “there are Turkish banks in New York.”
Russian Permanent Representative Vitaly Churkin, asked in front of the Security Council about JPMorgan Chase's move, laughed and said "the ruble is a very strong currency," when you have the ruble you don't need anything else. But the others? Watch this site.
Update of January 14, 2011: the following arrived:
From: UN Spokesperson - Do Not Reply [at] un.org
Date: Fri, Jan 14, 2011 at 8:05 AM
Subject: Your questions on Chase Bank
To: Inner City Press
We can say the following in reply to your questions at the noon briefing:
Some ambassadors emerging from the US briefing about their accounts being shuttered think the UN should withdraw all its accounts with Chase. Has this been broached with the administration? Being weighed at all?
We understand that this was raised by one Member State delegate in the briefing with Ambassador Kennedy. The UN Secretariat has not been approached in this matter.
Will Chase open an office in the UN building after the CMP?
Under the CMP, the new UN building design includes space provision for banks. No agreements have been entered into with any banks for this space.
