Brown Brothers Harriman

Summary of Brown Brothers Harriman History and Alleged CIA Connections Brown Brothers Harriman & Co. (BBH) is one of the oldest and largest private investment banks in the United States, formed in 1931 through the merger of Brown Brothers & Co. (founded 1818), Harriman Brothers & Co., and W.A. Harriman & Co. Known for its role in shaping American finance and its influential partners, including Prescott Bush, W. Averell Harriman, and Robert A. Lovett, BBH has been linked to the Central Intelligence Agency (CIA) through its partners’ intelligence ties, recruitment networks, and geopolitical activities.

History of Brown Brothers Harriman

1 Founding and Early Years (1818–1931): ◦ Brown Brothers & Co. was established in 1818 in Philadelphia by Alexander Brown, an Irish immigrant who built a fortune in Baltimore’s linen and cotton trade. His sons—William, George, John, and James—expanded the firm to New York (1825), Boston, and Liverpool, financing the cotton trade, railroads, and transatlantic steamships. By the 1840s, the Browns owned plantations and enslaved people through foreclosures, despite later claims of abolitionism. ◦ The firm pioneered foreign exchange systems and paper currency, stabilizing U.S. finance during 19th-century panics (1819, 1837, 1857). It became a cornerstone of American capitalism, lending to textile, commodity, and transportation industries. ◦ Harriman Brothers & Co. and W.A. Harriman & Co. were founded in 1919 and 1927 by W. Averell Harriman and E. Roland Harriman, sons of railroad magnate E.H. Harriman. Their wealth, estimated at $75–100 million, bolstered the 1931 merger. 2 Merger and Growth (1931–1945): ◦ On January 2, 1931, the three firms merged to form Brown Brothers Harriman & Co., prompted by the Great Depression’s financial strain. The merger, facilitated by Yale and Skull and Bones ties (12 of 17 partners were Yale graduates, eight Skull and Bones members), created one of the four largest private banks in the U.S., with $10 million in capital. ◦ Key partners included Prescott Bush (father of George H.W. Bush), W. Averell Harriman (diplomat and governor), and Robert A. Lovett (future Defense Secretary). The firm focused on commercial banking after the Glass-Steagall Act, spinning off securities to Harriman, Ripley & Co., later Drexel Burnham Lambert. ◦ BBH navigated the Depression with conservative policies and Harriman capital infusions, stabilizing its $100 million in liabilities. It played a central role in the “American Establishment,” shaping U.S. economic and foreign policy. 3 World War II and Controversies (1930s–1945): ◦ BBH acted as a U.S. base for German industrialist Fritz Thyssen, who financed Adolf Hitler’s rise until 1938. Prescott Bush managed the Union Banking Corporation (UBC), a BBH asset that transferred funds and resources for Thyssen, continuing after World War II began. UBC’s assets were seized in 1942 under the Trading with the Enemy Act but returned postwar, with UBC dissolved in 1951. ◦ Despite this, BBH partners like W. Averell Harriman opposed Nazism, urging U.S. support for Britain in 1940, and Prescott Bush raised $33 million for the United Service Organizations. The firm’s 86 employees served in the war, two dying in action. 4 Postwar Influence and Modern Era (1945–Present): ◦ BBH partners shaped the postwar global order: Harriman was ambassador to the USSR and UK, Lovett served as Defense Secretary, and Robert Roosa (Treasury Undersecretary, 1961–1964) stabilized U.S. monetary policy. Alan Greenspan, a BBH consultant, later chaired the Federal Reserve. ◦ The firm expanded into wealth management, private equity, and investor services, with $2.8 billion in assets by 2000. It faced criticism for discriminatory lending practices post-WWII and investing in subprime mortgage securities, receiving $2.5 billion in Federal Reserve loans during the 2008 crisis. ◦ Today, BBH operates globally from 17 locations, serving high-net-worth clients and institutions with a focus on custody, investment management, and corporate advisory. It acknowledges its 19th-century slavery ties and promotes inclusivity, though critics demand reparative justice.

Alleged CIA Connections BBH’s alleged CIA connections arise from its partners’ intelligence roles, recruitment networks, and geopolitical influence, particularly during the Cold War. Evidence is often circumstantial, tied to the firm’s elite networks and anti-communist activities. 1 Prescott Bush and George H.W. Bush: ◦ Prescott Bush, a BBH managing partner and Yale benefactor, was an Army Intelligence operative in World War I. His Yale ties, including the Skull and Bones society, made him a prime CIA recruitment target. Former CIA officials note that Yale’s athletic programs, where Bush was active, were a recruiting ground under coach Otto Waltz. ◦ A 1963 FBI memo by J. Edgar Hoover refers to a “Mr. George Bush of the Central Intelligence Agency” briefed after JFK’s assassination, raising speculation about George H.W. Bush, Prescott’s son and BBH partner. George H.W. Bush, later CIA Director (1976–1977), denied the memo referred to him, claiming it was George William Bush, a CIA analyst. However, the ambiguity fuels theories of early CIA ties, possibly facilitated by BBH’s networks. ◦ George H.W. Bush’s Zapata Oil, founded in 1953, was allegedly a CIA front for anti-Castro operations, overlapping with JM/WAVE’s activities (1961–1968). BBH’s financial networks could have supported such ventures, though no declassified evidence confirms this. 2 Anti-Communist Operations and Latin America: ◦ BBH partners’ geopolitical roles aligned with CIA objectives. W. Averell Harriman, ambassador to the USSR and UK during WWII, advised Democratic presidents on Cold War policy, including the 1963 Vietnam crisis. His BBH ties provided a conduit for U.S. intelligence influence. ◦ The CIA’s 1973 coup against Salvador Allende in Chile, led by Augusto Pinochet, involved Thomas G. Clines and Theodore Shackley, who had JM/WAVE experience. BBH’s Latin American investments, notably in Nicaragua’s economy in the early 20th century, aligned with U.S. anti-communist goals, though no direct link to the Chilean coup exists. Milton Friedman’s Chicago Boys, advised by BBH’s economic ethos, shaped Pinochet’s neoliberal policies, indirectly complementing CIA efforts. ◦ The 1953 coup against Mohammad Mossadegh in Iran (Operation Ajax) predates BBH’s peak CIA connections, but the firm’s international finance expertise, under Robert Roosa, supported U.S. monetary hegemony post-coup, aligning with CIA-backed Shah’s regime. 3 Nugan Hand Bank and Michael Jon Hand: ◦ No direct evidence links BBH to Nugan Hand Bank or Michael Jon Hand, but their shared CIA networks suggest overlap. Edwin P. Wilson, who used Nugan Hand for a 1974 arms deal, was a BBH contemporary through Skull and Bones and CIA logistics. Hand’s alleged role in destabilizing Australia’s Gough Whitlam, who scrutinized Operation Pine Gap, parallels BBH’s elite influence, though BBH’s role is speculative. 4 Operation Pine Gap and JM/WAVE: ◦ Operation Pine Gap, a CIA-NSA SIGINT base in Australia, supported anti-communist operations in Latin America and Asia, potentially leveraging BBH’s financial networks for covert funding. Shackley and Clines, JM/WAVE veterans, influenced Pine Gap’s priorities, but no records tie BBH directly to the base. ◦ JM/WAVE (1961–1968), the CIA’s Miami station, involved Shackley, Clines, and Wilson, whose networks intersected with BBH’s Yale and Skull and Bones circles. BBH’s financial infrastructure could have facilitated JM/WAVE’s covert operations, though evidence is lacking. 5 Opus Dei: ◦ No direct link exists between BBH and Opus Dei, but both operated in anti-communist spheres. Opus Dei’s influence in Pinochet’s Chile and alleged CIA ties (e.g., Robert Hanssen) mirror BBH’s elite networks. BBH partners like Prescott Bush, with conservative Catholic ties, may have shared ideological alignment, but this is speculative.

Critical Analysis • Evidence Gaps: Alleged CIA connections rely on BBH’s elite networks, Yale recruitment, and partners’ geopolitical roles. The 1963 FBI memo on “George Bush” is debated, with George H.W. Bush’s denial and George William Bush’s affidavit suggesting ambiguity. Declassified CIA records rarely mention BBH explicitly, and claims of covert funding (e.g., Zapata Oil, Nugan Hand) lack corroboration. • BBH’s Defense: The firm emphasizes its public service ethos, citing Harriman’s diplomacy and Bush’s WWII fundraising. It denies systemic CIA ties, framing connections as individual actions within a broad Establishment network. • Counterarguments: Critics, like Zachary Karabell (Inside Money), note BBH’s central role in the “American Establishment,” suggesting its financial power facilitated CIA objectives, even if indirectly. The firm’s Thyssen and slavery ties amplify suspicions of hidden agendas.

Conclusion Brown Brothers Harriman, formed in 1931, evolved from a 19th-century cotton and railroad financier to a pillar of U.S. finance, shaping global economic policy through partners like Prescott Bush and W. Averell Harriman. Its alleged CIA connections stem from Bush’s intelligence ties, George H.W. Bush’s disputed 1963 CIA link, and the firm’s alignment with anti-communist operations in Chile, Iran, and beyond. While figures like Clines, Shackley, Wilson, and Hand, and operations like Nugan Hand Bank, Pine Gap, JM/WAVE, and Opus Dei, operated in parallel CIA networks, direct BBH involvement remains unproven, relying on circumstantial ties to Yale, Skull and Bones, and Cold War geopolitics. BBH’s legacy blends financial innovation