UP & DOWN WALL STREET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000600200030-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 19, 2016
• Document Release Date: November 15, 2005
• Sequence Number: 30
• Publication Date: June 6, 1983
• Content Type: NSPR

Approved For Release 21DOS/ 2/'f : IA-RDP91-00901R000600200030-0
6 June 198
UP& DOWN
dNALL STREET
By ALAN ABELSON
CIA. How naive can you get We always thought
those initials stood for Central Intelligence
Agency. But now we know.:better. They really stand
for Casey Investing Again. Thanks to the compulsory
disclosure of our leading civil servants' finances, we
can report that Mr. Casey, -director of the CIA,.in
other words, the nation's Supersleuth, loves to trade
reflecL9 a slue 01 Mr. y mat the general p blic
rarely glimpses. To the overwhelming majority of the
citizens of this great nation, he's a tough-minded,
hard-nosed. strong-armed, two-fisted, iron-stomached,
sure-footed man. But there's a touchingly sentimental
strain in Mr. Casey as well. Remember, he was for-
merly head of the SEC, and he still has war= feelings
for-the many friends on Wall. Street he made while in
that post. Everv chance he gets, accordingly, he tries to
.throw a little business their way_ And, in turn, he's a
beloved figure on the Street, where he's affectionately
known as Churner Casey.
stocks and bonds. What's. more; be's very good at it., spook agency, he's, very much interested in xechnol-
His timing particularly is great:. Last August, for . ogy. Hence his purchases of . MCI (the CIA in the
--example,- he was among.-the first to-hear the mighty -normal course.:of business does a lot of .phone:tapping,
roar of the bull, and they?didn'.t:have to ring the bell so it's natural that he'd be attracted to that feisty outfit
more. than once. From August 20.:.through the end of that's giving AT&T, a run for its money). No surprise,
that memorable, fantastic month, .he made no fewer. either, what with the world going to pot, a global
than .16 buys. in the process pouring something be- gumshoe like Mr. Casey,would have a weakness for
tween .$410.000 and over $ l million into the. market. drugs, .and _his portfolio was. chock full of Abbotts,
Moreover, he also snatched up three-quarters of a' Mercks and Bristol-Myerses. Nor was he put off by
million bucks worth of Treasury-bills. So much for ihe- the. Tylenol scare-he=knew
sneerers and scoffers who objected to Mr._ Casey's from secret reports that the epi-
appointment on the grounds be lacked commitment. code wasn't, as widely rumored,
He'd have made an even :greater commitment if he partof an international conspir-
hadn't run out of dimes calling his broker. acy, so he bought . Johnson &
What's more, Mr. Casey grabbed the bull by the Johnson.
horns and rode its wonderful charge all the way up, CIA people, .of course, are
continuing to buy vigorously right-through December. always sending out messages to
In that critical stretch from late August to late Septem- the far comers of the earth from
ber. he put something in the range of.$1.5 million and little radio transmitters tucked
$1.2 million into the market'. That's the kind of fellow . away in the fi11~ in their
we want running the spy store:. nerves of steel,.no teeth, so Mr. Casey's -apprecia-
shivering and shaking, no tremulous trembling-before lion for communications is also
the threat of nuclear war or a-100-point correction. no mystery, and, we're pleased
We've not a scintilla of doubt that the small- to report, he made a very pretty
minded souls in Washington, those cocktail-party penny in Capital Cities. And, of
cynics, who are always selling.America short. will carp course, motels-and motor inns,
that Mr. Casey can't tend his 'portfolio with such every addict' of spy stories
diligence and still discharge his obligations as head knows, are favorite -drops for
of the CIA. Vvelll, we just wish they'd stop squawking secret weather forecasts for
long enough to think it through. Newark, Miami and other ex-
To begin with, in his job, Mr. Casey is, of course, otic places. Which explains why-
intimately involved with the country's security, so Mr. Casey picked up some
why shouldn't he be intimately involved with the shares of La Quinta Motor Inns
country's securities? And, too, his trading activity and good old .Marriott. Com-
puters are big these days in the
Company, for simulating wars
in Central America and-for
playing chess while waiting for
crises to erupt (there are slow
stretches at the CIA; sometimes
you can go for days without a
crisis erupting,, and,. these,
wouldn't you know!, you get
three-four at a time). Hence his
.holdings of Digital Equipment.
Mr. Casey also was a buyer
of Paradyne, a company that's .
subsequently come under some-
All told, Washington Editor Tom Donlan reckons,
Casey'did 136 separate transactions last year in securi-
ties. As you might expect for anyoneconnected with a
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 Approved For Release 2005/12/1 -nl A=R 0~RR00 3
LE
ON PAS 6
CI4chif 's investment pricy
is defended
By Vernon A..Gaidry,.Jr.
Washington Bureau of The Sun
Washington - CIA Director ?-W liaM ;J: - Casey
hasn't given his private investment 'counselors any,
information, secret or otherwise,. to guide their:
handling of his money, according -kothe financial_,
expert who has handled 'his investments for 20
wears.
The statement by Mr. Casey's counselor. Rich-
ard Cheswick, was issued yesterday by the Central
Intelligence Agency itself, a day after the agency
released Mr. Casey's 1982 financial disclosure re-
.port which listed stock and bond transactions worth.
hundreds of thousands .- perhaps millions - of..
dollars. Most of the transactions occurred last sum-
mer.
W. Cheswick said in the- statement :that be has
the authority to make changes in'Mr.'Casey's hold-
ings without consultation and does-so-based on the
same information used on behalf of other clients.
"There have been no instances whatever during
Mr. Casey's service as director of the Central Intel-
ligence Agency that be has provided me with any
information or special analyses which could be
used as an aid in making these decisions;" Mr.
Cheswick's statement read.
Mr. Cheswick said the large stock :sales of the
third quarter ci 1952 were -made "to improve the
safety and diversification of the portfolio. Approxi-
mately 40 percent of the proceeds w-ere--used to
purchase other stocks and 60 percent to buy bonds.
This activity made for a large dollar value of
transactieis but much of this simply reflected the
rollingiover of tempbrarv short-term securities."
.No wrongdoing has been alleged on W-Ckseys
j part, but his conduct with respect to his large finan-
cial holdings has been a matter: of controversy.
When be took office, be declined to place his hold-
ings in a "blind trust," which his two predecessors,
Adm. Stanfield Turner and G.eor?e Bush, had done.
His 1981 financial disclosure statement 'showed
that he sold more than $600,400 in oil stocks. That
year, oil stock prices plummeted wltet,-a worldwide
oil glut developed. i 1
Critics at that time said that! no matter bow in-
no nt Mr Casey's stock dealings had been.. be still
I In response-to the 1981 controversy,. the CIA es-
tablisbed a screening process for Mr. Casey's hold-
ings. At the time, the CIA's genera) counsel, Stanley
Sporkin, told reporters: "I'm not going to let ,hire
get himself into trouble."
In practice, however, the screening process ex-
amines only instances in which CIA financial deal-
ings, :such as contracts, might involve a conflict
with Mr. Casey's holdings.
According to Kathryn Riedel. an agency spokes-
woman, lists of Mr. Casey's holdings are circulated
to CIA officials. When they spot a potential conflict
- most typically a contract about to be awarded to
a firm in which Mr. Casey has an interest - they
notify Mr. Spot-kin and John McMahon, the CIA's
deputy director.
These two then decide whether the matter is of
sufficient import to be brought to Mr. Casey's at.
tention. If it is,.she said, be can decide whether to
recuse himseLf from consideration.
The CIA declined to sax' whet:, or even whether,
the screening process had been put into practice.
Ms. Riedel said she could 'say only that the sys-
tem was "fully implemented and serving its intend-
ed purpose "
A 1981 Senate Intelligence Committee investiga-
tion of Mr. Casey's financial disclosures found that
be was "at a minimum inattentive to detail."
The investigation found that in reporting to the
committee on his business and financial dealings,
be neglected to mention nine investments valued at
more than 2250,000, personal deb and liabilities
of nearly $500,000, a number of, corporations or '
foundations on whose boards be served, four civil
suits in which be was involved and more than 70
clients he had represented in private practice, in-
cluding the South Korean and Indonesian govern-
ments.
At the White House, a spokesman said Mr.
Casey's current practices had been.approved by the
appropriate agencies.
opened himself to the suspicion that be had been
using for personal ?Pl~0rbR4#4d'5/12/14: CIA-RDP91-00901 R000600200030-0
as one of the few men in the nation privy to all U.S.
intelligence-
 ARTICLE APPEARED ' pprov d For Release 2005/12/14: CIA-RDP91-00901R000 00200030-0
ON PAGE 3a_- T NEW YORK DAILY NEWS
3 June 1983
CIA gold mine
Z377 million and S7.3 Million. It -Ls
rapossible?to tell whether or not be.
zaade.a profit from these deals--but
be reported. an income, - above his
;government `salary-, last year, )of be-
`tween Z0?;OOG and'Sl million. -
Of course, the government -has
.imposed :conflict-of-interest rules .to
restrict Casey's actions. But the rules
j, e n ~.- -'penalize the;government not'Casey.
T ;~iS . -S .'~IAtaL10n arises in wnict. ? s
- AS IINGTriA~--.Ima 4nesit- --himself from,taldng part in the gov-
tmg like the iegendan, Dr, ernment's' deliberations. His proper-
-P`u Manchu at the center of --ty 'comes first
2 far-flung ?spiderweb of public, -pri- A -CIA ? spokesman yesterday
vate and clandestine intelligence, '-`quoted Casey's financcal adviser;
with advance access to virnially.any- Richard Cheswick, as saying that he
thing that can be known:OPEC oil- :.made his decisions about Casel> s
production plans, impending African. - stock holdings with no advice or
coups, looming bauxite shortages, special analysis from the CiA direc-
potential Soviet crop failures, reli- tor. Cheswick appeared to be cl.aim-
gious unrest in the Persian Gulf-- ping that Casey had effectively estab-
even a possible World -Jar III, `fished 'a "blind :trust" for his hold-
Imagme too that you -have the lags, but -still the appearance re-
security :of - high-paid government ?Znained that-the -nation's top intelli-
job, and .thousands of confidential Reece officer is able to profit from
agents at your disposal. Imagine, -his -kmowledge.
again, that you are perfectly free to Possible conflicts are screened
use any .and all of this government' -not by an -impartial outside agency
gathered inside information for-your but by two of'Casey's subordinates,
own gain.on the stock market = .Depute Director John McMahon and
This dream, which -would make- CIA General Counsel Stanley Spor-
.many . drool with greed and envy, -is kin. Ironically, Sporkin was once
the daily reality _for William Casey, chief of enforcement for the Secur-
director of -the Cent al Intelligence :ities-and 7Exchange Commission, and
Agency. For Casey, while serving as -vigorously pursued cQrporate execu-
bead cif the CIA. has been a heavy tives guilty of insider trading.
player- in the stock market. During Other Reagan administration offi-
1A82, according to a statement be has vials are also millionaires with ad.
filed., he bought between $3.8 million -vance access to confidential informs-
and $7.8 million in stocks, bonds and lion. Defense Secretary Caspar
,
other securities, .He sold between , - Veinberrer, for example, report a
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-worth -between.l.5 million and SL9
'Million. Secretary cf..State Shultz is
irortb between ..$2 million and 33
million. Both have access to the daily
take" of the intelligence agencies.
;Both know where in the world it is
Safe to :invest,.a.ud-xvhere a prudent
businessman-night cut back on his
:hoidin s. - - ; .
But the 'standard practice, 're-
quired of all top government offi-
cials apart from .Casey, .is that they.
either set -up -a blind trust. so that
they have no knowledge of how their
holdings are bought and sold--or
divest themselves ,of ..any property
-that could conflict-with their job.
The standards for Casey were set
up by the CIA last year, following
-disclosure that -he had unloaded
more than S640.9DO in oil stocks just
before the bottom fell out of the
market The CIA had been predicting,
until 1981, that the Soviet Union
:would start to run out of oil in the
mid-1980s -- adding to worldwide
shortages and boosting prices.
BLrT IN 1981. the CIA-changed its
mind- The Soviets-are still ex-
JL.N oil. OPEC .is in disar-
ray, there is a worldwide oil glut and
prices -may sink even further. Wil-
liam Casey is safely out of oil stocks.
.He has done nothing illegal.
According to CIA spokesman Dale
Peterson, when Casey sees a possible
conflict of interest between his job
and his financial holdings, "If -be
decides be wants to continue making
decisions in that area, he will sell the
stock." If he'd -rather make the
money
be can simply take the day
 Me R ..elease 2005/12/14: CIA-RDP91=00901 R0006
X,
ON r_ WASHINGTON TIMES
2 JUNE 1983
CJA's.dkector1rad~d itiJJions
curing. bmarket ri
Associated Press .
C~IA Director William J. Casey,
whb-sees 'the government's most'
secret economic data, traded heav-'
ily in last year's'bullish stock mar-
ket, buying and selling several mil-
lion dollars- ;worth of stocks -and
other securities?according to Itis
financial. disclosure statement
Casey joinedthousands of other,
investors in buying large amounts
of stock in -the weeks after the
major bull- rally .started in -mid- -
August, his annual' statement
-shows. On one day alone, Aug.. 26,
Casey' bought stock in eight com-
panies with the purchases totaling
from $335,000 to $765,000.
All told, in 1982 Casey bought
stock . worth from 51.9. million to
$4.5.million-much in the electron-
ics,and drug .industries while
selling -stock worth at least $1 mil-
lion and possibly.-more than $2.1
million, the form showed:
He apparently financed his stock
purchases by selling off large
amounts -of US. Treasury bills.
Exact, amounts for his sales and
purchases- were impossible to
determine because government
disclosure forms list values within
broad ranges.
Unlike his two CIA predecessors
and other top- Reagan administra-
tion officials with access to similar;
confidential economic data, Casey.
did not put his extensive stock port-
folio into a blind trust or sell any
stock as a condition of employment.
But following release of Casey's
disclosure form last year, which.
showed he had sold more ;.thati
5600,000 in oil stock as a glut devel-
oped in world markets in 1981, the
CIA established a -"screening ar-
rangement" aimed at preventing
him from taking official actions for
personal gain.
The new system permitted Case''y
to continue buying and selling stock -
but required that deputy director
John McMahon and other senior
CIA officials regularly review
Casey's stock transactions for-pos-
sible conflicts of interest. -
Asked whether that screening
arrangement had been set in
motion by : any of Casey's 1982
transactions, CIA spokeswoman
Kathryn Riedel said, "The arrange-
ment is fully implemented and
serving its intended purpose"
Riedel added that day-to-day
management of Casey's portfolio
remains in the hands of a private
investment adviser, Richard Ches-
wick,
although Casey retains ulti-
mate control.
Disclosure forms for Casey and
many other high-ranking adminis-
tration officials were released
Tuesday.
? Secretary of Labor Raymond
Donovan listed outside income of at
least $130,000, possibly as much as
$211,000. He had reported outside
income of at least $562,874 on last
year's form.
? U.S. Trade Representative Wil-
liam Brock made at least $51,000 in
addition to his government income
last year, nearly all of it from a blind
trust he set up.
? Senior White House aides ac-
cepted cigars, airline travel, a clock
and a crystal ashtray as gifts during
1982. -
___ According-'_to -the. disclosure.
form, Casey doubled his number of -
transactions in 1982 compared.with
1981. He listed 136 sales and pur-
chases last year and 67 transactions
his first year in office.
Some of pharmaceutical firms -
that Casey bought stock in -
Abbott Laboratories, Bristol-Myers
and Johnson & Johnson -- have sub-
sidiaries in Central America, an
area where the CIA has taken an
increasing interest and is conduct-
ing clandestine activities aimed -at
countering leftist. revolution.
.The form shows that Casey and
his wife earned at least $478,600
and possibly more than $959,600 in
outside income in 1982,. mostly
from dividends and capital gains on
their investments. As a -Cabinet-
Approved For Release 2005/' ' ?0 i 9MOdQ.b600200030-0
 CHICAGO TRIBUNE
2 June 1983
Approved For Release 2005112/14: CIA-RDP91-00901R0
R 7ls'.LE APPEARED
ON PAGE S
WASHINGTON ?" Central Intelil-
enee Agency` 'rector William :J.
ment's most secret economic data,.
traded heavily,in the stock market
last year, buying and . selling several
million, dollars worth of stocks and
other securities, according to`his'fi-I
nancial -.,disclosure `form _ released
.Tuesday . ,, . i .
Accordingg , to the form, Casey:
bought stock .worth from, $19 million
to $4.5 million, valued at the-dates of
purchase, :,while selling stock worth:
atJeast$1 million-and'possihy-.more"
than $2.1 million.. Casey apparently,
financed his stock purchases by le11
ing U.S. .Treasury:bills, The .form
showed
Exact -amounts$or his investments
were impossible to, determine be---
cause government-:disclosure forms
list the values :within broad ranges.
..Unlike bis-two. .iCIA predecessors
and other `opp.Reagan .administration
officials.with=access to similar cob--
fidential -economic data, Casey _did
not p
into air
a condition of employment.
FOLLOWING RELEASE of last
year's -disclosure fnrrn vihinh
$6003000 in . oil
stocks as . a glut level- '
PeQ
o in world markets, the CIA es-
tablished 'a "screening -ar=
rangement" aimed at preventing
him from taking official actions for ?
tor Jolin McMahon -and other senior ; 7,
CIA: officials :regularly review
names..+....~_-. ..
k
i s
ed .'whether that'
rangement :: had :baen .;tr3screening
.
The arr~emetat. '
`~ xis-,.juUy_:lm-;
l
p
emented and :,serving :.intended
purpose" She reLused fucfiher -
meat on the PrQi fure: '
Hated his Lpoitfolio. Many of~Casey's ..
ce s
p
u
-.-
,,
electronics, drug m
anufacturing,.1
,
t l..:
hai_sand
c
o
CASEY BOUGHT large amounts .of
ratories, Bristol=Myers Corp.,
. Johnson & Johnson < orp., Digital
Equipment Corp. and umberger
Ltd., all firs with extensive inter-
national operations.
During ,
-
i
r
h
t l
su?
securi
ties wo
t
a
east
on :and'. possibly more . than $31
4mil i while buying federal _ obliga-
als~r howed .that two -of President
Re4sWs. top economic.. officials
Treatsury ' Secretary Donald Regan
anc1C,ommerce Secretary Malcol
m
e-made more iin outside; in=-.rv
coctthan they .did from their go-
verient jobs in 1982.: -
sid _ ly lower ,than in.1981, when
botuvere . still receiving substantial
pa nts from.former employers.
e from 1981 for Agriculture'
John-Block, whose liabili--
ti vv by at least 40 percent since
his report.; :..,
same `time, the value .. of
Bl . assets, `primarily'?,in his ' Ills-
nois? pig, corn-and.soy , farm and
othereai -estate holdings, . have re-
ma#nedstable, ranging ?rom $3 . mil-
lior iba $3.8 million.; .
snick's liabilities ranged- in value
from $7.1 million to $9.9 million at --
the nd ?of .1982, two to three times
the'elue of his assets. At the end,of