Nelson Rockefeller, International Basic Economy Corporation (IBEC)
Historical Notes (continued)
IBEC, International Basic Economy Corporation
The International Basic Economy Corporation (IBEC) was founded by Nelson A. Rockefeller in 1947. A private American business corporation, IBEC focused on building the "basic economies" of developing countries, hoping to encourage nationals in those countries to establish competitive businesses. During 1947-1955, IBEC established a subsidiary in Venezuela that formed companies in the fishing, food distribution, and milk industries. IBEC was founded by Nelson Rockefeller
IBEC established five agricultural companies in Brazil and invested in Brazilian manufacturing and investment banking. During 1956-1971, IBEC entered such fields as mutual funds, housing, coffee, and poultry in thirty-three countries. By 1972, the subsidiaries and joint ventures were reorganized into five operating groups: food, housing, distribution, industrial, and financial services. The company began a divestiture program in 1973. By 1980, when IBEC merged with Booker McConnell Limited, its primary activities were in agriculture. The name of the company was changed to Arbor Acres Farm, Inc. in 1985. IBEC's investment banking activities in Brazil began in 1952 under the name, "Interamericana de Financiamento and Investimento S.A." and the group engaged in a series of equity underwritings with a syndicate of Brazilian banks. Neither the commercial banks nor the Rockefeller people (who seemed to be stronger in academics than practical finance) had experience with securities sales. The IBEC model for underwriting involved stocks distributed by custodial sections of the banking network, which plan, of course, failed entirely, since clerks in bank custody departments are not stock salesmen. Stuck with substantial inventories of unsold equities, Interamericana changed its name to "Cia. Distribuidora de Valores, Financiamento, and Investimentos - CODIVAL" in 1958 and repackaged its portfolio of unsold underwritings as a open-end mutual fund called CRESCINCO. In 1960, executives of CODIVAL were: Richard S. Aldrich, Marek Lubomirski, Hans Jurgen Wilhelm Horch, Antoine H. Forat, Franz A. Muller Carioba, and Rolf Feddersen. In 1966, the Brazilian assets of IBEC were incorporated into Banco de Investimento do Brasil, a newly-formed investment bank of the Moreira Salles Group. |
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