As two-term governor of the Bank of Israel, Jacob Frenkel became a high-profile figure when his tight money policies drew criticism. In January he gave up the spotlight to become chairman of Merrill Lynch’s sovereign advisory and global financial institutions groups, but now Frenkel is stepping back into the public eye as the new chairman of the Group of 30, an international financial consultative organization that has helped shape global financial policy since 1978. Pronouncing himself “overwhelmed and humbled” by the appointment, Frenkel, 57, succeeds former U.S. Federal Reserve chairman Paul Volcker. The G-30 runs study groups and publishes papers whose recommendations often serve as benchmarks for financiers and policymakers. Volcker focused mainly on foreign exchange arrangements; Frenkel will have a chance to set his own agenda. What might that be? Keep an eye out for reports on cross-border clearance and settlement in world securities and derivatives markets, and on the issue of risk assessment and rating agencies. “G-30 is one of the few organizations that brings together an internationally diverse group of high-level policymakers and people from the financial sector, many of whom have policy backgrounds, and academics,” says Frenkel, whose controversial policies at Israel’s central bank not only reduced inflation but also seem to have put the country on a growth path.
