SWISS FINANCE

By Adam Zagorin/Washington

In the heady world of international business, so many interests seem to overlap. PAUL VOLCKER, a former chairman of the Federal Reserve who serves on a variety of high-powered boards, is a paid director of Nestle, Switzerland's largest company. Nothing odd there, except that other Nestle directors include the bosses of Switzerland's three largest banks, and these are among the banks Volcker is charged with investigating as head of a committee of "eminent persons" looking into Switzerland's role during World War II. Why are questions about Volcker's Nestle position being raised now? Perhaps because in a recent letter to a federal judge who must decide whether or not to dismiss a multibillion-dollar class action brought by Holocaust victims against the Swiss banks, Volcker argued that their suit would have a potentially "crippling" impact on his investigation. Other members of the eminent-persons group immediately dissociated themselves from Volcker's letter, and made it clear that it was his concern, not theirs. Lawyers for the victims are questioning Volcker's business ties. Volcker had no comment.

--By Adam Zagorin/Washington