Tag Archives: revolving door

Trump’s transition advisor for financial regulations works for a firm that is emblematic of the Washington revolving door

President-elect Donald Trump’s transition-team adviser on financial policies and appointments, Paul Atkins, has been depicted as an ideological advocate of small government. But the ways that the Trump administration and Congressional Republicans are likely to approach financial deregulation could serve Atkins’ wallet as well as his political agenda. Like Trump himself, Atkins himself faces potential conflicts between his business dealings and his public role.

In 2009, a year after he finished his term as a Republican member of the Securities and Exchange Commission, Atkins formed Patomak Global Partners, a consulting firm headquartered on 17th Street, nestled blocks from the Hay-Adams Hotel and the south lawn of the White House. While Trump promised to “drain the swamp” of Washington, Atkins’ environs could not get any swampier. Patomak’s president is Daniel Gallagher, also a right-leaning former SEC commissioner who might be a candidate for SEC chairman under Trump. Former high-level government officials populate Patomak’s ranks.

Patomak has thrived as financial firms tried to navigate the new world of post-crisis regulations. Patomak and its counterparts, like Promontory Financial Group, are not technically lobbyists, but they exploit their connections to regulators to help their clients — banks and other financial institutions — navigate the rules. (Such consulting firms say they help clients comply with, not circumvent, the rules. A Patomak spokeswoman did not respond to a request for comment.)

The firms stand as emblems of the Washington revolving door. Banks pay a premium to former high-level regulators, valuing them for their contacts at the regulatory agencies. Stacked with Republicans, Patomak is well positioned to benefit from the new power structure in Washington. “They have better lines of communications with those in power. They are better able to see and understand what is coming down the pike,” says one former high-ranking regulator who now works for a hedge fund.

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Federal Reserve Tightens Rules Addressing Alleged “Revolving Door” With Wall Street

The Federal Reserve said it has expanded its curbs on bank supervisors departing for private practice, moving to address criticisms of an alleged “revolving door” between the regulator and Wall Street.

The central bank’s new measures, which apply solely to supervision employees, are designed to tighten the restraints it poses on officials leaving for financial institutions and to “promote consistency in post-employment ethics rules” across the system, the Fed said.

The Fed already had a one-year cooling-off period for senior officials leaving the Fed and accepting paid work from a financial institution for which they had primary responsibility in their last 12 months at the central bank. That rule applied primarily to officials who were “central points of contact” as key supervisors of firms with more than $10 billion in assets.

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Spiro Reports-“Too Big to Jail”: The Revolving Doors- From HSBC to Comey, Condi Rice, Kissinger, DOJ Lynch and the Clintons

This piece is from the new venture journalist website called Newsbud. Sibel Edmonds, author and former FBI whistleblower and who publishes the Boiling Frogs Post blog, is founder of Newsbud, which is 100-percent funded by viewers. It is independent reporting, with no corporate or political control. So,  I will posting many of her articles on my blog. From Boilingfrogspost website, the revolving doors between governments and corporations go way beyond conflicts of interest.

Revolving door: Kathleen Zadareky, FHA’s head of single-family housing, leaving for SunTrust

Kathleen Zadareky, who currently serves as the deputy assistant secretary for single-family housing for the Department of Housing and Urban Development, will soon leave that position and join the private sectorwith SunTrust Mortgage.

In her role at HUD, Zadareky oversaw all aspects of the Federal Housing Administration’s single-family housing operation, including origination, servicing, property disposition and program compliance.

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Blocking Wall Street’s Revolving Door

Truthout:

The Wall Street investment bank Lazard held its annual shareholder meeting April 19 at Bermuda’s luxurious Elbow Beach Hotel. Bermuda is known for its beautiful sandy beaches and, less flatteringly, as an offshore tax haven. Headquartered in New York City, Lazard is incorporated in Bermuda.

Like a tax shelter that lacks economic substance, Lazard’s shareholder meeting seemed empty of meaningful content. There was no discussion of the company’s performance, as is customary at other shareholder meetings. I felt like the only attendee who was not affiliated with the company.

Lazard’s corporate secretary ran through the entire meeting agenda in less than five minutes. Lazard’s board of directors and a number of other executives attended the meeting but did not speak. My job: to present an AFL-CIO-sponsored shareholder proposal. as required by the U.S. Securities and Exchange Commission’s regulations.

The AFL-CIO’s shareholder proposal asked Lazard to ban the payment of unvested equity to senior executives if they enter into government service. Known as “government service golden parachutes,” this unvested equity would normally be forfeited after an executive’s voluntary resignation.

Paying executives to enter government service fosters a “revolving door” between Wall Street and financial regulators. Government service certainly rates as commendable, but financial regulators should be free from any perceived bias due to extra compensation received from their previous employers.

As Sheila Bair, the former chair of the Federal Deposit Insurance Corporation, has put it, “Only in the Wonderland of Wall Street logic could one argue that this looks like anything other than a bribe…We want people entering public service because they want to serve the public. Frankly, if they need a [golden parachute], I’d rather they stay away.”

At the annual meeting, I also delivered a petition signed by more than 44,000 individuals that called on Lazard to stop this questionable pay practice. The petition was organized by the AFL-CIOPublic Citizen, and Americans for Financial Reform and targeted to Lazard, Morgan Stanley, JPMorgan, Citigroup, and Goldman Sachs. The AFL-CIO has shareholder proposals to ban government service golden parachutes pending at all these firms.

Revolvng door: U.S. Treasury anti-laundering head to join HSBC – sources

The U.S. Treasury Department’s top anti-money laundering official is resigning to take what sources said on Tuesday was a top post at HSBC Holdings Plc , which is struggling to meet terms of an earlier settlement with the U.S. government.

Jennifer Shasky Calvery announced she was resigning as director of Treasury’s Financial Crimes Enforcement Network (FinCEN), which she has headed since 2012. She is a former federal prosecutor who had also led the Justice Department’s anti-money laundering unit.

“I hope that we have enhanced the agency’s solid foundation so that FinCEN can best perform its mission for years into the future,” Shasky said in a press release.

The resignation is to be effective on May 27.

Her move to HSBC was confirmed by two sources familiar with her plans. Shasky declined comment through a FinCEN spokesman, and an HSBC spokesman declined comment.

Shasky will join HSBC in a senior global financial-crime fighting role, according to one source. It is not clear when she will begin that work.

Her move to HSBC comes as the bank is working to demonstrate it has sufficiently bolstered its controls to prevent money laundering, as required by a 2012 pact with the Justice Department.

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Revolving door: JPMorgan Chase appoints a former Obama advisor to lead its burgeoning fintech strategy

Seth Wheeler, a former economic advisor to President Obama, has joined JPMorgan Chase as a managing director leading fintech and innovation strategy, multiple sources told Quartz.

Wheeler will “help lead fintech and innovation strategy at the bank’s Consumer and Community Bank,” according to an email he sent on March 6. “I’m thrilled that I’ll get to work with a talented team in helping JP Morgan Chase refine its strategy in digital banking and consumer lending, digital wealth management, payments, and small business banking,” Wheeler’s email said. He most recently was a guest scholar at the Brookings Institute.

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The Latest Revolving Door Farce: Bernanke, Trichet And Gordon Brown To Form Pimco Advisory Board

The public-to-private sector “revolving door” has crossed into the macabre twilight zone.

Moments ago an announcement by giant bond manager (technically, these days “merely above average height” bond manager, considering the collapse in the TRF’s AUM since Bill Gross’ departure over a year ago) revealed that public service cronyism is not only alive, but has never been better, when in a press release it reported that former Fed Chairman Ben Bernanke, ex-U.K. Prime Minister Gordon Brown, and former ECB president Jean-Claude Trichet will form the backbone of a “global advisory board” at Pimco.

Bernanke, Trichet and Brown, along with Ng Kok Song, former chief investment officer of Singapore’s GIC Pte, and Anne-Marie Slaughter, an ex-director of policy planning for the U.S. State Department, will provide Pimco their “collective view on global economic, political and strategic developments and their relevance for financial markets,” the Newport Beach, California-based firm said in a statement Monday.

Translation: PIMCO is absolutely clueless how to trade in these centrally-planned markets and is hoping that those who created said “markets” can share some insight on how to actually generate some profits instead of suffering 14, or is it 15 consecutive months of PIMCO Total Return Fund capital outflows, where the Bill Gross departure may have been the worst thing to ever happen to the Newport Beach-based bond fund.

Which should make one wonder: in hopes of landing such lucrative 7 – 9 figure private sector jobs with funds like Pimco and Citadel, just who are public sector employees working for?

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How Eric Holder’s Corporate Law Firm Is Turning Into a ‘Shadow Justice Department’

The revolving door between the Department of Justice and a certain corporate law firm is spinning faster than ever. On July 6, former Attorney General Eric Holder returned to his previous employer, Covington & Burling — a firm that’s represented the biggest banks on Wall Street, and is internationally known for its white-collar defense practice. A week later, his DOJ chief of staff Margaret Richardson announced that she would be following him there.

Meanwhile, the latest data from the DOJ reveals that criminal prosecutions for white-collar crimes are at a 20-year low. This decline and the rapid circulation of personnel between Covington and the DOJ has raised questions about the Obama administration’s handling of the banking industry and the 2008 financial crisis.

Under Obama, the DOJ decided not to pursue criminal charges against most of the executives and financial institutions behind the economic collapse, opting instead to impose hefty fines that were paid out by shareholders, not the employees or executives of the banks. In contrast, some 1,100 individuals faced criminal prosecution during the savings and loan crisis of the 1980s, and the heads of several major banks served jail time.

“I’m not accusing anyone of anything specific, but we’re looking at a gigantic built-in conflict of interest revolving in and out of the attorney general’s office,” Ted Kaufman, a former Delaware senator who went on to chair the Congressional Oversight Panel tasked with monitoring the $700 billion bailout of the financial industry during the crisis, told VICE News.

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The Dallas Fed’s New President Was Until Recently A Vice-Chairman Of This FDIC Insured Hedge Fund

Revolving door… Zerohedge:

Now that Richard Fisher has been put out to pasture (and by “put out to pasture” we actually mean “works for Barclays”), the Dallas Fed needed a new President. Of course when you’re looking around for possible Fed officials one place you want to check is the pool of former Wall Street investment bankers because after all, we have to keep the revolving door spinning.

With that in mind, we present the new President of the Dallas Fed, Harvard professor Robert S. Kaplan who until 2006 was vice chairman of none other than Goldman Sachs.Here’s the press release from the Fed:

The Federal Reserve Bank of Dallas today announced the appointment of Robert Steven Kaplan as president and chief executive officer. In this role, Kaplan will represent the Eleventh Federal Reserve District on the Federal Open Market Committee in the formulation of U.S. monetary policy and will oversee the 1,200 employees of the Dallas Fed.

His appointment is effective September 8, 2015.

Kaplan, 58, is the Martin Marshall Professor of Management Practice and a Senior Associate Dean at Harvard Business School. He is also co-chairman of the Draper Richards Kaplan Foundation, a global venture philanthropy firm that invests in developing non-profit enterprises dedicated to addressing social issues.

Kaplan was appointed by eligible members of the Dallas Fed board of directors and approved by the Board of Governors of the Federal Reserve System. He succeeds Richard W. Fisher, who retired from the Dallas Fed in March 2015.

“The Bank’s search committee considered a broad pool of excellent candidates to ensure we met our goal of finding someone who has a deep understanding of the economy, financial system and monetary policy—yet who also sincerely appreciates the impact decisions made by the Federal Reserve have on people from all walks of life,” said Dallas Fed board chair Renu Khator, chancellor of the University of Houston.

“I believe we found that person in Robert Steven Kaplan.  He has had distinguished careers in business and academia, and has the right combination of leadership skills, business experience and public-service mindset.  Rob is committed to improving the economy for all Americans.”

Khator acknowledged the contributions of board members Matthew Rose, BNSF Railway Company executive chairman, and Ann Stern, Houston Endowment Inc. president and CEO, who led the Dallas Fed’s search committee.

“I’m honored to be serving the people of the Eleventh Federal Reserve District and the nation as president of the Dallas Fed,” said Kaplan. “I look forward to working with the superb professionals of this Bank and throughout the Federal Reserve System in their vital service to the District and the country.”

Prior to joining Harvard in 2006, Kaplan was vice chairman of The Goldman Sachs Group, Inc. with global responsibility for the firm’s Investment Banking and Investment Management Divisions. Previously, he served as global co-head of the Investment Banking Division. He was also a member of the firm’s Management Committee and served as co-chairman of the firm’s Partnership Committee and chairman of the Goldman Sachs Pine Street Leadership Program.

Upon leaving the firm in 2006, he was given the honorary title of senior director.

Kaplan is the author of several books, including What You Really Need to Lead: The Power of Thinking and Acting Like an Owner; What You’re Really Meant To Do:  A Road Map for Reaching Your Unique Potential; and What to Ask the Person in the Mirror:  Critical Questions for Becoming a More Effective Leader and Reaching Your Potential.

Kaplan serves on the boards of State Street Corporation, Harvard Management Company and Heidrick & Struggles International, Inc. He is also a trustee of the Ford Foundation, founder and co-chairman of the TEAK Fellowship, co-founder and chairman of Indaba Capital Management, LP and chairman of the Investment Advisory Committee at Google, Inc. He will step down from these positions before assuming his responsibilities at the Dallas Fed.

He will continue to serve as co-chairman of Project A.L.S., on the board of Harvard Medical School and as co-chairman of the Draper Richards Kaplan Foundation.

Kaplan previously served on the board of Bed, Bath & Beyond, Inc. and was appointed by the Governor of Kansas as a member of the Kansas Healthcare Policy Authority Board. He also served as a member of the Investors Advisory Committee on Financial Markets of the Federal Reserve Bank of New York.

Born and raised in Prairie Village, Kansas, Kaplan received a bachelor’s degree in business administration from the University of Kansas and a master’s degree in business administration from Harvard Business School.

The Dallas Fed serves the Eleventh Federal Reserve District, which encompasses Texas, northern Louisiana and southern New Mexico. As part of the nation’s central banking system, the Dallas Fed participates in setting monetary policy, supervises and regulates numerous financial institutions, and provides financial services to depository institutions and the U.S. government.