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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