What a lovely Christmas present from Zach Carter (discussed here Saturday).

Writing in The Nation, the banking reporter for SNL Financial News describes the wreckage left behind by John Dugan, the Comptroller of the Currency and the primary regulator for most of the US banking industry.  To say that Dugan is the lackey of the largest banks is really an understatement.  The former lobbyist and Treasury official has been the defacto advocate for the largest dealer banks through the crisis, opposing regulatory reform initiatives  on Capitol Hill and even from the FDIC, every step of the way.

Writes Carter:

Over the course of nearly a quarter-century, Dugan has proved himself a staunch ally of the American financial elite as a Senate staffer (1985-89), a Treasury official (1989-93) and a lobbyist (1993-2005), building a career that culminated in 2005 when George W. Bush appointed him comptroller of the currency. When the financial system finally succumbed to its own excesses in September 2008, Dugan’s fingerprints were all over the economic wreckage, but almost nobody noticed.

Most recently, Dugan opposed the FDIC’s issuance of a preliminary rule regarding securitizations, adding to his list of accomplishments. Dugan has consistently sided with the narrow interests of the largest banks and against the broader public interest during his tenure in Washington.  If you were to pick one Washington official who was most responsible for the problems in the US banking system over the past cycle, it is most definitely John Dugan.

The issue for Democrats and members of the American Left raised by this article in The Nation is why does Barack Obama allow this situation to continue one day longer?   The continuance of Dugan at OCC and Treasury Secretary Tim Geithner at Treasury illustrates how feeble the White House remains when it comes to financial services policy.

Or maybe the problem is one of conflict.  Like Larry Summer’s derivatives toxic waste dump inside Harvard’s endowment fund?

And let’s not forget Rahm Emmanuel’s proud legacy as a director of Freddie Mac. Maybe the Obama White House just can’t go there when it comes to financial anything.

Click here to read the rest of the article in The Nation.

Chris

Category: Bailouts, Credit, Markets, Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “Zack Carter on OCC Chief John Dugan in The Nation: “A Master of Disaster “”

  1. tito says:

    You’ve heard of Mr Rubin, no?

  2. Greg0658 says:

    hum – consise article … left wondering 2 things .. the biggest – how many jobs do each of us have to be excellent @?

    smallest – my fav pickon .. the Wal*Mart now Super .. wondering how politics/nature* played into Clinton WH facilitating things and along comes fav pickon – DENIED for bank privileges … so F U USA .. there is always another way

    Pinky and The Brain Intro
    http://www.youtube.com/watch?v=iJPFSNu_QNs

    * what goes up comes down / for every action opposite reaction

  3. flipspiceland says:

    Thanks for digging out the NAMES of the other bastards who have been behind the financial chaos.

    How do we keep these NAMES from falling into the abyss and getting away with their crimes? Names like Joe Cassano, Angelo Mozillo, Dick Fuld, Chris Cox, alan Greenspan and Bobby Rubin?

    Even if you have have recycle this story every week, it’s worth it to keep these names from drifting away simply because they aren’t in the mass media.

    Thanks again. And keep digging.

  4. ToNYC says:

    BR..you got it goin’ on now! The Scarlett $$$$s. Maintain a top 20 or so of these miscreants and big bank sycophants and update with systemic risk and current cost to our otherwise old school method, functioning financial system. Also, remembering Paul Volcker’s recent comment that the only recent financial innovation was the ATM machine, in a similar vein, put up in the “asset” column of this cultural juggernaut display, a list of the top 20 or so who have been trying to keep our train on the tracks. It resonated perfectly seeing you on Dylan Ratigan’s “Morning Meeting”. He’s on the top of the list in the interview category, and you are there as well in the Big Picture, homey style. Harry Markopolis, Brooksley Born, Ron Paul, ‘Tyler Durden’, Karl Denninger, Eliot Spitzer. Battle of the Century in our face.

  5. Winston Munn says:

    The beltway is a revolving door. It is GIGO -GBIA. Garbage in. Garbage out. Garbage back in again.

  6. jdmckay says:

    The more Dugans I add to my conspirator list, the more this gutting of US economy recovery looks like a gang rape.

    Oh well… thanks for link.

    And while I’m at it, thanks for Noam Scheiber link a few days ago: IMO he identifies a nexus of causes amid all the (sometimes seemingly) scattered wreckage of discontinuous obscene financial sector events. IMO he defines what has become a critical mass, cultural grounding in US w/momentum and influence to push things over the edge, as we’ve experienced.

  7. dsawy says:

    The reason why it continues? C’mon, you’re expecting the latest Harvard grad (Obama) to clean up after another Harvard grad (Bush)?

    Really?

    If anyone believes that there’s going to be any change in the continued hand-outs to well-connected bankers and mandarins in DC who came out of the Ivy League (and most especially Harvard), please speak right up. Because I have some wonderful oceanfront property in Kansas that I’m looking to sell…

  8. MikeNYC says:

    Why this SOB’s name hasn’t been in a larger spotlight as a principal architect or major enabler of our current financial disaster has always escaped me. Thanks, Barry.

    It’s always been his presence, moreso than any of the other leftover miscreant nonfeasants and opportunists, that has signaled the Obama administration is either totally captive to the banks, or totally ignorant.

    Seriously, Obama, buddy, OCC – look into it. Some change would be nice.

  9. [...] Zack Carter on OCC Chief John Dugan in The Nation: “A Master of Disaster “ Writing in The Nation, the banking reporter for SNL Financial News describes the wreckage left behind by John Dugan, the Comptroller of the Currency and the primary regulator for most of the US banking industry. To say that Dugan is the lackey of the largest banks is really an understatement. The former lobbyist and Treasury official has been the defacto advocate for the largest dealer banks through the crisis, opposing regulatory reform initiatives on Capitol Hill and even from the FDIC, every step of the way. Possibly related posts: (automatically generated)Linkfest (December 18, 2009)Linkfest (December 13, 2009)Linkfest (December 16, 2009) Categories: Linkfest, MSM Idiocy Comments (0) Trackbacks (0) Leave a comment Trackback [...]

  10. BG says:

    Barry,

    I’m like the guy above. You should expose these SOBs and add to the list as needed and run it every fucking day until the outrage tips over into action.

    We have lost control of the governance of this Country. This is one way to slowly get some of it back.

    Thanks for all that you do.

    BG

  11. Snickers says:

    Chris, thanks again for sharing your thoughts. The rot is indeed very much bipartisan.

    You & BR should both get a kick out of this short Miami Herald piece (via Kedrosky) on Allen Stanford.

    ///quote///
    “I love you and believe in you,” said the e-mail sent on Feb. 17. “If you want my ear/voice — e-mail,” it said, signed “Pete.”

    The message from the chair of the National Republican Congressional Committee represents one of the many ties between members of Congress and the indicted banker that have caught the attention of federal agents.

    Though the Senate was now controlled by Democrats, Stanford was prepared: He had given $500,000 to the Democratic Senatorial Campaign Committee in 2002 — his largest-ever contribution.

    “I told him that the Democrats were going to take over, and he needed to make friends with them,” recalled his lobbyist Ben Barnes, once Texas’ lieutenant governor.

    ///endquote///

    See “Feds probing many ties of banker Allen Stanford and U.S. Congress” by Michael Sallah and Rob Barry of the Miami Herald.
    http://www.miamiherald.com/460/v-fullstory/story/1399470.html

    BTW BR, wouldn’t an occasional post by Andrew Bacevich or Bruce Bartlett liven things up around here?

  12. FrancoisT says:

    When it comes to anything economics and finance, Barrack Obama makes a fish out of the water appear perfectly at ease.

    Either he is totally out of his league, or he just doesn’t give a crap.