Step right up and Spin the Revolving Door – and what is your prize? Why, a nice job on Wall Street working for the people you used to regulate – you wrote in the loopholes, now you get the cash for exploiting them!
Latest contestants – staffers working for the Commodity Futures Trading Commission (CFTC).
Many Americans understood that the Dodd-Frank “reforms” were mostly worthless. They will not prevent another crisis or another massive TARP type bailout as the law did absolutely nothing about Too Big To Fail banks (which have actually gotten bigger).
This should not have been a surprise given one of the law’s namesakes, Senator Chris Dodd, was caught red handed getting special loans from perhaps the worst offender in irresponsible mortgage origination – Countrywide. Senator Dodd barely survived an ethics investigation from his similarly compromised colleagues.
But what critics may not have understood was that Dodd-Frank was apparently a jobs program for politically connected staffers. From The Wall Street Journal:
After working long hours over many months crafting new rules for Wall Street, a number of government regulators are switching sides to work for the firms that will have to follow and interpret them.
Whenever there is a major policy change in Washington like the 2010 Dodd-Frank financial overhaul, it enhances the marketability of government employees with specialized skills and contacts. But in the past, it was officials at the Securities and Exchange Commission, the Federal Reserve and the Treasury Department in particular who found their expertise and contacts most highly valued in the financial industry…
At least nine CFTC employees have decamped since June for firms in finance, law and accounting that are figuring out how to comply with the Dodd-Frank overhaul. Six of the staffers were directly involved in rule making and three were in enforcement.
Well done staffers. So glad the taxpayers could fund your Wall Street internship at the CFTC.
Don’t forget the elected officials that helped you get the CFTC job in the first place, I’m sure some of that Wall Street bonus money can be spared for a campaign contribution or two. Remember, you might want to go back into government so you can get even more money in the private sector when you walk out the next time. Cha-ching!
Photo by Susan NYC under Creative Commons license