David Dayen

David Dayen is a contributing writer to Salon.com and a weekly columnist for The Fiscal Times. His forthcoming book about foreclosures will be published by the The New Press.

Recent Articles

The Latest Indication of Obama's Lack of Commitment to Financial Reform

The new Fed nomination signals the administration's belief that Dodd-Frank solved everything.

(Photo: AP/Evan Vucci)
(Photo: AP/Evan Vucci) In this October 2014 photo, Obama sits with financial regulators including Fed Chair Janet Yellen (left). W ith the fifth anniversary of Dodd-Frank, you will hear a lot about the Obama administration’s commitment to financial reform. And you can certainly break down what the law did and find successes on discrete issues. But even supporters will agree that a financial regulatory law is only as good as the people conscripted to implement and oversee it. And so the Obama administration said more about their position on financial reform with a key nomination on the day before the anniversary than they did with any subsequent rhetoric. The White House nominated Kathryn Dominguez, a professor of public policy and economics at the University of Michigan, to fill the final open seat on the seven-member Federal Reserve Board of Governors. Dominguez teaches a class called “Jane Austen and Economics” along with courses in macroeconomics and international financial policy...

The IRS Will Close This Tax Loophole -- Unless Wall Street Gets Its Way

Hedge fund managers are fighting to keep a little-known tax cheat that saves them hundreds of millions, if not billions, of dollars. 

(Photo: Ray Tsang/Flickr)
(Photo: Ray Tsang/Flickr) F or nearly a decade, Democrats from President Obama on down have vowed to close the “carried interest” loophole, which allows investment managers to classify a substantial portion of their income as capital gains, benefiting from reduced tax treatment. But there’s another, even more audacious loophole hedge fund managers routinely use to further reduce their tax burden. It involves a form of laundering—cycling money through shell companies pretending to sell a specialized form of insurance. Using this technique, the nation’s biggest hedge fund managers have shielded hundreds of millions, if not billions, of dollars. A couple weeks before a deadline to comment on proposed rules to close this loophole, activists have gotten involved by demanding that the IRS act robustly. They want to highlight this elaborate tax evasion as an example of how hedge funds use whatever strategy they can devise to enrich themselves, to the detriment of ordinary workers and the...

A Chance to Remake the Fed

J anet Yellen has only chaired the Federal Reserve for a few months, but you could forgive her if she feels like the new kid in school that nobody wants to sit with at lunchtime. With the resignation of Jeremy Stein earlier this month, there are only two confirmed members of the seven-member Board of Governors: Yellen and Daniel Tarullo. Three nominees—Stan Fischer, Lael Brainard and Jerome Powell, (whose term expired but has been re-nominated)—await confirmation from the Senate. Another two slots are vacant, awaiting nominations. One consequence of the shortage of Fed governors is that regional Federal Reserve Bank presidents, chosen by private banks, now outnumber Board members at monetary policy meetings, allowing the private sector to effectively dictate monetary policy from the inside, and creating what some call a constitutional crisis . The need for two more nominees, however, provides an opportunity to reunite the progressive coalition that prevented Larry Summers from getting...

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