David Dayen

David Dayen is a writer based in Los Angeles, California.

Recent Articles

Going Abroad With Dodd-Frank

Come Friday, the hope reformers once had that risky trades made overseas by American banks might be regulated is likely to be crushed. Democrats cozy with Wall Street are just fine with that. 

AP Images/Harry Hamburg

One of the biggest catastrophes of the 2008 financial crisis came out of the AIG Financial Products division, whose disastrous trades eventually led to a $182 billion bailout of the insurance company. One of the largest financial market blowups since the crisis came from the Chief Investment Office of JPMorgan Chase, where similar trades backfired and cost the company at least $6.2 billion. The common thread? Both of these offices, despite being subsidiaries of American corporations, were based in London, and they enjoyed a degree of autonomy, both from their management teams and from federal regulators, who were unable to recognize the outsized risk until it was too late.

Murky Language Puts Homes Underwater

Banks around the country are exploiting a loophole to foreclose on homes that shouldn't be in the crosshairs. 

AP Images/Don Ryan

Revelations from Bank of America whistleblowers show widespread and ongoing abuse of homeowners seeking loan modifications to avoid foreclosure. Customer service representatives were told to lie about pending modifications and were given bonuses for pushing homeowners into default. The allegations mirror continued complaints about “dual tracking,” where mortgage servicers pursue foreclosure while deciding whether or not to grant a loan modification. And yet, servicers at the five biggest banks were required to pay $25 billion in fines and agree to dozens of new guidelines to curb these abuses as part of last year’s National Mortgage Settlement. While the banks argue that they have fixed any outstanding problems, a recent report from the settlement’s oversight monitor, Joseph Smith, showed continuing violations of settlement terms in several key areas, though not to the degree that housing advocates claim.

How My 15 Minutes With Marc Maron Changed Everything

Talking politics and cracking un-wise with America's favorite over-sharer. 

AP Images/Dan Hallman

“A few years ago I was planning on killing myself in my garage, and now I’m doing the best thing I’ve ever done in my life in that same garage,” says comedian Marc Maron in the premiere episode of Maron. The eponymous new show on IFC is an extension of Maron’s real life, and the wildly successful WTF podcast that resurrected his career. Many of the plots grow out of actual experiences, from tracking down an Internet troll to dating a dominatrix. But the show probably won’t mine what Maron himself would describe as his most painful episode: hosting a liberal political talk radio show.

Naming Names in the Dodd Frank Mess

It’s not just faceless Wall Street lobbyists who are doing the damage; a guy named Mark Wetjen has some explaining to do.

AP Images/Mark Lennihan

As we trudge through the swamp of disappointment that characterizes Dodd-Frank implementation, the liberal commentariat has lately seized upon a new meme; Wall Street lobbyists are responsible for gutting Dodd-Frank behind closed doors. Big-pocketed firms deploy phalanxes of clever lawyers and influence peddlers that easily outpace reformers, ensuring that the regulations ultimately written are sufficiently de-fanged to allow the financial industry to conduct their business with few, if any, restrictions. The lobbyists, and mostly the lobbyists alone, bear responsibility.

Banking Regulation: Closed for Business

Flickr/Vittorio Ferrari

These are heady times for the bipartisan group of reformers seeking a safer and more manageable U.S. financial system. The leaders of this movement, Senators Sherrod Brown and David Vitter, introduced legislation yesterday to force the biggest banks to foot the bill for their own mistakes by imposing higher capital requirements.

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