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

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
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. The Dodd-Frank financial reform law intended to end the practice of financial industry behemoths shifting away their riskiest practices from U.S. regulators’ prying eyes. But a rule that would subject the $630 trillion global derivatives market to the same regulations, no matter the location...

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
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,” a practice where mortgage servicers pursue foreclosure while deciding whether or not to grant a loan modification. 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 in several key areas, though not to the degree that housing advocates claim . This discrepancy between homeowner complaints and bank pleas of innocence can...

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
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. I know this because I met Marc then, in 2006, when he was in that “planning on killing myself” phase. At the time I was performing random acts resembling stand-up comedy at laundromats and sandwich shops throughout the greater Los Angeles area, while also stepping into political writing with a new and exciting invention of the age called a blog. My comedian friends and I had a...

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 defines 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 defanged to allow the financial industry to conduct its business with few, if any, restrictions. The lobbyists, and mostly the lobbyists alone, bear responsibility. Witness the most recent rollback of Dodd-Frank, a compromise on derivatives regulations by the Commodity Futures Trading Commission (CFTC). The New York Times ’ Ben Protess makes the culprit clear in his Page 1 report : “ Under pressure from Wall Street lobbyists , federal regulators have agreed to soften a rule intended to rein in the banking industry’s domination of a risky market.” (Emphasis mine.) But this gets things...

Banking Regulation: Closed for Business

Flickr/Vittorio Ferrari
T hese 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. The bill would increase equity (either retained earnings or stock) in the financial system by $1.1 trillion and incentivize mega-banks to break themselves up, according to a Goldman Sachs report . Brown and Vitter previewed the legislation earlier this week at the National Press Club, insisting that the new regulations on risky mega-banks would diminish threats to the U.S. economy and prevent taxpayers from having to bail out banks in the future . Vitter also said the legislation would “level the playing field and take away a government policy subsidy, if you will, that exists in the market now favoring size.” With momentum, broadening support, and tangible...