Academic journal article ABA Banking Journal

Dugan Speaks of "Sea Change" in Last Speech as Comptroller

Academic journal article ABA Banking Journal

Dugan Speaks of "Sea Change" in Last Speech as Comptroller

Article excerpt

While not the longest-serving Comptroller of the Currency, John Dugan nevertheless had one of the most intensive five years of service that any Comptroller faced, stretching back to when Abraham Lincoln created the Comptroller's Office in 1863. Dugan, the 29th Comptroller, left office on August 14. His last speech as Comptroller was July 21 at Washington's Exchequer Club, and contained his views on some of the causes and contributing factors to the recent financial crisis.

[ILLUSTRATION OMITTED]

Dugan, who has spent 25 years involved in financial services--as a legislative staffer, Treasury official, and regulatory attorney before becoming Comptroller--outlined the similarities and differences between the financial crises of the late '80s/early '90s and 2008. In the current round, he said, the biggest problems were centered in the largest institutions.

"While the crisis began in large unregulated or less regulated financial firms, it quickly spread to some of our largest banks," he said. The problems for these big firms in the earlier crisis were different from more recent troubles, however. Rather than commercial real estate problems and loans to developing countries, the causes this time included: poorly understood securitizations and complex structured products, over-reliance on flawed credit ratings, low reservoirs of common equity, and "at the heart of it all, the worst mortgage underwriting in our nations's history. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.