Meet Mary Schapiro's New "Revolving Door" Employer

Tyler Durden's picture

When Mary Schapiro quit the laughing stock US stock market regulator, the only question was which Wall Street firm the latest SEC "revolving door" migrant would end up with, with most bets being on, naturally, Goldman and JPM. Today, to some surprise, the news hit that the former head of the internet porn-addicted regulator (which like clockwork always complains about its low budget: maybe get a refund for that subscription?) has decided to join none other than the revolving door extraordinaire consulting firm Promontory Financial. Per the WSJ: "Ms. Schapiro will work full-time in Promontory's office in Washington as a managing director leading the consulting firm's governance and markets practice and advising clients on risk management and compliance. Ms. Schapiro and a Promontory spokesman declined to say how much she will be paid in the new job." And by clients the WSJ of course means the HFT lobby and various GETCO vacuum tubes.

So who is Promontory? Nothing short of an "expert network" of all former government workers who having moved on, are willing to spill the beans about all the secrets of government operations... for a fee of between $1000 and $10,000 per hour. The chart below shows a sampling of all current and former employees of Promontory, explaining why it is a perfect fit for anyone intent on justifying the allegations of those who claim all the SEC does is provide a revolving door opportunity for ex-government workers.

More from American Banker:

In 2001, Eugene Ludwig opened a consulting business with little more than a secretary and a thick rolodex of contacts from his days as a top banking regulator. An astute, driven college friend of Bill Clinton's, Ludwig had presided over a momentous five years for banking as comptroller of the currency. Even as he prodded banks to embrace fair lending and modernize their risk management, he championed their push into securities markets and used preemption to pry state regulators off the OCC's turf.


At the heart of his new firm's business model was the prescient premise that as banks diversified into new states and markets they would be concentrating their exposure to Washington's oversight. Navigating regulations-and the aims of the people who made them-would become as vital to modern banking as managing credit risk.


"I think it is insane not to follow those rules with vigor," Ludwig says. "First, more than on balance they're designed to make the system and institutions better and safer. Second, they're the law."


With close to 400 employees and some 1,400 consulting engagements under its belt, Promontory Financial Group has built a shadow network between banks and regulators. The firm is a sort of ex-regulator omnibus, capable of forecasting, mimicking and occasionally even substituting for the financial industry's supervisors.


For those who view regulators and the industry as generally reasonable and well intentioned, that work might be viewed as a blessing. But the expertise and impressive connections that shaped Promontory's success are now threatening its reputation, and potentially its future business.


Ludwig is quick to argue that Promontory's influence and its deployment of well-connected staff members extends only in one direction.


"We don't lobby-it's not our business. We do the opposite of influencing government. We try to influence the private sector in terms of what the government wants it to do," he says. (Ludwig did register as a lobbyist for Countrywide after being hired to advise the mortgage giant on its dwindling options in late 2007, though there's no record he performed any advocacy work.)

Read the full article here.

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CalibratedConfidence's picture

it's all bullshit.  Fuck 'em all

ihedgemyhedges's picture

So in essence, it's just a high end whorehouse.....

Clint Liquor's picture

Mary was also appointed to the board of GE. Payback for GMAC?

knukles's picture

Thanks ever so much for that link, Tyler.
Now I'm probably gonna have ads for antique VW buses compleate with Grannies in Heat...
For the love of God man, the humanity of it all....


take you teeth out and a mouth of this chocolate KY grandma
.....thats just so wrong, Knuks

macholatte's picture





          Thanks Tyler!



Our country is now taking so steady a course as to show by what road it will pass to destruction, to wit: by consolidation of power first, and then corruption, its necessary consequence.

Thomas Jefferson

Slightly Insane's picture

It is a "High End Whorehouse" ...... WITH YOU PICKING UP THE TAB ..... please pass the caviar, and dom perignon, I'll have another.


These rats need to be "terminated" along with this practice .... this is absolutely shameful!

Buck Johnson's picture

Yep, they private sector pays them via money and/or jobs in order to find ways around certain rules and laws and if not.  They are able to find friendly people in the govt. and SEC that for a fee will look the other way and/or pick and choose what is important and what isn't important (do you truly think that Maddoff could have gotten where he was if he wasn't getting help from the govt.).

SheepDog-One's picture

'It's 1 big club and you ain't in it!'

Words of reality from George Carlin.

prains's picture

this is how a FAILED meritocracy works: to the casual observer(most) nothing looks out of place but to the astute observer (few) the FAILURE resides in the gaming of the system. Work arounds, loopholes, legal interpretations of words like "the" and just straight up good old fashioned corruption. The ENTIRE system is broken,infiltrated,captured,bought off,paid for. COMPLETE AND TOTAL INSTITUTIONAL FAILURE REQUIRES ONLY ONE THING, a good old fashioned insurrectionist purge of the entire process. Non-violent of course.

Dewey Cheatum Howe's picture

When everyone who was screaming gets real quiet in the face of blatant whipping your genitals out and slapping them on the general public's face you know the shit is about to hit the fan big time. In a non-violent way of course.

LawsofPhysics's picture

Could we have their addresses please?  Thanks.

optimator's picture

Most end up with 12 or more of those, some out of country where the son shines a  lot.

earnyermoney's picture

Promontory? Exhibit A of organizations that push paper for money.

Cursive's picture

Why am I suppossed to be afraid of anarchy?  Government is Tyranny.

The Gooch's picture

The Liberty Tree is PARCHED.

buzzsaw99's picture

Disgusting pack of assholes.

Kina's picture

The poison once in the blood stream reaches all parts of the body and thus has the US become corrupt in all its parts.


What it requires is one gigantic EMP event to render the entire country's electronics and power generation ruined and thus the country reliant on man power, and the power of men in the community....all of whom are armed.

LeisureSmith's picture

Well if that is the solution, then pray the NPP's have spare parts and shit tons of diesel..... or things will get "Hot" real fast.

Shizzmoney's picture

Back in the old days of the Soviet Union, they defined a Hungarian as someone who enters a revolving door behind you, and comes out ahead of you.

These days? It's probably a good definition for a federal regulator.

ILLILLILLI's picture

Long (fashionable) jackboots and (rechargeable) cattle prods...


One must have a certain sense of style and efficiency as one seeks to influence the confluence.

toros's picture

These people have this so sown up, next thing you know they will be printing money for themselves...



astoriajoe's picture

any of those government employees talkin'bout UFOs? just curious.

ekm's picture

Well, here's what I think the US gov bribing structure is:


- Democrats get financed by Pharma and others to be defined

- Republican get financed by Big Oil and others to be defined

- Taking a cue from poster RADICAL MARIJUANA, Bankers are the "accountants" who want to make money out of both sides.

- Whoever wins elections caters to their financiers. If Dems win they cater to Pharma, if Repubs win they cater to oil.

- Military Ind Complex simply vacuums funs away from everybody.

- Again, bankers wants to be in the middle of everything.


Bottom line: There's a fight right now between Bankers (accountants) and Military Ind Complex, looks to me, since both these groups simply vacuum funds from everybody else.


Obama will do whatever the winner tells him to do. There won't be any market move until the fight is over or truce is set. Different factors will FORCE their moves, two most important ones being Crude Oil and Iran.

Only then, the market will move as it should.


Until then: I'm relaxing and waiting until the dear leader gives the order for the bottom to be removed from the market.

SheepDog-One's picture

I knew 1 guy who was a 'consultant' once, slimy greaseball.

optimator's picture

In addition to that a part time job,  Mary Schapiro, Ex-SEC Chairman, Nominated To GE Board.  Ever since Immeltt took over he's been stacking the place with them.  Why not just let them work for the SEC and the Banksters at the same time, make things easier for all of them.

yogibear's picture

Washington is a Paid-for-view, by special interest,  BS fest.

The taxpayer would save money if the SEC, CFTC, education  and environmental protection agencies were all elimnated.

W74's picture

No different than criminals networking in prison about how to better commit petty street crimes, these guys and gals simply learn a much more sophisticated craft....and get paid to do it.

earnyermoney's picture

I'd like to start with the DHS and TSA.

lemarche's picture


Cacete de Ouro's picture

The BangBros bus also has a Revolving Door...

just sayin'

NoWayJose's picture

You must admit she is a regulatory expert - I can think of no one better to point out all the loopholes in the SEC regulations!

Ban KKiller's picture

We, the people, excludes scumbags, right?

We, the people, ARE scumbags for settling for shit. 


Charles Nelson Reilly's picture

What a fuckin fiat whore this woman is.

T-NUTZ's picture


Downtoolong's picture

the revolving door extraordinaire consulting firm Promontory Financial

Because, no one in government actually figures out how to do what we say they do. They hire consultants to tell them how to screw us over.

Opinionated Ass's picture

Ludwig is doings God's work. He should make a DVD for school kids to learn about it.

"We try to influence the private sector to do what government wants it to do. Yes, sort of like the IRS does with threats of fines and jail, but we accept big bribes instead."

mark mchugh's picture

Hey let's not forget Mary's other big news!!!


Schapiro Is Nominated to G.E. Board

Mary has parlayed her complete inability to spot massive Ponzi schemes into an awesome career!!  From her humble beginnings as the regulator most responsible for Bernie Madoff's fraud, to Chair of the SEC....

By my calculations, Mary's a shoo-in to be the next head of the IMF

You go, girl!!!


Shizzmoney's picture

Susan B. Anthony must be rolling in her grave.

I think when she tolled over women's right to vote and the workplace, the thought of some woman with a fake butt making millions of dollars a year just for being a retard (Kim Kardashian) wasn't the kind of "progress" Susan had in mind.

mark mchugh's picture


You've come a long way, baby!

Dewey Cheatum Howe's picture

Some different takes on this story as run by the state media information control mechanisms that mix news with subtle language cues to influence public opinion and perception.

First we have the take as published by the state departments "public diplomacy" mouthpiece aka the Associated Press. This is a repost from their article.

They are surprisingly or not so surprisingly fairly neutral on the story. I guess this doesn't fall under national security concerns though not without some fluffing like this bit.

Schapiro was named SEC chairman in the midst of the worst financial crisis since the Great Depression. She took over after the agency failed to detect the Bernard Madoff pyramid scheme.

Only problem there is she was appointed head of the SEC in 2009 and the financial crisis was in 2007-2008. But we won't let facts get in the way of some good old fashioned fluffing unless that was an unintentional moment of truthiness on their part.

Now here is Reuters take on this story.

Former U.S. Securities and Exchange Commission (SEC) chairman Mary Schapiro will join a private consulting firm as a managing director following a tumultuous four years rehabilitating the agency's battered reputation.

In addition to shoring up the agency's name, Schapiro had to fight numerous other fires - from the 2010 "flash crash" that sent the Dow Jones industrial average tumbling 700 points within minutes to high-profile court losses.

Not entirely off the mark but not really accurate either since we all know what a fucking joke the SEC was under her supervision. Maybe she was overwhelmed or incompetent or just another crony. I'll get to the her real intentions after the third take. But as we can see this article is more about fluffing the SEC and how it is not a joke because of her leadership.

Then last but not least the WSJ take

Less than four months after stepping down as the top U.S. securities regulator, Mary Schapiro is joining a consulting firm that has built a reputation as a shadow regulator by hiring scores of former government officials.

Then the rebuttal

"In my case, there's no revolving door...I won't ever be going back to government," the 57-year-old Ms. Schapiro said in an interview. She decided that after spending "28 of the last 32 years as a regulator," now was the "right do something different."

 Mary Mary Mary *shakes head* you should have kept your mouth shut and not uttered those words.

Ms. Schapiro is the only person to have led all three of the big U.S. overseers of Wall Street: the SEC, Commodity Futures Trading Commission and Financial Industry Regulatory Authority. And she has accumulated a number of contacts on the financial industry and Capitol Hill who can influence laws and regulation.

She said she won't exploit her valuable Rolodex by lobbying on behalf of clients. SEC officials are usually restricted in their dealings with the agency for at least a year or two after leaving, with a permanent ban on trying to influence the SEC over certain issues they worked on while in government.

No you'll do one better which gives us a chance to expose another type of crony scam besides lobbying and expose more ethical shortcomings.

Ms. Schapiro said she would do more than abide by just the letter of the rules. She has agreed with Promontory to never appear before any federal agency on behalf of a client.

Yes and not a lie because of the nature of the scam. More misdirection to distract from the real scam here.

Ms. Schapiro said she talked to "a lot" of headhunters, and law, accounting and consulting firms before choosing Promontory. Last month, General Electric Co. said it nominated Ms. Schapiro to serve on the company's board of directors. Shareholders will vote on her election at GE's annual meeting April 24.

Last year, GE paid independent directors about $250,000 each. Ms. Schapiro earned a salary of about $165,000 as SEC chairman.


More misdirection to distract from the real scam.

Some of her top lieutenants at the SEC already have made the jump to the private sector. Robert Cook, who led the SEC's trading and markets division for three years, is returning to law firm Cleary Gottlieb Steen & Hamilton LLP. Cleary also employs David Becker, who rejoined the firm in 2011 after two years as the SEC's general counsel.

And even more misdirection

Now we start to get to the real scam.

Promontory was started in 2001 by a former comptroller of the currency, Eugene Ludwig, and has expanded rapidly by positioning itself as a regulator-for-hire: a self-described "bank doctor" that firms can pay to cure sickly compliance before the government comes calling.

The $64 dollar question is how does Mary Mary fit into the scam.

Then last but not least the weak arguement in favor of her decision and defending of the whole revolving door practice.

Ms. Schapiro said revolving-door concerns are understandable but "often...misplaced." In frequent testimony before U.S. lawmakers, the SEC was criticized both for not having enough Wall Street experts and for employing too many. "You can't have it both ways," she said. "And you can't hire people with expertise the agency needs and then say: 'You can never leave.'"


Then you also get this laugher of a statement.

A spokesman for Promontory referred to an earlier statement that said the firm "strove to conduct its review work as thoroughly and independently as possible." The firm's "overarching concern at all times was to serve the best interests of borrowers."

No you serve the best interests of your clients, any asshole with a quarter of a brain knows that. The borrowers are not your clients.


The WSJ article covers all the themes here but seems to be trying too hard to spin her as the Richard Nixon equivalent of the "I am not a Crony" line.

I'll answer all the burning questions in my reply.








centerline's picture

Will be hanging out here for that reply.  Thanks.

Dewey Cheatum Howe's picture

First we need to identify where she fits into the crony picture. The Crony Crime Club is structured like the New York Mafia with different families, crews and as such the crews specialize in certain money earning rackets. The question where does she fit and what is her racket.

We need to look at some background.

She starts at the SEC under Reagan of all people as a democratic appointee. But doesn't come to prominence until under Clinton as head of the CFTC  which regulates options and futures markets from 94 - 96.

In 96 she joins National Association of Securities Dealers (NASD) (now the Financial Industry Regulatory Authority)

So she goes from writing regulations to a specially created position for her to regulate the same companies she wrote regulations for. It is sketchy but you can make a case for no conflict of interest as far as capital cronyism. It is still cronyism but the basic mission is the same which is to enforce rules in a regulatory manner.
Also to be fair the NASD was undergoing a major reorganization at the time, her position was just one aspect of it.

Interesting aside is the cast of cronys in this press release including one Jamie Dimon and Jon Corzine. Just to highlight the connection to a statement about contacts and influence in current articles about her. They were 2 of her bosses at one point.

So fast foward to 2009, she becomes the head of the SEC under Obama until 2012 when she steps down.

Now she joins the consulting firm Promontory Financial headed by one Eugene Ludwig who served as Comptroller of the Currency under Bill Clinton and was also a college buddy of Bill's.
So the common theme here is Clintons, Bill as President along with the Ludwig connection. Hillary and the general Clinton influence in the Obama administration that persisted (and maybe still exists) during his first term. With that said we can say she is part of the Clinton Crony Crime Family (say that 10 times fast). The question is, is she or Eugene the capo or soldier and what racket is her speciality.

The common theme here between herself and Eugene is each went from being a regulator to consultant who "helps" clients stay in compliance with said regulations.

Eugene Ludwig's speciality was the supervision by risk which he implemented as comptroller of the OCC>

Then we have as per the wikipedia page on Mary her change on the issue of regulation vs deregulation. While head of the CFTC she was for deregulation and the she changed her position and became pro-regulation during the SEC nomination process in 2009.

So what is the racket, it is the protection racket. This variation works in that they first write the rules aka regulations for the businesses effected (same as sending in the goons to mess up the place and rough up the owners), then the sell their services to protect the businesses from said rules aka compliance services via consulting (same the mob then coming by and collecting protection money to keep the goons they control at bay). The more famous protection racket run by the Clinton Crony Crime Family is the cap and trade/ carbon credit scam run by one Al Gore Jr. Basically in this case the racket is working both as the law and as the mafia at the same time. I'm sure Eugene never had any correspondence or provided any sort of guidance while she was writing regulations as the head of the SEC either directly or indirectly through the Clintons or other Clinton Crony mediaries. I'm also sure Eugene didn't profit handsomely off of her becoming a pro-regulation head of a rule writing agency by helping firms regulated by said agency stay in compliance with said rules. I'm also sure the timing of her stepping down as the head of the SEC has nothing to do with Hillary also leaving the State Department. I'm sure Occam's razor is just a silly hallucination of low brow fringe conspiracy theorists.

Yes she is correct about the lobby part but the crony scam was never about influence but about protection. When you are in the protection racket regulation is your friend and in crony socialism regulation is king, no need for lobbying.  As far as being a revolving door it is more like a racket cash generating retirement home for members of the Clinton Crony Club and other protection racket specialists aka ex rule writers.

chinaboy's picture

She has one thing to 'consult': No risk, keep making money. And pay ME a lot. 

centerline's picture

And why would this not be seen as illegal?  As potential dangerous to America's security, ability to function?

Every day... more "in your face" evidence of how corrupt the system has become.  One doesn't need to know much about the inner workings of a "jet engine" to realize that when the engine is on fire it is not a "normal" condition and likely indicates looming catestrophic behavior.

lemarche's picture