Brian Madigan spent years as a central banker. He spent the last couple years bailing out big banks through the Troubled Asset Relief Program, expanding the Fed discount window, the Term Auction Facility, and others, while also subsidizing the big banks through “quantative easing” initiatives.
He also lobbied Congress to keep secret the names of those banks benefitting from the Fed's bailouts, for fear it would harm investor and consumer confidence in those banks.
In late 2009, he urged the Fed to permanently take up the role of bank-saver, saying “in extraordinary circumstances, central banks may well need to take measures to prevent systemic collapse that are unprecedented in their details….”
If I told you Brian Madigan got a new job this week, I bet you could guess where.
The third-largest financial institution in the world, Barclays.
The New York Times' Ben Protess writes:
Brian F. Madigan, a former top official at the Federal Reserve who played a leading role in the emergency lending programs during the financial crisis, has joined Barclays Capital as a senior policy adviser.
Mr. Madigan, 57, will advise the British bank on economic policy and regulation in the United States
Also noteworthy: Madigan is another beneficiary of the Dodd-Frank law, which has been another lesson, I wrote earlier this year, in “how regulation and bailouts breed lobbyists.”
Here's what the Times wrote about Madigan: “Barclays is one of several firms hiring former regulators to advise on the new rules, stemming from the Dodd-Frank financial regulatory law.”
What, then, do you think are the incentives of our regulators, legislators, staffers, and central bankers?