Gary Lynch, Former SEC Official, Heads To Bank Of America

NEW YORK: Bank of America said it has hired Gary Lynch, a former director of enforcement at the U.S. Securities and Exchange Commission, to head its legal, compliance, and regulatory relations efforts.

Lynch was previously chief legal officer at Morgan Stanley.

Like many big banks, Bank of America is dealing with multiple legal and regulatory issues now, including challenges to its procedures for foreclosing on homes and new rules that affect everything from debit cards to retail brokerage.

Lynch, who at the SEC brought cases against Ivan Boesky and Michael Milken, is famous for helping banks restore their reputations after legal setbacks.

Lynch's hire is part of a management shake-up by Chief Executive Brian Moynihan that also gave the bank a new chief financial officer, Bruce Thompson. Thompson, currently chief risk officer, will replace Chuck Noski, who will become vice chairman of the bank.

Bank of America announced a more than 35 percent decline in first quarter earnings on Friday, hurt by losses in its mortgage unit.

(Reporting by Dan Wilchins in New York; editing by Jackie Frank)

Copyright 2010 Thomson Reuters. Click for Restrictions.

Comments

[Mister Grumpy]

02:34 AM on 04/19/2011

I see the first cousins of the banking industry are getting married........ and all their offspring will have three eyes..............

[ThePeacemakers]

07:12 PM on 04/18/2011

It's probably a swap.

Government sends "regulator" (laugh track) to the corp and the corp will send the government its next regulator...or "elected" official.

[StopMakingSense2]

05:43 PM on 04/18/2011

Isn't that how it's supposed to work in a plutocracy? We have the best government money can buy!

[hangdogit]

03:11 PM on 04/18/2011

This is a bit like somewhat who headed an Organized Crime Strike Force joining the Mafia. How convenient! Gee, I wonder why they hired him...could it be...maybe...SATAN! (I miss Church Lady.)

[laura r]

01:23 PM on 04/18/2011

This is just what Charles Ferguson was talking about in the movie " Inside Job". An he did mean " inside Job" The revolving door, between Wall Street and Government . It was a Great movie, by the way.

[mycall8]

01:22 PM on 04/18/2011

Funny business, funny money and business as usual also no so funny

[steppenwolfsayshi]

12:36 PM on 04/18/2011

Bernake recently said that no one who didn't work in finance would be qualified to regulate finance. I hate Bernake, so I think we need to parse this to get to the root of the problem and find a solution. Because it is a lie meant to confuse those that may not know.

Gary Lynch has gone to work in the regulatory division. Businesses that are highly regulated all have a regulatory division, which has the job of filing the paperwork necessary for the work of the company to be in compliance. A revolving door is not necessary to accomplish this task. The government supplies training materials to the company and the company creates a Standard Operating Procedure for the division and everyone is trained on it. Thusly, the head of the regulatory division is just a paper pusher for the feds. He is of little use to the SEC in a properly functioning system and there is no need for a revolving door.

So why do we have one now? Because the SEC is allowing malfeasance to flourish. They are using the revolving door to spy on the companies so they can create "better regulations" instead of putting crooks in jail or levying large fines for those who break the rules they have.

Some want to the revolving door illegal. That's also a bad idea. Skills are transferable and some employees may find they don't fit well with government/corporate life, so they should be able to change jobs.

[MyDawg1967]

07:23 AM on 04/18/2011

The circle of trust. Once you're family all is good.

[Waiting for Something]

06:37 AM on 04/18/2011

The powerful and wealthy continue their incestuous inbreeding. Nothing new here.

[mariusvinchi]

10:33 PM on 04/17/2011

This is a perfect example of hyperbolic reporting!
Gary Lynch served over a four year period, 20 years ago!
Hardly a "revolving door" scenario....

[concerned21 2]

11:12 AM on 04/18/2011

however he may have served the banks well during that time and now will be rewarded

[AlsoSarah]

06:59 PM on 04/17/2011

Says it all.

[liberalgeezer]

04:01 PM on 04/17/2011

Let's get the facts straight. (I know that isn't very popular with the anti-Obama ranters). This guy was with the SEC from 1985-1989, under Reagan and Bush.

[msjimmied]

02:04 PM on 04/17/2011

Yeah, read this tidbit in another article that accompanied a great interview with Elliott Spitzer and Matt Taibbi. A must watch...

http://www.zerohedge.com/article/spitzer-if-attorney-general-does-not-sue-goldman-sachs-he-should-resign

[McKeaton]

01:56 PM on 04/17/2011

Vote Kucinich....

[McKeaton]

01:55 PM on 04/17/2011

The continuation of the story "How to cook the books, so they smell rosy".