M. Danny Wall Explained

M. Danny Wall
Office:Chairman of the Federal Home Loan Bank Board
President:
    Term Start:July 1, 1987
    Term End:August 9, 1989
    Successor:FHLBB abolished by FIRREA
    Office2:Director of the Office of Thrift Supervision
    President2:George H. W. Bush
    Term Start2:August 9, 1989
    Term End2:December 5, 1989
    Predecessor2:OTS created, directorship inherited by FHLBB chairman
    Successor2:Salvatore R. Martoche (acting)
    Birth Date:August 30, 1939
    Birth Place:Watertown, MD
    Education:North Dakota State University (BA Architecture, 1963)

    M. Danny Wall (b. August 30, 1939)[1] is an American civil servant who served as the chairman of the Federal Home Loan Bank Board (FHLBB), the federal regulator for savings and loan associations. After FHLBB's abolition by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), he became the first director of the Office of Thrift Supervision.

    He assumed the FHLBB chairmanship on July 1, 1989, after appointment by Ronald Reagan, in place of Edwin J. Gray, whose term expired. Prior to his appointment, he had been on the staff of the Senate Committee on Banking, Housing, and Urban Affairs.[2] He led FHLBB during the savings and loan crisis. The passage of FIRREA on August 9, 1989, saw him automatically become the directorship of the Office of Thrift Supervision, the successor regulatory agency to FHLBB.[3] He had no background in finance and, due to his consistently over-optimistic characterisation of the crisis, lost credibility with Congress.[4] Amid criticism for prior failure to rein in unsafe savings and loan business practices, he resigned on December 5, 1989.[5]

    Notes and References

    1. Web site: Nomination of M. Danny Wall To Be a Member of the Federal Home Loan Bank Board, and Designation as Chairman . American Presidency Project . UC Santa Barbara . April 24, 1987 . November 6, 2024 .
    2. News: Washington Post . New Bank Board Chairman Confirmed . June 26, 1987 .
    3. Olympic Fed. S&L v. Office of Thrift Supervision . https://casetext.com/case/olympic-fed-s-l-v-ots . 732 . F. Supp. . 1183, 1186 . 1998 . D.D.C .
    4. Book: Mason, David L. . 2004 . From buildings and loans to bail-outs: a history of the American savings and loan industry, 1831–1995 . Cambridge University Press . 0-521-82754-X . 2003069691 . 10.1017/CBO9780511511714 . 234 . He had no prior experience in finance and lacked an analytical knowledge of the thrift industry. He was a natural optimist who consistently assured legislators ... that everything was under control ... His persistently rosy forecasts for recovery ... hurt his credibility with Congress. Eventually, some legislators and staffers on Capitol Hill began to refer to [him] as M. Danny Isuzu (after the chronic liar on a television commercial) or as M. Danny Off-the-Wall. .
    5. News: Nash . Nathaniel C. . December 5, 1989 . New York Times . Top Savings Regulator Resigns And Strikes Back at His Critics .