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In the Blair and Brown years, the irrepressible Derek Draper was one of Westminster’s best known and most colourful characters.

Affectionately known as “Dolly”, he was a cheerful extrovert who loved being at the centre of intrigue and gossip and was prone to boasting about his own importance.

To be fair, he was indeed very much an insider in the New Labour project that catapulted Tony Blair into power in the landslide election victory in 1997.

He was sociable, gregarious and because he worked for and was an ally of Peter Mandelson he was almost a Blairite before Blair.

He was fun, had a cheeky grin and an easy manner, and enjoyed the company and camaraderie of MPs and journalists in Westminster.

He was also very good at his job, colleagues acknowledged, and passionate about Labour winning the 1997 election after 18 years in opposition.

But it was his occasional boasting – and his misfortune in being unwittingly dragged into plotting – that landed him in two embarrassing New Labour scandals.

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The first was when he was caught out bragging about how important and well connected he was. The second was over a link to a plot to smear Tory politicians.

Part of Dolly’s colourful reputation came from the fact that he worked for Mandelson, the “Prince of Darkness”, during Mandy’s ascent from spin doctor to government minister.

Derek Draper arrives back to his home in north London. Damian McBride, a close adviser to the Prime Minister for almost a decade, resigned in disgrace after admitting that he sent "juvenile and inappropriate" emails from his Downing Street account to former spin doctor Draper. 2009
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Draper faced criticism over his infamous quote

That wasn’t Draper’s first job in politics, however.

In fact, he worked for Nick Brown, when “Newcastle Brown” – the Tyneside MP who later became chief whip under four Labour leaders – was a shadow minister.

He went to work for Mandelson when he became the MP for Hartlepool in 1992 and – along with the equally irrepressible Charlie Whelan, Gordon Brown‘s legendary spin doctor – was one of Westminster’s most high-profile insiders.

‘I am intimate with every one of them’

But Draper left Westminster a year before the Blair landslide and became a political lobbyist. And that was when his boasting landed him in trouble.

In 1998, in a scandal that became known as “Lobbygate”, he told an undercover reporter from The Observer how important and influential he was.

“There are 17 people who count in this government… to say I am intimate with every one of them is the understatement of the century,” he said in a memorable quote.

He drew criticism. Even Mandelson said at the time: “He gets above himself. But now he has been cut down to size and I think probably he will learn a very hard lesson from what has happened.”

But he landed in more trouble in 2009 when The Daily Telegraph revealed that Brown’s then spin doctor, Damian McBride, had sent him emails about a plot to smear Tory politicians including David Cameron, George Osborne and Nadine Dorries.

It was reported that Draper, who by now had set up the LabourList website, described the plan as “brilliant” in an email to McBride.

Now spin doctor for the shadow attorney general Emily Thornberry, McBride immediately quit and prime minister Brown was forced to issue a grovelling apology.

A few weeks later, a contrite Draper quit LabourList and said: “I regret ever receiving the infamous email and I regret my stupid, hasty reply. I should have said straight away that the idea was wrong.”

After his career change, training as a psychotherapist, Dolly moved on, although he would still turn up to social events with Labour Party pals, such as the Tribune magazine Christmas party.

His illness has been a terrible shock to all who knew this larger-than-life character who was such amusing and engaging company. Gone, but certainly not forgotten.

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

A growing rift has emerged in Washington, D.C., between the cryptocurrency industry and labor unions as lawmakers debate whether to ease rules allowing cryptocurrencies in 401(k) retirement accounts.

The dispute centers on proposed market structure legislation that would allow retirement accounts to gain exposure to crypto, a move labor groups say could expose workers to speculative risk. In a letter sent on Wednesday to the US Senate Banking Committee, the American Federation of Teachers argued that cryptocurrencies are too volatile for pension and retirement savings, warning that workers could face significant losses.

The letter drew immediate pushback from crypto investors and industry figures. “The American Federation of Teachers has somehow developed the most logically incoherent, least educated take one could possibly author on the matter of crypto market structure regulation,” a crypto investor said on X. 

Retirement, Pensions
The AFT letter to Congress opposes regulatory changes that would allow 401(k) retirement accounts to hold alternative assets, including cryptocurrency. Source: CNBC

In response to the letter, Castle Island Ventures partner Sean Judge said the bill would improve oversight and reduce systemic risk, while enabling pension funds to access an asset class that has delivered strong long-term returns.

Consensys attorney Bill Hughes said the AFT’s opposition to the crypto market structure bill was politically motivated, accusing the group of acting as an extension of Democratic lawmakers.

Retirement, Pensions
Funds held in US retirement accounts by type of account plan. Source: ICI

Related: Atkins says SEC has ‘enough authority’ to drive crypto rules forward in 2026

Opposition to crypto in retirement and pension funds mounts

Proponents of allowing crypto in retirement portfolios, on the other hand, argue that it democratizes finance, while trade unions have voiced strong opposition to relaxing current regulations, claiming that crypto is too risky for traditional retirement plans.

“Unregulated, risky currencies and investments are not where we should put pensions and retirement savings. The wild, wild west is not what we need, whether it’s crypto, AI, or social media,” AFT president Randi Weingarten said on Thursday. 

The AFT represents 1.8 million teachers and educational professionals in the US and is one of the largest teachers’ unions in the country.

According to Better Markets, a nonprofit and nonpartisan advocacy organization, cryptocurrencies are too volatile for traditional retirement portfolios, and their high volatility can create time-horizon mismatches for pension investors seeking a predictable, low-volatility retirement plan.

Retirement, Pensions
Bitcoin and Ether volatility compared to other asset classes and stock indexes. Source: US Federal Reserve

In October, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) also wrote to Congress opposing provisions within the crypto market structure regulatory bill.

The AFL-CIO, the largest federation of trade unions in the US, wrote that cryptocurrencies are volatile and pose a systemic risk to pension funds and the broader financial system.

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