Leo Crowley

Leo Crowley
Born	(1889-08-15) August 15, 1889 Milton, Wisconsin, U.S.
Died	April 15, 1972(1972-04-15) (aged 82) Madison, Wisconsin, U.S.
Occupation(s)	Government official, businessman
Known for	Director of FDIC, head of Foreign Economic Administration, Alien Property Custodian

Leo Thomas Crowley (August 15, 1889 – April 15, 1972) was a prominent government official during President Franklin D. Roosevelt's administration, leading the Foreign Economic Administration. Prior to this, he directed the Federal Deposit Insurance Corporation (FDIC) and held the position of Alien Property Custodian. From 1934 until 1945, Crowley acted as a crucial political strategist and problem solver for Roosevelt.

In 1943, Time magazine dubbed Crowley the "Nation's #1 Pinch Hitter," recognizing him as FDR’s outstanding managerial expert. Subsequent investigations uncovered that high-ranking officials were aware of Crowley’s embezzlement involving Wisconsin banks during the 1920s and 1930s but chose to conceal these facts due to his political significance. Biographer Stuart Weiss portrayed Crowley as a multifaceted individual: a businessman implicated in fraudulent activities whose wrongdoing was deliberately hidden, yet simultaneously a government administrator who managed several major agencies at once, often amid conflicts of interest that would later be deemed unacceptable.

Early life

Crowley was born in Milton, Wisconsin to Irish Catholic immigrants Thomas and Katie Crowley. He pursued higher education at the University of Wisconsin. His father was employed by the Milwaukee Road. From a young age, Crowley worked delivering groceries and saved his earnings. In 1905, he invested $1,000 to acquire a stake in the General Paper Company, eventually obtaining full control by 1919. That same year, he took over the T. S. Morris company with financial backing from Milo Hagen and W.D. Curtis. To alleviate its debts, he sold shares and also purchased a wholesale grocery business managed by his brothers. Additionally, he acquired property in Madison, Wisconsin.

Political life

Crowley's political involvement began through his support for Albert G. Schmedeman’s gubernatorial campaign in Wisconsin, where he also oversaw local hospital operations with comparable management responsibilities. He served as a delegate for Al Smith at the Democratic National Convention, establishing connections with influential figures such as Jouett Shouse and John J. Raskob. Within Wisconsin’s progressive political environment, Crowley played a role in building an alliance between progressives and Democrats to back Franklin Roosevelt.

By the mid-1930s, Crowley’s influence extended beyond leading the FDIC; he actively negotiated banking legislation with Congress and promoted Roosevelt’s political objectives in Wisconsin by collaborating with the left-leaning Progressive Party during elections in 1936 and 1940. At the same time, he maintained relationships with conservative congressional groups and leaders within the national banking sector. In 1940, although considered for the chairmanship of the Democratic National Committee, he was ultimately not chosen.

The Glass–Steagall Act created the Federal Deposit Insurance Corporation (FDIC), an essential New Deal initiative aimed at safeguarding depositors. Under Crowley’s leadership, he transformed his own financial standing from near insolvency to spearheading reforms that ended widespread bank runs and stabilized numerous small banks across the country.

Crowley’s aptitude for mediating disputes brought him into closer confidence with FDR. In 1943, during cabinet disagreements concerning foreign economic affairs, he was appointed head of the Foreign Economic Administration, responsible for managing Lend-Lease programs. This appointment elevated Crowley to Roosevelt’s cabinet as Undersecretary of State under Edward R. Stettinius Jr.

Crowley’s Embezzlement Controversy

In 1931, Crowley became embroiled in a covert scandal involving the misappropriation of government funds. Treasury Secretary Henry Morgenthau Jr.’s Comptroller, J. E. T. O'Connor, revealed several instances of illegal enrichment amounting to tens of thousands of dollars. Nevertheless, President Roosevelt and his advisor James F. Byrnes intervened to protect Crowley, fearing that exposing the scandal would undermine the New Deal’s progress. Morgenthau’s efforts to remove Crowley were blocked, and instead, Crowley was transferred to a different agency while Morgenthau chose not to publicize the issue.

To fortify his standing, Crowley developed strong bipartisan alliances and secured support from members of Congress. His reputation was further enhanced when Pope Pius XI honored him with the Order of Saint Gregory the Great in 1929. Roosevelt appreciated Crowley’s administrative capabilities and loyalty, appointing him as alien property custodian—a position that minimized the risk of financial misconduct and operated outside Morgenthau’s jurisdiction—while allowing Crowley to maintain external income sources. According to biographer Weiss, "Crowley had achieved a remarkable personal triumph."

Later Years

After leaving government service, Crowley returned to the private sector and was appointed chairman of the Milwaukee Road in December 1945. Under his leadership, the company remained profitable through much of the mid-1960s. He continued to maintain influential White House connections; during President Dwight Eisenhower’s second term, Crowley was appointed to the United States Commission on Civil Rights. He was also known to have shared meals with Lyndon Johnson.

Leo Crowley passed away on April 15, 1972, at a hospital located in Madison, Wisconsin.

In 1955, former President Harry Truman openly criticized Crowley for provoking a diplomatic conflict with the Soviet Union following Germany’s defeat. Truman’s daughter, Margaret Truman, later remarked in 1973 that this incident reflected Crowley’s pronounced anti-Russian views, which complicated her father’s attempts to navigate conflicting perspectives within the government.

Further reading

• Laurence C. Eklund (1969) Advisor to Presidents, The Milwaukee Journal, August 17–27 (series of ten articles).
• "Leo the Lion", Time Magazine (March 23, 1942) (Profile sketch on Crowley).
• "Leo Crowley's Aniline" Time Magazine (April 26, 1943) (Coverage on Crowley and synthetic mica).
• Jeffreys, John W. (1998) ""One of FDR's Forgotten Men" Humanities and Social Sciences Net-Online.

External links

• Truman Presidential Library: Photograph in Truman Cabinet, (seventh from left).
• Collection of Leo Crowley's letters and writings from FRASER