Yes, it is possible to completely eliminate the fields from Maxwell's equations, and rewrite them solely in terms of interactions between charged objects and currents. One can (formally) solve Maxwell's equations for the fields, by means of Jefimenko's equations:
http://en.wikipedia.org/wiki/Jefimenko's_equations
Finally, using the Lorentz force law and Newton's second law, one can eliminate the fields entirely, and obtain expressions for the accelerations of charged particles due to all other charged particles. You get a nasty long expression that is not terribly useful.
The catch is that in this model,
all fields must be sourced by charges and currents. So for example, you can't just have a B field going through a loop; you must also include the magnet that produces the B field. Or to simplify things, imagine that you have a second loop, which has a current in it and thus produces a magnetic field.
When you drop Loop 2 through Loop 1, a changing B field induces a current in Loop 1. But note, that current itself produces a B field! This B field, in turn, induces a current in Loop 2, which, if you are careful, you should find is in the opposite direction from the original current in Loop 2.
So effectively, Loop 2 has given up some of its angular momentum to Loop 1; overall, angular momentum is conserved.
In your example, replace Loop 2 by a permanent magnet. Permanent magnets are created by tiny current loops, due to electrons orbiting the nuclei of atoms. When Loop 1 induces the counter-current in the magnet, it has two effects: 1) The magnet, if not perfectly conductive, will start slowly spinning, and 2) Part of the magnet's bound currents will be canceled, and it will decrease its strength.