Monday, May 18, 2015

"...Goldman Sachs Concerned About Revolving Door Ethics ... "

From Economic Policy Journal:
...when the government-crony Wall Street revolving door is working against the bankster firm.
A trader points me to a Bloomberg article, reporting on the GS concern:
The New York Federal Reserve’s lead supervisor of Goldman Sachs Group Inc. has quit for a job advising other financial firms, triggering concerns within the Wall Street bank that some of its business secrets might not stay so secret.
After learning last month that the examiner, Lance Auer, was joining the financial services practice of PwC, Goldman Sachs asked the firm whether he faced any restrictions on working for other banks, said two people familiar with the discussion. Auer, Goldman Sachs pointed out, had gleaned insights into operations and risk-management strategies that could be useful to competitors, the people said.
Goldman Sachs’s anxiety is a new twist on the debate over the revolving door where the usual complaint is that Wall Street benefits from hiring government insiders....Auer, who is scheduled to start at PwC in June, was stationed inside Goldman Sachs’s headquarters.
This is how it usually works. Ben White at Politico reported in 2013:
 Goldman Sachs...will soon have top-level executives with the ear of the CEO who once occupied senior jobs in the White House and United States Treasury.... Jake Siewert, managing director and head of corporate communications at Goldman Sachs..., who served as counselor to Treasury Secretary Timothy Geithner and in multiple roles including press secretary under President Bill Clinton, has quietly helped revolutionize the way the famously secretive Goldman Sachs interacts with the public....MORE