Continuing the pattern of infiltration by Goldman of key administration positions, and siphoning off former key administration positions, Gerald Corrigan will be Chairman of Goldman's bank holding company.
In tapping the formidable Mr. Corrigan as chairman, Goldman is reaching out to a man that many consider among the best presidents the New York Fed has had.
During his tenure, Mr. Corrigan was an activist figure who had no trouble telling heads of big banks to come up with swift action plans to improve balance sheets in the 1990 downturn.
Former colleagues recall how he summoned Citibank executives and ordered them to eliminate dividend payments that year.
It is not entirely possible that this is a defensive move, pulling the troublesome Mr. Corrigan off of the market (he was rumored to be considering a departure from Goldman) before he lands somewhere he could continue rocking the boat. Either way, regulators are probably more likely to go light on the newly formed shell with this kind of leadership at the top.