Infiltrators

Author:
Updated:
Original:

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.

Related

The Art Of The Farewell

Not everyone gets to write a New York Times Op-Ed when they quit their job, however disaffected. It’s also easier to quit a job after twelve years of cashing investment banking paychecks. No matter how “morally bankrupt” Goldman Sachs is, Greg Smith isn’t giving his bonuses back. Unlike Smith, who quit his job on his own terms and got to publish most of his resume in the Times, most of corporate America isn’t as lucky – and almost everyone in corporate America really wants to quit their job. So what are you supposed to do if you can’t get any above-the-fold space in a major newspaper? You have to burn bridges the old fashioned way – by writing a farewell email.