Professor Elam

Wed Jan 19 2011

The SEC just hired a former 'banker' to oversee asset (read hedge fund) mangers. And of course they went to the source, Goldman Sachs to find the 'ideal candidate. 

Remember Presidents come and go but Goldman is always present. Ethics students take note, this is another example of the revolving door which typifies Washington. As one observer noted, campaign donations are not so much about supporting a candidate as buying access to him or her. 

Goldman, ahem, has lots of access. This is the same thing that Arthur Andersen was guilty of, one day a CPA works for AA auditing and consulting Enron, the next day he or she works at Enron, wink wink nod nod. No doubt Rominger's cell phone number is in the cell phones of 'managers and bankers' at Goldman, Morgan, CITI as I write. 

FDR appointed Joe Kennedy to run the newly formed SEC in the 1930s remarking that is anyone knew how to ferret out the crooks it would be someone like Kennedy who was prominent in various bear pools that shorted stocks in the 1930s, nothing has changed.