The New York Federal Reserve’s lead supervisor of Goldman Sachs 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.
Bloomberg News reports that 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. Still, the issues raised by the bank highlight a growing focus on whether regulations that bar departing Fed examiners from sharing sensitive information are too vague and hard to police.
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