Andrew Donohue went from Merrill Lynch Investment Managers to the US Security and Exchange Commission (SEC) where he worked from May 2006 to November 2010. Now Donohue is moving back to Wall Street to Goldman Sachs as managing director and general counsel.
There must be a way to insulate regulatory bodies like the SEC from the constant influence of Wall Street and Goldman Sachs. That is where the changes in the financial system should be concentrated. As long as the revolving door includes the special interests of Wall Street proceeding in and out of regulatory bodies, there will be conflicts of interest.
Andrew Donohue expressed his personal views on investment company regulations when he appeared before the Subcommittee on Capital Markets and Government Sponsored Entities in June 2011. There he talked about changes that have been made and future changes that could be made to SEC rules.
He believes that an asset manager "does not pose a threat to the financial stability of the United States" (p.9). He warns that derivatives and other complex financial instruments need a regulation regime of their own and should not depend solely on old rules dating back to 1940. He said the SEC needs the resources to properly carry out its regulatory functions.
See the article called Street Moves: Goldman Hires Ex-SEC Investment Management Directory by Dow Jones in Fox Business.
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*As defined in Wikipedia