Goldman Sachs Kind Of Feels Sorry For Regulators Trying To Keep Them In Check

gerald corrigan
Gerald Corrigan

[credit provider=”AP”]

 Today, European financiers were basically told — next year, the stress tests will be tougher, and you’re not going to get a regulatory vacation until at least 2013.”European banks already groaning under the weight of new laws face another two years of heavy rulemaking before regulators call it a day,” Reuters reported.

But the European Commission does see “a regulatory pause” after 2012.

The news, though not a surprise, would hardly have been welcomed by bankers and traders who feel like they’ve already been put through the regulatory ring more than enough.

There’s a man inside Goldman Sachs, however, that is actually sympathetic to the regulators.

Maybe its because he thinks they have a task that could only be achieved with a miracle.

Managing director Gerald Corrigan said that achieving the four pillars of financial stability (in his opinion: strong capital and liquidity rules; contingency plans; effective bank resolution powers; and coordination and cooperation between supervisors) is akin to “climbing mount Everest with sneakers on.”

Ie. Totally impossible.