Photo: Hedge Fund Intelligence
If you can’t beat ’em, join ’em. Or hire ’em. That’s obviously Goldman Sach‘s thinking with their latest recruit, Theo Lubke.Lubke was in charge of the New York Fed’s effort to reform the private derivatives market and immediately succeeded Geithner when he decamped Washington.
Now the bank has hired him as their chief regulatory reform officer in the securities divison to help navigate the impending overhaul of financial regulations in the derivatives market.
The role is brand new.
Lubke is no stranger to Wall Street; before he crossed to the other side, he was an investment banking analyst at Lehman Brothers.
Lubke [will] “work closely with divisional and firm-wide leadership to implement regulatory reform legislation.”
Goldman Sachs is hiring Lubke five months after Congress mandated the regulation of the $583 trillion over-the-counter derivatives market, which complicated efforts to resolve the financial crisis. The reforms threaten to cut profits at dealers because they will make swaps prices known to the public.
Lubke now joins the ranks of former regulators-turned-Goldmanites, like board member Stephen Friedman. E. Gerald Corrigan, chief of the New York Fed between 1985 and 1993.
Lubke has not restrained himself when it comes to blasting the cartel-like control of the OTC derivatives market: “It is simply unacceptable in today’s environment that the design and structure of the OTC derivatives market can be controlled by a handful of large dealers,” he said last year.
Some details on Lubke:
- He’s 44
- Prior to the New York Fed he worked on the staff of the National Economic Council at the White House.
- He earned a B.A. from Harvard and Master of Public Policy from Harvard’s Kennedy School of Government.
- According to what can be seen of his Facebook profile, he likes adventure sports paired with food and wine.
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