To their critics, the banking firm Goldman Sachs has become a villain draining the lifeblood of the American economy. Compounding these negative conceptions of the company is the fact that there seems to be a direct stream of personnel from the firm to various Federal Reserve banks and other central banks around the world. Critics argue that this system thrives off of favoritism while ignoring the need for impartial individuals to influence efficacious monetary policy, reinforcing the notion that cronyism runs rampant in government. In the following, we take a look at a few players who share a history with both the central banking system and Goldman Sachs.
Mario Draghi would begin his career as a university instructor, acquainting pupils with the finer points of economics and fiscal policy. After a stint at the University of Florence, Draghi, transitioned to serving as the Italian Executive director at the World Bank. In 1991, he would become general director of the Italian treasury. During his ten year career as treasurer, he helped to usher in amendments to corporate and financial legislation as well as enacted laws which influenced Italy’s financial market. In 2002, Draghi would be awarded the position of vice chairman and managing director of Goldman Sachs. On November 1, 2011, Draghi assumed the Presidency of the European Central Bank.
November of 2012, Mark Carney became the Governor of the Bank of England. Prior to this role, the Canadian-bred Carney enjoyed a thirteen-year stay at Goldman Sachs. With his master’s degree in Economics, Carney would contribute to operations in its London, Tokyo, New York and Toronto offices. While with the firm, Carney would hold several different positions ranging from co-head of sovereign risk to managing director, investment banking.
Robert Kaplan works as professor of management practice and senior associate dean for external relations at Harvard University. Throughout his illustrious career, Kaplan has authored several case studies which address the cultivation and inquiries behind leadership skills. However, before settling in at Harvard University in 2006, Kaplan served as the vice-chairman of Goldman Sachs. Kaplan spent 23 years with the company.
The fifty-six-year-old Harker currently serves as one of nine board of directors at the Philadelphia branch of the Federal Reserve. Prior to securing this position, Harker worked at the University of Delaware as its President and educator in the fields of business administration and civil and environmental engineering. In 1991, former president George H.W. Bush appointed Harker a White House Fellow. Harker previously acted as a trustee of the Goldman Sachs firm.
William Dudley received his PhD in economics at Berkeley’s University of California in 1982. With this degree, Dudley was afforded a position at Goldman Sachs in 1986. He would spend the next 21 years with the firm. Dudley was the firm’s chief economist for ten years. Dudley was then handpicked by Timothy Geithner, ninth president of the New York Federal Reserve, to manage the department tasked with the buying and selling of government securities. Dudley would eventually become the tenth president of the New York Federal Reserve.