Why Do Former Goldman Sachs Bankers Keep Landing Top Slots at the Federal Reserve?

During the last year, three vacancies have opened up to head regional Federal Reserve banks around the country. One by one, all three of the spots have gone to former insiders from Goldman Sachs. First, Goldman Sachs trustee Patrick Harker essentially picked himself to lead the Philadelphia Fed, stepping down as chair of the Philadelphia Fed Board of Directors to allow for his own selection. In August, former Goldman Sachs Vice Chair Robert Kaplan was chosen to head the Dallas Fed despite sitting on the board of directors for the headhunting firm tasked with finding a new Dallas Fed president.

Now, just this month, the Minneapolis Fed tapped Neel Kashkari, who began his banking career covering information technology software at Goldman Sachs, as its 13th president and CEO. A protégé of former Goldman chief Hank Paulson, Kashkari can hardly be counted on to side with workers over banks. As the administrator of the federal government’s bank bailout program, the Troubled Asset Relief Program, Kashkari resisted calls for more accountability and better oversight of the way financial institutions spent billions in taxpayer money. And while running as the Republican candidate for governor of California last year, Kashkari lambasted labor unions and promoted austerity.

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