Revolving door: Goldman's Donohue heading back to SEC

Veteran returns from Wall Street to the agency where he previously served as head of investment management.
MAY 29, 2015
By  Bloomberg
The top lawyer of Goldman Sachs Group Inc.'s asset management unit is leaving the bank to become the top aide to Securities and Exchange Commission Chairwoman Mary Jo White, the agency said Thursday. Andrew “Buddy” Donohue returns from Wall Street to the agency where he previously served as head of investment management regulation from 2006 to 2010. His appointment adds an industry veteran to Ms. White's staff as the agency fends off questions from other regulators about whether its oversight of the asset management industry is sufficient. “Buddy is a seasoned professional whose previous SEC and private-sector experience will be invaluable in advancing all aspects of the agency's mission,” Ms. White said in a statement. “His deep knowledge of asset management will be especially useful as the commission advances its rulemaking agenda for addressing potential risks in asset management and considers a uniform fiduciary standard. Mr. Donohue, 64, served as general counsel of Goldman's asset-management unit, which manages mutual funds. White has outlined a regulatory agenda that would add requirements to how mutual funds manage derivatives and other hard-to-sell assets. Other regulators have questioned whether large asset managers could threaten financial stability. Before his earlier stint at the SEC, Mr. Donohue served as global general counsel of Merrill Lynch Investment Managers from 2003 to 2006, the agency said. He was also a partner in the investment management practice of Morgan Lewis & Bockius, according to the statement. The tendency for senior regulators to move back and forth between Washington and Wall Street has drawn critics, who say it gives the financial industry undo sway over regulation. “The revolving door and the pernicious outsized influence Wall Street has over elected officials, policy makers and regulators are seriously eroding confidence of the American people in its own government and democracy itself,” Dennis Kelleher, president of Better Markets, a group that argues for stricter regulation, said in a statement. “This hire will only feed that cynicism.” Mr. Donohue will succeed Lona Nallengara, who announced this month he will step down next month after serving as Ms. White's chief of staff since 2013. Mr. Donohue will start working at the SEC in early June.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.