Stand by for more fuming about the revolving door between regulatory agencies, and those they regulate: Eileen Rominger, who announced this fall that she was leaving Goldman Sachs, has landed as the new Director of the Division of Investment Management at the SEC. It's an interesting appointment, because it's the first time in a long time--maybe ever--that the position has gone to an actual practitioner of investment management, rather than a lawyer who specializes in the relevant law. Rominger was the Chief Investment Officer of the portfolio management businesses in Goldman Sachs Asset Management.
A source who works in securities law says that for all the fuss this is bound to raise, it might be a good thing:"I would think it has a very good chance of being good for the agency. Anyone with her level of experience should be pretty familiar with the regulatory structure aroung investment management, and her level of direct asset-management experience may well be a very fresh and welcome perspective." After a moment, my source added, rather dryly, "I have seen some examples of the upper levels of the SEC being unwilling to recognize that the world contemplated in certain regulatory requirements does not reflect reality."