Goldman’s New Cop Is FBI Agent Who Put Away Madoff, Rajaratnam

From Bloomberg Business –

“The FBI agent who oversaw the Bernard Madoff investigation and helped pioneer the use of wiretaps that yielded dozens of insider-trading convictions is now working for Goldman Sachs Group Inc.

Patrick Carroll, 50, joined the bank after almost a quarter century with the Federal Bureau of Investigation, the latest in a line of former feds who’ve moved to Wall Street firms. He is a vice president in Goldman Sachs’s compliance, surveillance and strategy group, part of a division overseen by Alan Cohen, global head of compliance.

While Carroll’s FBI career spanned bank robberies and organized crime, he’s best known for being at the investigative center of securities-fraud cases ranging from Madoff and billionaire fund manager Raj Rajaratnam to a $550 million Ponzi scheme used to buy expensive teddy bears.’

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How Regulators Fail Taxpayers: The Story of JP Morgan and the New York Fed

From National Review Online

“A few weeks ago, This American Life aired an hour long story showing how the regulators at the Federal Reserve in New York were cozying up with Goldman Sachs, a member of the too-big-to-fail team that of course the Fed is supposed to oversee. For instance, thanks to some secret recordings, you can hear Fed officials talk about how they suspect a Goldman deal with Santander to be “legal but shady” . . . before shrugging the whole thing off. You can also hear both the regulators and Goldman executives acknowledge that the deal should have required Fed approval and then . . . see to no consequences for Goldman.

While this came as a shock to most people listening to the story, this behavior isn’t new. It’s called regulatory capture, and economists have known about it for over 40 years.’

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