The revolving door between the investment banking giant Goldman Sachs and governments spins fast. And it goes in both directions.
Former federal treasurer Josh Frydenberg walked through it after he was ousted from parliament in last year’s election, joining the “vampire squid” in an advisory role. Today he was elevated to chairman of the Australian arm of the firm, a move that appears to put to rest any suggestions he will return to politics to contest his old seat of Kooyong at the next election.
The list of Goldman Sachs alumni who have gone the other way — from investment banking into politics — is extensive. Malcolm Turnbull helped establish the vaunted firm’s presence in Australia. Multiple former US Treasury Secretaries worked at the bank including Steven Mnuchin in the Trump administration, Hank Paulson under George W Bush and Robert Rubin under Bill Clinton. Trump’s controversial political strategist Steve Bannon worked there. So did a former prime minister of Italy.
The current UK prime minister Rishi Sunak is yet another Goldman Sachs alum. He was in the news today after announcing a major volte-face on the country’s climate policies — a story that could have huge ramifications for the energy transition in Europe.
