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What Is The Rationale Behind The SEC's Hiring A 29 Year Old Goldmanite As Its COO?

Tyler Durden's picture





 

While one may or may not have feelings about Goldman's tentacled capture of various regulatory agencies, the most recent news out of the SEC that it would be hiring a 29 year old former Goldman Vice President Adam Storch as its COO, questions the rationale behind this move. First, and not being ageist here, but a 29 year old to run what is arguably the most critical post at the SEC - that in charge of operations? Keeping up to date with market developments, the one area where the SEC has been an utter disaster (along with all other areas actually), is a core responsibility: at least the SEC could have hired someone with actual market/broker experience. Based on his record, Mr. Storch is not even a licensed (Series 7/63) broker: would it not be logical to hire someone who has at least had some market experience? Yet according to the SEC's Robert Khuzami, Storch is just the (very young and inexperienced) man for the job:

The COO, who started Oct. 13, has “a great deal of
background” in technology and managing processes and the pace
of work, Robert Khuzami, head of enforcement, said yesterday in
Washington. Storch, who worked since 2004 in a unit at Goldman
Sachs that reviewed contracts and transactions for signs of
fraud, will be charged with making the unit more efficient.
Storch, reached by telephone at the SEC, declined to comment.

We shall be following young master Storch's exploits closely. As for the timing of an ex-Goldman retention 5 days ahead of a critical hearing on dark pools, we can only surmise this is a total and completel conicidence.

 

 

 


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Fri, 10/16/2009 - 10:00 | Link to Comment Sqworl
Sqworl's picture

On orders from Lord Lloyd...don't be so hard on this greenie, he has HFT experience!

Fri, 10/16/2009 - 10:07 | Link to Comment LoneStarHog
LoneStarHog's picture

Hummmm...In the commentary it is Mr. Storch and by the end it is Master Scotch.

I realize it is Friday, but could Tyler be hitting the latter a tad bit early?

Fri, 10/16/2009 - 10:11 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

WTF? 

Here's what Mr. Storch thinks of that rag known as the Constitution and the amendments added:

http://www.businessinsider.com/check-out-sec-coo-adam-storchs-website-2009-10

Fri, 10/16/2009 - 17:08 | Link to Comment Booger Smoot
Booger Smoot's picture

From the looks of his website he doesn't look as tech savvy as the press release makes him to be.

Fri, 10/16/2009 - 10:11 | Link to Comment jm
jm's picture

Most effective way to mitigate dark pool and HFT restrictions.  Essentially GS is becoming a monopolist in these areas.  This mole cements the grip on market share.   

Please just dissolve the SEC and let the buyer beware.

Fri, 10/16/2009 - 10:17 | Link to Comment tip e. canoe
tip e. canoe's picture

"what is the rationale?"

because they can get away with it.  no other rationale needed.

Fri, 10/16/2009 - 10:19 | Link to Comment Careless Whisper
Careless Whisper's picture

Mary Shapiro sez he has all the qualifications: young, dumb, and very hung.

 

Fri, 10/16/2009 - 14:19 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Is this a low budget porn movie?

Fri, 10/16/2009 - 14:31 | Link to Comment Anonymous
Fri, 10/16/2009 - 10:20 | Link to Comment digalert
digalert's picture

I'd recommend Turbo Tax Timmy but he's already got a cush job. Dazzle them with brilliance and baffle them with bullshit, which brings out the core problem, nobody is being called on their BS.

Fri, 10/16/2009 - 21:17 | Link to Comment Anonymous
Fri, 10/16/2009 - 10:24 | Link to Comment deadhead
deadhead's picture

President Obama...

the situation has now moved to the dark comedy side of the ledger.

This doesn't even come close to passing the giggle test. Remove Mary Schapiro immediately.  Thank you.

 

Fri, 10/16/2009 - 10:26 | Link to Comment lsbumblebee
lsbumblebee's picture

He has all the qualifications necessary for this fascist government.

Fri, 10/16/2009 - 10:28 | Link to Comment SWRichmond
SWRichmond's picture

Yet according to the SEC's Robert Khuzami, Storch is just the (very young and inexperienced) man for the job:

As is His Majesty Obama.  I think I am beginning to see a pattern here.

Fri, 10/16/2009 - 10:29 | Link to Comment Anonymous
Fri, 10/16/2009 - 15:51 | Link to Comment Anonymous
Fri, 10/16/2009 - 10:36 | Link to Comment uno
uno's picture

This is the reason he took a 'low paying' government job.

http://bloomberg.com/apps/news?pid=20601087&sid=abo3Zo0ifzJg

 

Oct. 14 (Bloomberg) -- Some of Treasury Secretary Timothy Geithner’s closest aides, none of whom faced Senate confirmation, earned millions of dollars a year working for Goldman Sachs Group Inc., Citigroup Inc. and other Wall Street firms, according to financial disclosure forms.

The advisers include Gene Sperling, who last year took in $887,727 from Goldman Sachs and $158,000 for speeches mostly to financial companies, including the firm run by accused Ponzi scheme mastermind R. Allen Stanford. Another top aide, Lee Sachs, reported more than $3 million in salary and partnership income from Mariner Investment Group, a New York hedge fund.

As part of Geithner’s kitchen cabinet, Sperling and Sachs wield influence behind the scenes at the Treasury Department, where they help oversee the $700 billion banking rescue and craft executive pay rules and the revamp of financial regulations. Yet they haven’t faced the public scrutiny given to Senate-confirmed appointees, nor are they compelled to testify in Congress to defend or explain the Treasury’s policies.

Fri, 10/16/2009 - 10:37 | Link to Comment Anonymous
Fri, 10/16/2009 - 11:28 | Link to Comment Anonymous
Fri, 10/16/2009 - 12:02 | Link to Comment lizzy36
lizzy36's picture

If dude is so razor sharp, why is he leaving just before GS is set to pay out record bonuses?

Fri, 10/16/2009 - 13:03 | Link to Comment Careless Whisper
Careless Whisper's picture

Because he's not leaving Goldman, he's just taking a leave of absence. With all that SEC experience Goldman will pay him a multi-million dollar signing bonus.

Fri, 10/16/2009 - 17:16 | Link to Comment sgt_doom
sgt_doom's picture

Naaah...that's where you'd want a certified fraud examiner with some serious forensic economics and forensic accounting experience, not the doods that perpetrated the fraud.

Fri, 10/16/2009 - 17:16 | Link to Comment sgt_doom
sgt_doom's picture

Naaah...that's where you'd want a certified fraud examiner with some serious forensic economics and forensic accounting experience, not the doods that perpetrated the fraud.

Fri, 10/16/2009 - 10:43 | Link to Comment Miyagi_san
Miyagi_san's picture
He wanted repeal term limits for the prez...I'm thinking of Chavez and it could work
Fri, 10/16/2009 - 10:43 | Link to Comment Anonymous
Fri, 10/16/2009 - 10:44 | Link to Comment Cerulean
Cerulean's picture

Well, Sarkozy'son (all of 23 year's old) is nominated for some big post in Paris.

As they say

"Aux âmes bien nées, la valeur n'attend point le nombre des années." Corneille

Fri, 10/16/2009 - 10:48 | Link to Comment Miyagi_san
Miyagi_san's picture

Didnt finish college but has a lifetime job...and a hot mom

Fri, 10/16/2009 - 10:47 | Link to Comment Anonymous
Fri, 10/16/2009 - 11:39 | Link to Comment SWRichmond
SWRichmond's picture

Health Care Reform was meant to be a stealth tax increase, as a sop to the bond vigilantees.  It is getting too much scrutiny now, so it will be a Medicare cost cut instead in the near term, the tax increase part will come later.  If there is a later.

Fri, 10/16/2009 - 10:47 | Link to Comment chumbawamba
chumbawamba's picture

Yeah, but the dude gives really good head!

I am Chumbawamba.

Fri, 10/16/2009 - 10:48 | Link to Comment Anonymous
Fri, 10/16/2009 - 10:56 | Link to Comment E pluribus unum
E pluribus unum's picture

They aren't even trying to hide their disdain for the American public. What better way to say "Fuck you" than to try and advance this appointment?

Fri, 10/16/2009 - 10:59 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

rationale ?

Tyler dude, rationality is sooooooo 20th century ....

But yeah, basically they did it for shits and giggles, and to see how much can the sheeple handle before people start launching RPG grenades into the offices in down town Manhattan.

Fri, 10/16/2009 - 11:03 | Link to Comment Anonymous
Fri, 10/16/2009 - 11:04 | Link to Comment blackebitda
blackebitda's picture

i would assume the 29 year old knows how to use facebook, myspace, aol, etc. computer savvy to operate in a knowledge based economy. plus why not burn through a young guy to blaze the trail. 

 

Dear Adam, go get em!!

 

 

 

 

Fri, 10/16/2009 - 11:08 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

Storch was an intern at Neuberger Berman LLC of Chicago (hahaha).

Evidently, the CEO of NB during that time was Jeffrey B Lane who later worked for Lehman, was CEO of Bear Stearns, and is a board member at JP Morgan and Willis Group Holdings. Muckety, muckety muck.

Fri, 10/16/2009 - 12:05 | Link to Comment Anonymous
Fri, 10/16/2009 - 11:12 | Link to Comment Anonymous
Fri, 10/16/2009 - 14:47 | Link to Comment AN0NYM0US
AN0NYM0US's picture

check your facts on Khuzami - he's totally an industry transplant

also note that Ms Shapiro made great fanfare about this COO position when she announced its creation back in June

 

http://www.reuters.com/article/politicsNews/idUSTRE5514J320090602

http://www.forbes.com/feeds/afx/2009/06/02/afx6493963.html

Fri, 10/16/2009 - 11:14 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

Boy, it is good to see they took Harry M's testimony seriously about hiring seasoned professionals with gray hair or no hair.

Just Goldman letting the world know once again who is in charge.

This country makes me sick to my stomach.

Fri, 10/16/2009 - 14:19 | Link to Comment Anonymous
Fri, 10/16/2009 - 11:29 | Link to Comment Anonymous
Fri, 10/16/2009 - 11:32 | Link to Comment perpetual-runner-up
perpetual-runner-up's picture

THEY HAD TO LIST HIS INTERNSHIP AS PART OF HIS QUALIFICATIONS!!!

 

OMFG!!!!!!!!!

I AM ON MARS!!!

Fri, 10/16/2009 - 11:42 | Link to Comment HEHEHE
HEHEHE's picture

I thought the SEC was already a GS subsidiary?

Fri, 10/16/2009 - 11:46 | Link to Comment Anonymous
Fri, 10/16/2009 - 12:12 | Link to Comment Anonymous
Fri, 10/16/2009 - 15:47 | Link to Comment Anonymous
Fri, 10/16/2009 - 16:29 | Link to Comment Anonymous
Fri, 10/16/2009 - 12:13 | Link to Comment Anonymous
Fri, 10/16/2009 - 14:38 | Link to Comment AN0NYM0US
AN0NYM0US's picture

From his youth this website that has since been taken down:

http://www.storchonline.com

 

Fri, 10/16/2009 - 18:41 | Link to Comment ghostfaceinvestah
Fri, 10/16/2009 - 21:38 | Link to Comment Anonymous
Fri, 10/16/2009 - 12:32 | Link to Comment Art Vandelay
Art Vandelay's picture

What's that word the Brits use when they're speechless?  Is it "gobsmacked"?

Yes, that's it.  I'm bloody gobsmacked.

I read shit like this and I think, this is the death of satire.  There is just nothing any more that should faze any of us when it comes to the giant brass balls of TPTB.  Nothing at all.

 

Fri, 10/16/2009 - 12:41 | Link to Comment Bankster T Cubed
Bankster T Cubed's picture

UNF*CKINGBELIEVABLE

meanwhile back at the ranch, amidst wild currency volatility and wild volatility in the blue chips, HAL9000 has the SPX under TOTAL CONTROL

but we know already from the Madoff example the answer to the question "if you provided proof of fraud and/or market manipulation to the SEC, would they do anything about it?"

no

not just no, but HELL NO

Fri, 10/16/2009 - 12:52 | Link to Comment ChickenTeriyakiBoy
ChickenTeriyakiBoy's picture

laughable man

Fri, 10/16/2009 - 12:56 | Link to Comment JR
JR's picture

I’ll tell you the "rationale behind the SEC's hiring" a young Goldmanite.  Goldman can’t afford to allow an honest official to take charge of a critical office who would do a diligent job looking into or limiting its activities.  And make no mistake: these appointments are made by Goldman with no interference from the Congress or the White House.

Goldman is becoming an unbearable yoke upon the back of the America people.  Andrew Storch, with only the bearest essentials of accounting experience and youthful political activity in the Democrat Party is the perfect copy boy to carry out Goldman’s orders in the SEC.

“Here’s your chance, kid, do as you’re told and we’ll take care of you; guess you’ve seen the kind of money we can provide.”

Fri, 10/16/2009 - 12:59 | Link to Comment Bankster T Cubed
Bankster T Cubed's picture

The SEC has confirmed that it remains owned by criminals

Fri, 10/16/2009 - 13:25 | Link to Comment percyklein
percyklein's picture

What a spectacular overreaction to a hiring that puts the guy in charge of paper flow and cerain absolutely tiresome administrative details in the Division of Enforcement. "Mr. Storch will be responsible for project management and workflow for various infrastructure and operational aspects of the Division, including budget, information technology, and administrative services.  In addition, he will oversee the workflow and process associated with the collection and distribution of Fair Funds to harmed investors."   Don't be ridiculous!

Fri, 10/16/2009 - 14:31 | Link to Comment Anonymous
Fri, 10/16/2009 - 15:38 | Link to Comment percyklein
percyklein's picture

He's not quite at clerk level, but he's not in a significant decision-making role either -- and won't participate at all in the making of material decisions about investigations or cases in the Division. Here's another person who reports to Khuzmi: his secretary.   

Khuzami, of course,  is a lawyer, not a banker. He clerked for the Eigth Circuit for a while and then was a prosecutor in the famed  U.S. Attorney's Office for the SDNY for eleven. After that, he was GC for the Americas at Deutsch Bank, a lawyer's, not a banker's job, for five before going to the SEC. This new hire is not, after all, Deputy Director or even an Associate or Assistant Director.  

When you see a shiny new title at the SEC, like Managing Executive, it is very likely that it doesn't mean much. The guy is going to fulfill an administrative role, doing administrative things and a few others of a minor nature for the Director (who otherwise would have to do most of them himself).   Important staff have the traditional titles, which, at least at the Division level,  convey real rank and a pecking order.  Could he turn out to be Rasputin?  Anything is possible, I suppose.

Fri, 10/16/2009 - 17:54 | Link to Comment Anonymous
Fri, 10/16/2009 - 14:39 | Link to Comment AN0NYM0US
AN0NYM0US's picture

 I think this provides insight into why he was selected for the COO position:

Adam Storch circa July 2000 and some compensation issues he had with a company for which he sold magazine subscriptions:

"I talked to the vice president of the company on the phone because I referred over 100 people at $10 a pop, he was very nice and explained to me that they were having problems paying out money due to low funds. He promised that I would recieve my money in September (about 3 months after i was supposed to get payed) They are starting to make money now due to the first issue of their emag. If I eventually get my money, i will be very happy, even though i had to wait for a while, but i'm taking them to court if i don't. I knew they were giving out too much damn money!

I will keep you guys up to date."

http://www.gotapex.com/got-deals/4336-anyone-get-paid-from-myemag-com-ye...

 

Fri, 10/16/2009 - 21:48 | Link to Comment Anonymous
Fri, 10/16/2009 - 21:55 | Link to Comment Anonymous
Fri, 10/16/2009 - 13:53 | Link to Comment Anonymous
Fri, 10/16/2009 - 13:59 | Link to Comment Anonymous
Fri, 10/16/2009 - 14:48 | Link to Comment Anonymous
Fri, 10/16/2009 - 15:06 | Link to Comment Anonymous
Fri, 10/16/2009 - 15:13 | Link to Comment Anonymous
Fri, 10/16/2009 - 18:31 | Link to Comment deadhead
deadhead's picture

current headline at HuffPo

http://www.huffingtonpost.com/

Fri, 10/16/2009 - 18:43 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

LMAO.  Just one more step to a real Revolution in this country.

Can't wait.  Hope J6P has the balls for it.

Fri, 10/16/2009 - 21:08 | Link to Comment Anonymous
Fri, 10/16/2009 - 22:08 | Link to Comment ozziindaus
ozziindaus's picture

Isn't he at the age where all he really want to do is nail heaps of chicks?

Sun, 10/18/2009 - 11:52 | Link to Comment Anonymous
Mon, 10/19/2009 - 16:26 | Link to Comment Anonymous
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