Yet another Goldman Sachs name is entering the world of public service as Goldman Canada head moves to the Bank of Canada to help Governor Mark Carney push through some of his key initiatives on Bay Street.
And that means one of the lions of the street is stepping back into a leading role, as Jack Curtin returns as chief executive officer of the firm in Canada.
Mr. Curtin will be back behind the big desk starting on July 1, according to a Goldman memo obtained by The Globe and Mail and confirmed by a Goldman Sachs representative.
Mr. Curtin was CEO of Goldman Sachs Canada from 1995 to 2000, and in 2002 became chairman. The Toronto native joined the firm in 1976 and in his time at Goldman has worked on both the securities side and on the investment banking side, advising clients on deals.
During his tenure, Goldman was involved in some of the key deals of the era. The biggest, potentially, even though it never happened, was Goldman's role as adivser to Bank of Montreal on its planned merger with Royal Bank of Canada, which died when the government quashed bank mergers.
In his spare time, which Goldman bankers aren't really supposed to have, Mr. Curtin is a keen sailor, often skippering one of the finest boats ever built, the two-time America's Cup winner Intrepid.
Mr. Hodgson, known on the street as a tireless worker with a big brain, will now have a two-pronged role at the Bank of Canada. He'll be responsible for the bank's communications with the street, replacing Mark Caplan, who left the bank.
But the real challenge is going to be pushing through Mr. Carney's planned changes to the financial system, such as an initiative to move more derivatives trading into a standardized form and to strengthen the bank funding markets.
Those are going to involve some difficult negotiations, as, for example, some banks may fight changes to markets that have been very profitable like the over-the-counter derivatives business.
