Canada's Carney hires Goldman executive as adviser

Tue Jun 29, 2010 5:42pm EDT
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By Louise Egan

OTTAWA (Reuters) - Canadian central bank chief Mark Carney has hired a high-level executive at investment bank Goldman Sachs Group Inc, his former employer, to advise him on financial market reforms.

Bank of Canada said on Tuesday that Timothy Hodgson, chief executive of Goldman Sachs Canada, will serve as special adviser to Carney for an 18-month term beginning September 1.

Carney and Hodgson are of the same generation and worked together at Goldman Sachs in New York from 1998 to 2000. On Tuesday Carney called his former colleague "one of Canada's top investment bankers."

"He is widely recognized for his exceptional transaction skills and understanding of how markets work," Carney said. "The bank is privileged that someone of his experience has chosen public service at this critical time."

Carney himself had a 13-year career with Goldman in its London, Tokyo, New York and Toronto offices before going to work for the Canadian government and later the Bank of Canada.

Goldman Sachs alumni have for decades gone on to top leadership positions throughout the business world, including former U.S. Treasury secretaries Henry Paulson and Robert Rubin.

Hodgson is leaving Wall Street's most powerful investment bank after it suffered a major legal and public relations crisis this year when U.S. Securities and Exchange Commission charged it with fraud in a civil lawsuit over its marketing of a subprime mortgage product. Goldman has called the lawsuit "completely unfounded".