Morgan Stanley (MS), Citigroup Inc. (C) & More: Revolving Door Practices May Leave Investors’ Heads Spinning

The explanation for what draws people from government to private sector jobs is much more obvious. One merely needs to understand the lure of the exorbitant pay packages available to candidates who once held high-level government jobs.

Warning to investors
Investors should be wary of businesses looking to grease the revolving door between government and private sectors, lest you find loyalties formed between policy makers, regulators, and executives that leave you hanging out to dry. The management at big Wall Street Banks may appreciate sympathetic regulators, but investors have reason to prefer officials who aggressively enforce laws that protect investors from the excessive risk-taking that can blow up our investments, and from misleading SEC filings that make our investments look safer than they actually are.

The article Revolving Door Practices May Leave Investors’ Heads Spinning originally appeared on Fool.com.

Motley Fool contributor M. Joy Hayes, Ph.D. is the Principal at ethics consulting firm Courageous Ethics. Follow @JoyofEthics on Twitter. She has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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