Mention “fabulous Fab” in markets circles these days, and you’ll show your age. Probably only those on the far side of their mid-30s recall the Goldman Sachs banker whose jokey email came to epitomise Wall Street’s poor behaviour in the run-up to the 2008 financial crisis.
Fab is back — or rather, the regulations inspired by his deal are. Twelve years since it last tried to ban the conflicts of interest that made Fab a poster child for pre-crisis banker attitudes, the US Securities and Exchange Commission is quietly having another go. The interval has not made its task any easier, nor have the complexities of financial rulemaking and the potential for unintended consequences — a point worth bearing in mind as policymakers probe the recent banking turmoil.
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