Goldman Sachs has hired the former Prime Minister of Portugal José Manuel Barroso to be an advisor and non-executive chairman of its international business.
The former Maoist will help Goldman Sachs as it deals with the fallout from Britain's exit from the European Union and looks at more ways to justify its sobriquet ‘the great vampire squid.’
Barroso latterly of course was the president of the European Commission for two terms between 2004 and 2014. He was prime minister of Portugal from 2002 to 2004.
Reuters reports that Goldman Sachs and other U.S. investment banks are seen as particularly vulnerable to Brexit “since they rely on the EU's ‘passporting’ regime that allows them to offer services across the bloc while basing most of their staff and operations in the UK.”
Barroso's first task is to analyse and select a place to move to outside the UK where Goldman's clients can move to when the 'passporting' ends as a result of Brexit.
All have warned that if their British subsidiaries lose these "passports" decisions already have been made in principle to move some employees and business units to alternative european locations.
Barroso will chair Goldman Sachs International which is based in London with around 5,000 staff all of which may be redeployed of paid off. He will help Goldman Sachs as it advises clients on dealing with a "challenging and uncertain economic and market environment."
A Maoist in his youth, Barroso's conversion to capitalism finally can be confirmed as complete.
Barroso said of the appointment, "Of course I know the EU well and the UK very well. If my advice can be useful in these circumstances, I am ready to contribute."
Goldman Sachs too is keen to contribute - at an estimated €5 million a year to secure Barroso's services. He will need the income as the position means moving to London.