The risks of the Revolving Door are greatest in sectors where the government is a key buyer (as with defence or infrastructure) or the main regulator, as with financial services.
If the state is the main buyer, then the revolving door threatens to disrupt the market, meaning that the taxpayer does not get a good deal.
If the state is the main regulator, the revolving door brings a risk of regulatory capture, where the regulators are too close to the interests of the industry they are regulating to be able to serve the public interest properly. That's why this list of 29 individuals who have moved from Wall Street to Washington to Wall Street is cause for concern.
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