Former state Treasurer and former gubernatorial candidate Kathleen Brown will be relocating to Chicago to become investment firm Goldman Sachs' chairman of investment banking, as her brother Jerry Brown enters the governor's office, according to Goldman Sachs spokesman Michael DuVally.
Kathleen Brown has been with the firm since 2001 and is currently based in California, where she heads the firm's public sector and infrastructure banking division for the western region, DuVally said. As part of that job, Brown worked with municipal clients, mainly on bond issues.
"The main reason she's taking this job is because it's a new job and she'll be working with a host of different clients, not just municipal clients," DuVally said. "It's a broader platform for her."
Staying in her California position would have likely become complicated with her brother in the governor's office, DuVally said.
"We are aware that had Kathleen continued working with California municipalities, that might have created the perception of a conflict of interest," DuVally said.
DuVally said Brown won't actually head the firm's investment banking division for the Midwest region but will "work with key clients." He couldn't confirm her start date but said she will "begin transitioning right away."
Photo: Gov. Arnold Schwarzenegger (far right) meets with, from left to right, Cynthia Kelly, Gov.-elect Jerry Brown and Kathleen Brown at the California Hall of Fame ceremony held in Sacramento on Dec. 14, 2010. (Hector Amezcua/Sacramento Bee)