Trump Picks Former Goldman Banker Steven Mnuchin As Treasury Secretary

Tyler Durden's picture

While it has yet to be officially confirmed by the Trump transition team, moments ago the NYT reported that - in what had previously been leaked on several occasions on various other outlets most notably the WSJ - former Goldman banker and Soros employee, Steven Mnuchin "a financier with deep roots on Wall Street and in Hollywood but no government experience" is expected to be named Donald J. Trump’s Treasury secretary as soon as Wednesday.

The WSJ has confirmed as much, reporting that "President-elect Donald Trump will name longtime banker and former Goldman Sachs executive Steven Mnuchin as Treasury secretary, turning to a campaign loyalist and fundraiser for the incoming administration’s top economic cabinet post, a transition official said Tuesday."


Steven Terner Mnuchin at Trump Tower in Manhattan this month

From the NYT:

Mnuchin, 53, was the national finance chairman for Mr. Trump’s campaign. He began his career at Goldman Sachs, where he became a partner, before creating his own hedge fund, moving to the West Coast and entering the first rank of movie financiers by bankrolling hits like the “X-Men” franchise and “Avatar.”

 

As Treasury secretary, Mr. Mnuchin would play an important role in shaping the administration’s economic policies, including a package of promised tax cuts, increased spending on infrastructure and changes in the terms of foreign trade. He could also help lead any effort to roll back President Obama’s nuclear deal with Iran and opening to Cuba by reimposing sanctions on Tehran and Havana.

As the NYT adds, his selection fits uneasily with much of Mr. Trump’s campaign rhetoric attacking the financial industry. Mr. Trump, in a campaign ad intended as a closing argument, portrayed the chief executive of Goldman Sachs as the personification of a global elite that the ad said had “robbed our working class.” But, the NYT notes, Mnuchin has said that he agrees with Mr. Trump’s priorities, and he was an early supporter of a candidate who clearly prizes loyalty.

When Mr. Trump won New York’s Republican presidential primary in April, Mr. Mnuchin attended the victory party. The next day, he accepted Mr. Trump’s invitation to become the campaign’s national finance director. A number of Mr. Mnuchin’s friends made comments to various publications expressing shock at the decision. Mr. Mnuchin was unfazed. “Nobody’s going to be, like, ‘Well, why did he do this?’ if I end up in the administration,” he told Bloomberg Businessweek in August.

As the WSJ adds, "Mr. Mnuchin’s Wall Street pedigree presents a contrast with the populist themes Mr. Trump struck in his campaign, railing against big banks and vowing to close tax loopholes that benefit hedge funds. Mr. Trump also repeatedly attacked his rivals in the primary and general elections for their Wall Street ties, especially those connected to Goldman Sachs."

If confirmed by the Senate as Treasury secretary, Mr. Mnuchin will join a list of prominent bankers who made similar moves from Wall Street to Washington, including two of his former bosses at Goldman, Henry Paulson and Robert Rubin, who were both top Goldman executives before running Treasury.

* * *

For those who have missed our previous piece on the career banker, here are some more details on Mnuchin's background from the WSJ:

Despite his successful Wall Street career, Mr. Mnuchin has no experience running a massive organization—the Treasury Department has 86,000 employees—or in economic or financial policy-making. The biggest entity Mr. Mnuchin has run was the technology division of Goldman, which had over 5,000 employees.

 

Mr. Mnuchin’s acquaintances describe him as smart, with several people calling him “nerdy.” He regularly attends New York philanthropic galas. He has long held high-profile positions on charity boards and is a former director of the Whitney Museum of American Art. At an event for New York charity City Harvest in 2006, Mr. Mnuchin and his ex-wife were photographed with Mr. Trump. Mr. Mnuchin is now engaged to Scottish actress Louise Linton.

 

Mr. Mnuchin joined Goldman in 1985. He worked in the fixed-income department, eventually overseeing trading in mortgages, U.S. government, money market and municipal bonds. He made partner in 1994. Mr. Mnuchin later became the firm’s chief information officer.

 

When Goldman converted into a publicly traded company in 1999, Mr. Mnuchin, like other partners, made millions. He later bought a 6,500-square-foot apartment in 740 Park Avenue, a storied Manhattan co-op built by Jackie Kennedy’s grandfather that is known as the “billionaires’ building.”

 

At a recent conference, Goldman CEO Lloyd Blankfein called Mr. Mnuchin a “highflier, a partner at a young age. He did very well. He is a smart, smart guy.”

 

In 2002, Mr. Mnuchin left Goldman and later was hired to run a credit fund set up by billionaire George Soros.

 

In 2004, Mr. Mnuchin and two former Goldman colleagues founded hedge fund Dune Capital Management LP with financial backing from Mr. Soros. Dune soon expanded into the entertainment business, striking up a film-financing deal with a unit of 21st Century Fox. Among the films Dune financed was “Avatar,” one of the all-time box office hits.

 

21st Century Fox and News Corp, parent company of The Wall Street Journal, share common ownership.

 

In 2008, IndyMac Bank in Pasadena, Calif., collapsed in one of the largest bank failures in U.S. history. Mr. Mnuchin led a group of investors, including funds run by Mr. Soros and other hedge-fund and private-equity titans, who bought it from the government for about $1.5 billion. The Federal Deposit Insurance Corporation agreed to cover a portion of any future loan losses, a lucrative arrangement for Mr. Mnuchin and his partners. Regulators who negotiated with Mr. Mnuchin found him to be the kind of detail-oriented person who would “know the cost of every pencil,” according to a person familiar with their thinking.

 

Mr. Mnuchin, who became chairman of the renamed OneWest Bank and CEO of its parent company, relocated to Los Angeles and bought a mansion in the Bel Air neighborhood.

 

The deal soon became controversial. In 2011, community activists descended on Mr. Mnuchin’s Bel Air home to protest over the possible eviction of a homeowner who was behind on her mortgage payments to OneWest.

 

In 2014, OneWest was sold to CIT Group Inc., earning Mr. Mnuchin and Dune hundreds of millions of dollars in profits, according to a person familiar with the matter. He later pocketed $10.9 million in severance payouts when he left the company.

 

Despite the huge profits, OneWest’s legacy continues to trail Mr. Mnuchin, who now sits on CIT’s board and owns more than 1% of its shares.

 

A portion of OneWest’s mortgage business is under investigation by the Department of Housing and Urban Development. Last July, CIT said it was forced to take a $230 million charge as it cleaned up accounting problems at OneWest. And two California housing groups this month accused OneWest of discriminating against minorities by not putting branches in their communities.

 

Meanwhile, 14 years after leaving Goldman, Mr. Mnuchin remains in the firm’s orbit, showing up at alumni events and involving other ex-Goldman executives in his finance deals.

 

He has continued to work those angles as Mr. Trump’s finance chairman, a post he assumed in May. Mr. Mnuchin negotiated a joint fundraising agreement with the Republican National Committee, easing the way for major donors to give both to the party and to Mr. Trump. The committee’s chairman, Lewis Eisenberg, is a Goldman veteran and contemporary of Mr. Mnuchin’s father.

* * *

Even though the nomination is still unofficial, moments ago CBS' reproter Charlie Keye tweeted that it can also confirm that "Trump has chosen financier Steven Mnuchin as his nominee for Treasury Secretary."

And just like that the swamp feels a little bit more full.

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anarchitect's picture

I wonder how many Trump supporters will now admit to buyer's remorse.

tenpanhandle's picture

same as it ever was.  buyers remorse rearing its ugly head.  But less remorse than if Hilary.

ml8ml8's picture

Hard to imagine Mnuchin was Bannon's first pick.

The Alarmist's picture

Score another one for the Vampire Squid acting as the agent of the NWO.

thepigman's picture

Look on the bright side. Treasury Secretaries don't do shit.....other than tell you how great the economy under their boss is.  Let's just call him Munchkin from Munchkinland...lol:-)

BaBaBouy's picture

Meet The New SwampMaster ~ Same As The Old SwampMaster ~~~

Barnaby's picture

Is it really a rape if half of you screamed "give it to me Papa Don!" whilst basting your glistening blood-knots with Crisco?

xythras's picture

After reading this NEWS piece, the MSM scrambled to twist Trump's hand by pushing the joo .

http://www.zerohedge.com/news/2016-11-29/trump-treasury-secretary-candid...

 

all OFFICIAL nominations WILL come from Trump himself (via Twitter, FB accounts) NOT WSJ/CBS joo lackeys.

So be sure this is just a farce to put pressure on Trump to force him to nominate "their guy". As I got to know Trump, he's not the kind of man you can impose things to so expect some trashing of WSJ and CBS when he'll nominate John Allison

manofthenorth's picture

By my best guess failure of the whole enchilada is baked in,

however, Treasury Secretary Ron Paul would have given me hope.

If this selection comes to pass I will not be surprised just very disappointed.

hyperspd7's picture

Agreed! If only people had listened in 2008, we would live in a vastly different world today.

 

WordSmith2013's picture

In Trump's own words!

 

http://stateofthenation2012.com/?p=58190

 

TRUMP PLEDGES TO DRAIN THE SWAMP AND IMPOSE CONGRESSIONAL TERM LIMITS
Pinto Currency's picture

Banking class would love to blame economic crash on Trump and conservatives. Extremely dangerous to have Goldmanite running Treasury.

bamawatson's picture

extremely dangerous to have goldmanite

beemasters's picture

Buyer's remorse???
Don't you just love it when people paying for good cars getting lemons are forever optimistic saying they could have been getting wrecks instead? They live hoping the cars will change for the better.

Demanding the sellers to fix them would never cross their minds. Oh, how I wish I could sell them thousands of lemons!

The moral of the story is never assume the role of a Trump apologist. While you may have chosen him to be the president, it's not your fault he fucks you from behind. You just need to scream FOUL.

letsit's picture

Trump is bought and paid for like all the rest. The money power got its ROI.
https://biblicisminstitute.wordpress.com/views-of-news/#presidenttrump

letsit's picture

lol Showing his true colors.

X_in_Sweden's picture

...even worse is the munchkin is a Rothschild!!!

2 generations back the munchkin family married into the rothschild family.

look at stevie's chin and facial features and compare them with Jacob Rothschild,

https://duckduckgo.com/?q=Rothschild&t=ffcm&iax=1&ia=images

Jubal Early's picture

With all their inbreeding and RSA, one would think that they were are all Rothschild.

Now all we need is for Trump to appiont a moneychanger as head of IRS and the tribe will once again control all the money...

J J Pettigrew's picture

Old Jube

its been a long time

One World Mafia's picture

He's draining the swamp into his cabinet.

Tom Terrific's picture

and vote for McInsane?  You gotta be kidding.  The world we would be living in now would be scorched earth.

BennyBoy's picture

 

Geeeez, another Goldman Goon for Treasury.

Who cudda seen dis coming?

booboo's picture

Keep your friends close, your enemies closer.

francis_the_wonder_hamster's picture

I don't share your optimism, but I upvoted you because I'd love to see Allison in there.

wildbad's picture

I admit to being concerned and unhappy with this choice. Also the pro Dark Act Tom Price as HHS sec. I don't Approve of Romney or Gulianni for shit. I didn't approve of Christie for anything other than burying under the jail-house.

Still behind my president so far.

Let see how it works out

Barney Fife's picture

I told you so but you wouldn't listen. 

Silky Johnson's picture

Keep the mental contortions going, I want to see how far you fuckers bend. I know it must burn to have been played so thoroughly.

Chris Dakota's picture

Wasn't Ted Cruz kicked to the curb because his wife worked for Goldman Sachs?

Yeah, that's right, he was.

evoila's picture

he has a hot, blond wife. that's all trump needed to know. Plus she and his first wife were both not jewish, so unlike the others, looks like he's headed in the other direction. Some of you might find comfort in that. Especially those of you who think Soros is trying to create a mixed-breed race who are to be controlled by pure-bred jews.

J S Bach's picture

Utter betrayal.  I'm speechless.

Barnaby's picture

Yeah well, the guys that've been bitching here have a chance to be magnanimous now. Except I won't.

This is everything and worse, goddammit.

Billy the Poet's picture

This is everything and worse, goddammit.

 

Everthing and worse than what exactly?

LauraB's picture

The Zero Hedge headline is deceiving the NY Times article says Mnunchin is Trump's EXPECTED pick, not that Mnunchin has been picked.  This is just speculation for now.  Trump hasn't officially announced his pick yet, so there is still hope he'll pick John Allison.  

Yog Soggoth's picture

If Ron Paul had of miraculously won, his pick was that guy from Tallahassee /or he went to school there, be the next best thing? I remember him being a super conservative over achiever. Google is shutting down search results politically. I thought it was James Grant. Heck, I would pick any American small business owner that has been in business for 20 years.

Billy the Poet's picture

Which is fine as long as folks see it as such. Americans decided to throw that monkey wrench Trump into the gears of the machine and see what happens. If the machine continues to operate as before then the next logical step is to stop depending on the machine and walking away from it.

Yog Soggoth's picture

Will not get into stupid. Alexander Hamilton was the father of the American National Banking System. He created the First National Bank, and began practices such as manipulation of the interest rates and subsidies for American companies that are still in use today. These are articles from suspicious sources. Something else I read about the changing of duties by the S.of T. makes me wonder. Let's just wait a bit until the smoke clears, then attack.

Barney Fife's picture

I told you so but you wouldn't listen. 

Blankone's picture

Trump's daughter married a jew, and converted to being jewish herself.  Turned her back on her own religion.

I would think this guy's wife has done the same.

For those who do not already know.

His father was also a partner at Goldman's.

He is a bloodline Rothschild and his branch as stayed close to the main tree.

We would have been much better with Hillary.

BullyBearish's picture

Depending on SecState, I hope you're wrong but if Romney I know you're right...

 

While head of IndyMac Munchkin oversaw thousands of controversial if not illegal foreclosures...profiled today on National Propaganda Radio

Billy the Poet's picture

We would have been much better with Hillary. 

 

Do go on.

bidaskspread's picture

No government experience...right.... how about putting together a deal and getting governmental approval to sell to CIT (which was and is still the second highest nonpayment of TARP funds outside of GM.) 2.2 billion outstanding with an acquistion price of OneWest at $3.4. George Soros was an owner of OneWest prior to the sale to CIT.

Main_Sequence's picture

"Drain the Swamp"

Right.  As much as I like Trump, the reality is that he will operate under the constraints of the jew con-struct and will execute the strategy of his jew handlers.  That's the inconvenient truth. The Jews That Control Trump: https://thezog.info/who-controls-donald-trump/ Let's Make Israel Great Again.
Mr. Universe's picture

It makes sense they would rather have Trump than Hillary. The Clinton crime family had a huge overhead, in contrast Donald knows how to get the most profit out of every operation. For the Zio's it was a no brainer. Did we really think we could get rid of the squid in the swamp?

 

FixItAgainTony's picture

Let Trump work his "you're fired" media magic on this mensch after the economy takes the big stumble into the gutter we know it has been overdue for. Most of these appointments are going to be Trump's scapegoats.

Chris Dakota's picture

Oh yeah, he's gonna pick that end the fed guy back to gold standard.

hahahaha

I am done, he will pick Romney.

His base is gone, everyone I talked to today is very angry and  finished with him calling him an asshole etc.

After Soros bought IndyMac for pennies on the dollar they became OneWest Bank which refused to do any loan modifications because they were paid by the FDIC, so much so that a typical house in Stockton CA netted them over $100K when it foreclosed. So that's what they did, not answer letters or calls from the homeowners and foreclosed on them.

"OneWest Bank Can Go To Hell"

"they had no intention of modifying my loan"

"It was a sweeheart deal from Obama to Soros, FDIC is paying OneWest"

https://www.scribd.com/document/286491081/onewest-bank-indymac-and-their...

He regularly attends New York philanthropic galas. He has long held high-profile positions on charity boards and is a former director of the Whitney Museum of American Art. At an event for New York charity City Harvest in 2006, Mr. Mnuchin and his ex-wife were photographed with Mr. Trump. Mr. Mnuchin is now engaged to Scottish actress Louise Linton.

Spirit Cooking?

this won't end well Donald...