By Carter Dougherty
Over the past month, Goldman’s share price has hovered above its previous all-time high which was set in late 2007, just before the worst financial crisis since the Great Depression hit the global economy. That’s a 42 percent increase since Trump’s election!
In fact, the stock market has been booming in recent years with more and more investors wanting a slice of the action. From investing in air nz stock to Goldman stock, prices are going up!
The business press knows why. Bloomberg News: The share price has rallied on optimism that the Trump administration “will spur trading and dealmaking, slash corporate taxes and roll back costly regulations after installing the firm’s executives in top government posts.”
Today’s news: Trump has nominated Goldman alumnus Jim Donovan to be deputy Treasury secretary.
He’ll have plenty of company. There’s Gary Cohn, director of the National Economic Council in the Trump White House. And Treasury Secretary Steve Mnuchin, the former Goldman banker who lied to Congress about his role in the fraudulent processing of foreclosure documents.
Dina Powell is also in the White House, having been an adviser to Trump’s daughter, Ivanka, from her perch at Goldman. Trump’s close adviser and far-right media maven Steve Bannon also worked there. And, Trump’s nominee to run the Securities and Exchange Commission, Jay Clayton, has long been a Goldman lawyer from his perch at Sullivan & Cromwell.
“Cohn and Mnuchin are poised to preside over a rollback of financial regulations that arguably threatened Goldman more than any other top bank in the years following the financial crisis,” Bloomberg pointed out.
Even the Financial Times finds this level of self-dealing by Goldman embarrassing
“It is becoming awkward for Goldman,” writes longtime Financial Times columnist John Gapper. “Having former executives in governments and central banks around the world is useful, as is the prospect of looser regulation. Being visible at the helm is embarrassing, especially when executive power is clearly being used to Wall Street’s benefit.”
Goldman employees enjoy huge Goldman bonuses before joining government
Goldman gave Cohn a severance package of nearly $300 million when he left the firm, a huge golden parachute that makes it even cushier for executives to work in the government.
“They’re playing a game, and they’re playing a game to make this person feel beholden to Goldman Sachs,” Richard W. Painter, a professor at the University of Minnesota Law School and former Bush administration official, told The New York Times.
Appointees are involved with policy affecting Goldman, no matter the “recusals”
Cohn has let it be known through anonymous sources that he will recuse himself from anything “directly” affecting Goldman. But the comment only underscores how serious the problem is. The White House isn’t supposed to involve itself in enforcement at all, nor should it jump into the regulatory process at independent agencies. So as a matter of course he should not be involved in this kind of matter “directly” involving the company. And what does “directly” mean?
He is already deeply involved in matters bearing on Goldman’s profits. He and Treasury Secretary Mnuchin are both working, for example, on plans to roll back the Volcker Rule, a regulation that protects the economy by barring big banks from speculating with their customers’ money. It also stops Goldman from profitable activities it would love to continue.