Politico reports: Government Sachs is returning to Washington.
After a decade in the wilderness, Wall Street’s most powerful firm, Goldman Sachs, is dominating the early days of the incoming Trump administration. The newly picked Treasury Secretary, Steven Mnuchin, spent 17 years at Goldman. Trump’s top incoming White House adviser, Steve Bannon, spent his early career at the bank. So did Anthony Scaramucci, one of Trump’s top transition advisers.
Goldman’s president, Gary Cohn, spent an hour schmoozing with President-elect Donald Trump on Tuesday and could be up for an administration job, possibly as director of the Office of Management and Budget, people close to Cohn and the transition said. Cohn, a long-time commodities trader, is friendly with Trump’s powerful son-in-law, Jared Kushner.
It’s a stunning reversal of fortune for Goldman, a long-time Washington power that fell out of favor following the financial crisis. CEO Lloyd Blankfein got hauled before Congress along with other Wall Street executives to account for their behavior. And Trump, who ran as a populist and bashed Wall Street on the campaign trail, featured Blankfein as a shady and dangerous character in his final campaign ad.
Rolling Stone’s Matt Taibbi famously labeled Goldman the “great Vampire Squid” on the face of America.
Had Hillary Clinton won the White House, Goldman faced a virtual lock-out from Washington with Sens. Elizabeth Warren and Bernie Sanders poised to block and major picks from the bank or any other firm on Wall Street. [Continue reading…]