President Donald Trump in February 2016:
“I know the guys at Goldman Sachs. They have total, total control over him (Ted Cruz). Just like they have total control over Hillary Clinton.”
Times have changed and there are now suggestions to rename the “East Wing” to “Hedge Fund Headquarters.”
Or more accurately – “GS Village in the Capitol.” This is the place where old bean counters and masters of economic disaster gather to decide how much financial misery the “little people” will endure without revolting.
A good and quick example is Anthony Scaramucci, He worked at Goldman Sachs‘s Investment Banking, Equities, and Private Wealth Management divisions from 1989 to 1996. Flamboyant, like his fictional counterpart, he lasted ten days before Trump replaced him with a retired general. The president’s picks for his cabinet tend to be either Wall Street bankers or multi-star generals. Guns and promises of rose gardens?
But GS and the financial class are hardly left without influence, despite the President’s shuffling of jobs.
- Former Goldman Sachs banker and dealmaker Steve Mnuchin is Treasury Secretary.
- Private equity billionaire Wilbur Ross is Commerce Secretary.
- Former Goldman Sachs President Gary Cohn is Trump’s chief economic advisor.
- Former Goldman Sachs partner Dina Powell is deputy national security advisor.
- Legendary investor Carl Icahn is advising Trump on regulatory overhaul.
- Steve Bannon, advisor to the President is a GS alumni.
- Jim Donovan, veteran of GS, was nominated to the Treasury Department, but turned down the job.
The Republican Party’s final campaign ad last year featured Goldman chief executive Lloyd Blankfein shaking hands with Hillary Clinton, depicting the Wall Street titan as part of the “corrupt establishment”.
Globally, Goldman is a political force.
British Prime Minister Malcolm Turnbull is a former global partner of Goldman Sachs.
So too is Bank of England governor Mark Carney, European Central Bank president Mario Draghi and New York Federal Reserve president William Dudley.
Goldman Sachs has assets of $860 billion – enough to pay the total bill for all college Pell Grants for the next 30 years, without even earning interest on the principal.
Former Goldman bankers Robert Rubin and Henry Paulson served as treasury secretary in the administrations of presidents William Clinton and George W. Bush.
The prize for the most influence by GS goes to the Barack Obama administration: