What You Need To Know About Steve Mnuchin: Trump's Treasury Pick And Ex-Wall-Street Executive
Today, sources told The New York Times and The Washington Post that Donald Trump will nominate Steven Mnuchin, an ex-Wall Street executive and Hollywood financier, as his Treasury secretary — despite Trump's promises to cut ties with Wall Street.
Mnuchin served as Trump's national finance chairman during his campaign, but has no experience in politics. Here's what you need to know.
Mnuchin Gained Trump's Trust After Successfully Running His Campaign Finance Operation
Mnuchin joined Trump's whirlwind campaign in May as finance chairman, despite the fact that he has never worked in politics and that he donated to Democrats in the past. He quickly earned Trump's trust as he worked closely with the Republican National Committee to raise substantial amounts of money in a short period of time.
Mnuchin Has Deep History Working On Wall Street
Following his father's 30-year career at Goldman Sachs, Mnuchin spent 17 years working at for the mega-bank (where his wife is still employed) before starting his own hedge fund that went on to participate in the bailout of IndyMac in 2009, which he sold in 2015 for twice what they paid.
Mr. Mnuchin is known among Manhattan's elite as part of one of the city's most influential families… [he] left Goldman in 2002 and briefly worked for Eddie Lampert, his Yale roommate, who is chief executive of Sears. He later started Dune Capital Management, an investment firm known for being on the team that bailed out the failed housing lender IndyMac in 2009, buying it out of bankruptcy from the F.D.I.C. and renaming it OneWest….Mr. Mnuchin was the chairman of OneWest and sold it to CIT Group in 2015. Along the way, OneWest was involved in a string of lawsuits over questionable foreclosures, and settled several cases for millions of dollars.
In 2008, Trump Sued One Of Mnuchin's Companies After It Invested In Two Of His Properties
Despite claims of being longtime friends, Trump sued a Mnuchin company in 2008.
The firm invested in at least two Trump projects, a branded condo in Waikiki and a Chicago skyscraper. Trump sued Dune and other lenders over the Chicago deal before settling.
Mnuchin Has Stated Skepticism About 2010's Dodd-Frank Bank Reforms
In the face of most financial experts, Mnuchin has expressed skepticism of the 2010 Dodd-Frank Act, which brought sweeping reforms to Wall Street.
Mnuchin shares Trump's skepticism about the sweeping 2010 Dodd-Frank Act, which fundamentally reshaped the way Wall Street works…Mnuchin said the law, which imposed a swath of new requirements on the financial industry, "needs to be looked at." … he even said there are good and bad aspects of the statute, a position that few Republicans share.
[Politico]
A Bank He Purchased Became Known For Its Controversial Collections Practices
While Mnuchin oversaw OneWest, it was responsible to a series of shady foreclosure practices.
A New York judge erased $525,000 in mortgage debt owed by a Long Island couple to OneWest Bank in 2009 because the institution was harassing them…That same year, the bank changed the locks on Minnesota woman Leslie Park's home. She discovered she had been locked out when she returned home in a blizzard…. 103-year-old Myrtle Lewis ran into similar issues with OneWest in 2014. She accidentally allowed her insurance to lapse, which prompted the bank to attempt to foreclose on her property. Lewis reinstated her insurance and the bank still didn't back off.
Mnuchin Has A History Of Donating To Democrats
Like many financiers, Mnuchin gave donations across the aisle, notably giving half of his donations to Democrats and only a third to Republicans over the years.
Over the years, more than half of Mnuchin's federal-level political contributions have benefited Democrats, including President Barack Obama and Clinton…About one-third of Mnuchin's giving has benefited Republicans. The rest has gone to nonpartisan political action committees such as the PAC of Goldman Sachs, where Mnuchin worked for 17 years.
[The Center For Public Integrity]
…And Has Been On Record Explaining His Support For Trump Was Motivated By A Cabinet Spot
[I]f you're wondering why Mnuchin backed Trump in the first place? He was kinda admirably straightforward about that to the Businessweek reporters. "Nobody's going to be like, 'Well, why did he do this?' if I end up in the administration," he said. Indeed.
[Vox]
Recently, He's Been Involved In The Business Of Financing Movies
In 2006 he bought a DreamWorks film library in partnership with Soros, and he financed movies at 20th Century Fox, one of which, Avatar, became the highest-grossing picture of all time.
