The Goldman Sachs bankers are frequently appointed by various presidents to head the Treasury Department. It is undeniable that these successful bankers have hands-on experience in currency and finance industry. President Donald Trump during his election campaign criticized the relationship between Goldman Sachs bankers and Ted Cruz. He even said that the Goldman Sachs has complete control over Hillary Clinton. However, after becoming the President, Trump is following the path of George Bush and Bill Clinton, hiring several Goldman Sachs bankers to lead various finance departments.
The latest choice by Trump to take up the No.2 position in the Treasury Department is Jim Donovan. He is an expert of the Wall Street bank as he has more than 20 years of experience. Donovan would be reporting to another Goldman Sachs veteran Steven Mnuchin who heads the Treasury Department. The new appointee is expected to use his investment banking expertise to help with the corporate strategy. Trump plans to use his input in revamping the tax code and minimizing financial regulations.
Earlier this week, Dina Powell, former partner of Goldman Sachs was appointed as Deputy National Security Advisor for Strategy. Powell was assisting Trump with his meeting of Prince Mohammad bin Salman, Deputy Crown Prince of Saudi Arabia. She was providing services as a senior counselor for economic initiatives.
Gary Cohn, celebrated as the Number Two executive of Goldman Sachs became Trump’s leading economic adviser. He represented the White House policies for economic deregulations. Jay Clayton, a reputable lawyer representing Goldman Sachs is set to become the leader of SEC which focuses on financial crime. Gretchen, the wife of Clayton still works with the bank serving as a private wealth adviser. Steve Bannon, the well-known chief strategist of Trump, was also a leading executive of the Goldman Sachs during the 1980s.
Six of Trump’s leading executives have ties with the Goldman Sachs bank. It is not uncommon for the Sachs executives to take up government jobs after they complete their service at the bank. Ever since the National Economic Council was setup by the then President Clinton, it was headed by ex-bankers of Goldman Sachs.
However, critics are pointing out that Trump’s campaign promises are just that, promises that were never meant to be kept. Trump said during his campaign rally that the Wall Street banks couldn’t get away with anything anymore. However, with several ex-bankers becoming a part of the government, the critics question the amount of influence exerted by the bank.
Senator Elizabeth Warren asked Lloyd Blankfein, CEO of Goldman Sachs to reveal the amount of influence the bank has over Trump’s economic policies. Large banks will benefit greatly from removing Dodd-Frank that the White House is keen on doing. The total market worth of Goldman Sachs increased by $4 million in a single day, when Trump issued an executive order to roll back Dodd-Frank.
Blankfein, however, commented that he welcomes his ex-employees to take up important government positions. He pointed out that his bank only hires the top brains in the industry who are oriented to play a major role in the bigger world.