ON THE INSIDE: Ex-Goldman Sachs Partner Tapped for US Treasury – Joined by Rothschild Linked Commerce Secretary PickShawn Helton 21st Century WirePresident-elect Donald Trump continues to fill key positions in the White House and in the process, there have already been some controversial cabinet selections. This week the Trump transition team named former Goldman Sachs partner and ex-Soros Fund Management employee (turned Hollywood financier), Steve Mnuchin, as the US Treasury Secretary.The Mnuchin pick, arrives simultaneously as long time billionaire pal of Trump, Wilbur Ross, former head of  Rothschild Inc s bankruptcy advisory business,  becomes Commerce Secretary.While Trump s cabinet nominees for the White House have not yet been set in stone, the two selections mentioned above represent the type of financial syndicate we ve seen in the Washington swamp for many years.  TOO BIG TO FAIL    (Photo Illustration Shawn Helton of 21WIRE)The Financial Crisis & Goldman Sachs In April of 2016, Mnuchin was tasked with being the finance chairman of Trump s 2016 presidential campaign, paving the way for another Wall Street insider to head to the White House.In early November, sources close to CNBC floated the idea that formerly scandal plagued JP Morgan Chase CEO Jamie Dimon, was also up for consideration for US Treasury Secretary before Mnuchin, a long time acquaintance of Trump was officially named.The Mnuchin selection appears at odds with Trump s anti-Wall Street campaign rhetoric, as well as his  drain the swamp  mantra echoed towards the tail end of his presidential run.In fact, the optics of Mnuchin s appointment, seems to strike at the heart of the sub-prime mortgage-backed security lending which led to the 2007-2008 banking crisis.During the economic crash, extremely high risk subprime mortgage-backed securities were crafted from bundled loans. A large amount of these types of mortgages were adjustable rate mortgages, where interests rates would be fixed for a certain number of years, eventually sky rocketing to astronomical increases, subsequently putting the burrower under water as the banks continued to sell these loans to investors. This was a critical aspect that led directly to the foreclosure crisis that swept across the nation in the aftermath of 2008.According to an article featured in the money section of the website of How Stuff Works, we are reminded of the devastating effects of the 2007-2008 crash: In just the month of August 2008, one out of every 416 households in the United States had a new foreclosure filed against it [source: RealtyTrac]. When borrowers stopped making payments on their mortgages, MBSs [mortgage-backed security] began to perform poorly. The average collateralized debt obligation (CDO) lost about half of its value between 2006 and 2008 [source: This American Life]. And since the riskiest (and highest returning) CDOs were comprised of subprime mortgages, they became worthless after the nationwide increase in loan defaults began. Continuing, the article outlines how the hedge-fund Wall Street casino made a fortune by packaging mortgages into bonds to sell to investors: After MBSs hit the financial markets, they were reshaped into a wide variety of financial instruments with different amounts of risk. Interest-only derivatives divided the interest payments made on a mortgage among investors. If interest rates rise, the return is good. If rates fall and homeowners refinance, then the security loses value. In a bold and controversial move, the president-elect s administration by way of Mnuchin, is looking to derail the Dodd-Frank Act, which was put in place in 2010 as a moderate buffer (if at all?) to restrict the type of bank lending that led to the most recent financial crash in 2008. However, naysayers of the  protective act  say it s much to soft on Wall Street, which is in need of tougher restrictions, as any new deregulation could be seen as an attempt to increase the coffers of larger investment banks.In the passage below, The New American expands on this idea through revelations released by the NY Times: According to the text of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, the law is supposed  to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end  too big to fail,  [and] to protect the American taxpayer by ending bailouts. However, as is usually the case with federal laws, Dodd-Frank does precisely the opposite.  In fact,  reports the New York Times  Gretchen Morgenson:Dodd-Frank actually widened the federal safety net for big institutions. Under that law, eight more giants were granted the right to tap the Federal Reserve for funding when the next crisis hits. At the same time, those eight may avoid Dodd-Frank measures that govern how we re supposed to wind down institutions that get into trouble.   MONEY MAN    Ex-partner of Goldman Sachs Steve Mnuchin nominated to head the US Treasury. (Image Source: mgtvwten.files.wordpress.com)Although Mnuchin has cited that there s a need to restructure the Dodd-Frank Act because it would bring economic growth to regional banks and potentially open lending up to smaller businesses   there is still a fear that this may be a revolving door for the central banks to profit from as well.Zerohedge provides additional background details regarding Munchin s career in banking: Some more on Mnuchin s background: starting his career in the early 1980s as a trainee at Salomon Brothers before moving to Goldman Sachs in 1985, Mnuchin was front and center for the advent of instruments like collateralized debt obligations and credit default swaps. He has called securitization  an extremely positive development in terms of being able to finance different parts of the economy and different businesses efficiently.  The pitfalls of the financing method came later, he s said.Mnuchin s father, Robert Mnuchin, was a partner at Goldman Sachs in the 1960s. The second-youngest of five siblings, Steven attended the prestigious Riverdale Country School and then Yale University, where his roommate was Edward Lampert, who would go on to become a hedge-fund manager and owner of Sears. In addition to Goldman, Mnuchin also worked at Soros Fund Management, whose founder, George Soros, has funded many left-leaning causes. Where it gets even more bizarre is that Mnuchin has donated frequently to Democrats, including to Clinton and Barack Obama. As a hedge fund manager, Mnuchin is part of a group of business people Trump has excoriated. In August, Trump said hedge fund managers were  getting away with murder  as he touted his proposal to end the so-called carried interest loophole, which gives private equity and hedge fund managers preferential tax treatment. The hedge fund guys didn t build this country,  Trump said at the time on CBS  Face the Nation.  These are guys that shift paper around and they get lucky,  he said.  They are energetic. They are very smart. But a lot of them they are paper-pushers. They make a fortune. They pay no tax. It s ridiculous. Trump s disdain for Wall Street during his campaign run won t soon be forgotten by his supporters as the president-elect s antithetical banking rhetoric will only be magnified by bringing Mnuchin (along with his banking and hedge fund past) into the fold.Mnuchin s confirmation could be a contentious affair (if only for show) due to money made after his purchase of California s IndyMac following the financial crisis. Bloomberg recently stated the following concerning Mnuchin s role in the aftermath of the banking and housing meltdown: In 2009, during the depths of the financial crisis, Mnuchin joined with a group of former Goldman Sachs colleagues and billionaires to buy the remnants of IndyMac, which had collapsed after bingeing on reckless home loans during the frenzy of California s subprime-mortgage boom. They changed the name to OneWest, turned it around and sold the bank for a big gain last year. Continuing, Bloomberg outlines how Mnuchin may have seized on a financial opportunity but stops short of condemning the US Treasury nominee: It s unclear whether OneWest s practices were worse than those of other banks during the financial crisis or how much blame Mnuchin deserves for problems at a financial institution that was troubled before he bought it.Mnuchin declined to comment through a spokesman. But former OneWest Vice Chairman David Fawer said in a statement that the bank inherited loans from IndyMac with  extraordinarily high delinquency rates  and  worked tirelessly to modify thousands of loans to help homeowners through the financial crisis.  The bank has pointed to positive reviews of its foreclosure and loan-modification practices by the Obama Treasury Department, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. Interestingly, The Nation reported that Mnuchin purchased the failing IndyMac with an agreement to be  reimbursed  for costs associated to foreclosures that were financed by the company: The Mnuchin group paid FDIC $1.5 billion for the bank, far less than the value of IndyMac s assets. The FDIC was so desperate to unload IndyMac that Mnuchin and his colleagues were able to obtain, as part of the purchase deal, a so-called  shared loss  agreement from the FDIC which reimbursed these billionaires for much of their costs for foreclosing on people unlucky enough to have mortgages from IndyMac.Within a year, the group that the Los Angeles Times called a  billionaires  club of private financiers  had paid themselves dividends of $1.57 billion. In other words, the FDIC took much of the risk by subsidizing the bank s troubled assets, while Mnuchin and his colleagues pocketed the profits. Prior to considering Mnuchin, Trump was said to have considered former CEO of BB&T John Allison, an apparently harsh critic of the Federal Reserve banking system. The following was reported by Business Insider on November 28th: Trump will meet with John Allison, the former CEO of the bank BB&T and of the libertarian think tank the Cato Institute. There have been reports that Allison is being considered for Treasury secretary. Trump s has on the campaign trail questioned the future of the Federal Reserve s political independence, but Allison takes that rhetoric a step further. While running the the Cato Institute, Allison wrote a paper in support of abolishing the Fed.   CABINET PICK    President-elect Donald Trump with fellow billionaire investor Wilbur Ross and vice-president-elect Mike Pence. (Image Source: (mediad.publicbroadcasting) Insiders  & The White HouseJust as Mnuchin s financial behaviour will be under watch, the same will hold true for the newly tapped Commerce Secretary position to be filled by billionaire investor Wilbur Ross.A brief rundown of some of the more controversial aspects of Ross s past were recently published at Forbes: After an getting an MBA from Harvard, he spent two decades heading Rothschild Inc s bankruptcy advisory business, where he represented investors in Trump s failing Taj Mahal casino in the early 1990s. Ross and Carl Icahn convinced bondholders to strike a deal with Trump, who some investors wanted to push out, which allowed Trump to retain control of the property. Continuing, the article described how Ross invested in distressed coal companies in addition to banking opportunities: During the recession Ross targeted another struggling industry: banking. He invested in troubled banks in England, Greece and Cyprus. He was also part of a group of investors that acquired a 35% stake in the Bank of Ireland during the height of Europe s 2011 debt crisis. He sold the last of his stake in 2014, nearly tripling his initial investment. Ross has also reportedly bet hundreds of millions of dollars on downtrodden oil and gas firms since the price of oil began to slide more than two years ago. Incidentally, Ross has maintained a tough public position on so-called free trade deals like NAFTA and the soon-to-be defunct Trans Pacific Partnership (TPP) but real questions still remain about his financial acquisitions during distressed times   is he a risk taking business visionary or a financial vulture?Ross has denied being a business liquidator for profit and states that he has worked to rebuild failing businesses.Whatever the case may be, Mnuchin and Ross have touted big corporate tax relief and large tax cuts to the middle class in the US. However, the public should be wary of their dealings with those on Wall Street and any new reform legislation aimed at deregulation.Banking deregulation and reform directed by Wall Street or one of their ilk, should be treated with great suspicion if history is any lesson Below is another look at a passage from a report I complied prior to the election entitled  PARTNERS IN CRIME: Goldman Sachs, The Clintons & Wall Street : In one of the most significant financial rulings in the modern era, the Clinton presidency gave big banks like Goldman Sachs the skeleton key to the kingdom by deregulating the investment banking system almost entirely.The Clinton/Goldman Sachs/Wall Street partnership was fully forged after the removal of the Glass-Steagall Act, which banking luminaries cynically named the  Financial Services Modernization Act of 1999  officially titled the Gramm-Leach-Bliley Act.  The original Glass-Steagall was a depression-age four-part provision under the Bank Act of 1933 that strictly prohibited securities activities that could be harmful to investors   the same sort of rogue speculating and paper fiat fraud which triggered the Great Depression (1929-1941). In fact, the Gramm-Leach-Bliley Act which repealed Glass-Steagall, opened the door for the  shadow banking  realm outside of regulatory oversight which led to a much higher trading risk, as banks became more interlinked.Simply put: Clinton s repeal of Glass-Steagell removed the firewall between speculative investment banking and regular high street retail and consumer banking   which exposed everyone to toxic, subprime ponzi schemes and fake paper products being pushed around the globe by the banking elite   which ultimately caused the global economy to crash in 2008. All that can be laid at the feet of one William Jefferson Clinton. And Hillary still claims that,  My husband did so well with the economy.  Really?In a cross-posted article featured at Huffington Post, Nomi Prins underscored the complicit nature of Wall Street and Washington after the removal of tighter bank regulations under the Clinton administration during the 1990 s: To grasp the dangers that the Big Six banks (JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley) presently pose to the financial stability of our nation and the world, you need to understand their history in Washington, starting with the Clinton years of the 1990s. Alliances established then (not exclusively with Democrats, since bankers are bipartisan by nature) enabled these firms to become as politically powerful as they are today and to exert that power over an unprecedented amount of capital. Rest assured of one thing: their past and present CEOs will prove as critical in backing a Hillary Clinton presidency as they were in enabling her husband s years in office. Prins herself was a former managing director at Goldman Sachs, senior managing director at Bear Stearns, as well as having worked as a senior strategist at the now defunct investment banking firm Lehman Brothers. Following the financial crash in 2007-2008, Prins blew the whistle on the banking world in a book entitled  It Takes a Pillage: Behind the Bonuses, Bailouts, and Backroom Deals from Washington to Wall Street. Prins has become an advocate for the reinstatement of the Glass-Steagall Act since departing from the investment banking world.The media outlet Common Dreams described the merger between Citicorp and Travelers Group (becoming Citigroup), which was dubbed the  Citi-Travelers Act  on Capitol Hill. It was a conglomeration that went hand in hand with the Clinton administration s influence on banking deregulation marked by the repeal of Glass-Steagall: Then, in 1998, in an act of corporate civil disobedience, Citicorp and Travelers Group announced they were merging. Such a combination of banking and insurance companies was illegal under the Bank Holding Company Act, but was excused due to a loophole that provided a two-year review period of proposed mergers. The merger was premised on the expectation that Glass-Steagall would be repealed. Citigroup s co-chairs Sandy Weill and John Reed led a swarm of industry executives and lobbyists who trammeled the halls of Congress to make sure a deal was cut. At the time, it was the largest financial merger even though it was technically illegal, as stated by the former Bankers of America CEO Kenneth Guenther. In 1999, after 12 attempts in 25 years,  Congress passed the Financial Services Modernization Act, which led to the repeal of Glass-Steagall. Both of Trump s finance picks arrive with the all to familiar baggage witnessed within the beltway swamp   and if Mnuchin s and Ross s questionable pasts are to be accepted wholesale, it s difficult to imagine insiders of their pedigree turning over a new leaf for the  everyday man. The following is a screen shot of a statement released by former Goldman CEO and former Treasury Secretary Hank Paulson regarding the Mnuchin pick. As a reminder, Paulson presided over the financial crisis and was US Treasury Secretary from 2006-2009. In 2008, amid a flurry of backlash, he authorized a $700 million dollar Troubled Asset Relief Program (TARP) banking bailout, masking the derivatives scam pulled by Wall Street s top brass:In 2010, CBS News cataloged the long relationship of Goldman Sachs and government,  revealing at least four dozen former employees, lobbyists or advisers at the highest reaches of power both in Washington and around the world. It s also worth noting that White House adviser Steve Bannon and adviser Anthony Scaramucci have also worked for banking behemoth Goldman Sachs.Will Washington see more Wall Street friendly policies under Trump? READ MORE ELECTION NEWS AT: 21st Century Wire 2016 FilesSUPPORT 21WIRE   SUBSCRIBE & BECOME A MEMBER @21WIRE.TVUS_News
on the inside sachs partner tapped us treasury joined rothschild linked commerce secretary rickshaw hilton century donald trump continues fill key positions white house process already controversial cabinet selections this week trump transition team named former goldman sachs partner fund management employee turned hollywood financier steve mnuchin us treasury mnuchin pick arrives simultaneously long time billionaire pal trump wilbur ross former head rothschild inc bankruptcy advisory business becomes commerce trump cabinet nominees white house yet set stone two selections mentioned represent type financial syndicate seen washington swamp many years too big to fail photo illustration shawn hilton the financial crisis goldman sachs in april mnuchin tasked finance chairman trump presidential campaign paving way another wall street insider head white early november sources close cnbc floated idea formerly scandal plagued jp morgan chase ceo jamie demon also consideration us treasury secretary mnuchin long time acquaintance trump officially mnuchin selection appears odds trump street campaign rhetoric well drain swamp mantra echoed towards tail end presidential fact optics mnuchin appointment seems strike heart security lending led banking economic crash extremely high risk surprise securities crafted bundled loans a large amount types mortgages adjustable rate mortgages interests rates would fixed certain number years eventually sky rocking astronomical increases subsequently putting borrower water banks continued sell loans investors this critical aspect led directly foreclosure crisis swept across nation aftermath article featured money section website how stuff works reminded devastating effects crash in month august one every households united states new foreclosure filed source realtytrac when borrowers stopped making payments mortgages mass security began perform poorly the average collateralized debt obligation cdo lost half value source this american life and since riskiest highest returning dos comprised surprise mortgages became worthless nationwide increase loan defaults began continuing article outlines wall street casino made fortune packaging mortgages bonds sell investors after mass hit financial markets shaped wide variety financial instruments different amounts risk derivatives divided interest payments made mortgage among investors if interest rates rise return good if rates fall homeowners finance security loses value in bold controversial move administration way mnuchin looking derail act put place moderate buffer restrict type bank lending led recent financial crash however naysayers protective act say much soft wall street need tougher restrictions new deregulation could seen attempt increase offers larger investment passage the new american expands idea revelations released ny times according text wall street reform consumer protection act law supposed promote financial stability united states improving accountability transparency financial system end big fail protect american taxpayer ending bailout however usually case federal laws precisely opposite in fact reports new york times wretched morgenson actually widened federal safety net big institutions under law eight giants granted right tap federal reserve funding next crisis hits at time eight may avoid measures govern supposed wind institutions get trouble money man goldman sachs steve mnuchin nominated head us treasury image source although mnuchin cited need restructure act would bring economic growth regional banks potentially open lending smaller businesses still fear may revolving door central banks profit provides additional background details regarding muenchen career banking some mnuchin background starting career early trainee salmon brothers moving goldman sachs mnuchin front center advent instruments like collateralized debt obligations credit default swaps he called securitization extremely positive development terms able finance different parts economy different businesses efficiently the pitfalls financing method came later father robert mnuchin partner goldman sachs the five siblings steven attended prestigious riverdale country school yale university roommate edward lambert would go become manager owner sears in addition goldman mnuchin also worked sorts fund management whose founder george sorts funded many causes where gets even bizarre mnuchin donated frequently democrats including clinton barack obama as hedge fund manager mnuchin part group business people trump excoriated in august trump said hedge fund managers getting away murder touted proposal end carried interest loophole gives private equity hedge fund managers preferential tax treatment the hedge fund guys build country trump said time cbs face nation these guys shift paper around get lucky said they energetic they smart but lot they make fortune they pay tax it ridiculous trump disdain wall street campaign run soon forgotten supporters antithetical banking rhetoric dignified bringing mnuchin along banking hedge fund past confirmation could contentious affair show due money made purchase california indycar following financial crisis bloomberg recently stated following concerning mnuchin role aftermath banking housing meltdown in depths financial crisis mnuchin joined group former goldman sachs colleagues billionaires buy remnants indycar collapsed singing reckless home loans frenzy california boom they changed name newest turned around sold bank big gain last year continuing bloomberg outlines mnuchin may seized financial opportunity stops short condemning us treasury nominee it unclear whether newest practices worse banks financial crisis much blame mnuchin deserves problems financial institution troubled bought declined comment spokesman but former newest vice chairman david fewer said statement bank inherited loans indycar extraordinarily high delinquency rates worked tirelessly modify thousands loans help homeowners financial crisis the bank pointed positive reviews foreclosure practices obama treasury department federal deposit insurance office comptroller currency interesting the nation reported mnuchin purchased failing indycar agreement reimbursed costs associated foreclosure financed company the mnuchin group paid fdfc billion bank far less value indycar assets the fdfc desperate unload indycar mnuchin colleagues able obtain part purchase deal shared loss agreement fdfc reimbursed billionaires much costs foreclosing people unlucky enough mortgages year group los angeles times called billionaires club private financiers paid dividends billion in words fdfc took much risk subsidizing bank troubled assets mnuchin colleagues pocket profits prior considering mnuchin trump said considered former ceo bb t john allison apparently harsh critic federal reserve banking system the following reported business insider november trump meet john allison former ceo bank bb t libertarian think tank cat institute there reports allison considered treasury secretary trump campaign trail questioned future federal reserve political independence allison takes rhetoric step while running cat institute allison wrote paper support abolishing fed cabinet pick donald trump fellow billionaire investor wilbur ross mike pence image source insiders the white housejust mnuchin financial behaviour watch hold true newly tapped commerce secretary position filled billionaire investor wilbur brief rundown controversial aspects ross past recently published forbes after getting mba harvard spent two decades heading rothschild inc bankruptcy advisory business represented investors trump failing taj medal casino early ross carl can convinced bondholders strike deal trump investors wanted push allowed trump retain control property continuing article described ross invested distressed coal companies addition banking opportunities during recession ross targeted another struggling industry banking he invested troubled banks england greece cyprus he also part group investors acquired stake bank ireland height europe debt crisis he sold last stake nearly tripping initial investment ross also reportedly bet hundreds millions dollars downtrodden oil gas firms since price oil began slide two years ago incidentally ross maintained tough public position free trade deals like bafta defunct trans pacific partnership tpp real questions still remain financial acquisitions distressed times risk taking business visionary financial vulture ross denied business liquidation profit states worked rebuild failing case may mnuchin ross touted big corporate tax relief large tax cuts middle class us however public wary dealings wall street new reform legislation aimed deregulation reform directed wall street one ilk treated great suspicion history lesson below another look passage report i complied prior election entitled partners in crime goldman sachs the clinton wall street in one significant financial rulings modern era clinton presidency gave big banks like goldman sachs skeleton key kingdom regulating investment banking system almost street partnership fully forged removal act banking luminaries typically named financial services modernization act officially titled act the original provision bank act strictly prohibited securities activities could harmful investors sort rogue speculating paper fiat fraud triggered great depression in fact act repealed opened door shadow banking realm outside regulatory oversight led much higher trading risk banks became put clinton repeal removed firewall speculative investment banking regular high street retail consumer banking exposed everyone toxic surprise pond schemes fake paper products pushed around globe banking elite ultimately caused global economy crash all laid feet one william jefferson clinton and hillary still claims my husband well economy really in article featured huffington post nom print underscores complicity nature wall street washington removal tighter bank regulations clinton administration to grasp dangers big six banks morgan chase citigroup bank america wells cargo goldman sachs morgan stanley presently pose financial stability nation world need understand history washington starting clinton years alliances established exclusively democrats since bankers bipartisan nature enabled firms become politically powerful today exert power unprecedented amount capital rest assured one thing past present ceo prove critical backing hillary clinton presidency enabling husband years office print former managing director goldman sachs senior managing director bear stars well worked senior strategist defunct investment banking firm leyman brothers following financial crash print blew whistle banking world book entitled it takes village behind bonuses bailout bathroom deals washington wall street print become advocate reinstatement act since departing investment banking media outlet common dreams described merger citicorp travelers group becoming citigroup dubbed act capitol hill it conglomeration went hand hand clinton administration influence banking deregulation marked repeal then act corporate civil disobedience citicorp travelers group announced merging such combination banking insurance companies illegal bank holding company act excused due loophole provided review period proposed mergers the merger promised expectation would repealed citigroup sandy will john reed led swarm industry executives lobbyists traveled halls congress make sure deal cut at time largest financial merger even though technically illegal stated former bankers america ceo kenneth guenther in attempts years congress passed financial services modernization act led repeal both trump finance picks arrive familiar baggage witnessed within beltway swamp mnuchin ross questionable past accepted wholesale difficult imagine insiders pedigree turning new leaf everyday man the following screen shot statement released former goldman ceo former treasury secretary hank paulo regarding mnuchin pick as reminder paulo presided financial crisis us treasury secretary in amid flurry backlash authorized million dollar troubled asset relief program trap banking bailout masking derivatives scam pulled wall street top brass in cbs news catalogued long relationship goldman sachs government revealing least four dozen former employees lobbyists advisers highest reaches power washington around world it also worth noting white house adviser steve cannon adviser anthony scaramucci also worked banking behemoth goldman washington see wall street friendly policies trump read more election news at century wire filessupport subscribe become a member
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: ON THE INSIDE: Ex-Goldman Sachs Partner Tapped for US Treasury – Joined by Rothschild Linked Commerce Secretary PickShawn Helton 21st Century WirePresident-elect Donald Trump continues to fill key positions in the White House and in the process, there have already been some controversial cabinet selections. This week the Trump transition team named former Goldman Sachs partner and ex-Soros Fund Management employee (turned Hollywood financier), Steve Mnuchin, as the US Treasury Secretary.The Mnuchin pick, arrives simultaneously as long time billionaire pal of Trump, Wilbur Ross, former head of  Rothschild Inc s bankruptcy advisory business,  becomes Commerce Secretary.While Trump s cabinet nominees for the White House have not yet been set in stone, the two selections mentioned above represent the type of financial syndicate we ve seen in the Washington swamp for many years.  TOO BIG TO FAIL    (Photo Illustration Shawn Helton of 21WIRE)The Financial Crisis & Goldman Sachs In April of 2016, Mnuchin was tasked with being the finance chairman of Trump s 2016 presidential campaign, paving the way for another Wall Street insider to head to the White House.In early November, sources close to CNBC floated the idea that formerly scandal plagued JP Morgan Chase CEO Jamie Dimon, was also up for consideration for US Treasury Secretary before Mnuchin, a long time acquaintance of Trump was officially named.The Mnuchin selection appears at odds with Trump s anti-Wall Street campaign rhetoric, as well as his  drain the swamp  mantra echoed towards the tail end of his presidential run.In fact, the optics of Mnuchin s appointment, seems to strike at the heart of the sub-prime mortgage-backed security lending which led to the 2007-2008 banking crisis.During the economic crash, extremely high risk subprime mortgage-backed securities were crafted from bundled loans. A large amount of these types of mortgages were adjustable rate mortgages, where interests rates would be fixed for a certain number of years, eventually sky rocketing to astronomical increases, subsequently putting the burrower under water as the banks continued to sell these loans to investors. This was a critical aspect that led directly to the foreclosure crisis that swept across the nation in the aftermath of 2008.According to an article featured in the money section of the website of How Stuff Works, we are reminded of the devastating effects of the 2007-2008 crash: In just the month of August 2008, one out of every 416 households in the United States had a new foreclosure filed against it [source: RealtyTrac]. When borrowers stopped making payments on their mortgages, MBSs [mortgage-backed security] began to perform poorly. The average collateralized debt obligation (CDO) lost about half of its value between 2006 and 2008 [source: This American Life]. And since the riskiest (and highest returning) CDOs were comprised of subprime mortgages, they became worthless after the nationwide increase in loan defaults began. Continuing, the article outlines how the hedge-fund Wall Street casino made a fortune by packaging mortgages into bonds to sell to investors: After MBSs hit the financial markets, they were reshaped into a wide variety of financial instruments with different amounts of risk. Interest-only derivatives divided the interest payments made on a mortgage among investors. If interest rates rise, the return is good. If rates fall and homeowners refinance, then the security loses value. In a bold and controversial move, the president-elect s administration by way of Mnuchin, is looking to derail the Dodd-Frank Act, which was put in place in 2010 as a moderate buffer (if at all?) to restrict the type of bank lending that led to the most recent financial crash in 2008. However, naysayers of the  protective act  say it s much to soft on Wall Street, which is in need of tougher restrictions, as any new deregulation could be seen as an attempt to increase the coffers of larger investment banks.In the passage below, The New American expands on this idea through revelations released by the NY Times: According to the text of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, the law is supposed  to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end  too big to fail,  [and] to protect the American taxpayer by ending bailouts. However, as is usually the case with federal laws, Dodd-Frank does precisely the opposite.  In fact,  reports the New York Times  Gretchen Morgenson:Dodd-Frank actually widened the federal safety net for big institutions. Under that law, eight more giants were granted the right to tap the Federal Reserve for funding when the next crisis hits. At the same time, those eight may avoid Dodd-Frank measures that govern how we re supposed to wind down institutions that get into trouble.   MONEY MAN    Ex-partner of Goldman Sachs Steve Mnuchin nominated to head the US Treasury. (Image Source: mgtvwten.files.wordpress.com)Although Mnuchin has cited that there s a need to restructure the Dodd-Frank Act because it would bring economic growth to regional banks and potentially open lending up to smaller businesses   there is still a fear that this may be a revolving door for the central banks to profit from as well.Zerohedge provides additional background details regarding Munchin s career in banking: Some more on Mnuchin s background: starting his career in the early 1980s as a trainee at Salomon Brothers before moving to Goldman Sachs in 1985, Mnuchin was front and center for the advent of instruments like collateralized debt obligations and credit default swaps. He has called securitization  an extremely positive development in terms of being able to finance different parts of the economy and different businesses efficiently.  The pitfalls of the financing method came later, he s said.Mnuchin s father, Robert Mnuchin, was a partner at Goldman Sachs in the 1960s. The second-youngest of five siblings, Steven attended the prestigious Riverdale Country School and then Yale University, where his roommate was Edward Lampert, who would go on to become a hedge-fund manager and owner of Sears. In addition to Goldman, Mnuchin also worked at Soros Fund Management, whose founder, George Soros, has funded many left-leaning causes. Where it gets even more bizarre is that Mnuchin has donated frequently to Democrats, including to Clinton and Barack Obama. As a hedge fund manager, Mnuchin is part of a group of business people Trump has excoriated. In August, Trump said hedge fund managers were  getting away with murder  as he touted his proposal to end the so-called carried interest loophole, which gives private equity and hedge fund managers preferential tax treatment. The hedge fund guys didn t build this country,  Trump said at the time on CBS  Face the Nation.  These are guys that shift paper around and they get lucky,  he said.  They are energetic. They are very smart. But a lot of them they are paper-pushers. They make a fortune. They pay no tax. It s ridiculous. Trump s disdain for Wall Street during his campaign run won t soon be forgotten by his supporters as the president-elect s antithetical banking rhetoric will only be magnified by bringing Mnuchin (along with his banking and hedge fund past) into the fold.Mnuchin s confirmation could be a contentious affair (if only for show) due to money made after his purchase of California s IndyMac following the financial crisis. Bloomberg recently stated the following concerning Mnuchin s role in the aftermath of the banking and housing meltdown: In 2009, during the depths of the financial crisis, Mnuchin joined with a group of former Goldman Sachs colleagues and billionaires to buy the remnants of IndyMac, which had collapsed after bingeing on reckless home loans during the frenzy of California s subprime-mortgage boom. They changed the name to OneWest, turned it around and sold the bank for a big gain last year. Continuing, Bloomberg outlines how Mnuchin may have seized on a financial opportunity but stops short of condemning the US Treasury nominee: It s unclear whether OneWest s practices were worse than those of other banks during the financial crisis or how much blame Mnuchin deserves for problems at a financial institution that was troubled before he bought it.Mnuchin declined to comment through a spokesman. But former OneWest Vice Chairman David Fawer said in a statement that the bank inherited loans from IndyMac with  extraordinarily high delinquency rates  and  worked tirelessly to modify thousands of loans to help homeowners through the financial crisis.  The bank has pointed to positive reviews of its foreclosure and loan-modification practices by the Obama Treasury Department, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. Interestingly, The Nation reported that Mnuchin purchased the failing IndyMac with an agreement to be  reimbursed  for costs associated to foreclosures that were financed by the company: The Mnuchin group paid FDIC $1.5 billion for the bank, far less than the value of IndyMac s assets. The FDIC was so desperate to unload IndyMac that Mnuchin and his colleagues were able to obtain, as part of the purchase deal, a so-called  shared loss  agreement from the FDIC which reimbursed these billionaires for much of their costs for foreclosing on people unlucky enough to have mortgages from IndyMac.Within a year, the group that the Los Angeles Times called a  billionaires  club of private financiers  had paid themselves dividends of $1.57 billion. In other words, the FDIC took much of the risk by subsidizing the bank s troubled assets, while Mnuchin and his colleagues pocketed the profits. Prior to considering Mnuchin, Trump was said to have considered former CEO of BB&T John Allison, an apparently harsh critic of the Federal Reserve banking system. The following was reported by Business Insider on November 28th: Trump will meet with John Allison, the former CEO of the bank BB&T and of the libertarian think tank the Cato Institute. There have been reports that Allison is being considered for Treasury secretary. Trump s has on the campaign trail questioned the future of the Federal Reserve s political independence, but Allison takes that rhetoric a step further. While running the the Cato Institute, Allison wrote a paper in support of abolishing the Fed.   CABINET PICK    President-elect Donald Trump with fellow billionaire investor Wilbur Ross and vice-president-elect Mike Pence. (Image Source: (mediad.publicbroadcasting) Insiders  & The White HouseJust as Mnuchin s financial behaviour will be under watch, the same will hold true for the newly tapped Commerce Secretary position to be filled by billionaire investor Wilbur Ross.A brief rundown of some of the more controversial aspects of Ross s past were recently published at Forbes: After an getting an MBA from Harvard, he spent two decades heading Rothschild Inc s bankruptcy advisory business, where he represented investors in Trump s failing Taj Mahal casino in the early 1990s. Ross and Carl Icahn convinced bondholders to strike a deal with Trump, who some investors wanted to push out, which allowed Trump to retain control of the property. Continuing, the article described how Ross invested in distressed coal companies in addition to banking opportunities: During the recession Ross targeted another struggling industry: banking. He invested in troubled banks in England, Greece and Cyprus. He was also part of a group of investors that acquired a 35% stake in the Bank of Ireland during the height of Europe s 2011 debt crisis. He sold the last of his stake in 2014, nearly tripling his initial investment. Ross has also reportedly bet hundreds of millions of dollars on downtrodden oil and gas firms since the price of oil began to slide more than two years ago. Incidentally, Ross has maintained a tough public position on so-called free trade deals like NAFTA and the soon-to-be defunct Trans Pacific Partnership (TPP) but real questions still remain about his financial acquisitions during distressed times   is he a risk taking business visionary or a financial vulture?Ross has denied being a business liquidator for profit and states that he has worked to rebuild failing businesses.Whatever the case may be, Mnuchin and Ross have touted big corporate tax relief and large tax cuts to the middle class in the US. However, the public should be wary of their dealings with those on Wall Street and any new reform legislation aimed at deregulation.Banking deregulation and reform directed by Wall Street or one of their ilk, should be treated with great suspicion if history is any lesson Below is another look at a passage from a report I complied prior to the election entitled  PARTNERS IN CRIME: Goldman Sachs, The Clintons & Wall Street : In one of the most significant financial rulings in the modern era, the Clinton presidency gave big banks like Goldman Sachs the skeleton key to the kingdom by deregulating the investment banking system almost entirely.The Clinton/Goldman Sachs/Wall Street partnership was fully forged after the removal of the Glass-Steagall Act, which banking luminaries cynically named the  Financial Services Modernization Act of 1999  officially titled the Gramm-Leach-Bliley Act.  The original Glass-Steagall was a depression-age four-part provision under the Bank Act of 1933 that strictly prohibited securities activities that could be harmful to investors   the same sort of rogue speculating and paper fiat fraud which triggered the Great Depression (1929-1941). In fact, the Gramm-Leach-Bliley Act which repealed Glass-Steagall, opened the door for the  shadow banking  realm outside of regulatory oversight which led to a much higher trading risk, as banks became more interlinked.Simply put: Clinton s repeal of Glass-Steagell removed the firewall between speculative investment banking and regular high street retail and consumer banking   which exposed everyone to toxic, subprime ponzi schemes and fake paper products being pushed around the globe by the banking elite   which ultimately caused the global economy to crash in 2008. All that can be laid at the feet of one William Jefferson Clinton. And Hillary still claims that,  My husband did so well with the economy.  Really?In a cross-posted article featured at Huffington Post, Nomi Prins underscored the complicit nature of Wall Street and Washington after the removal of tighter bank regulations under the Clinton administration during the 1990 s: To grasp the dangers that the Big Six banks (JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley) presently pose to the financial stability of our nation and the world, you need to understand their history in Washington, starting with the Clinton years of the 1990s. Alliances established then (not exclusively with Democrats, since bankers are bipartisan by nature) enabled these firms to become as politically powerful as they are today and to exert that power over an unprecedented amount of capital. Rest assured of one thing: their past and present CEOs will prove as critical in backing a Hillary Clinton presidency as they were in enabling her husband s years in office. Prins herself was a former managing director at Goldman Sachs, senior managing director at Bear Stearns, as well as having worked as a senior strategist at the now defunct investment banking firm Lehman Brothers. Following the financial crash in 2007-2008, Prins blew the whistle on the banking world in a book entitled  It Takes a Pillage: Behind the Bonuses, Bailouts, and Backroom Deals from Washington to Wall Street. Prins has become an advocate for the reinstatement of the Glass-Steagall Act since departing from the investment banking world.The media outlet Common Dreams described the merger between Citicorp and Travelers Group (becoming Citigroup), which was dubbed the  Citi-Travelers Act  on Capitol Hill. It was a conglomeration that went hand in hand with the Clinton administration s influence on banking deregulation marked by the repeal of Glass-Steagall: Then, in 1998, in an act of corporate civil disobedience, Citicorp and Travelers Group announced they were merging. Such a combination of banking and insurance companies was illegal under the Bank Holding Company Act, but was excused due to a loophole that provided a two-year review period of proposed mergers. The merger was premised on the expectation that Glass-Steagall would be repealed. Citigroup s co-chairs Sandy Weill and John Reed led a swarm of industry executives and lobbyists who trammeled the halls of Congress to make sure a deal was cut. At the time, it was the largest financial merger even though it was technically illegal, as stated by the former Bankers of America CEO Kenneth Guenther. In 1999, after 12 attempts in 25 years,  Congress passed the Financial Services Modernization Act, which led to the repeal of Glass-Steagall. Both of Trump s finance picks arrive with the all to familiar baggage witnessed within the beltway swamp   and if Mnuchin s and Ross s questionable pasts are to be accepted wholesale, it s difficult to imagine insiders of their pedigree turning over a new leaf for the  everyday man. The following is a screen shot of a statement released by former Goldman CEO and former Treasury Secretary Hank Paulson regarding the Mnuchin pick. As a reminder, Paulson presided over the financial crisis and was US Treasury Secretary from 2006-2009. In 2008, amid a flurry of backlash, he authorized a $700 million dollar Troubled Asset Relief Program (TARP) banking bailout, masking the derivatives scam pulled by Wall Street s top brass:In 2010, CBS News cataloged the long relationship of Goldman Sachs and government,  revealing at least four dozen former employees, lobbyists or advisers at the highest reaches of power both in Washington and around the world. It s also worth noting that White House adviser Steve Bannon and adviser Anthony Scaramucci have also worked for banking behemoth Goldman Sachs.Will Washington see more Wall Street friendly policies under Trump? READ MORE ELECTION NEWS AT: 21st Century Wire 2016 FilesSUPPORT 21WIRE   SUBSCRIBE & BECOME A MEMBER @21WIRE.TVUS_News
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TEXT: on the inside sachs partner tapped us treasury joined rothschild linked commerce secretary rickshaw hilton century donald trump continues fill key positions white house process already controversial cabinet selections this week trump transition team named former goldman sachs partner fund management employee turned hollywood financier steve mnuchin us treasury mnuchin pick arrives simultaneously long time billionaire pal trump wilbur ross former head rothschild inc bankruptcy advisory business becomes commerce trump cabinet nominees white house yet set stone two selections mentioned represent type financial syndicate seen washington swamp many years too big to fail photo illustration shawn hilton the financial crisis goldman sachs in april mnuchin tasked finance chairman trump presidential campaign paving way another wall street insider head white early november sources close cnbc floated idea formerly scandal plagued jp morgan chase ceo jamie demon also consideration us treasury secretary mnuchin long time acquaintance trump officially mnuchin selection appears odds trump street campaign rhetoric well drain swamp mantra echoed towards tail end presidential fact optics mnuchin appointment seems strike heart security lending led banking economic crash extremely high risk surprise securities crafted bundled loans a large amount types mortgages adjustable rate mortgages interests rates would fixed certain number years eventually sky rocking astronomical increases subsequently putting borrower water banks continued sell loans investors this critical aspect led directly foreclosure crisis swept across nation aftermath article featured money section website how stuff works reminded devastating effects crash in month august one every households united states new foreclosure filed source realtytrac when borrowers stopped making payments mortgages mass security began perform poorly the average collateralized debt obligation cdo lost half value source this american life and since riskiest highest returning dos comprised surprise mortgages became worthless nationwide increase loan defaults began continuing article outlines wall street casino made fortune packaging mortgages bonds sell investors after mass hit financial markets shaped wide variety financial instruments different amounts risk derivatives divided interest payments made mortgage among investors if interest rates rise return good if rates fall homeowners finance security loses value in bold controversial move administration way mnuchin looking derail act put place moderate buffer restrict type bank lending led recent financial crash however naysayers protective act say much soft wall street need tougher restrictions new deregulation could seen attempt increase offers larger investment passage the new american expands idea revelations released ny times according text wall street reform consumer protection act law supposed promote financial stability united states improving accountability transparency financial system end big fail protect american taxpayer ending bailout however usually case federal laws precisely opposite in fact reports new york times wretched morgenson actually widened federal safety net big institutions under law eight giants granted right tap federal reserve funding next crisis hits at time eight may avoid measures govern supposed wind institutions get trouble money man goldman sachs steve mnuchin nominated head us treasury image source although mnuchin cited need restructure act would bring economic growth regional banks potentially open lending smaller businesses still fear may revolving door central banks profit provides additional background details regarding muenchen career banking some mnuchin background starting career early trainee salmon brothers moving goldman sachs mnuchin front center advent instruments like collateralized debt obligations credit default swaps he called securitization extremely positive development terms able finance different parts economy different businesses efficiently the pitfalls financing method came later father robert mnuchin partner goldman sachs the five siblings steven attended prestigious riverdale country school yale university roommate edward lambert would go become manager owner sears in addition goldman mnuchin also worked sorts fund management whose founder george sorts funded many causes where gets even bizarre mnuchin donated frequently democrats including clinton barack obama as hedge fund manager mnuchin part group business people trump excoriated in august trump said hedge fund managers getting away murder touted proposal end carried interest loophole gives private equity hedge fund managers preferential tax treatment the hedge fund guys build country trump said time cbs face nation these guys shift paper around get lucky said they energetic they smart but lot they make fortune they pay tax it ridiculous trump disdain wall street campaign run soon forgotten supporters antithetical banking rhetoric dignified bringing mnuchin along banking hedge fund past confirmation could contentious affair show due money made purchase california indycar following financial crisis bloomberg recently stated following concerning mnuchin role aftermath banking housing meltdown in depths financial crisis mnuchin joined group former goldman sachs colleagues billionaires buy remnants indycar collapsed singing reckless home loans frenzy california boom they changed name newest turned around sold bank big gain last year continuing bloomberg outlines mnuchin may seized financial opportunity stops short condemning us treasury nominee it unclear whether newest practices worse banks financial crisis much blame mnuchin deserves problems financial institution troubled bought declined comment spokesman but former newest vice chairman david fewer said statement bank inherited loans indycar extraordinarily high delinquency rates worked tirelessly modify thousands loans help homeowners financial crisis the bank pointed positive reviews foreclosure practices obama treasury department federal deposit insurance office comptroller currency interesting the nation reported mnuchin purchased failing indycar agreement reimbursed costs associated foreclosure financed company the mnuchin group paid fdfc billion bank far less value indycar assets the fdfc desperate unload indycar mnuchin colleagues able obtain part purchase deal shared loss agreement fdfc reimbursed billionaires much costs foreclosing people unlucky enough mortgages year group los angeles times called billionaires club private financiers paid dividends billion in words fdfc took much risk subsidizing bank troubled assets mnuchin colleagues pocket profits prior considering mnuchin trump said considered former ceo bb t john allison apparently harsh critic federal reserve banking system the following reported business insider november trump meet john allison former ceo bank bb t libertarian think tank cat institute there reports allison considered treasury secretary trump campaign trail questioned future federal reserve political independence allison takes rhetoric step while running cat institute allison wrote paper support abolishing fed cabinet pick donald trump fellow billionaire investor wilbur ross mike pence image source insiders the white housejust mnuchin financial behaviour watch hold true newly tapped commerce secretary position filled billionaire investor wilbur brief rundown controversial aspects ross past recently published forbes after getting mba harvard spent two decades heading rothschild inc bankruptcy advisory business represented investors trump failing taj medal casino early ross carl can convinced bondholders strike deal trump investors wanted push allowed trump retain control property continuing article described ross invested distressed coal companies addition banking opportunities during recession ross targeted another struggling industry banking he invested troubled banks england greece cyprus he also part group investors acquired stake bank ireland height europe debt crisis he sold last stake nearly tripping initial investment ross also reportedly bet hundreds millions dollars downtrodden oil gas firms since price oil began slide two years ago incidentally ross maintained tough public position free trade deals like bafta defunct trans pacific partnership tpp real questions still remain financial acquisitions distressed times risk taking business visionary financial vulture ross denied business liquidation profit states worked rebuild failing case may mnuchin ross touted big corporate tax relief large tax cuts middle class us however public wary dealings wall street new reform legislation aimed deregulation reform directed wall street one ilk treated great suspicion history lesson below another look passage report i complied prior election entitled partners in crime goldman sachs the clinton wall street in one significant financial rulings modern era clinton presidency gave big banks like goldman sachs skeleton key kingdom regulating investment banking system almost street partnership fully forged removal act banking luminaries typically named financial services modernization act officially titled act the original provision bank act strictly prohibited securities activities could harmful investors sort rogue speculating paper fiat fraud triggered great depression in fact act repealed opened door shadow banking realm outside regulatory oversight led much higher trading risk banks became put clinton repeal removed firewall speculative investment banking regular high street retail consumer banking exposed everyone toxic surprise pond schemes fake paper products pushed around globe banking elite ultimately caused global economy crash all laid feet one william jefferson clinton and hillary still claims my husband well economy really in article featured huffington post nom print underscores complicity nature wall street washington removal tighter bank regulations clinton administration to grasp dangers big six banks morgan chase citigroup bank america wells cargo goldman sachs morgan stanley presently pose financial stability nation world need understand history washington starting clinton years alliances established exclusively democrats since bankers bipartisan nature enabled firms become politically powerful today exert power unprecedented amount capital rest assured one thing past present ceo prove critical backing hillary clinton presidency enabling husband years office print former managing director goldman sachs senior managing director bear stars well worked senior strategist defunct investment banking firm leyman brothers following financial crash print blew whistle banking world book entitled it takes village behind bonuses bailout bathroom deals washington wall street print become advocate reinstatement act since departing investment banking media outlet common dreams described merger citicorp travelers group becoming citigroup dubbed act capitol hill it conglomeration went hand hand clinton administration influence banking deregulation marked repeal then act corporate civil disobedience citicorp travelers group announced merging such combination banking insurance companies illegal bank holding company act excused due loophole provided review period proposed mergers the merger promised expectation would repealed citigroup sandy will john reed led swarm industry executives lobbyists traveled halls congress make sure deal cut at time largest financial merger even though technically illegal stated former bankers america ceo kenneth guenther in attempts years congress passed financial services modernization act led repeal both trump finance picks arrive familiar baggage witnessed within beltway swamp mnuchin ross questionable past accepted wholesale difficult imagine insiders pedigree turning new leaf everyday man the following screen shot statement released former goldman ceo former treasury secretary hank paulo regarding mnuchin pick as reminder paulo presided financial crisis us treasury secretary in amid flurry backlash authorized million dollar troubled asset relief program trap banking bailout masking derivatives scam pulled wall street top brass in cbs news catalogued long relationship goldman sachs government revealing least four dozen former employees lobbyists advisers highest reaches power washington around world it also worth noting white house adviser steve cannon adviser anthony scaramucci also worked banking behemoth goldman washington see wall street friendly policies trump read more election news at century wire filessupport subscribe become a member