Who is helping Trump 'share America's prosperity'?

(Baonghean) - Democratic senators have just refused to attend a vote on two nominations by US President Donald Trump, one of which is for Treasury Secretary Steven Mnuchin.

Despite having to go through many ups and downs since being nominated by Donald Trump last November, Mr. Steven Mnuchin is still especially trusted by the new US President and entrusted with the responsibility of realizing the commitment to "sharing America's prosperity".

Controversial background

Ever since Steven Mnuchin was nominated for the position of Secretary of the Treasury in the new cabinet, public opinion has immediately dissected the career path of this 53-year-old man.

Having held a senior leadership position at Goldman Sachs for 17 years, Mr. Steven Mnuchin's selection is not uncommon, because previously, there were two people from Goldman Sachs who held the position of US Treasury Secretary under Presidents Bill Clinton and George Bush.

Mr. Gary Cohn, who is considered the “Second Commander in Chief” at Goldman Sachs, was also selected by President Donald Trump to be the Director of the National Economic Council. Analysts commented that what Steven Mnuchin has in common with these people is that he has a solid knowledge of finance and business, is “smart, dares to take risks, knows how to operate a system to achieve the goal of “buying low, selling high” and “leading the negotiations”.

Mr. Steven Mnuchin during a hearing before the Senate. Photo: Reuters

However, Steven Mnuchin's downside is that he has many connections with financial entities that are considered "non-transparent". In addition to being the CEO of Dune Capital Management, Steven Mnuchin is also the Chairman of OneWest Bank.

The bank has been criticized for its harsh foreclosure and asset forfeiture policies and discrimination against minority customers, as well as for allegedly taking advantage of the 2008 financial crisis to acquire IndyMac Bank.

Steven’s portfolio also includes the Cayman Islands, a notorious tax haven. He has also invested millions of dollars in the Omega Fund, run by Leon Cooperman, who has been charged with insider trading, and the Och-Ziff Fund, which was accused last year of taking bribes from foreign investors.

Ohio Democratic Senator Sherrod Brown said Democrats refused to vote on Steven Mnuchin to clarify his past business activities: "We did not participate in the vote because we wanted him to testify again before the Senate, clarifying things that he did not truthfully disclose. I personally hope he will apologize for that and provide us with the clear information that we need."

Forgot to declare assets because... too rich

Before the Senate vote on the nomination of Treasury Secretary, Mr. Steven Mnuchin had a hearing before the Senate. The “dishonesty” that Senator Sherrod Brown mentioned was not only some of Mr. Steven Mnuchin’s activities at investment funds, but also the nearly 100 million USD in assets that he “forgot” to declare.

Before the hearing, Mr. Mnuchin only declared assets worth $400 million, and later added another $100 million to bring his official assets to $500 million. Many commentators even humorously said that he “forgot” to declare because he was too rich!

Steven Mnuchin’s wealth has recently been revealed, surprising many people. In a Fox Business asset inventory last November, his assets were only $40 million – a figure considered “huge” for a government official.

Democratic senators left their seats empty during the vote to confirm Mr Mnuchin as Treasury Secretary. Photo: Getty Images

In his asset disclosure to the Senate, Mnuchin included a letter pledging that he would sell all shares in investment funds if he was approved for the position of Treasury Secretary, including $5 million in Goldman Sachs, $1 million in billionaire Warren Buffett's Berkshire Hathaway Group, and stop film production projects.

He will also transfer his entertainment company Dune Entertainment within 6 months... With these commitments, Steven Mnuchin shows that he really wants to move from a Wall Street elite to a political elite.

The hope of small and medium enterprises

Although the US Senate's confirmation process for Steven Mnuchin's position still has many obstacles ahead, there is a segment of businesses that are eagerly awaiting the new Secretary of the Treasury, namely small and medium-sized enterprises.

Small and medium-sized enterprises believe that the US currently has too many regulations that limit the growth of this business sector, the most important of which are inappropriate taxes and limitations on borrowing capital to expand production and business.

Meanwhile, small and medium-sized enterprises contribute up to 668 billion USD to the national economy every year, creating about 2/3 of new jobs. That is the reason why the US economy has only recovered at an average rate of 2.1% per year since the 2008 crisis.

To support economic development, the Ministry of Finance, with the “chief architect” being the Minister, must work to remove current barriers to small businesses, including tax cuts and loosening regulations on loans. Coming from the business world, Mr. Steven Mnuchin is said to understand the crucial role of capital for small and medium-sized enterprises. With nearly 20 years of experience in the banking sector, he certainly knows how to “unblock” capital flows from banks to businesses.

During President Donald Trump’s inauguration on January 20, the crowd cheered when he pledged that “everyone will share in America’s prosperity.” Having been a financial supporter of Donald Trump’s campaign and having made numerous statements endorsing the new president’s top priorities, it remains to be seen how Steven Mnuchin will put his pledge to “share in America’s prosperity” into practice when he is officially confirmed as Treasury Secretary.

Thuy Ngoc