From ‘Drain the Swamp’ to Government Sachs

John Cassidy reports for The New Yorker:

Gary Cohn (far right) has suggested that the Trump Administration will attempt to significantly roll back post-2008 regulatory reform on Wall Street.Until now, Gary Cohn, the former president of Goldman Sachs, has been the invisible member of the Trump Administration. Now we know why: he has been busy preparing favors for his old pals on Wall Street. In an interview with the Wall Street Journal on Thursday, Cohn said that Trump was preparing to sign an executive order designed to pave the way for a broad rollback of the regulatory regime that the Obama Administration and Congress introduced after the disastrous financial crisis of 2008 and 2009.

Although Cohn gave few specifics, his comments suggested that the Trump Administration wants to hobble the Consumer Financial Protection Bureau, which Congress created to protect the interests of ordinary Americans and investors; reduce the amount of capital that big banks such as JPMorgan Chase and Bank of America have to hold in reserve; spare some non-bank financial firms—such as major insurers—from the enhanced scrutiny they have been subjected to in recent years; and scythe away other key elements of the 2010 Dodd-Frank Act. “This is a table setter for a bunch of stuff that is coming,” Cohn said in reference to the executive order, which Trump signed on Friday.

During last year’s campaign, Trump portrayed both Ted Cruz and Hillary Clinton as pawns of Goldman Sachs. And after the self-described “Leninist” Steve Bannon took over as his campaign C.E.O., Trump broadened his critique, at one point depicting Lloyd Blankfein, Goldman’s C.E.O. and Cohn’s old boss, as a member of a cabal of global financiers who had “robbed our working class, stripped our country of its wealth, and put that money into the pockets of a handful of large corporations and political entities.” Even when it was happening, though, it was clear that all this rabble-rousing was mainly for show.

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