During the campaign trail, Donald Trump promised to drain the swamp, i.e. get rid of the Washington lobbyists and the Wall Street insiders, but has picked 3 Goldman Sachs veterans for his team.
One of them is a 17 year veteran at Goldman Sachs, Steven Mnuchin, who has been tapped as the next US Treasury secretary. That has raised a lot of eyebrows in Washington and political circles. For starters, he headed OneWest capital, a bank which focused on foreclosures. During his time there, 36,000 home were foreclosed, earning the nickname the foreclosure king.
The New York Times wrote that Steve Mnuchin & OneWest Bank swooped in after the 2008 crash and aggressively and sometimes illegally foreclosed on people’s homes.
The bank used a government loss-sharing program, set up by the Federal Deposit Insurance Corporation, or the FDIC, to reap more than $1 billion in profits.
One of the questions being asked is “as chairman and CEO of a financial institution that has been labeled a ‘foreclosure machine’ do you believe the federal government should maintain its loss mitigation and foreclosure-prevention programs or not?”
Furthermore, if Mnuchin was out to make money over the little guy, how can Americans expect he would have their interest in mind?
He has also promised to roll back the bill meant to save banks for going bankrupt: the Dodd Frank Consumer Protection Act, which will put more power back into the banks.