MNUCHIN HAS NO EXPERIENCE OR INTEREST IN PUBLIC POLICY

New York Times: Mnuchin Has Never “Showed Himself To Be An Accomplished Economist.”  In November 2016 the New York Times wrote, “Over his business career, he was never particularly involved in politics, nor did he publicly express an interest in public policy. He never ran a large organization or showed himself to be an accomplished economist.”  [New York Times, 11/30/16]

New York Times: Mnuchin Has No Record And Made Few Public Statements About Public Policy.  In November 2016 the New York Times wrote, “It is hard to discern what policies Mr. Mnuchin will seek to enact beyond those espoused by Mr. Trump. Like the president-elect, he has talked about lowering taxes and lifting regulations, but mostly without describing specifics.”  [New York Times, 11/30/16]

New York Times: Mnuchin Will Have A Steep Learning Curve On International Trade.  In November 2016 the New York Times wrote, “Still, he is expected to face a steep learning curve when it comes to working on international trade, where he doesn’t have much previous experience.”  [New York Times, 11/30/16]

New York Times: Mnuchin’s Friends Say He Has No Discernable Ideology Other Than Ambition.  In November 2016 the New York Times wrote, “But anyone looking for hints about Mr. Mnuchin’s ideology may be disappointed: His friends say he is not ideological and that, if anything, his ideology is simply his ambition.”  [New York Times, 11/30/16]

New York Times: Mnuchin Has No Experience Other Than Ties To Wall Street.  In November 2016 the New York Times wrote, “Steven Mnuchin, a financier with deep roots on Wall Street and in Hollywood but no government experience, is expected to be named Donald J. Trump’s Treasury secretary as soon as Wednesday, people close to the transition say.”  [New York Times, 11/29/16]

MNUCHIN OWNED AND RAN A CONTROVERSIAL MORTGAGE BANK

Washington Post: Mnuchin Led A Group To Buy A Subprime Lender With “Some Of The Nation’s Shoddiest Loans.”  In December 2016 the Washington Post wrote, “Mnuchin led a consortium of investors that purchased the troubled bank IndyMac from the federal government in 2009, acquiring a $13.9 billion portfolio of some of the nation’s shoddiest loans for about $1.6 billion. Tara Bradshaw, a spokeswoman for Mnuchin, said about 178,000 loans were already in the foreclosure process when he took over the bank and renamed it OneWest.”  [Washington Post, 12/30/16]

Mnuchin’s Tenure As Chairman Of OneWest Was Marked By Controversy.  In November 2016 the New York Times wrote, “The group was apparently referring to Mr. Mnuchin’s role in 2009 in a group that bought the failed California mortgage lender IndyMac from the government. He became the chairman of the company, renamed OneWest, which was ultimately sold to CIT, the nation’s largest small-business lender, in 2015 for more than twice the price the group had paid.  During Mr. Mnuchin’s tenure, OneWest faced allegations that it had foreclosed improperly on some borrowers. Fair-housing groups also filed a complaint with the federal government, claiming that OneWest was not meeting its legal obligation to make loans in minority neighborhoods.”  [New York Times, 11/29/16]

Mnuchin’s OneWest Received Nearly $1 Billion In Federal Bailout Money.  In November 2016 the Washington Post wrote, “A leading candidate to be ­President-elect Donald Trump’s treasury secretary was deeply involved in running a bank that has received $900 million in federal bailout money and that has been accused of discrimination — examples of the potentially thorny conflicts of interest that could plague Trump’s nascent administration.”  [Washington Post, 11/17/16]

Mnuchin Got The Federal Government To Agree To Cover His Losses When He Bought OneWest. In November 2016 the Washington Post wrote, “Central to the deal was a promise by federal regulators to cover a significant share of the bank’s losses — a guarantee that lasts through 2019. In addition, the bank — later renamed OneWest — has repeatedly faced criticism over its attempts to foreclose on homeowners who were in the process of modifying their loans, among other practices.”  [Washington Post, 11/17/16]

Mnuchin Extracted Huge Commitments From The Federal Government To Cover His Losses In OneWest. In November 2016 the Washington Post wrote, “To lure buyers, the agency promised to share in any future losses on the bank’s outstanding loans. Mnuchin and his partners were responsible for the first $2.5 billion, then the FDIC would cover 80 percent of the losses until they totaled $3.8 billion.  After that, the government would reimburse the bank for 95 percent of its losses. The bank is expected to reach that level — and continue receiving government payments — by 2019, when the agreement ends, according to documents on the FDIC’s website.”  [Washington Post, 11/17/16]

Community Groups Filed HUD Complaint Over Racial Discrimination At OneWest During Mnuchin’s Tenure. In November 2016 the Washington Post wrote, “On Thursday, an advocacy group filed a complaint with the Department of Housing and Urban Development accusing the bank of locating branches in predominantly white neighborhoods while avoiding minority communities, including two years in which only two black borrowers received home loans across six counties.”  [Washington Post, 11/17/16]

Community Groups Alleged That Mnuchin Located Bank Branches In Places That Wouldn’t Attract People Of Color As Customers. In November 2016 the Washington Post wrote, “But the bank remained a target for consumer advocates and watchdog groups under Mnuchin. In the complaint filed Thursday with the Department of Housing and Urban Development, advocates alleged that only 11 of the bank’s 74 branches are in Hispanic neighborhoods. One was in a majority Asian neighborhood, and there were none in predominantly black communities.”  [Washington Post, 11/17/16]

Washington Post: Outside Analysis Shows Very Few Loans From Mnuchin’s OneWest Went To People Of Color. In November 2016 the Washington Post wrote, “The complaint covers the final year of Mnuchin’s tenure at OneWest; the sale to CIT was completed in August 2015. The California Reinvestment Coalition’s analysis of loans made that year alleged that only 8.4 percent of mortgages went to Hispanics, though they accounted for 43 percent of the region’s population. It also alleges that the bank did not properly maintain foreclosed homes in minority areas.”  [Washington Post, 11/17/16]

Washington Post: Mnuchin’s OneWest Was Criticized For Their Accelerated Pace Of Foreclosures. In November 2016 the Washington Post wrote, “But as the housing crisis deepened, Mnuchin’s bank came under criticism for the pace of its foreclosures and what customers complained was a hard-line stance.”  [Washington Post, 11/17/16]

MNUCHIN HAS A MULTITUDE OF POTENTIAL CONFLICTS OF INTEREST

Mnuchin’s Deal With Federal Regulators To Limit Losses With A Bank He Ran Remains In Effect Until 2019.  In November 2016 the Washington Post wrote, “Central to the deal was a promise by federal regulators to cover a significant share of the bank’s losses — a guarantee that lasts through 2019. In addition, the bank — later renamed OneWest — has repeatedly faced criticism over its attempts to foreclose on homeowners who were in the process of modifying their loans, among other practices.”  [Washington Post, 11/17/16]

Mnuchin Was On The Board Of A “Too Big To Fail” Bank, Overseen By Treasury As Of November 2016. In November 2016 the Washington Post wrote, “Mnuchin’s long involvement with the bank could raise questions about his ability to lead an agency at the forefront of the government’s oversight of the financial industry. OneWest was purchased last year by the financial firm CIT, which is partially overseen by Treasury. It has been named a “systemically important” financial institution — often informally called “too big to fail” — worthy of additional scrutiny because of the risk it poses to the economy in a crisis. Mnuchin is on CIT’s board of directors and owns $100 million in company stock, according to compensation research firm Equilar.”  [Washington Post, 11/17/16]

MNUCHIN HAS A RADICAL ANTI-TAX, ANTI-REGULATION AGENDA

Mnuchin Said His Top Priority Would Be Repealing The Dodd-Frank Regulations.  In November 2016 Politico wrote, “Steven Mnuchin, a long-time Goldman Sachs banker tapped by Trump to lead the Treasury, told CNBC’s ‘Squawk Box’ Wednesday morning that going after the law will be one of his top priorities.  ‘The number one problem with Dodd-Frank is it’s way too complicated and it cuts back lending, so we want to strip back parts of Dodd-Frank that prevent banks from lending and that will be the number one priority on the regulatory side,’ Mnuchin said. ‘The number one priority is going to be make sure that banks lend.’”  And, “Dodd-Frank, passed in the wake of the financial crisis and aimed at preventing some of the practices the precipitated it, has long been a target for Republicans, who say the strict regulations on financial institutions have limited the flow of capital.”  [Politico, 11/30/16]

Mnuchin Called For Repeal Of Some Banking Regulations Passed After The Great Recession.  In November 2016 the Washington Post wrote, “But the tougher requirements, called for by 2010’s financial reform law known as Dodd Frank, could be weakened during the Trump administration. On Wednesday, Mnuchin, called for a partial repeal of extensive banking industry regulations put in place after the Great Recession.”  [Washington Post, 11/30/16]

Mnuchin Suggested That Slashing Corporate Taxes Would Cost The Government Nothing Because It Would Double Economic Growth.  In November 2016 CNBC reported, “Steven Mnuchin made his comments on ‘Squawk Box,’ as his selection was being announced. He said he believes the U.S. economy can grow at a sustained rate of 3 percent to 4 percent.”  And, “Mnuchin said tax reform is going to be a major driver of that growth, and added that the Trump administration is going to bring a lot of money back into the U.S. by cutting the corporate rate to 15 percent.”  [CNBC, 11/30/16]

Mnuchin Made Grand Proclamations About The Effect Of Corporate Tax Cuts.  In November 2016 CNBC reported, “’By cutting corporate taxes, we're going to create huge economic growth and we'll have huge personal income,’ Mnuchin told ‘Squawk Box,’ confirming he has been tapped for Treasury secretary.  Reducing the corporate tax rate from 35 percent to 15 percent will be a major goal for the Trump administration, the former Wall Street executive said.  Mnuchin said he was confident the new administration would be able to expand gross domestic product growth from the current 3.2 percent.”  [CNBC, 11/30/16]
Mnuchin Ominously Promised “The Largest Tax Change Since Reagan.”  In November 2016 CNBC reported, “’Our most important priority is sustained economic growth, and I think we can absolutely get to sustained 3 to 4 percent GDP, and that is absolutely critical for the country,’ Mnuchin said. ‘To get there, our number one priority is tax reform. This will be the largest tax change since [President Ronald] Reagan.’”  [CNBC, 11/30/16]