Trump’s Treasury Secretary Choice: Congressmen, Executives

By Parth Parikh,
Money and Investing Writer

After a grueling campaign process and a stunning election-night victory over former Secretary of State Hillary Clinton, it is time for President-elect Donald Trump to hire his cabinet members to help him make crucial decisions and achieve the goals he has set for his administration.

One of the bigger cabinet positions available is the Secretary of the Treasury, the cabinet member in charge of assisting the President on economic and financial policies and overseeing the process of printing the United States currency.

With the Federal Reserve hinting at a Fed Funds Rate hike in December to Trump’s plan to help lower taxes for Americans, the Secretary of the Treasury will have to manage a lot of tasks while also helping President-elect Trump make sound decisions about the economy, here and abroad.

Because of the importance of this role, there are a lot of names that the Trump team have considered. One such name that has been mentioned is Steven Mnuchin. Mnuchin was a former Goldman Sachs Group Inc. (NYSE: GS) partner who worked with business magnate George Soros and co-founded a hedge fund called Dune Capital Management LP.

Mnuchin is also credited for buying a failing bank called IndyMac, renaming it to OneWest, and turning that bank into a $3.4 billion asset for CIT Group Inc. (NYSE: CIT), the firm that later bought OneWest. Steven is used to the presidential campaign process and endorsed Mitt Romney during his run against President Obama in 2012. Trump and Mnuchin’s relationship has been close, and with Steve as the national finance chairman for the Trump campaign, many experts predict he will be the likely nominee for the position.

Some of the other names being discussed are Representative Jeb Hensarling from Texas and JP Morgan Chase & Company (NYSE: JPM) CEO Jamie Dimon. Hensarling sits on the House Financial Services Committee and has had that position for nearly ten years.

One of Hensarling’s primary goals that he has said he wants to achieve while in Congress includes repealing the landmark Dodd-Frank Act, which Republicans think is the reason Americans feel that economic growth has been slow and stagnant at times.

Many believe that if Trump were to select a person with superior knowledge of Wall Street and how financial markets work, Hensarling would most likely be on the top of that list.

But the biggest name being considered for the role is JP Morgan Chase CEO Jamie Dimon.

Dimon boasts tremendous Wall Street experience and also gives the Trump administration more diversity, since Dimon is a longtime Democrat.

Many have attested to Dimon’s possibility as Treasury Secretary, most notably Lloyd Blankfein, Goldman Sachs CEO, and Bill Ackman of Pershing Square Capital Management LP. Some of the obstacles standing in the way of Dimon’s nomination to the position is his commitment to JP Morgan Chase and his battle with throat cancer, the latter causing JP Morgan to create a succession plan of new board members in the situation Mr. Dimon had to unexpectedly leave his position at the company.

Dimon has been recommended for the position many times in the past and with a Trump presidency inevitable, we will soon see who Trump picks as his finance advisor.

A version of this article appeared in the Tuesday, November 22nd print edition.

Contact Parth at
parth.parikh@student.shu.edu

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