Donald Trump owes money to Goldman Sachs, Wells Fargo, Met Life and 150 other financial institutions that have the leverage to potentially take his precious buildings away. Now Trump is moving to gut Dodd-Frank regulations, install foreclosure mill operator and Goldman alum Steve Mnuchin at Treasury, and speed us to the next financial crash. What kind of regulator will he be when they have this kind of power over him? #DrainTheSwamp
“According to the Journal’s analysis, Trump businesses’ debts are held by more than 150 institutions. They bought the debt after it was sliced up and repackaged into bonds—a process known as securitization, which has been used for more than $1 billion of debt connected to Mr. Trump’s companies.
“The problem with any of this debt is if something goes wrong, and if there is a situation where the president is suddenly personally beholden or vulnerable to threats from the lenders,” said Trevor Potter, who served as a general counsel to the presidential campaigns of Republicans George H.W. Bush and John McCain.
“Wells Fargo & Co., for example, runs at least five mutual funds that own portions of Trump businesses’ securitized debt … Wells Fargo is currently facing scrutiny from federal regulators surrounding its fraudulent sales practices and other issues. Once he takes office, Mr. Trump will appoint the heads of many of the regulators that police the bank.
“MetLife Inc., for example, has a $300 million loan to the limited liability company [partly owned by Trump]. MetLife is fighting regulators in court over its designation as a “systemically important financial institution,” a classification that subjects it to stiffer regulations. The Trump administration could decide to drop that challenge. The Trump transition team has promised to dismantle the 2010 Dodd-Frank law that created the SIFI label.
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