Friday, January 6, 2017

Donald Trump Nominee Jay Clayton to be Most Conflicted SEC Chair Ever

"It's hard to see," [Ohio Sen. Sherrod] Brown said, "how an attorney who's spent his career helping Wall Street beat the rap will keep President-elect Trump's promise to stop big banks and hedge funds from 'getting away with murder.'"

Jay Clayton helped Warren Buffet invest $10 billion in Goldman Sachs
while Goldman Sachs had tens of billions worth of credit lines at the Federal Reserve in 2008

Most of the consternation over Clayton's appointment has to do with his own background as a longtime defender of big banks. He's been involved in some infamously shadowy episodes in the post-crisis era, with two in particular standing out.

He represented Goldman Sachs when the firm received a $5 billion capital infusion from Warren Buffet during the September 2008 meltdown.

Did Warren Buffet know about the Fed credit lines and secret lending
when he invested $5 billion in Goldman Sachs?

Did Jay Clayton?

The public found out in 2010-2011, without anyone going to jail

He also represented Barclays during its malodorous acquisition of the assets of Lehman Brothers, an episode one lawyer described to me years ago as "the greatest bank robbery you never heard of."

...this incoming SEC chief is also married to a broker at Goldman Sachs – his wife Gretchen is a wealth management advisor. This means that a significant portion of Clayton's family income while in office will presumably be coming from a company he is charged with policing.

..."Clayton will be the most financially conflicted SEC chairman in history."

Did Jay Clayton violate Sarbanes Oxley Section 307?

Remember, at the Republican convention last year, Trump supporters heckled Ted Cruz's wife, Heidi, for being a Goldman Sachs employee.

Quite the hypocrisy

Where are all those furious Trump supporters now that their idol has put the husband of a Goldman broker in charge of the SEC?...

Drain the Swamp...

...Clayton going forward will have to recuse himself from any enforcement decision involving Goldman. This is no small thing, since Goldman has not exactly been a stranger to SEC enforcement decisions over the years.

Yet even as he has to sit out Goldman's inevitable enforcement problems because of his wife, Clayton will not have to recuse himself from rulemaking decisions that could affect Goldman far more than isolated corruption cases.

...Goldman Sachs isn't just a frequent flyer when it comes to SEC enforcement fiascoes. The bank is also a regular applicant – and recipient – of SEC waivers exempting it from the automatic penalties and sanctions that would otherwise be triggered by their offenses.

...Who needs an SEC chief who has to stay on the sidelines for some of the most important cases the agency considers? It's like having a police commissioner who has to cover his ears every time someone mentions the Crips or the Latin Kings.

A year ago at this time, Donald Trump was ridiculing Ted Cruz for being a "puppet" of Goldman. Now Clayton joins senior advisor Steve Bannon, Treasury appointee Steve Mnuchin, NEC director Gary Cohn and White House advisor Anthony Scaramucci as high-ranking Trump appointees who are either from Goldman or married to someone at the firm..."
If former New York Fed Chairman and Goldman Sach's alumni Stephen Friedman knew about secret loans to Goldman in 2008 and 2009, how did he not buy GS with unknown information?

Barron's rooting for Goldman Sachs; "Get Ready for Dow 20,000"

Donald Trump's SEC nominee Jay Clayton = Lawyer defending criminal acts by Banks is not Swamp Draining

Carved up Annotated Kunstler Must Read; "Mob psychology is outrunning both experience and reality"

"Wells Fargo owns the mortgage on Trump Tower"

Washington Post allows Goldman Sachs' Hank Paulson to lie to readers

John Stumpf's Sarbanes Oxley Securities Fraud at Wells Fargo

Too Connected to Jail; The Short, Short Version

Wells Fargo "Envision" Retirement Plan Incentive Bonus Fraud

Goldman Sachs, Wells Fargo, Wachovia and Perella Weinberg

"Wachovia Corp – #14 recipient of Fed’s “secret liquidity lifelines” which Hank Paulson just lied about in the Washington Post, which allowed his undersecretary Robert Steel to illegally trade Wachovia stock on inside information

ROBERT K. STEEL and the President's Working Group

"Goldman Sachs' top executives had over 1 million stock option grants due to expire worthless next week"

Then Mayor Michael Bloomberg, who hired former Wachovia CEO and Goldman Sachs alumni Robert Steel, on bashing bankers

"Revelations From Those Secret Goldman Sachs Tapes"

"Former examiner sues NY Fed for alleged Goldman Sachs-related firing"