Thread by @revolvingdoorDC

Through a cruel twist of fate, Treasury Secretary Steven Mnuchin has become perhaps the most powerful man in Washington wired.com/story/the-reli…

Mnuchin keeps a lower profile than some of Trump’s other lackeys, making it easy to forget just how bad he really is
(1/?)

But never fear, the Revolving Door Project is here to ensure you know all you need to about the Treasury Secretary Nancy Pelosi and Chuck Schumer trust with the keys to reshape the American economy

We’re posting three new facts about Steven Mnuchin per day #MnuchinFacts
(2/?)

Lots of hardworking people are struggling right now.

With a net worth of over $300 million, we think it’s safe to say that Mnuchin cannot relate.
(3/?)

Nor did he work his way up from modest roots. Did you know his grandfather co-founded a yacht club in the Hamptons?
(4/?)

His father is a former partner at Goldman Sachs, “a pioneer in stock trading” who spent 35 years with the firm before becoming an art dealer
(5/?)

Mnuchin had every advantage to get ahead. He studied at the Riverdale Country School (total cost of attendance today: $56,210) before going on to Yale.
(6/?)

Mnuchin spent the first 17 years of his career at Goldman Sachs, rising to the rank of partner. He is the third Treasury Secretary to have worked for “Government” Sachs
(7/?)

After Goldman, Mnuchin moved into the world of hedge funds, first at ESL Investments (owned by Eddie Lampert of Sears infamy), then at SFM Capital Management, and finally on to founding his own fund, Dune Capital Management
(8/?)

Mnuchin’s hedge fund was registered in - where else? - the Cayman Islands
(9/?)

Dune specialized in real estate finance and made investments in, among other things, the Trump International Hotel and Tower in Chicago
(10/?)
nytimes.com/2016/11/29/us/…

In this same time period, Mnuchin established Dune Entertainment Companies a film financing operation that backed movies like The Devil Wears Prada, X-Men and Avatar
(11/?)

We’re all being asked to put a lot of faith in Mnuchin’s judgment, but his track record hardly inspires confidence.

(13/?)

To start off with, Mnuchin decided in 2013 to go into business with Brett Ratner, merging their respective film companies to become RatPac-Dune Entertainment
(14/?)

Ratner has since been accused of sexual harassment and misconduct by at least six women
(15/?)

latimes.com/business/holly…

When Mnuchin wasn’t making films, he was running a bank, badly.

Mnuchin achieved infamy and won the title of “foreclosure king,” at the head of OneWest Bank.

(16/?)

In 2009, Mnuchin assembled a group of private investors to purchase the failed bank IndyMac from the FDIC

(17/?)

Mnuchin and his associates (Michael Dell, George Soros, Christopher Flowers, and John Paulson, among others) got the bank at a bargain rate of $1.5 bn (much less than the value of its assets)
(18/?)

But, that wasn’t enough! They also secured a shared loss agreement from the FDIC in which the agency covered 80% of all losses over $2.5 bn and 95% of losses over $3.8 bn
(19/?)

With these favorable terms in place, IndyMac, renamed OneWest, set to work kicking people out of their homes at a feverish pace, initiating over 137,000 foreclosure proceedings nationwide, ignoring requirements that it offer loan modifications
salon.com/2018/12/21/ste…
(17/?)

In the relatively brief period when Mnuchin and co. owned the bank, it faced over 800 lawsuits, approximately one third of which were for improper foreclosure
(18/?)

In what is by far the most common story used to illustrate OneWest (and by extension Mnuchin’s) ruthlessness, the bank foreclosed on a 90-year-old woman over a 27 cent balance
vanityfair.com/news/2016/12/f…
(19/?)

OneWest was so bad that it even faced enforcement action from an administration that would become famous for its reticence to hold powerful bankers accountable.
(20/?)

The Office of Thrift Supervision found a pattern of “unsafe and unsound” methods for dealing with loans and foreclosures in 2009 and 2010.
(21/?)
occ.gov/static/ots/mis…

OneWest paid $8 million in remediation for improper foreclosure practices and was assigned an independent monitor.

(22/?)

And then there was OneWest’s reverse mortgage subsidiary, Financial Freedom

FF made up 17% of the reverse mortgage market but was responsible for 39% of reverse mortgage foreclosures

(23/?)

In 2017, FF settled for $89 million for fraudulently claiming federal insurance on reverse mortgage loans after failing to meet regulatory requirements.

(24/?)

theintercept.com/2017/05/16/ste…

OneWest also did business with Ocwen Financial, a mortgage servicer that has twice been penalized by the CFPB for engaging in unfair and deceptive practices.

(25/?)

fortune.com/2017/04/21/ocw…

In case all of that wasn’t enough, OneWest was also accused of racially discriminatory practices, like refusing to open banks in minority communities.

(26/?)

In the time that Mnuchin and his associates owned OneWest, it turned a profit of about $3 bn. Most of that, however, came from the FDIC via the loss-sharing agreement.

The FDIC, meanwhile, lost $13bn on IndyMac/OneWest

(27/?)

salon.com/2018/12/21/ste…

In 2015, OneWest announced a merger with CIT Bank

Many community groups vigorously opposed the deal on the grounds that OneWest had violated the Community Reinvestment Act

(28/?)

theintercept.com/2018/09/29/jos…

A number of nonprofits did come to the bank’s defense but it was later revealed that many of them had received donations from OneWest or from Mnuchin himself.

Mnuchin even served on the boards of two of them

(29/?)

opensecrets.org/news/2017/01/m…

The merger’s opponents succeeded in getting regulators to call for a hearing (something they did with frightening infrequency)

(30/?)

prospect.org/article/revolv…

Nonetheless, regulators eventually the deal (after OneWest's CEO and now Comptroller of the Currency, Joseph Otting engaged in some astroturfing)

(31/?)

theintercept.com/2018/09/29/jos…

Mnuchin’s sale of his share in CIT Group (the bank with which OneWest merged) made him $97 million

(32/?)

forbes.com/sites/chasewit…

Altogether, Mnuchin is worth a whopping $400 million, making him one of Trump’s wealthiest cabinet members

(33/?)

forbes.com/sites/danalexa…

Mnuchin sold $130 in assets when he became Treasury Secretary, on which he was allowed to defer capital gains because he was making the sale to avoid conflict of interest laws

(34/?)

But Mnuchin has not escaped serious questions about conflicts of interests.

In 2019, OGE refused to certify Mnuchin’s financial disclosure because his wife maintained a stake and an executive position in the film company from which he’d “divested”
(35/?)
citizensforethics.org/mnuchins-finan…

Steven Mnuchin joined the Trump campaign as its national finance chairman in May 2016.

This was among Mnuchin’s first forays into politics and his past political giving had trended towards Democrats.

So why did he get involved at all?

(36/?)

As two reporters put it, he may have “spotted the trade of a lifetime. In exchange for a few months unpaid work [he] gets a shot at joining President Trump’s cabinet.”

(37/?)

bloomberg.com/news/articles/…

Mnuchin all but confirmed this theory later, stating “Nobody’s going to be like, ‘Well, why did he do this?’ if I end up in the administration.”

(38/?)

And, of course, this cynical, transactional investment paid off. Mncuhin would go on to raise $169 million for the now-President and earn himself the role as Treasury Secretary in the process

(39/?)

Mnuchin’s history at OneWest was a hot topic during his confirmation hearings. How did he get around it? By lying of course!

Mnuchin denied that OneWest ever robo-signed foreclosure documents despite “copious evidence” that they did

(40/?)

theintercept.com/2017/01/30/mnu…

Fortunately for him, his dishonesty posed no problems for Senate Republicans, and he was confirmed in spite of it.

(41/?)

Having learned that lying carried no consequences, Mnuchin continued to do so, about his past and otherwise

(42/?)

thenation.com/article/archiv…

Throughout 2017, taxpayers footed the over $1 million bill for Mnuchin’s flights on military aircraft

(43/?)

politico.com/story/2018/03/…

That included a flight with his wife, Louise Linton, to KY to see the solar eclipse. The trip became famous after Linton posted on Instagram, touting her designer clothing, and then aggressively responded to a commenter who questioned the expense

(44/?)

businessinsider.com/louise-linton-…

Not long after Linton’s diatribe, in which she wrote, “Do you think the US govt paid for our honeymoon or personal travel?” we learned, ironically, that Mnuchin had in fact requested a flight for his honeymoon, but had later withdrawn the request
(45/?)
nytimes.com/2017/10/05/us/…

Mnuchin has been an incredibly loyal lackey for President Trump, coming to his defense on issues both consequential and trivial

As one author put it, Mnuchin has been “like the kid trying to cop favor with the school bully”

(46/?)
thenation.com/article/archiv…

That means that when the President tweeted about his displeasure that the Fed was raising interest rates, Mnuchin jumped into action to insist that the President ‘absolutely respects’ the Fed’s independence

(47/?)

thehill.com/homenews/sunda…

When the President criticized NFL players for taking a knee to protest police violence, Mnuchin eagerly jumped into the fray.

(48/?)

thenation.com/article/steven…

When Trump turned his ire towards the major of San Juan, Mnuchin was quick to take to the air waves to double down on the attack

(49/?)

thenation.com/article/steven…

And, of course, when President Trump “both sides”-ed altercations in Charlottesville, Mnuchin came to his defense

(50/?)

washingtonpost.com/news/post-poli…

From the administration’s early days, Mnuchin has also been the face of the effort to keep Trump’s tax returns hidden.

In 2017, Mnuchin defended the president’s decision saying Americans “plenty of information” about the president’s finances

(51/?)

detroitnews.com/story/news/nat…

Of course, Americans overwhelmingly disagreed that they had enough information about Trump’s financial entanglements. But why let facts get in the way?

(52/?)

huffpost.com/entry/trump-ta…

When Rep. Richard Neal (belatedly) requested Trump’s tax returns last year using a well-established congressional authority, it was Mnuchin who refused to hand them over.

(53/?)

Then, Mnuchin refused again after Neal issued a subpoena for the financial docs.

People frustrated that, over 3 years after Trump took office, they still do not have basic info about his finances (particularly relevant amidst the bailout) have Mnuchin to thank!

(54/?)

Mnuchin, as Treasury Secretary, has tremendous power, power that has only been enhanced thanks to the bailout.

When he wants, that power can be used for good (like getting publicly traded companies to return bailout funds)

(55/?)

prospect.org/coronavirus/un…

But, much more often he uses it to protect or empower those of his ilk (i.e. refusing to hand over the tax returns, or failing to lift a finger to stop debt collectors from taking stimulus checks)

(56/?)

For more on that read @DavidDayen’s Unsanitized (and subscribe to get this sort of incisive analysis daily)

prospect.org/coronavirus/un…

Mnuchin was also heavily involved in the administration’s effort to make taxes even lighter on the ultrawealthy and corporations (because that’s what we needed, right?)

(57/?)

Trump had originally pledged that wealthy Americans would not receive a tax break, but when he predictably walked that back Mnuchin was right there, ready to insist that Trump had never said any such thing

(58/?)

thehill.com/policy/finance…

In an effort to sell the bill, Mnuchin cited Treasury Department studies showing that the tax cuts would pay for themselves by spurring economic growth. The problem? No such studies had been conducted. Mnuchin was lying.

(59/?)

rooseveltinstitute.org/steve-mnuchin-…

But shouldn’t there have been some sort of study to anticipate the law’s effects? Of course!

That would require, however, that the Treasury Department be adequately staffed. Under Mnuchin, it is a husk.

(60/?)

politico.com/story/2019/02/…

Mnuchin reportedly likes to run a “lean” department. Translation: since he doesn’t really believe in this whole government thing, he doesn’t much care if his department falters.

(61/?)

Of course, his small band of appointees does not falter for those who really matter: the wealthy.

As Mnuchin told an audience at the Milken Institute’s annual global conference: “You should all thank me for your bank stocks doing better”

(62/?)

huffpost.com/entry/steven-m…

Mnuchin has also been a central player in the administration’s deregulatory campaigns. Mnuchin’s Treasury Department has “proposed eliminating or weakening over 300 financial industry regulations”

alliedprogress.org/news/treasury-…

(63/?)

He led the Financial Stability Oversight Council in lifting the “Too Big to Fail” label from AIG, Prudential, and MetLife

(64/?)

He encouraged reducing the CFPB’s power by eliminating its independent funding stream, giving the President the power to fire the Bureau’s head, and taking away its power to conduct in-person investigations of banks.

(65/?)

He criticized a “pending federal rule that would limit the use of forced arbitration by financial firms, calling it flawed and a giveaway to class-action attorneys.”

(66/?)

latimes.com/business/la-fi…

He has backed efforts to "review" and "modernize" the Community Reinvestment Act (CRA).

Making the CRA (which most housing advocates would argue is too weak) less stringent has long been a goal for banks

(67/?)

Mnuchin enthusiasm for rolling back the CRA, however, likely goes beyond the industry standard. After all, the CRA nearly stopped the merger between his OneWest and CIT bank.

prospect.org/article/revolv…

(68/?)

OneWest's then-CEO (currently at OCC) Joseph Otting has been explicit about the personal nature of his effort

“I went through a very difficult period with some community groups that … tried to change the direction of our merger. And so I have very strong viewpoints.”

(69/?)

Mnuchin backed the successful effort to loosen the Volcker rule which was designed to prevent banks from destabilizing the economy

(70/?)

He has proposed easing anti-money-laundering requirements for financial institutions

(71/?)

americanbanker.com/news/mnuchin-a…

He has argued in favor of loosening new mortgage restrictions designed to prevent a repeat of the subprime meltdown.

(72/?)

latimes.com/business/la-fi…

Like many in the Trump administration, Mnuchin seems to have a disturbing fondness for the Saudi regime

(73/?)

Amid Crown Prince Mohammad Bin Salman's anti-corruption purges in 2017, Mnuchin had this to say, "I think that the Crown Prince is doing a great job at transforming the country."

(74/?)

businessinsider.com/us-treasury-se…

Mnuchin famously traveled to Saudi Arabia just weeks after the murder of Saudi dissident and US resident Jamal Khashoggi at the Crown Prince's orders

(75/?)

nytimes.com/2018/10/21/us/…

"human rights issues are very important issues" he affirmed amidst the backlash. Just not as important as our very lucratice relationship with the Saudi regime.

(76/?)

By the following year, Mnuchin didn't even feel a need to make excuses as he attend the 2019 'Davos in the Desert'

(77/?)

And when reports emerged that Saudi Arabia had been involved in hacking Jeff Bezos' Mnuchin was quick to brush aside concerns about continuing business in the country

(78/?)

reuters.com/article/us-peo…

Mnuchin also has his own ties to the Russian oligarchy.

Len Blavatnik, a Ukrainian-born US citizen who made his fortune in post-Soviet Russia, purchased Mnuchin’s Ratpac-Dune Entertainment after Mnuchin became Treasury Secretary

(79/?)

citizen.org/article/corpor…

Blavatnik is closely tied to Russian oligarch Oleg Deripaska who is currently subject to US sanctions.

(80/?)

ft.com/content/c1889f…

Until last year, Deripaska’s business empire was also under US sanctions. Those were lifted in January after Mnuchin’s Treasury Department approved Deripaska’s plan for divestiture, a plan that many saw as far too lenient.

(81/?)

nytimes.com/2019/04/08/us/…

Mnuchin has faced other conflicts of interest. As Secretary of the Treasury, Mnuchin sits on the board of Pension Benefit Guaranty Corporation (PBGC) which assumes control of pensions when companies go bankrupt

(82/?)

Recently, it was faced with taking on Sears’ pension fund following the giant’s bankruptcy.

Mnuchin’s ties to Sears are numerous.

(83/?)

It was his college roommate, Eddie Lampert who ran the icon into the ground.

(84/?)

Mnuchin had not only briefly worked at Lampert’s hedge fund, but also sat on the board of Sears for 11 years (from 2005 to 2016)

(85/?)

Clearly Mnuchin could not be considered a neutral arbiter on any matter concerning Sears.

When pressed on his relationship with the retail giant during his confirmation hearings, he promised to recuse himself should he be deciding on anything to do with Sears

(86/?)

Such an occasion arose last year, when the PBGC struck a deal to assume Sears pension fund.

It is entirely unclear whether Mnuchin honored his promise.

(87/?)

Senator Warren and Rep. AOC pressed Mnuchin for confirmation that he had recused in a letter, but seemingly received no response

cnbc.com/2019/05/23/war…

(88/?)

Did Mnuchin have a hand in crafting what Sears' lawyers labeled a "phenomenal" settlement?

But this does not seem to be the only time Mnuchin may have helped a friend earn a buck.

(89/?)

With Mnuchin’s help, the opportunity zone program, which was supposedly meant to spur investment to low-income communities, has turned into even more of a giveaway for wealthy people, and most specifically those with ties to Mnuchin and Trump.

(90/?)

therevolvingdoorproject.org/committee-on-w…

The billionaire founder of Quicken Loans, Dan Gilbert, was able to get several areas of downtown Detroit that would not have qualified under the program criteria but where he had investments, designated as OZs after a meeting & call with Mnuchin

(91/?)

propublica.org/article/how-a-…

With Mnuchin's help, Gilbert was able to parlay a $750k donation to the Trump inaugural committee into millions of dollars in tax breaks

(92/?)

Plus, property prices have been rising areas designated as OZs, so Gilbert's holdings have likely gotten more valuable too

(93/?)

But it's not just Gilbert who's benefited from Mnuchin's help

(94/?)

Shortly after attending an event hosted by Michael Milken, Steven Mnuchin, personally requested that the Treasury Dept's OZ guidelines be disregarded so that a tract in Nevada (home to a major Milken investment) could be included

(95/?)

nytimes.com/2019/10/26/bus…

This was after Milken had already thrown the weight of his associated organization, the Milken Institute, behind the Opportunity Zone program

(96/?)

In fact, Mnuchin, a frequent guest at Milken Institute events, had participated in many opportunity zone-focused convenings, including some that were invitation only

(97/?)

Ideas from those events curiously made it into Treasury guidance soon afterwards.

Among the most egregious examples was a rule allowing the tax break to be applied retroactively, wholly undercutting the supposed goal of attracting new investments

(98/?)

But Mnuchin wasn't just an attendee at Milken Institute events. He appears to be personally close to the man himself, Michael Milken.

Last year, Mnuchin hitched a ride back to LA on Milken's private jet

nytimes.com/2019/01/18/us/…

(99/?)

Mnuchin was reportedly among those in the administration who were seeking a pardon for Milken (which Trump ultimately granted in February of this year)

(100/?)

bloomberg.com/news/articles/…

Unsurprisingly, given his own corrupt manipulation of the OZ program, Mnuchin's Treasury Department applied little scrutiny to governors using OZs to pay off political allies.

(101/?)

Rick Scott's designation of a tract that was home to donor Wayne Huizenga Jr's superyacht marina and a planned luxury condo development didn't get a second look

(102/?)

propublica.org/article/supery…