Trump Works For Blackstone Now

SINCE THE INAUGURATION DONALD TRUMP HAS FLIPPED ON A COUPLE OF
HIS MOST PUBLICIZED, CLEAREST ECONOMIC POSITIONS, THINGS HE
WAS LIKELY TO DO IF HE BECAME PRESIDENT.
FOR INSTANCE HE
REPEATEDLY SAID HE WOULD LABEL CHINA A CURRENCY MANIPULATOR
ONCE HE BECOMES PRESIDENT.
IN THE PAST WEEK HE ANNOUNCED HE
WOULDN'T DO THAT, SAYING HE NEEDS THEIR HELP TO DEAL WITH
NORTH KOREA.
PERHAPS.
ALSO HE REPEATEDLY SAID HE WAS LIKELY TO
REMOVE THE TAX BREAK FOR SO-CALLED CARRIED INTERESTS FOR
A CERTAIN CLASS OF PEOPLE WORKING IN WALL STREET.
HE
HASN'T SAID HE WON'T DO THAT, BUT HE'S TAKEN EFFECTIVELY NO
ACTION AND WE ARE NEARING THE 100 DAY POINT IN HIS PRESIDENCY.
SO WHY IS IT THAT ON THESE ISSUES HE SEEMS TO BE DIVULGING
SO FAR FROM CAMPAIGN DONALD TRUMP?
IT MIGHT BE BECAUSE HE'S
SURROUNDED HIMSELF WITH THE SORTS OF BILLIONAIRES THAT WILL
PUSH YOU IN THE DIRECTION OF MAINTAINING POLICIES THEY
BENEFIT FROM.
ONE OF THOSE BILLIONAIRES IS STEVE
SCHWARTZMAN, HEAD OF BLACKSTONE, A PRIVATE EQUITY GROUP.
DAVID,
YOU HAVE AN ARTICLE COMING OUT SPECIFICALLY ABOUT SOME OF THE
POSITIONS HE STAKED OUT ON THOSE PARTICULAR ISSUES, HIS
CONNECTIONS WITH CHINA, THE INDUSTRIES HE HAS THERE -- WHAT
DO YOU THINK OF HIM POTENTIALLY SERVING AS MORE OF AN UNOFFICIAL
ADVISOR TO DONALD TRUMP ON THESE POLICIES?
IS IT LIKELY THAT
DONALD TRUMP WILL EXERCISE ANY AUTONOMY ON THESE ISSUES?
WHERE
ELSE MIGHT HIS INFLUENCE BE SEEN?
>>FOR SO IT'S NOT UNOFFICIAL, IT'S OFFICIAL.
STEVE SCHWARTZMAN
--
>>HE'S NOT A GOVERNMENT EMPLOYEE, WHICH IS
CONSEQUENTIAL WHEN IT COMES TO ETHICS RULES.
>>SCHWARTZMAN WAS APPOINTED TO RUN A WHITE HOUSE COUNSEL THAT
ADVISES TRUMP ON ECONOMIC POLICIES.
TRUMP SAYS HE SPEAKS
FREQUENTLY WITH STEVE SCHWARTZMAN, THE BILLIONAIRE CEO
OF BLACKSTONE, THE WORLD'S LARGEST PRIVATE EQUITY FIRM.
BY
BEING CHAIRMAN OF A WHITE HOUSE PANEL, BUT ALSO SAYING I'M NOT A
FULL-TIME WHITE HOUSE EMPLOYEE, THE TRUMP ADMINISTRATION IS
INTERPRETING THIS TO MEAN THAT STEVE SCHWARTZMAN, CEO OF
BLACKSTONE, IS NOT SUBJECT TO CONFLICT OF INTEREST LAWS OR
RULES THAT WOULD FORCE HIM TO THE BEST FROM HIS COMPANY.
HE IS
EFFECTIVELY ADVISING TRUMP AND SCULPTING WHITE HOUSE POLICY ON
VARIOUS POLICIES THAT BLACKSTONE IS CURRENTLY INVESTING IN.
YOU
MENTIONED A COUPLE, YOU MENTIONED THE CURRENCY
MANIPULATION -- BLACKSTONE IN ITS OWN SEC FILINGS SAYS IT HAS
AN INTEREST IN THOSE POLICIES.
CARRIED INTEREST IS A TAX
BENEFIT FOR PRIVATE EQUITY EXECUTIVES LIKE STEVE
SCHWARTZMAN, BLACKSTONE --
>>TO THE TUNE OF MILLIONS PER YEAR.
>>STEVE SCHWARTZMAN, IF THEY CLOSED THAT LOOPHOLE AND FORCED
HIM TO PAY THE INCOME TAX RATES THAT REGULAR PEOPLE PAY, HE
WOULD PAY ABOUT $8 MILLION MORE A YEAR IN INCOME TAX, WHICH FOR
HIM IS NOT THAT MUCH.
BUT IT GETS MORE INTENSE, WHICH IS THAT
TRUMP MOVED FOR INSTANCE TO REPEAL THE SO-CALLED FIDUCIARY
RULE, THE RULE THAT WOULD SAY FINANCIAL ADVISORS HAVE TO KEEP
THEIR CLIENTS' BEST INTERESTS PRIORITIZED.
BLACKSTONE HAS A
VESTED INTEREST IN THAT RULE NOT GOING FORWARD, BECAUSE THAT RULE
MAKES IT MUCH HARDER FOR BLACKSTONE TO ACCESS THE
MULTITRILLION DOLLAR WORLD OF 401(K)s AND IRAs.
SCHWARTZMAN
HAS SAID IT'S OUR DREAM TO GET INTO THAT MULTITRILLION DOLLAR
BUSINESS, AND OUR ARTICLE DETAILS HOW THE FIDUCIARY RULE
MAKES IT MUCH HARDER FOR THEM TO GET INVOLVED IN THAT.
SAME THING
WITH THE INFRASTRUCTURE BILL, TRUMP FLOATED INFRASTRUCTURE
CONCEPTS THAT WOULD MOVE INFRASTRUCTURE MONEY THROUGH
WALL STREET INTERMEDIARIES TO ALLOW WALL STREET TO MANAGE THE
BUILDING OF PUBLIC ASSETS.
GUESS WHAT?
BLACKSTONE RECENTLY SAID
IT WANTS TO EXPAND INTO INVESTING IN INFRASTRUCTURE.
SAME THING WITH DRILLING.
BLACKSTONE HAS BEEN INVESTING IN
OFFSHORE DRILLING AS A PRIVATE EQUITY FIRM AT THE SAME TIME
TRUMP IS MOVING FORWARD WITH RULES AND LEGISLATIVE PROPOSALS
TO EXPAND OFFSHORE DRILLING.
ESSENTIALLY WHAT YOU HAVE --
THIS AS A NAKED EXAMPLE OF THIS -- WHERE YOU HAVE LITERALLY
THE PERSON ADVISING TRUMP ON POLICY, THE GUY WHO SAID CABINET
SECRETARIES ARE PRESENTING IDEAS TO ME, HE JUST SAID THAT -- THIS
SAME PERSON RUNS THE BIGGEST PRIVATE EQUITY FIRM IN THE WORLD
THAT IS INVESTING IN THE SAME AREAS AND BUSINESSES TRUMP'S NEW
POLICIES AFFECT AND SHAPE.
>>LET ME GO FURTHER, HE IS THE CHAIR OF TRUMP'S STRATEGIC AND
POLICY FORUM.
THAT MEANS TRUMP IS TURNING TO HIM FOR POLICY AND
STRATEGY ON THESE ECONOMIC ISSUES.
AND BY HIS OWN
ADMISSION, ACCORDING TO THE SEC FILINGS, HE SAYS IF THEY RAISE
TARIFFS ON CHINA WE ARE GOING TO LOSE A TREMENDOUS AMOUNT OF
MONEY, AND WE KNOW FOR A FACT, NOT ONLY DAVID IS REPORTING,
POLITICO IS REPORTING, INSIDE OFFICIALS AT THE WHITE HOUSE
ARE SAYING, SCHWARTZMAN SAYS DON'T RAISE TARIFFS ON CHINA.
AND TRUMP LISTENS.
>>BLACKSTONE HAS PUT OUT PUBLIC STATEMENTS ON THOSE ISSUES.
>>ALSO PUBLICLY SAID CARRIED INTEREST WOULD COST US
TREMENDOUS AMOUNTS OF MONEY IF YOU TOOK THAT TAX PRIVILEGE AWAY
FROM THEM, NUMBER TWO THEY SAID IN PUBLIC THAT IT WOULD
ADVERSELY AFFECT THEIR ABILITY TO RECRUIT, RETAIN, AND
MOTIVATE OUR TALENT.
IF WE ONLY PAY OUR MID-LEVEL EXECUTIVES $11 MILLION
INSTEAD OF 12, I DO DECLARE, WHERE WILL WE FIND TALENT?
>>YOU MIGHT AS WELL DRIVE A TAXI AT THAT POINT.
>>THAT GETS US TO, WHO IS DONALD TRUMP?
ON THE CAMPAIGN TRAIL HE
SAID OVER AND OVER AGAIN HE WOULD RAISE THE TARIFFS ON
CHINA, THAT THEY WERE CURRENCY MANIPULATORS, HE WOULD PUNISH
THEM FOR THAT AND LABEL THEM AS SO.
DID HE MEAN ANY OF IT?
FIRST
OF ALL, A TRUMP FRIEND AND AIDE SAID, WELL, HE DOESN'T HAVE DEEP
KNOWLEDGE OF THE COUNTRY.
REFERRING TO CHINA.
>>WHICH COUNTRY?
>>CHINA.
US TOO, I'M SURE.
IN OTHER WORDS, HE DOESN'T KNOW
WHAT HE'S TALKING ABOUT.
AS I TOLD YOU DURING THE CAMPAIGN,
ALL HE WAS DOING WAS A/B TESTING THE CROWD.
HE WOULD DO THINGS
LIKE, YOU KNOW WHAT THE REAL PROBLEM IS?
BANGLADESH.
CRICKETS.
OR BOTSWANA.
CRICKETS.
OR CHINA.
I KNEW IT, CHINA IS
THE REAL PROBLEM.
AND WE SHOULD LOWER TARIFFS ON THEM.
CRICKETS.
WE SHOULD RAISE TARIFFS.
CHEERING.
THAT'S WHAT I MEANT,
RAISE TARIFFS ON CHINA.
WHAT IS CHINA?
HE DOESN'T KNOW.
WHEN YOU
TAKE THE FACT THAT HE'S IGNORANT, BY THE ADMISSION OF
HIS OWN FRIENDS AND ALLIES, NOT ONLY OF CHINA BUT ALSO ECONOMIC
POLICY, HE JUST INHERITED THE MONEY.
HE RUNS A BUNCH OF GOLF
COURSES AND IS NEAR BANKRUPTCY ON SOME OF THEM.
HE DOESN'T KNOW
ANYTHING ABOUT BUSINESS.
AND TAKE THE FACT THAT HE'S A
PATHOLOGICAL LIAR, ONE OF HIS CLOSEST FRIENDS SAID WE KNOW
DONALD, HE'S A GOOD GUY, WE KNOW HE SAYS ONE THING AND DOES
ANOTHER THING.
HE'S A PATHOLOGICAL LIAR.
SO WILL HE
KEEP HIS WORD TO YOU, THE VOTERS?
THAT'S A GOOD ONE.
HE
DOESN'T KEEP HIS WORD TO HIS BEST FRIENDS AND THEY KNOW IT.
AND FINALLY, HE IS EASILY INFLUENCED.
THIS IS IN EVERY
REPORT ABOUT HIM.
THE LAST GUY IN THE ROOM, HE IS LIKE, OKAY.
BECAUSE HE HAS AN EMPTY HEAD.
IF YOU DON'T HAVE ANYTHING IN YOUR
HEAD THE LAST GUY IN THE ROOM WINS.
AND THE LAST GUY IN THE
ROOM NOW IS STEVE SCHWARTZMAN.
TRUMP TALKED ABOUT HOW STEVE WAS
TELLING ME ABOUT CHINA, HE WAS TELLING ME THESE THINGS I DIDN'T
KNOW.
OF COURSE HE'S TELLING IT TO YOU FROM HIS PERSPECTIVE.
HE'S NOT TELLING IT TO YOU FROM LIKE, THIS IS WHAT'S GOOD FOR
AMERICAN VOTERS.
HE'S SAYING THIS IS WHAT'S GOOD FOR
BLACKSTONE.
THEY ARE THE GUYS YOU RAN YOUR CAMPAIGN AGAINST.
HE'S A COMPLETE FRAUD, OF COURSE HE WILL LISTEN TO STEVE
SCHWARTZMAN.
JUST IN THIS ELECTION CYCLE SCHWARTZMAN GAVE
5 1/2 MILLION DOLLARS IN LEGALIZED BRIBES TO THE
REPUBLICAN PARTY.
OF COURSE HE WILL LISTEN TO SCHWARTZMAN.
>>YOU SEEM SO CONCERNED, I GET THAT, BUT I WANT TO PUT YOU AT
EASE BECAUSE A BLACKSTONE SPOKESPERSON PUT OUT A COMMENT
SAYING --
>>TO BE CLEAR, I WAS IN TOUCH WITH THAT SPOKESWOMAN.
>>DO YOU FEEL BETTER NOW?
>>I DON'T FEEL BETTER.
BUT THEY WOULD NOT OFFER A COMMENT AT ALL
ON A REASONABLE QUESTION, WHICH WAS, IS MR.
SCHWARTZMAN EVADING
FEDERAL ETHICS LAWS THAT ARE DESIGNED TO SAY YOU CAN'T BE A
RECURRENT, REGULAR ADVISOR TO A PRESIDENT AND ALSO KEEP A
FINANCIAL INTEREST IN THE BUSINESS YOU ARE ADVISING HIM
ON?
TO ME THAT IS THE KEY ISSUE HERE.
THIS ISN'T SOMEONE WHO
HAPPENS TO HAVE A MEETING WITH THE PRESIDENT.
THIS IS SOMEONE
WHO IS RUNNING A WHITE HOUSE POLICY COUNCIL, WHO IS BRAGGING
TO THE PRESS, SAYING CABINET SECRETARIES ARE PRESENTING,
THAT'S HIS WORD, PRESENTING THEIR IDEAS TO OUR COUNSEL FOR
FEDERAL POLICIES.
THIS IS A PERSON FITTING FEDERAL POLICY
AND RUNNING THE LARGEST PRIVATE EQUITY FIRM IN THE WORLD.
AND BY
THE WAY OUR ARTICLE ONLY GOES OVER WHAT WE KNOW.
THERE ARE
DAY-TO-DAY REGULATORY DECISIONS BEING MADE THAT WILL AFFECT
STEVE SCHWARTZMAN'S BUSINESS ALL THE TIME.
THE SEC A COUPLE YEARS
AGO FINED HIS COMPANY FOR CHARGING AND NOT DISCLOSING FEES
TO INVESTORS, ESSENTIALLY THE SEC SAID YOU ARE REDUCING THE
VALUE OF YOUR OWN INVESTORS' ASSETS TO ENRICH YOURSELVES.
THAT IS A REGULATORY KIND OF SITUATION THAT HAPPENS ON A
DAY-TO-DAY BASIS.
IF YOU ARE A REGULATOR EVALUATING DIFFERENT
CASES TO LOOK AT AND YOU KNOW THAT WAY UP THE FOOD CHAIN THE
CEO OF THIS ONE FIRM HAS THE EAR OF THE BIGGEST BOSS IN THE
WORLD, IS THAT GOING TO CHANGE YOUR REGULATORY DECISIONS,
ESPECIALLY IF YOU KNOW THAT CEO IS RUNNING THE COMPANY AND HAS
THAT OWNERSHIP STAKE IN THE COMPANY?
>>THIS IS WHY PEOPLE NEED TO PUSH ON THIS.
IT MIGHT BE HARDER
IN THE CASE OF STEVE SCHWARTZMAN BUT WE HAD A SIMILAR SITUATION
WITH IVANA TRUMP A FEW WEEKS AGO WHERE THEY MADE IT FAIRLY CLEAR
THEY HAVE NO INTEREST IN HER BEING AN OFFICIAL MEMBER OF THE
WHITE HOUSE, SO DESPITE THE FACT THAT SHE'S SITTING IN ON
MEETINGS WITH FOREIGN DIGNITARIES AND BEING INVOLVED
IN CONVERSATIONS THAT HAVE ECONOMIC EFFECTS ON HER
INTERESTS, THEY SAY SHE HAS TO COMPLY WITH THE ETHICS RULES.
IT'S POSSIBLE THAT WHAT HAPPENED TO SCHWARTZMAN AS WELL.
WITH
IVANKA WE ARE TALKING ABOUT HER BUSINESSES AND THEY ARE
LARGE SUMS OF MONEY, BUT WITH SCHWARTZMAN WE ARE TALKING
ABOUT SOME CORE ECONOMIC POLICIES OF DONALD TRUMP PERHAPS
BEING MODIFIED SPECIFICALLY BECAUSE OF HIS INTERESTS.
HE HAS TO COMPLY WITH ETHICS RULES.
>>I KEEP GOING BACK TO THE FIDUCIARY RULE, TO ME THAT'S
SUCH AN OBVIOUS SITUATION.
TODAY STEVE SCHWARTZMAN CONVENES HIS
FIRST WHITE HOUSE COUNSEL MEETING IN THE WHITE HOUSE,
TRUMP ISSUES THE EXECUTIVE ORDER TO DELAY THE FIDUCIARY RULE.
THE
FIDUCIARY RULE'S CORE REGULATION IS YOU AS A FINANCIAL ADVISOR
MUST PRIORITIZE YOUR CLIENTS' BEST INTERESTS.
AND BLACKSTONE
HAS SAID THAT IS A THREAT TO ITS BUSINESS.
SO THE CONVERGENCE OF
THAT SITUATION, IN THE WHITE HOUSE, DELAYING A FIDUCIARY RULE
THAT SIMPLY SAYS YOU HAVE TO ACT IN THE BEST INTEREST OF YOUR
CLIENTS, AND CEO OF THE COMPANY ADVISING YOU IS IN THE WHITE
HOUSE ADVISING YOU ON POLICY, THAT IS THE MOST ILLUSTRATIVE
EXAMPLE OF WHY THIS IS MEDIC.
>>THE GOOD NEWS IS THIS WILL BE TRUMP'S DOWNFALL.
I DON'T MEAN
IN ANY ACTUAL LEGAL PROCEEDINGS, I JUST MEAN IN THE POLLS AND
AMONG HIS OWN SUPPORTERS.
WHEN YOU HAVE A COMPANY LIKE STEVE
SCHWARTZMAN'S COMPANY, BLACKSTONE, AND THEY USE AS AN
EXCUSE, HE HAS ADVISED PRESIDENTS WHO ARE DEMOCRATS --
I KNOW, DEMOCRATS ALSO TAKE LEGALIZED BRIBES.
OBAMA ALSO MET
WITH THE CEO OF GE.
I KNOW, WE TALKED ABOUT IT AND SAID HOW
TERRIBLE IT WAS.
THAT IS NOT A NEUTRAL PERSON, THEY HAVE VESTED
INTERESTS.
YOU SHOULD BE AWARE OF THAT.
THIS IS WORSE BECAUSE
TRUMP IS BEING DIRECTLY GUIDED, HE MADE HIM THE CHAIR OF THIS
POLICY STRATEGY FORUM, HE'S ALSO HIS NEIGHBOR DOWN IN WEST PALM
BEACH AND RIGHT AFTER HE MET WITH THE CHINESE PRESIDENT AT
MAR-A-LAGO, STEVE SCHWARTZMAN CAME IN RIGHT AFTERWARDS AND
SAID HERE IS WHAT YOU DO WITH THE CHINESE.
THEY ARE WEDDED
LIKE THIS.
THEY ALSO EXPLAIN THAT TRUMP RESPECTS WEALTHY
PEOPLE LIKE HIMSELF MORE THAN ANYONE ELSE.
THE REASON HE
RESPECTS THEM, TO BE FAIR TO STEVE SCHWARTZMAN, HE ACTUALLY
EARNED IT?
IT'S KIND OF A FUNNY THING TO SAY WHEN YOU SAY
PUBLICLY IT WOULD HURT OUR BUSINESS TREMENDOUSLY IF WE HAD
TO ACTUALLY CARE ABOUT THE BEST INTERESTS OF OUR CLIENTS --
>>HE EARNED IT TO THE EXTENT THAT ANY INVESTMENT BANKER
EARNS ANY OF THEIR MONEY.
>>NOT LIKE TRUMP, WHERE HE GOT HANDED HUNDREDS OF MILLIONS OF
DOLLARS AND HAS BEEN BUNGLING IT HIS WHOLE LIFE.
THAT'S WHY HE
RESPECTS THEM, THEY ACTUALLY MADE MONEY, UNLIKE ME.
BUT IF
ALL YOU DO IS LISTEN TO THESE GUYS, AND DIRECT YOUR POLICY
THAT WAY, GUESS WHO WILL BE SUPER PISSED?
THAT IN THE
BEGINNING, BECAUSE THEY ARE LIKE, DEAR LEADER TRUMP -- BUT
EVENTUALLY EVEN YOUR OWN VOTERS WILL BE LIKE, YOU REBUILT THE
SWAMP.
TURNS OUT HE WAS A REGULAR POLITICIAN LIKE THE REST
OF THEM.
HE BROUGHT IN THE GOLDMAN SACHS GUYS, HE BROUGHT
IN THIS GUY, AT THE END OF THE DAY THEY ARE STILL ROBBING US
AND FLEECING US.
HEAR ME NOW, QUOTE ME LATER, HE'S GOING INTO THE 20S
IN APPROVAL RATING BECAUSE OF STUFF LIKE THIS.

Trump Works For Blackstone Now

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