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Stories of Interest
- White House Now Doesn’t Dispute Details of Trump's Call with Army Widow
- Goldman Sachs’ Lloyd Blankfein Just Threw Some Serious Brexit Shade
- Guggenheim Partners ‘Bank Wrecker’ Could Get $100Mn Exit Package
- Proposed Arbitration Rule Change: For Customers Dealing with an Inactive Firm or Associated Person
- This Family Bet It All on Bitcoin
- Clearinghouses Pass CFTC Liquidity Stress Tests
- President Trump Admits He’s Trying to Kill Obamacare. That’s Illegal.
- Trump Plunges Down List of ‘America’s Richest’
- Is Trump’s “Foreclosure King” in Over His Head?
- FBI Arrests NCAA Basketball Coaches and Adidas Rep in Bribery Probe Involving Recruitment
- Equifax CEO Steps Down Amid Hacking Scandal
- Litigation Costs to Rub Salt in RBS Investor Wounds
- RIAs Poised to Land Wirehouse Recruits - Dan Jamieson
- Citibank and U.K. Affiliate to Pay $550K Penalty for Swap Data Reporting Violations - CFTC
- AIG to Restructure into 3 New Units, Marking CEO's First Big Move
- Accounting Firm Deloitte Says It Suffered Cyberattack (subsc reqd)
- Upcoming FINRA Board Meeting and FINRA360 Update
- Elizabeth Warren Lifts Hold on Trump DOJ Antitrust Nominee
- Bigger Mergers Narrow Indy Reps' Options, Alter IBD Channel - Dan Jamieson
- Dentons to Merge with U.K.'s Murray & Spens
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NEWSLETTERS & ALERTS
Donald Trump & Co.
Getting Wall Street to Pay for ‘The Wall’
With debate heating up over tax reform, NAFTA and the federal budget, now may not be a good time to bring up the issue of building the Mexico border wall. But here we go anyway.
No one seems to want the wall except, perhaps, the president. After all, one of Trump’s signature campaign promises was that he was going to build the biggest, most beautiful wall along our southern border to keep out Mexico’s “bad hombres.” So he’s now chomping at the bit for some opening to get ball rolling. If only there was a way to fund the estimated $21 billion cost.
Well, dear friends, there may is. And it’s quite surprising that this obvious solution has not been suggested, until now that is. Have Walls Street firms pay for the $21 billion wall. Here’s why the idea makes sense.
First, Wall Street banks are currently rolling in money – thanks largely to the Trump Bump. As of last night, Thursday, 4/27, the 9 largest Wall Street banks - JPMorgan Chase, Wells Fargo, Bank of America, Citigroup, Goldman Sachs, U.S. Bancorp, Morgan Stanley, Blackrock, and PNC Financial Services - had an aggregate value in excess of $1.36 trillion. That’s a 20% increase in value since Trump’s election.
Next, ‘sticking it to Wall Street’ would help Trump ‘kill two birds with one stone’. First. He’d satisfy the public’s thirst for Wall Street blood. Second, it would enable Trump to fulfill another of his campaign promises – to be tough on Wall Street. To date, Trump has been playing up to Wall Street by engaging in a full-throttled assault on Dodd-Frank and by staffing his administration with current or former Wall Street bankers and lawyers.
Now, don’t expect Wall Street firms to willingly ante up the proceeds. No, the government will have to take it from them in fines. And the government has had good practice doing just that. Since 2008, global banks have paid $321 billion in fines. [See Financialish, 3/2/17] An additional $21 billion would amount to just 6.5% of the $321 billion.
RAISING THE FUNDS. In keeping with Trump’s M.O., we’ll leave the details (who and how much to fine) up to Congress and the federal regulators. Though, a good starting point might be … Wells Fargo. Should there be need to resort to a Plan B, the Trump administration may wish to consider taxing Carried Interest as ordinary income. The head honchos of the Private Equity and Hedge Fund firms can surely manage with a few less ‘pesos’.