GS Goldman Sachs Group Inc

By Nick Timiraos, Peter Nicholas and Liz Hoffman 

Republican President-elect Donald Trump railed against a global power structure and promised to "drain the swamp" of corporate favor-seekers during his insurgent election bid. He repeatedly singled out Goldman Sachs Group Inc. as an icon of that corrupt, multinational elite.

Now, Mr. Trump is poised to fill the top posts on his economic team with Goldman bankers who have also supported Democratic candidates in the past.

In the latest example, Goldman President Gary Cohn, the bank's No. 2 official, has emerged as the preferred candidate to serve as the director of the White House National Economic Council, transition advisers said Friday.

Mr. Trump last week said he would nominate as Treasury secretary former Goldman executive Steven Mnuchin, who became a partner at the bank in 1994, the same year as Mr. Cohn. And Steve Bannon, picked to be a top White House adviser soon after the election, also worked at Goldman Sachs.

Turning to three current or former Goldman Sachs executives could open Mr. Trump to criticism from some of his supporters after his campaign prominently attacked big banks. In the GOP primary, he said Goldman "owned" his rival Sen. Ted Cruz, whose wife had worked at the bank. "He will do anything they demand. Not much of a reformer!" Mr. Trump said in a January tweet.

Liberals said Mr. Cohn's selection showed Mr. Trump's populist campaign would ring hollow with his supporters. "It's called a rigged economy, and this is how it works," said Sen. Bernie Sanders (I., Vt.) in a tweet linking to a report of Mr. Cohn's potential selection.

Days before the November general election, Mr. Trump's campaign produced a two-minute video alleging a global conspiracy to take wealth from American workers and consolidate it among certain businesses and politicians. The ad, narrated by Mr. Trump, slammed a "global power structure...that puts money into the pockets of a handful of large corporations," set against video images of Goldman Chief Executive Lloyd Blankfein delivering a speech.

Liberals said Mr. Cohn's selection showed Mr. Trump's populist campaign would ring hollow with his supporters. "It's called a rigged economy, and this is how it works," said Sen. Bernie Sanders (I., Vt.) in a tweet linking to a report of Mr. Cohn's potential selection.

Mr. Trump's selection of Goldman alums have also irked some supporters. "Mr. Trump, this is bullshit. Can you hire someone who doesn't work for Goldman Sachs? What about that swamp?" said former Rep. Joe Walsh (R., Ill.) on Twitter last week after Mr. Mnuchin's nomination. "Oh look: another pick from Goldman Sachs," he said on Twitter on Friday.

The NEC position, which doesn't require Senate confirmation, has served in the past as a steppingstone to other top government posts, including at the Treasury or Federal Reserve. Mr. Cohn's selection would further solidify a marked tilt towards wealthy bankers and businesspeople -- as well as former top military brass -- at the top ranks of Mr. Trump's cabinet and White House staff.

The appointment of Mr. Cohn, who declined to comment through a spokesman, would cap a remarkable rise for someone who was so severely dyslexic as a child that a teacher once told his parents he might aspire to drive a truck. Raised in a blue-collar household in Ohio, Mr. Cohn's first job out of college was selling window panels and aluminum siding.

He later became an options dealer at the New York Mercantile Exchange and joined Goldman in 1990. His lack of polish on Goldman's trading floor raised early questions about his fitness to run the bank. But colleagues and clients say he has softened his rougher edges in the past year, which also saw him thrust into the spotlight as Mr. Blankfein battled lymphoma.

Mr. Cohn, a registered Democrat, isn't vocally political and has given money to candidates of both parties. Colleagues described him as a nonideological pragmatist, and analysts said the selection indicated diminishing political risks for the biggest banks in a Trump administration.

Mr. Cohn has traveled extensively abroad for Goldman, and his appointment would provide Mr. Trump's inner circle with an insider well connected to foreign economic ministers, technology executives and banking regulators.

"It does concern me that they would have a lot of swing from one company in major positions in our government," said Sen. Jon Tester (D., Mont.) in an interview. "That is not a good sign. It won't result in good government."

Mr. Trump dismissed criticism at a rally in Iowa on Thursday night that he was stocking his cabinet with wealthy businesspeople. "One newspaper criticized me, 'Why can't they have people of modest means?' Because I want people who made a fortune because now they're negotiating with you, OK?" he said.

Ryan Tracy contributed to this article.

(END) Dow Jones Newswires

December 09, 2016 18:07 ET (23:07 GMT)

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