Donald Trump’s vague campaign promises to take on the power structure – and some nervousness, from the power structure, about his erratic behavior and racist appeals – have given way to a remarkably close alliance between Trump and financial elites following his election.
The stock market has rallied to all-time highs. Trump has tapped billionaires and mega-millionaires for cabinet seats and key appointments. Hedge fund managers and corporate CEOs are cheering Trump on from the sidelines, eager to reap the spoils from his favored economic policies – deregulation, privatization, and tax cuts. In essence, a new club of financial elites is forming, with Trump at the center, and varying levels of access and benefits conferred upon members.
It will be important for journalists, organizers, and researchers to investigate and map these networks in the months and years ahead. Who belongs to this emergent club? What are their networks – political, business, investment, philanthropic, social? How are they benefiting – or poised to benefit – from Trump administration policies? This kind of research can lay the groundwork for challenges to the power structure that surrounds and enables Trump.
Trump’s Billionaire Club, Part 2: Stephen Schwarzman
By Gin Armstrong, Aaron Cantú, and Molly Gott
Stephen Schwarzman is the private equity billionaire in charge of Donald Trump’s Strategic and Policy Forum, a group of CEOs who will advise the president-elect on economic policy.
Schwarzman has known Trump for years, but did not publicly support him during the campaign. Now, however, the president-elect is leaning on him heavily for help in lining up the support of Wall Street and corporate America. The panel is very much Schwarzman’s: he is the chair of the panel and also picked all of its members. That selection process culminated with Trump exclaiming “What terrific people!” as detailed in this interview.
In this role, Schwarzman will have a direct line to the President and could have a heavy hand in influencing the administration’s policies. He is already very excited about the policy inclinations of the new administration; at a recent Goldman Sachs conference, he predicted a coming wave of deregulation and tax cuts that would change the “architecture of the world.”
These policies could also make Schwarzman even more wealthy. He is the CEO of the private equity firm Blackstone Group, a massive investment vehicle which generates profits in large part through the strategic avoidance of taxes and regulatory oversight (more about his investment empire is below). If Trump and Schwarzman have their way, this will get even easier, and even more profitable. Not that he needs the money – he made $811 million in compensation last year, and is worth $11.1 billion.
Schwarzman shares some key personality traits with the President-elect: unabashed lavishness, offensive analogies, and a taste for real estate. One Slate feature on Schwarzman – “The Golden Ass” – described him as a “titan of self indulgence” and detailed his love of $400 stone crabs and his strict no-squeaky-rubber-soled-shoes policy for his house staff. When he threw an infamously luxurious party for his 60th birthday party, Donald and Melania Trump were among the guests. The $3 million dollar affair treated guests to performances by Rod Stewart and Patti LaBelle and a large portrait of Schwarzman, which usually hangs in his living room, was on display.
Epitomizing the wisdom that money cannot buy class, Schwarzman equated the timing of a 2008 business deal to being a “noodle salesman in Nagasaki when the atomic bomb went off.” In 2010 he compared President Obama to Hitler over a potential tax increase on private equity firms like Blackstone. He eventually apologized for that one, calling it an “inappropriate analogy.”
As for real estate, Schwarzman told The New Yorker; “I love houses. I’m not sure why.” The billionaire has acquired over $100 million in personal property around the world including estates in East Hampton and Saint-Tropez, a beachfront villa in Jamaica, and a sprawling Park Avenue apartment that was once owned by John D. Rockefeller Jr., where his neighbors include Steven Mnuchin, Trump’s Treasury Secretary. He also has a 11,000 square foot mansion in Palm Beach, a favorite location among his finance industry colleagues, where he was busted for using 7.4 millions gallons of water during a record dry season in the region.