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Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt

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Finance

Donald Trump Meets with Goldman Sachs’ Second Highest Executive

Lucinda Shen
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Lucinda Shen
Lucinda Shen
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Lucinda Shen
By
Lucinda Shen
Lucinda Shen
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November 29, 2016, 3:32 PM ET
Fortune Most Powerful Women Summit 2015
October 12th, 2015. Washington, D.C., USA Fortune Most Powerful Women 2015 Summit 5:00 pm The Global Growth Solution: Investing in the Power of Women Entrepreneurs Gary Cohn and 10,000 Women program graduates discuss how women entrepreneurs from around the world are growing their businesses and transforming their societies. Hosted by Goldman Sachs 10,000 Women. Photograph by Stuart Isett/Fortune Most Powerful WomenPhotograph by Stuart Isett — Fortune Most Powerful Women

Donald Trump may be thinking of adding a key member of the great vampire squid to his presidential cabinet.

Goldman Sachs (GS) president and chief operating officer Gary Cohn, who is only second to CEO Lloyd Blankfein, is set to meet with the president-elect in New York on Tuesday. Cohn is the latest business leader to make a trip to Trump Tower following the elections to either offer advice or discuss a potential seat in Trump’s cabinet, Sean Spicer said on a conference call with reporters Tuesday. It is unclear if 56-year-old Cohn is in the running for a cabinet position or if he is there to advise.

The high-profile Wall Street executive has been with Goldman Sachs for roughly 26 years, and has also been rumored to be Blankfein’s successor should he step down. Cohn started at Goldman in the 1990s, working in the commodities trading unit. He gained oversight in Goldman’s mortgage unit in 2000, and pushed the desk to increase risk-taking in the years leading up to the financial crisis, according to Bloomberg.

Although the president-elect heavily criticized Wall Street on the campaign trail, he has considered picking a handful of financial industry leaders to be in his cabinet. Trump’s campaign finance chairman and the top contender for treasury secretary, Steven Mnuchin, is a Goldman Sachs alumus, as is chief strategist Steve Bannon. Trump first considered J.P. Morgan Chase’s (JPM) Jamie Dimon for treasury secretary before Dimon turned him down.

 

Investors are expecting Trump’s presidency to be friendly to Wall Street. The Keefe Bruyette and Woods Nasdaq Bank Index has risen 14.3% since election day earlier this month, as investors piled into the financial industry. Trump has voiced plans to deregulate Wall Street, such as pulling back on the Dodd-Frank act, while his promise to build more infrastructures is expected to result in further interest rate hikes. Both moves should help the banks boost their revenue and bottom line.

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