Jacquelyn Martin / AP

Fannie Mae's General Counsel Brian Brooks will be appointed Deputy Secretary of the Treasury Department, according to three sources with direct knowledge. He previously worked with Treasury Sec. Steve Mnuchin at OneWest, which became the largest bank in Southern California after the 2008 economic collapse.

Why this matters: Deputy Secretary is a pivotal role in the Treasury Department, and Wall Street has been keeping a close eye on the vacancy. Brooks will be expected to play a driving role in tax reform and the other major agenda items. Two sources say that Mnuchin wanted a loyalist in this key position.

The Trump effect: Mnuchin, like President Trump, puts a high premium on loyalty when it comes to appointing senior aides. Mnuchin's closest confidants, Eli Miller and Justin Muzinich, are folks whom Mnuchin trusts as virtually leak-proof. The original selection for this position was Goldman Sachs executive Jim Donovan, but he later withdrew his name from consideration because of family issues.

Behind the scenes: When Donovan dropped out, an intriguing name on the early consideration list was Rep. Pat Tiberi (R-OH), according to a source with direct knowledge. Treasury officials liked the idea of someone with Capitol Hill relationships going into tax reform. It's unclear whether Tiberi, an influential member of the tax-writing Ways and Means Committee, even knew he was under consideration.

What's next: The OneWest foreclosure controversy will almost certainly be brought up at Brooks' confirmation hearing. Leaked documents from the California AG's office alleged that OneWest was responsible for "using potentially illegal tactics to foreclose on as many as 80,000 California homes." Mnuchin denied the allegations during his confirmation haring, saying he was "committed to loan modifications intended to stop foreclosures. I ran a 'loan modification machine.'"

Brooks joined OneWest in May 2011 where he served as the bank's vice chairman. He joined Fannie Mae in November 2014, serving as EVP, general counsel, and corporate secretary. From 1994 to 2011, Brooks was a managing partner at law firm O'Melveny & Myers, where he helped financial services companies with litigation cases. He received his J.D. from the University of Chicago in 1994. There also were earlier reports that he was being considered to lead the Consumer Financial Protection Bureau.

Go deeper

Trump's new TikTok threat

Photo illustration: Aïda Amer/Axios. Photo: Jim Watson/AFP via Getty Images

President Trump said twice Monday that the U.S. Treasury would need to get a portion of the sale price of TikTok, as a condition of regulatory approval.

Why it matters: This is akin to extortion — the sort of thing you'd expect to hear on a wiretap, not from the White House in front of reporters.

Ford names James Farley as new CEO amid ongoing turnaround effort

James Hackett, left, is retiring as Ford CEO. Jim Farley, right, takes over Oct. 1. Photo: Ford

Ford announced Tuesday that James Farley will take over as its next CEO, replacing James Hackett, 65, who is retiring after three years in the job.

Why it matters: It leaves Farley to complete the company's ongoing turnaround effort. The transition will be that much harder as the industry tries to navigate the coronavirus-induced economic slowdown which shuttered Ford plants for two months on the eve of some of its most important vehicle launches.

Updated 3 hours ago - Politics & Policy

Watch the full "Axios on HBO" interview with President Trump

In this episode of “Axios on HBO”, President Trump discusses his handling of the coronavirus pandemic, the upcoming election and much more with National Political Correspondent Jonathan Swan.

The interview was filmed on Tuesday, July 28 and aired Monday, Aug. 3 on HBO.