Jan 4, 2017

Trump's SEC pick has deep ties to the financial crisis

Shannon Vavra

Jay Clayton is Trump's SEC pick, where he'll serve on the Financial Stability Oversight Council that monitors risk in the financial system.

Flashback: As a partner at Sullivan & Cromwell, Clayton broker deals for large banks and their risky mortgage activity in 2008, including:

  • Barclays Capital's acquisition of Lehman Brothers' assets
  • Bear Stearns' sale of Morgan Chase
  • the U.S. Treasury Department's capital investment in Goldman Sachs

Why it matters: Trump has said he will crack down on Wall Street, adding "I'm not going to let Wall Street get away with murder. Wall Street has caused tremendous problems for us."

But he also profited off the foreclosure crisis, bragging in a Trump University promo: "I've always made a FORTUNE in FORECLOSURES, and YOU WILL TOO."

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Courtenay Brown

Stocks fall 4% as sell-off worsens

A trader on the floor of the New York Stock Exchange. Photo: Johannes Eisele/AFP via Getty Images

Stocks fell more than 4% on Thursday, extending the market’s worst week since the financial crisis in 2008 following a spike in coronavirus cases around the world.

The big picture: All three indices closed in correction territory on Thursday, down over 10% from their recent record-highs amid a global market rout.

Keep ReadingArrowUpdated 26 mins ago - Economy & Business
Axios

Coronavirus updates: California monitors 8,400 potential cases

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

33 people in California have tested positive for the coronavirus, and health officials are monitoring 8,400 people who have recently returned from "points of concern," Gov. Gavin Newsom said Thursday.

The big picture: COVID-19 has killed more than 2,800 people and infected over 82,000 others in some 50 countries and territories. The novel coronavirus is now affecting every continent but Antarctica, and the WHO said Wednesday the number of new cases reported outside China has exceeded those inside the country for the first time.

Go deeperArrowUpdated 1 hour ago - Health
Orion Rummler

Watchdog opens probe into VA secretary over handling of sexual assault claim

VA Secretary Robert Wilkie on Fox Business Network’s "The Evening Edit" on Jan. 7. Photo: Steven Ferdman/Getty Images

The Department of Veterans Affairs Inspector General Michael Missal said Thursday he had opened an investigation into VA Secretary Robert Wilkie after lawmakers demanded an inquiry into his handling of a sexual misconduct report, the Washington Post reports.

Context: Wilkie allegedly "worked to discredit" the credibility of Democratic aide and veteran Andrea Goldstein after she reported last fall "that a man groped and propositioned her in the main lobby of the agency's D.C. Medical Center," a senior VA official told the Post.

Go deeperArrow1 hour ago - Politics & Policy