The Trump White House stands to embody economic elitism, a primary concern of financially beleaguered voters. President elect Trump is a billionaire. His son-in-law Jared Kushner helped Trump get elected.
Kushner has hired a Washington law firm, WilmerHale, to advise him on how to comply with federal ethics laws should he join the White House staff as an adviser to the president.
Jamie S. Gorelick, a WilmerHale partner who served in the Clinton administration, said that while plans were not final, Kushner was taking significant steps to extricate himself from the family business.Jamie Gorelick is the greed queen of disaster,having served as Chief Operating Officer of Fannie Mae during a time of fraudulent accounting and represented BP for its 2010 Deepwater Horizon Gulf Oil Spew. Kushner hired a prominent Blue Team attorney in Gorelick.
He will resign as chief executive of Kushner Cos., and though the law does not require it, she said he would divest “substantial assets.” She did not name them, but Heller said they would include his stake in 666 Fifth Ave.The Carlyle Group invested $525 million in 666 Fifth Avenue in June 2008 as financial markets deteriorated.
The overheated lending market seized up and Kushner Cos. struggled to repay its considerable loans — and to hold on to 666 Fifth Ave. To the rescue came the Carlyle Group, a giant private equity firm.Carlyle flipped their holdings for over $1 billion four years later. Little did Carlyle know the man they helped would get Donald Trump elected and stands to serve as one of his main advisers.
Kushner’s representatives declined to detail his personal financial interest in Kushner Cos.’ properties, and they said he intended to keep his interest in other properties beyond 666 Fifth Ave. He also has a stake, through a family investment vehicle, in a private equity firm run by his brother, Joshua.Thrive Capital is that private equity underwriter (PEU). A 2011 SEC document lists Jared Kushner as a General Partner in Thrive.
Private equity exploded under Red and Blue White Houses. President Bill Clinton set the stage for private equity to thrive with it's repeal of Glass-Steagall. Clinton privatized the government security check function. It became USIS and endured a number of PEU purchases and flips. Presidents Bush and Obama hosted legendary PEU founders at the White House.
As for Kushner's employ:
WilmerHale has concluded that one potential sticking point, a federal anti-nepotism law, is not applicable, though not all ethics experts agree. While the law prohibits federal officials from hiring relatives for agencies they lead, Kushner’s lawyers argue the White House is not an agency and is therefore exempt. As for conflicts of interest, Kushner would be required to make limited financial disclosures.If Jamie Gorelick's stance holds President Trump's White House may well employ a PEU owner. That's degrees beyond an Obama White House official getting a private equity payout, not formerly disclosed.
Washington is the swamp of insider connections and huge financial paybacks. How ironic that voters who wanted this eliminated could find it ramped up.
Update 1-31-17: Kushner transferred his stake in 666 Fifth Avenue to a family trust. As for the Greed Queen Jamie Gorelick, Kushner's attorney, she said Kushner's vast holdings would be sold to his brother Josh or a trust held by his mother.
Update 3-13-17: Chinese conglomerate Anbang Insurance struck a deal for 666 Fifth Avenue where the Kushners get $400 million in a $4 billion transaction.