How Steven Mnuchin would deal with a financial crisis

David Brancaccio Nov 30, 2016
HTML EMBED:
COPY
Steven Mnuchin leaving the Trump Tower in New York on Nov. 14. KENA BETANCUR/AFP/Getty Images

How Steven Mnuchin would deal with a financial crisis

David Brancaccio Nov 30, 2016
Steven Mnuchin leaving the Trump Tower in New York on Nov. 14. KENA BETANCUR/AFP/Getty Images
HTML EMBED:
COPY

Investment banker and Hollywood producer Steven Mnuchin confirmed this morning that he is the Trump transition team’s pick for U.S. Secretary of the Treasury. Mnuchin would join Henry Fowler, Bob Rubin, Larry Summers, and Hank Paulson as former Goldman Sachs people who assumed the role.  

Phillip Swagel, professor at the University of Maryland School of Public Policy, joined us to talk about how Mnuchin would handle economic issues. Swagel was an assistant secretary for economic policy at the Treasury Department during the George W. Bush administration. 

On how Mnuchin might deal with the next financial crisis: 

At some point there’ll be another one. When we look at his role in the last one…it was in helping clean things up, right. He took a bank — IndyMac — that was just a disaster, they’re a poster child for all the things that went wrong. And he made it incredibly profitable. He worked with the FDIC [Federal Deposit Insurance Corporation]; he worked with them very closely to help people avoid foreclosure. Now many people still got foreclosed on, but he did things the way the FDIC wanted. 

Click the above audio player to hear the full interview. 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.