A Closer Look at Why Mnuchin Called the Big Wall Street Banks to Check on Liquidity

By Pam Martens: January 7, 2019 ~ On Sunday, December 23, 2018, the sitting U.S. Treasury Secretary, Steve Mnuchin, lit up the airwaves with the announcement on his Twitter page that he had “convened individual calls with the CEOs of the nation’s six largest banks.” The Tweet went downhill from there. The Tweet attached a press release from the U.S. Treasury’s Office of Public Affairs which named the six banks and their CEOs involved in the calls. They were Brian Moynihan, Bank of America; Michael Corbat, Citigroup; David Solomon, Goldman Sachs; Jamie Dimon, JPMorgan Chase; James Gorman, Morgan Stanley; and Tim Sloan at Wells Fargo. Mnuchin said he asked the bank CEOs about their liquidity to fund regular operations and they told him they had “ample liquidity.” Let’s pause right there for a moment. These are the same Wall Street banks that brought the U.S. financial system to its knees … Continue reading