After US President Trump signed an order to begin the process of dismantling Dodd-Frank act, Senator Elizabeth Warren on Friday asked investment banking company Goldman Sachs to explain how much “influence” it has over Trump’s economic policies.
The market value of investment banking company Goldman Sachs soared by $4 billion as Trump signed the order las week on Friday and former Goldman president Gary Cohn walked away from Goldman Sachs with $285 million to become Trump’s top economic adviser.
Goldman’s (GS) stock price has skyrocketed 33 per cent since the election, CNN Money reported.
Warren fellow Democratic Senator Tammy Baldwin in a letter to Goldman Sachs CEO Lloyd Blankfein on Friday said dismantling Dodd-Frank would be a financial boon for large banks, including Goldman Sachs.
The senators called on Blankfein to reveal whether Goldman Sachs was involved in drafting the two executive orders that Trump signed.
One order kicked off the process of rolling back the 2010 post-crisis financial reform law and the other set the stage for eliminating the Fiduciary Rule, a law that required investment advisers to act in the best interests of their clients.
Noting that Cohn was at Trump’s side, Warren and Baldwin said the orders “raise our concerns about the degree to which Cohn’s advice to President Trump is good for Wall Street, but bad for Americans.”
Goldman Sachs denied any hand saying, “We’ve had no involvement in the drafting of any executive orders.”