Mnuchin Mounts Strong Defense of Banking Career

“Under Mnuchin, OneWest churned out foreclosures like Chinese factories churned out Trump suits and ties”, senator Ron Wyden told the hearing.

He went on to attack Mr Trump’s reform platform as a vehicle to offer tax breaks for the wealthy.

But stiff questioning followed from Democrats for his role as CEO of a company that took over IndyMac Bank, now known as OneWest, which failed because of its bad home loans and later pushed through many controversial foreclosures, ultimately yielding massive profits for Mnuchin.

Mark Zandi, chief economist at Moody’s Analytics, said what to look out for in Mnuchin’s testimony is any sense of prioritization and what he, and by proxy the broader Trump administration, will tackle and when.

‘There were mistakes. We regret those mistakes, ‘ Mnuchin said, when asked about foreclosures on customers while heading OneWest bank.

Perry said he regrets once calling for the Energy Department to be abolished.

Under Mnuchin’s leadership, OneWest foreclosed on more than 36,000 California families and 24,000 additional households around the country, according to a study of banking data by the Urban Strategies Council, an Oakland-based anti-poverty organization, and the California Reinvestment Coalition, an advocate for low-income areas and communities of color.

He had a contentious exchange with Sen. Sherrod Brown (D-Ohio), demonstrating the deep partisan divide over one of Trump’s top Cabinet picks. “I ran a ‘Loan Modification Machine, ‘” Mnuchin said.

Mnuchin defended his record, saying his group had nothing to do with issuing the risky loans that precipitated the financial crisis and instead modified loans to help many homeowners stay in their homes.

If Mr. Mnuchin is to be confirmed for that position, we must ensure that his ability to do the job of overseeing American finance and trade in a manner befitting that office is in no way compromised.

“Did you use the Cayman Island corporation to avoid paying taxes?” asked Sen.

He said his failure to report a large pool of assets, mainly real estate, was an “oversight” after his legal team thought they did not need to be reported.

“It’s quite legal to be involved in hedge funds in Cayman”, Mr. Ridley said, “and to have them set up by investors”.

When Sen. Claire McCaskill (D-Mo.) pointed out the importance of having an independent auditor for Trump’s business, Mnuchin said he was optimistic that Trump would release more information on the arrangement, even though the president-elect has declined to release even his tax returns.

Warren had wanted some of those OneWest victims to be allowed to testify before senators at an official hearing-a request that was rebuffed by Republicans.

“We should all be focused on things that grow the economy”, he said.

The US Treasury secretary is the leading government voice on domestic and global economic policy and one of the key figures shaping US financial strategy. He also benefits from all the loopholes Mr. Mnuchin pledged to work with members of Congress to close during the hearing Thursday.

In an interview with the Wall Street Journal published on Monday, Trump complained that the dollar was “too strong”, suggesting that he favored a weaker dollar.