{"id":198,"date":"2026-05-25T11:05:46","date_gmt":"2026-05-25T11:05:46","guid":{"rendered":"https:\/\/cityrelocationnews.com\/?p=198"},"modified":"2026-05-25T11:05:46","modified_gmt":"2026-05-25T11:05:46","slug":"can-anything-stop-trumps-corruption","status":"publish","type":"post","link":"https:\/\/cityrelocationnews.com\/?p=198","title":{"rendered":"Can Anything Stop Trump\u2019s Corruption?"},"content":{"rendered":"
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You\u2019re reading The Financial Page<\/strong>, John Cassidy\u2019s weekly column on economics and politics.<\/em><\/span><\/div>\n<\/div>\n

In May, 2006, President George W. Bush nominated Hank Paulson, the C.E.O. of Goldman Sachs, as Treasury Secretary. By then, Paulson had accumulated about five hundred million dollars in Goldman stock. For Richard Painter, a law professor at the University of Minnesota who was the chief ethics lawyer in the White House, this presented a problem: there is a federal conflict-of-interest statute that prohibits employees of the executive branch from participating in any action, or policy decision, that directly affects their financial interests. As Treasury Secretary, Paulson could conceivably do things that would benefit Goldman and, therefore, himself. Painter told Paulson that he would have to divest. The day after the Senate voted to confirm Paulson\u2019s appointment, he filed to sell his Goldman stock.<\/p>\n

Read more The Stunt Pilot Hunting Russian Drones<\/a><\/p>\n

The law at issue\u2014Title 18 U.S.C. Section 208\u2014is still on the books. It doesn\u2019t apply to the President, but prior to 2016 Presidents acted as if it did, and placed their wealth in conflict-free investment vehicles, such as a blind trust, while they were in office. Donald Trump has flouted this convention, parking his fortune in a revocable trust that is managed by his sons, who are themselves busy dabbling in ventures and industries that intersect with the government, including cryptocurrency, nuclear fusion, drones, and lucrative real-estate deals in foreign countries. We have now learned that during the first three months of this year, financial firms acting for the President made more than thirty-six hundred stock trades, with a combined value, per Reuters, of between two hundred and twenty million and seven hundred and fifty million dollars.<\/p>\n

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According to Trump\u2019s financial-disclosure forms, a handful of these trades were in Goldman stock. Worth less than $1.5 million, they represented a drop in a capacious bucket that contained much larger plays in companies that have been directly affected by the Trump Administration, including Nvidia, Boeing, and Oracle. But the irony wasn\u2019t lost on Painter. \u201cIt turns out, you can<\/em> have a President who owns stock in Goldman Sachs and other banks and many other companies with interests before the government,\u201d he deadpanned, when I spoke to him last week.<\/p>\n

In a statement released to the media, the Trump Organization said that the trades were executed by \u201cthird-party financial institutions,\u201d and that Trump and his family members \u201creceive no advance notice of trading activity and provide no input regarding investment decisions or portfolio management of any kind.\u201d Even if that\u2019s true\u2014and questions have been raised about whether it is\u2014the fact remains that the President, through outside financial managers, is buying and selling individual stocks on a daily basis, rather like a hedge fund. And, arguably, this isn\u2019t even the most egregious example of how Trump is flouting ethics concerns to enrich himself and those around him.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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That honor surely goes to the Justice Department\u2019s settlement of a ten-billion-dollar lawsuit that Trump brought against the I.R.S., demanding recompense after his tax returns were leaked by an outside contractor. The most publicized element of the settlement was the establishment of a $1.8-billion \u201cAnti-Weaponization Fund\u201d that appears poised to reward allies of the President who claim to have been victimized by the federal government. Likely of more direct financial consequence to Trump was another part of the agreement, in which the I.R.S., which is part of the Treasury Department, agreed to grant him, his family, and his businesses immunity from any tax claims or charges arising from ongoing tax audits of the family and its business. This grant appears to be sui generis. Danny Werfel, who served as commissioner of the I.R.S. from March, 2023, to January, 2025, said that he was aware of no precedent for the agency agreeing \u201cin advance to permanently forgo examination of previously filed tax returns for a specific person or business.\u201d<\/p>\n

I asked Painter if he could think of historical parallels to these latest developments. He couldn\u2019t. \u201cNixon had his issues, but I don\u2019t think there is anything like this,\u201d he said. \u201cThe President is specifically precluded from getting any financial favors from the Treasury while in office.\u201d Painter was referring to the domestic-emoluments clause of the Constitution, which bars the President from receiving any compensation from the government beyond his salary. Critics have focussed on the prospect of Trump, or members of his family, receiving money from the anti-weaponization fund\u2014something that Vice-President J. D. Vance, for his part, has said won\u2019t happen. But the immunity grant from the I.R.S. demands close inspection, too. Notoriously, Trump paid barely any taxes for many years, and he appears to have been under audit for much of that time. If he does owe back taxes, the I.R.S is agreeing to save him a great deal of money\u2014something that, to Painter\u2019s eye, amounts to a blatant contravention of the emoluments clause. \u201cThe Founders anticipated this type of challenge,\u201d he told me.<\/p>\n

Last week, Trump said he \u201cwasn\u2019t involved\u201d in the legal settlement with the I.R.S., which, in any case, is only the most recent chapter of a long-running story. He is still promoting crypto while a firm he co-founded, World Liberty Financial, does billions of dollars\u2019 worth of business in the industry. He\u2019s preparing to host the annual G-20 summit at his golf resort in Doral, just outside Miami. And his Administration is busy rewarding businesses and individual donors with access and favorable actions. Setting aside the issue of why more Americans aren\u2019t out protesting all this self-dealing, the burning question is what can be done to contain it and make sure that future Presidents can\u2019t repeat it. Ethics experts have a long list of suggestions.<\/p>\n

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\u201cFirst and foremost, Congress needs to do its job as the first branch of government and a check on the President,\u201d Donald Sherman, the head of the watchdog group Citizens for Responsibility and Ethics in Washington, told me. \u201cIt could say, \u2018We are not going to confirm any of your appointees until you end this self-dealing with the government. You are not going to get a dime for your ballroom and your other priorities.\u2019\u00a0\u201d<\/p>\n

True and admirable as these sentiments are, they run into the reality that Republicans control Congress. For at least some of them, the thought of January 6th rioters who stormed the Capitol receiving taxpayers money seems to be a grift too far. Senator Bill Cassidy described the $1.8-billion anti-weaponization fund as lacking \u201clegal precedent or accountability.\u201d Senator Mitch McConnell called it \u201cmorally wrong.\u201d Senator Thom Tillis called it \u201cstupid on stilts.\u201d But it\u2019s worth noting that none of those three senators will be back next year, and it remains to be seen if Republicans take any definitive action to block the fund.<\/p>\n

Even if they did, that wouldn\u2019t resolve the broader issue of restraining Presidential power and preventing corruption. \u201cI think after Trump goes, we need a serious reset,\u201d Painter said. He brought up the post-Watergate era, when, in response to revelations about how Richard Nixon had misused campaign funds and directed the I.R.S. to investigate his enemies, Congress passed the Ethics in Government Act of 1978. Among other things, this bipartisan legislation mandated financial disclosures by government officials, including the President; established the Office of Government Ethics; and created a mechanism for the Attorney General to appoint a special prosecutor to investigate wrongdoing in the executive branch. \u201cThere was a real effort to clean things up,\u201d Painter said. \u201cOver the years, it all got steadily eroded. Biden didn\u2019t fix it, and Trump has trampled on it.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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What would a new ethics framework look like? Painter told me that the first task is to make the President and Vice-President subject to the federal conflict-of-interest law, and require them to divest their conflictive assets. Another obvious and necessary reform is a ban on trading individual stocks, one that applies to Presidents and members of Congress alike. Last year, Republican Senator Josh Hawley joined Democrats in supporting a proposal of this nature, but it stalled after Trump, in an online post, said that he didn\u2019t think Republicans wanted their President targeted \u201cbecause of the \u2018whims\u2019 of a second-tier Senator.\u201d<\/p>\n

Such reforms would surely represent progress. However, passing them would, again, require congressional action. So, too, would giving some bite to the emoluments clause, which dates back to 1787. \u201cHow do you enforce the emoluments clause?\u201d Painter asked. \u201cBy impeachment in Congress. We already tried that twice and failed.\u201d Ultimately, then, it comes back to politics, where there are structural problems that run even deeper than Trump. In the post-Citizens United world, Presidents\u2014Republican and Democrat alike\u2014sit atop political parties and allied fund-raising entities that can gin up practically unlimited sums, which can be used to crush dissidents. (This month,\u00a0in Kentucky, Representative Thomas Massie, a Republican willing to criticize Trump, was defeated in what became the most costly House primary on record.) The weight of money shifts the balance of power away from individual members of Congress, insuring that for many of them the default position is submission.<\/p>\n

What we\u2019ve learned during the past decade is that when the Supreme Court puts democracy up for sale, Congress is utterly beholden to a President, and if that President is a malign actor, the U.S. Constitution is no longer fit for purpose. Trump is ruthlessly exploiting this weakness, but he didn\u2019t create it. Assuming that the Republic does eventually get past him and his grifting, it will need radical surgery, not merely a reset.\u00a0\u2666<\/p>\n

Read more The Transformation of Elina Svitolina<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The President\u2019s stock dealing, $1.8-billion \u201canti-weaponization\u201d slush fund, and grant of immunity from the I.R.S. demonstrate the need for major ethics reforms. John Cassidy reports.<\/p>\n","protected":false},"author":1,"featured_media":197,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-financial-page"],"yoast_head":"\nCan Anything Stop Trump\u2019s Corruption? - City Relocation News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cityrelocationnews.com\/?p=198\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can Anything Stop Trump\u2019s Corruption? - City Relocation News\" \/>\n<meta property=\"og:description\" content=\"The President\u2019s stock dealing, $1.8-billion \u201canti-weaponization\u201d slush fund, and grant of immunity from the I.R.S. demonstrate the need for major ethics reforms. 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