Waivers and Pardons? Mounting Ethics Concerns for Trump's Ultra-Wealthy Cabinet
President-elect could present a waiver, to the tune of $150 million, if Secretary of State nominee Rex Tillerson balks at selling stock
One hundred million dollar waivers? Presidential pardons? With yet another billionaire appointed to a key position within the Donald Trump administration this week, speculations abound about what the president-elect intends to do about his cabinet's unprecedented wealth--and their unprecedented conflicts.
Monday's appointment of former infantry officer and Wall Street executive Vincent Viola to secretary of the Army makes him the fourth billionaire nominated by Trump to join what is clearly now the wealthiest administration in modern history.
One of the more blatant conflicts to date is the nomination of ExxonMobil CEO Rex Tillerson to lead the State Department.
Ethics lawyers say the oil tycoon will likely have to sell his substantial Exxon holdings and put his assets into a blind trust. But, as it stands, an estimated $151 million in Exxon shares won't be vested for several years.
One possible solution would effectively present itself as a $150 million gift from the president-elect to his secretary of state.
"There is a statute that gives Trump an option of issuing a waiver and allowing Tillerson to keep his shares if the president determines that the interest is not so substantial that it would affect Tillerson's services," Washington University Law Professor Kathleen Clark told The Street's Ronald Orol.
"It would be hard, I think, to say with a straight face that $150 million in stock options is not substantial," Clark added, but nothing is outside the realm of possibility in this #NotNormal administration.
Tillerson is just one example in a cabinet chock full of similar entanglements. Fast-food CEO Andrew Pudzer, tapped to lead the Department of Labor, and international bankruptcy mogul Wilbur Ross, nominated to Secretary of Commerce, will also likely have their holdings scrutinized.
Unlike the president, cabinet members are subject to federal ethics laws that will force appointees to eliminate conflicts before taking office.
Even so, as NPR observed on Tuesday, "If a nominee does have to sell investments to comply with federal ethics rules, he or she may be allowed to put off any capital-gains tax," which the outlet noted is a tax break "designed to help new nominees avoid conflicts of interest without paying a personal price."
Former speaker of the House and Trump ally Newt Gingrich on Monday offered another possible avenue for the president-elect to take in addressing these conflicts: Presidential pardons.
"I think in the case of the president, he has a broad ability to organize the White House the way he wants to," Gingrich told NPR's Diane Rehm. "He also has, frankly, the power of the pardon. I mean, it is a totally open power, and he could simply say look, I want them to be my advisors, I pardon them if anybody finds them to have behaved against the rules, period. And technically under the Constitution he has that level of authority."
As for Trump and the myriad conflicts of interest he will hold if he continues to refuse to divest from his company, Gingrich suggested that Congress should consider changing the rules.
"[W]e have not really dealt with this relative scale of wealth in the White House in some ways since George Washington, who may have been the wealthiest man in the colonies. So historically this is an unusual amount of economic interest and virtually impossible to isolate," he said. Thus, he continued, "traditional rules don't work, and we're going to have to think up, you know, a whole new approach."
We are at a crossroads
This country and this world are at a monumental crossroads. In a few short weeks, US voters will have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
One hundred million dollar waivers? Presidential pardons? With yet another billionaire appointed to a key position within the Donald Trump administration this week, speculations abound about what the president-elect intends to do about his cabinet's unprecedented wealth--and their unprecedented conflicts.
Monday's appointment of former infantry officer and Wall Street executive Vincent Viola to secretary of the Army makes him the fourth billionaire nominated by Trump to join what is clearly now the wealthiest administration in modern history.
One of the more blatant conflicts to date is the nomination of ExxonMobil CEO Rex Tillerson to lead the State Department.
Ethics lawyers say the oil tycoon will likely have to sell his substantial Exxon holdings and put his assets into a blind trust. But, as it stands, an estimated $151 million in Exxon shares won't be vested for several years.
One possible solution would effectively present itself as a $150 million gift from the president-elect to his secretary of state.
"There is a statute that gives Trump an option of issuing a waiver and allowing Tillerson to keep his shares if the president determines that the interest is not so substantial that it would affect Tillerson's services," Washington University Law Professor Kathleen Clark told The Street's Ronald Orol.
"It would be hard, I think, to say with a straight face that $150 million in stock options is not substantial," Clark added, but nothing is outside the realm of possibility in this #NotNormal administration.
Tillerson is just one example in a cabinet chock full of similar entanglements. Fast-food CEO Andrew Pudzer, tapped to lead the Department of Labor, and international bankruptcy mogul Wilbur Ross, nominated to Secretary of Commerce, will also likely have their holdings scrutinized.
Unlike the president, cabinet members are subject to federal ethics laws that will force appointees to eliminate conflicts before taking office.
Even so, as NPR observed on Tuesday, "If a nominee does have to sell investments to comply with federal ethics rules, he or she may be allowed to put off any capital-gains tax," which the outlet noted is a tax break "designed to help new nominees avoid conflicts of interest without paying a personal price."
Former speaker of the House and Trump ally Newt Gingrich on Monday offered another possible avenue for the president-elect to take in addressing these conflicts: Presidential pardons.
"I think in the case of the president, he has a broad ability to organize the White House the way he wants to," Gingrich told NPR's Diane Rehm. "He also has, frankly, the power of the pardon. I mean, it is a totally open power, and he could simply say look, I want them to be my advisors, I pardon them if anybody finds them to have behaved against the rules, period. And technically under the Constitution he has that level of authority."
As for Trump and the myriad conflicts of interest he will hold if he continues to refuse to divest from his company, Gingrich suggested that Congress should consider changing the rules.
"[W]e have not really dealt with this relative scale of wealth in the White House in some ways since George Washington, who may have been the wealthiest man in the colonies. So historically this is an unusual amount of economic interest and virtually impossible to isolate," he said. Thus, he continued, "traditional rules don't work, and we're going to have to think up, you know, a whole new approach."
One hundred million dollar waivers? Presidential pardons? With yet another billionaire appointed to a key position within the Donald Trump administration this week, speculations abound about what the president-elect intends to do about his cabinet's unprecedented wealth--and their unprecedented conflicts.
Monday's appointment of former infantry officer and Wall Street executive Vincent Viola to secretary of the Army makes him the fourth billionaire nominated by Trump to join what is clearly now the wealthiest administration in modern history.
One of the more blatant conflicts to date is the nomination of ExxonMobil CEO Rex Tillerson to lead the State Department.
Ethics lawyers say the oil tycoon will likely have to sell his substantial Exxon holdings and put his assets into a blind trust. But, as it stands, an estimated $151 million in Exxon shares won't be vested for several years.
One possible solution would effectively present itself as a $150 million gift from the president-elect to his secretary of state.
"There is a statute that gives Trump an option of issuing a waiver and allowing Tillerson to keep his shares if the president determines that the interest is not so substantial that it would affect Tillerson's services," Washington University Law Professor Kathleen Clark told The Street's Ronald Orol.
"It would be hard, I think, to say with a straight face that $150 million in stock options is not substantial," Clark added, but nothing is outside the realm of possibility in this #NotNormal administration.
Tillerson is just one example in a cabinet chock full of similar entanglements. Fast-food CEO Andrew Pudzer, tapped to lead the Department of Labor, and international bankruptcy mogul Wilbur Ross, nominated to Secretary of Commerce, will also likely have their holdings scrutinized.
Unlike the president, cabinet members are subject to federal ethics laws that will force appointees to eliminate conflicts before taking office.
Even so, as NPR observed on Tuesday, "If a nominee does have to sell investments to comply with federal ethics rules, he or she may be allowed to put off any capital-gains tax," which the outlet noted is a tax break "designed to help new nominees avoid conflicts of interest without paying a personal price."
Former speaker of the House and Trump ally Newt Gingrich on Monday offered another possible avenue for the president-elect to take in addressing these conflicts: Presidential pardons.
"I think in the case of the president, he has a broad ability to organize the White House the way he wants to," Gingrich told NPR's Diane Rehm. "He also has, frankly, the power of the pardon. I mean, it is a totally open power, and he could simply say look, I want them to be my advisors, I pardon them if anybody finds them to have behaved against the rules, period. And technically under the Constitution he has that level of authority."
As for Trump and the myriad conflicts of interest he will hold if he continues to refuse to divest from his company, Gingrich suggested that Congress should consider changing the rules.
"[W]e have not really dealt with this relative scale of wealth in the White House in some ways since George Washington, who may have been the wealthiest man in the colonies. So historically this is an unusual amount of economic interest and virtually impossible to isolate," he said. Thus, he continued, "traditional rules don't work, and we're going to have to think up, you know, a whole new approach."