Mnuchin Next On Chopping Block After Failing To Preclear Big Bank/Plunge Protection Team Calls With Trump | WHAT REALLY HAPPENED


Mnuchin Next On Chopping Block After Failing To Preclear Big Bank/Plunge Protection Team Calls With Trump

Amid some confusion whether Mnuchin acted independently on his own initiative, or at the instructions of president Trump, when he called up the CEOs of the top 6 US banks on Sunday and the President's Working Group on financial markets, i.e. PPT, Bloomberg reports that Mnuchin did not pre-clear the calls with Trump, citing an administration official. Mnuchin also convened the Plunge Protection Team without coordinating with Trump, and instead both actions were done in normal capacity of his job, the official said.

Which is surprising because at the same time, CNBC reported that the Treasury was not concerned about liquidity when Mnuchin called the big banks (which clearly should have been find considering they all passed the latest stress test without a hitch).

Why does this matter? Because suddenly everyone's ire is focused on Mnuchin's Sunday afternoon "liquidity is fine" tweet which instead of calming markets has only exacerbated the rout. And if Trump was indeed not behind Mnuchin's initiative to take a break from his Cabo vacation and not only call up the US banks - and then publicly disclose it ahead of Monday's open - but also announce it publicly, then Mnuchin may have just painted a big, red bullseye on his back when Trump is looking for the next scapegoat to "justify" the latest market drop.

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