Campaign Trump versus President Trump on Wall Street

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Donald Trump terrifies Wall Street

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The Republican presidential candidate said hedge fund managers are "getting away with murder" on a recent appearance on CBS' "Face the Nation." "The hedge fund guys didn't build this country. These are guys that shift paper around and they get lucky," he said, drawing a contrast between what people on Wall Street do and Trump's own business of building physical things.

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Trump he wants hedge funds managers to pay more in taxes. He's proposed getting rid of the "carried interest" loophole in the tax code that allows investment managers, especially private equity and hedge funds, to have most of the their earnings taxed at the capital gains tax rate of 20% -- far lower than the top income tax bracket of 39.6%. "They're paying nothing, and it's ridiculous. I want to save the middle class," Trump said. Trump hasn't said what rate he thinks the middle class should be taxed at, but he has said enough is enough on the low tax rate of hedge fund managers. "I don't know anyone who can justify [carried interest] with a straight face," says Dean Baker, co-director of the left-leaning Center for Economic and Policy Research. "In terms of going after something that is unjustified, Trump is certainly right."

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Goldman Stock Hits Record on Bets Trump Will Unleash Wall Street

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Goldman Sachs Group Inc. climbed to a record high on optimism President Donald Trump’s administration will spur trading and dealmaking , slash corporate taxes and roll back costly regulations after installing the firm’s executives in top government posts. The shares rose 1.3 percent to $249.46 at 4 p.m. in New York, passing a record close set in late 2007, just before the industry plunged into a crisis that almost brought down the global financial system. Goldman’s stock recovered much of its loss in the years after that turmoil, and since Trump’s election has soared 37 percent, leading the Dow Jones Industrial Average higher.

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Investors are betting big U.S. banks can generate larger profits and pay out more to shareholders if Trump sidelines the industry’s sharpest critics, dismantles post-crisis rules and pursues policies that spur inflation and lift long-term interest rates. While Trump repeatedly attacked Goldman Sachs’s government influence during his campaign, the New York-based firm is now positioned to have its market philosophies expressed in policy in coming years.

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