This had to be an issue, as the Trump Organizations and businesses had to be obligated away from the Executive, the Commander-in-Chief as he ushers himself into the Presidency. The family seems to be picked to run his company, as they are already Executive Vice-President in the Cooperation, this being Eric Trump, Donald Trump Junior and Ivanka Trump. These have been behind their father, the President-Elect. This is important as the interest of Trump Organization should not be the sole purpose of the presidency, that should be as civil service and also guiding with good governance without having own personal gains by having the office. Therefore the nominees and the appointed government leaders in the Trump Organization has to go through not only sessions in the Senate before their appointments are getting accepted; as well as they have to give way to their business connection and positions in the boards in general.
That the international hotels and golf courses, the trademarked products in the portfolio of the Trump Organization that can implicate and create issues with both the foreign trade policies and also import regulations. The same can be seen in general with the regulation of banking, loans and all other fiscal regulation that can hurt the Trump Organization. Something Trump will already know before going to office, what he needs to create of legislation and what sort of economic stimulus or even economic framework that can absorb more profits on the business that are already owned by the Trump family.
Let’s take look at what a blind trust is and what sort of agreements that can happen when Trump gets into office in just days.
What is a Blind Trust?
“Blind trusts are often used when a wealthy individual is elected to a political office where his investment holdings could potentially put him in a conflict of interest with a regulatory issue or other sensitive exercise of political power. In this context, there are some obvious issues with blind trusts in that the beneficiary setting up the blind trust is at least aware of the investment mix going in and cannot realistically forget that information when weighing future decisions. The trustors may also set the rules under which the investments are managed and, of course, pick trustees that they are confident will act in a certain way in potential situations. So again, the efficacy of the blind trust in truly eliminating conflict of interest is far from proven. That said, politicians with a large amount of wealth or in high office use blind trusts to show that at least the effort is being taken to establish impartiality” (Investopedia).
Director of Government Ethics Shaub on 11th January on Blind Trust:
“I think Politico called this a “half-blind” trust, but it’s not even halfway blind. The only thing this has in common with a blind trust is the label, “trust.” His sons are still running the businesses, and, of course, he knows what he owns. His own attorney said today that he can’t “un-know” that he owns Trump tower. The same is true of his other holdings. The idea of limiting direct communication about the business is wholly inadequate. That’s not how a blind trust works. There’s not supposed to be any information at all” (…) “Here too, his attorney said something important today. She said he’ll know about a deal if he reads it in the paper or sees in on TV. That wouldn’t happen with a blind trust. In addition, the notion that there won’t be new deals doesn’t solve the problem of all the existing deals and businesses. The enormous stack of documents on the stage when he spoke shows just how many deals and businesses there are” (…) “The President-elect’s attorney justified the decision not to use a blind trust by saying that you can’t put operating businesses in a blind trust. She’s right about that. That’s why the decision to set up this strange new kind of trust is so perplexing. The attorney also said she feared the public might question the legitimacy of the sale price if he divested his assets. I wish she had spoken with those of us in the government who do this for a living. We would have reassured her that Presidential nominees in every administration agree to sell illiquid assets all the time. Unlike the President, they have to run the gauntlet of a rigorous Senate confirmation process where the legitimacy of their divestiture plans can be closely scrutinized. These individuals get through the nomination process by carefully ensuring that the valuation of their companies is done according to accepted industry standards. There’s nothing unusual about that” (…) “Back when he was working for the Justice Department, the late Antonin Scalia also wrote an opinion declaring that a President should avoid engaging in conduct prohibited by the government’s ethics regulations, even if they don’t apply. Justice Scalia warned us that there would be consequences if a President ever failed to adhere to the same standards that apply to lower level officials. The sheer obviousness of Justice Scalia’s words becomes apparent if you just ask yourself one question: Should a President hold himself to a lower standard than his own appointees?”(Shaub, 2017).
His sons will run the Trump Organization:
“President-Elect Trump will relinquish management of his investment and business assets for the duration of his Presidency. To accomplish this, all of President-Elect Trump’s investment and business assets, commonly known as The Trump Organization—comprised of hundreds of entities—have been or will be conveyed to a Trust, which will be managed for the duration of his Presidency by his sons, Don and Eric, and a Trump executive, Allen Weisselberg. Collectively—and unanimously—Allen, Don, and Eric will have the authority to manage The Trump Organization and have full decision-making authority for the duration of the Presidency, without any involvement whatsoever by President-Elect Trump. To implement this transfer, President-Elect Trump will resign from all official positions he holds with The Trump Organization entities” (…) “the Trust Agreement prohibits The Trump Organization from entering into any new transaction or contract with a foreign country, agency, or instrumentality thereof, including a sovereign wealth fund, foreign government official, or member of a royal family, the United States government or any agency or instrumentality thereof, or any state or local government or any agency or instrumentality thereof, other than normal and customary arrangements already undertaken before the President-Elect’s election” (…) “President-Elect Trump is taking these extraordinary steps to ensure that the Office of the Presidency is isolated from The Trump Organization” (…) “the Constitution does not forbid fair-market-value transactions with foreign officials. To put to rest any concerns, however, the President-Elect is announcing he will donate all profits from foreign governments’ patronage of his hotels and similar businesses during his presidential term to the U.S. Treasury. Historically, when federal officers received a gift or emolument from a foreign state, they surrendered possession of it to the federal government, though they were permitted to retain amounts necessary to offset their business expenses. Although the Constitution does not require the PresidentElect to do the same for profits from his businesses’ fair-market-value transactions, he wants to eliminate any distractions by going beyond what the Constitution requires” (Morgan Lewis, 2017).
That Trump Organization can be run by his family it is acceptable by looking at the trust, but the initial issues with the way it gets done and that he shall not be reported on the way of the trade or business, is hard to believe as the business and family is very connected, hence with the campaign where all of the older kids we’re taking part more or less. Therefore the Vice-Executives of the Trump Organization, his kids are now taking charge and taking his position in his company. That he owns and has controlled over decades. That needs to be clear that the family members cannot tell or say him company secrets as long as he is the Executive of the Republic. If they do than their doing illegal information and destabilizing the interests of the government, why is it so? That is so because the President is the head of the government and has to serve all the citizens, not just the ones that are working in his owned company. That is why the nominees for positions in the Trump Administration have to leave their boardrooms and their former businesses. This is done because they will not have other interests than serving the Republic, if not they should be back in the corporate office instead of being civil servants. If they serve Exxon or other businesses while they are serving as ministers or secretaries of departments, than they are opening up for corrupt and illegal trading from the top and stealing from the bottom. That is what we can worry about when we know how close the President is still connected with his businesses, without a clear line of procedure for how the transactions and creation of future business inside Trump Organization is not known.
The President-Elect have not delivered his IRS Tax Returns, neither proven his real value or what he owns, if it is in Missouri or Mississippi, because for all we know he could own a lobster-shack in Louisiana. Even than he should open the door so he could explain why he hasn’t been through the process of showing his true colours and trade. The real honest profits and the expenditure of his companies, the facts of his royalties and the tax rate on his businesses as well. There are many open questions as to where he does business, what sort of people are he connected with abroad and what sort of agreements does the Trump Organization have and own outside of the United States. If he has a dungeon in St. Petersburg or has a palace in India, we don’t really know, but if he was accountable or transparent. Then we could know what sort of conflicts and interests the President-Elect have. This is the missing picture in a flawed Presidential-Elect who doesn’t’ trust anybody, but himself.
Why does I say that is because he cannot be transparent with his own and therefore why would he be that with the public coffers? Are the public coffers safe when we have no idea about how he used his own private funds? Will the public coffers be used to function and give contracts to businesses close to him or to cronyism in the new Trump Administration? Peace.
Investopeida – ‘Blind Trust’ link: http://www.investopedia.com/terms/b/blindtrust.asp
Remarks of Walter M. Shaub, Jr., Director, U.S. Office of Government Ethics, as prepared for delivery at 4:00 p.m. on January 11, 2017, at the Brookings Institution (11.01.2017)
Morgan Lewis – ‘WHITE PAPER Conflicts of Interest and the President Background for President-Elect Trump’s January 11, 2017 Press Conference Prepared by Morgan, Lewis & Bockius LLP’ (11.01.2017)