Friday, December 4, 2015

Clinton Super PAC Donor Is Former Goldman Exec and Foreclosure Crisis Profiteer

But the fact remains that the Clinton campaign is fundraising heavily from Wall Street. Contributions from the securities and investment industries comprise her fourth-largest pile of campaign money, totaling $2,044,471. Commercial banks have given $443,519 directly to her campaign.

One major donor to her Super PAC, Priorities USA, is Donald Mullen Jr., a man who was singularly able to profit from the financial crisis both before and after the crash of the housing bubble.

Mullen, while a Goldman Sachs employee, pioneered the trades that allowed the mega-bank to profit from the collapse of the housing market. Mullen’s team utilized financial instruments called collateralized debt obligations to essentially bet against subprime mortgages.

A 2010 Senate investigation brought to light emails between Mullen and his Goldman colleagues. As his colleagues began to see the decline of the market, Mullen wrote cheerfully, “Sounds like we will make some serious money.”

In 2012, Mullen left Goldman Sachs to do the opposite of what he did in 2007: He started a hedge fund, the purpose of which was to buy up foreclosed homes and rent them out. New York magazine’s Kevin Roose described the career change this way: “A guy whose most famous trade was a successful bet on the full-scale implosion of the housing market is now swooping in to pick up the pieces on the other end.”

No comments:

Post a Comment