President-elect Donald Trump will reportedly name (((Gary Cohn))), the longtime chief operating officer at Goldman Sachs, the director of the National Economic Council. If you’re keeping count, that would be another Goldman alum in Trump’s orbit, in addition to: former Goldman banker (and former Breitbart honcho) Steve Bannon, set to be a key White House adviser; former Goldman partner-turned-bubble-surfer Steven Mnuchin, who will head the treasury; and former Goldman banker Anthony Scaramucci, now a key transition adviser.
So, yes, you could read Cohn’s appointment as another sign of hypocrisy, more proof that the Trump campaign was just a carny act. But it’s also something else: a sign that some aspects of the system are working exactly as they’re supposed to, and long have.
Cohn, a 25-year veteran of the firm, is very much a central cog in the global financial establishment. And in accepting the position, Cohn is simply following a well-worn path. Government service—particularly the National Economic Council—is what top Goldman executives do when their careers have run their course.
The National Economic Council was created during the first year of the Clinton administration. Its inaugural director was Robert Rubin, the co-head of Goldman Sachs who was an influential early Clinton adviser. After two years at NEC, Rubin was promoted to Treasury Secretary. Rubin’s partner in running Goldman in the 1990s was Stephen Friedman. Friedman left the firm…