Saturday, November 19, 2016

US President - Blind Trust - Conflict of interest

There is no requirement for the President to use a blind trust to avoid conflict of interest. Almost all other federal employees are required to divest themselves of potential conflicts. The President of the United State has traditionally resigned from any position - e.g. being a part of a legal firm, positions on corporate boards - that might cause a conflict and put business assets into a blind trust.

"A blind trust, as discussed in this report, is a device employed by a federal official to hold, administer and manage the private financial assets, investments and ownership of the official, and his or her spouse and dependent children, as a method of conflict of interest avoidance. In establishing a qualified blind trust upon the approval of the appropriate supervisory ethics entity, the official transfers, without restriction, control and management of private assets to an independent trustee who may not communicate information about the identity of the holdings in the trust to the official. The trust is considered “blind” because eventually, through the sale of transferred assets and the purchase of new ones, the public officer will be shielded from knowledge of the identity of the specific assets in the trust. Without such knowledge, conflict of interest issues would be avoided because no particular asset in the trust could act as an influence upon the official duties that the officer performs for the Government."

In the past, the President-elect established his blind trust during the transition period. Guess who has had no such trust. You guessed it, President-elect Donald Trump. He says that his children are going to run his businesses. Does that sound like divesting yourself of potential conflicts of interest? It doesn't, especially when you have your children present at a meeting with a foreign dignitary.

The Washington Post reported on a CNN interview of Rudolph Giuliani by Jake Tapper. Here is an excerpt from that report.

"Good-government types were already crying foul over Donald Trump's intention to put his children in charge of his business during his presidency. And now that those same children are on Trump's transition team, these groups are even more concerned about conflicts of interest. Trump loyalist Rudolph W. Giuliani seemed to acknowledge in a CNN interview Sunday that it wasn't an ideal set-up. But then he offered a remarkable defense. "He would basically put his children out of work if — and they'd have to go start a whole new business, and that would set up the whole — set up new problems,"Giuliani said on "State of the Union." Giuliani added: "It's kind of unrealistic to say you're going to take the business away from the three people who are running it and give it to some independent person. And remember, they can't work in the government because of the government rule against nepotism. So you would be putting them out of work."

I could be totally heartless and say 'oh, let's have a pity party for Trump's adult children who can probably go a good four years on the change in their pockets', but I won't be quite that bad. I will admit that I don't care what Trump's children do during his presidency. They are adults. They can find jobs like the rest of us commoners. They weren't elected and providing for their employment is not the responsibility of the US government or the American people.

I am more concerned about the consistent resistance Donald Trump has to anything which avoids a conflict of interest. I'm not surprised. He has consistently demonstrated that he believes himself above the law. Hail, King Trump! Bheadh ri Trump, beidh mé ag iarraidh i gcoinne tú.

Bheadh ri Trump, beidh mé ag iarraidh i gcoinne tú.


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