Wall Street Reacts To Steve Mnuchin Choice For Treasury Secretary

2/2 Steve Mnuchin and Wilbur Ross will both help to do what American needs most – stimulate companies to invest.
— Carl Icahn (@Carl_C_Icahn) November 30, 2016

Following the news that Steve Mnuchin would be US Trasury Secretary, Wall Street analysts offered mixed predictions on which policies Donald Trump’s choice for Treasury secretary may pursue, as they have little to go on other than Mnuchin’s background with Goldman, buying/selling the former Indy Mac.
The prevailing consensus is that Mnuchin’s Wall Street past will lead to easing regulations, tax policies; but at the same time, Mnuchin may not help larger banks as he may focus on regionals and/or seek to distance himself from his GS/IndyMac past. For now optimism dominates, as banks gain, with the KBW banks index up as much as 2% to highest intraday since May 2008. Not surprisingly, Goldman Sachs is up as much as 3.5% to highest since Dec. 2007.
Earlier, Mnuchin said that FNMA, FMCC should exit government’s grip and didn’t mimic Republicans who’ve said FNMA, FMCC should be wound down or eliminated. As a result the stock of the GSEs has soared, with Fannie up as much as 32% to highest since Aug. 2014; Freddie up as much as 28%, also since Aug. 2014

This post was published at Zero Hedge on Nov 30, 2016.