When questioned by Sen. Ben Cardin, D-Md., on what he would do in a situation that could have a material impact on Trump, his companies or those who hold his debt, Mnuchin said the president-elect is “absolutely following the law and is continuing to follow the law.”
He did not elaborate specifically on how he would address such a situation, aside from saying he would abide by “the law and the Constitution.”
Trump has not released his tax returns, so some aspects of his divestment plan amount to simply taking him at his word. But he has said he will pass control of his corporate empire off to his two sons, Eric and Donald Jr., placing his assets in a trust controlled by them and another associate. His transition team also previously announced the president-elect has sold off all of his stock holdings.
Still, Trump’s divestment road map doesn’t involve what ethics officials consider to be a “blind trust.” Mnuchin acknowledged this Thursday, noting that Trump’s situation is “not a blind trust” but stressing that Trump has “removed himself from his business.”
“He is going to hire an ethics officer,” Mnuchin said during an exchange with Cardin, also stating that he would monitor potential conflicts personally should he be confirmed. “We have a big group of lawyers in the Treasury Department and a big ethics group.”
But Sen. Claire McCaskill, D-Mo., pushed Mnuchin further, asking if Trump would be the one to hire his own ethics officer. Mnuchin responded that he wasn’t certain, and McCaskill suggested Mnuchin could play a role in ethics enforcement, highlighting reports that international entities hold a substantial amount of Trump debt.
“Should you, as secretary of the treasury, know what percentage of his debt … is held by foreign interests?” she asked.
Mnuchin said he didn’t know the specifics of Trump’s debt but that he would “make sure that the requirements of the Constitution will be upheld” should he be confirmed.
He said McCaskill made “a valid point” and asked “interesting questions” that he planned to “follow up” on.
“The American people want to know how much debt by the Trump businesses is owned by foreign entities, because that could have a direct impact on our national security,” McCaskill said.
