Interest in TikTok, distressed NY bank has echoes of Mnuchin’s pre-Trump investment playbook

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Steven Mnuchin is a former U.S. Treasury secretary who said this week that he is interested in buying TikTok, just days after his investment firm led a $1 billion deal to inject life into a beaten-down bank.

Don’t miss out on these fabulous Insider DealsFILE - Former Treasury Secretary Steve Mnuchin speaks with reporters at the White House, March 13, 2020, in Washington. Mnuchin is interested in buying TikTok, just days after his investment firm led a $1 billion deal to inject life into a beaten-down bank.The man who served as former President Donald Trump’s Treasury secretary is well connected in the world of finance, after all.

Other former Treasury secretaries have gone to Wall Street after their terms ended, including Robert Rubin, a Goldman Sachs executive who served under President Clinton. In all cases, the move carries the appearance of cashing in on their time in government, Weissman said. The rapid shift from his government travel overseas to business dealings in those same countries prompted a watchdog group, Citizens for Responsibility and Ethics in Washington, to call for a

Kevin Kaiser, an adjunct professor of finance at the Wharton School, said such investors can profit by buying at steep discounts when markets are panicking. To ensure the investment pays off, however, investors like Mnuchin have to pay hardball with borrowers at risk of default, he said.

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Interest in TikTok, distressed NY bank has echoes of Mnuchin’s pre-Trump investment playbookSteven Mnuchin is a former U.S. Treasury secretary who said this week that he is interested in buying TikTok, just days after his investment firm led a $1 billion deal to inject life into a beaten-down bank. It all sounds like a wacky Hollywood script, but it actually fits with Mnuchin's career.
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