REUTERS-Goldman Sachs Group
Inc Chief Executive Lloyd Blankfein became the first major Wall Street leader
to speak out against President Donald Trump's order to
halt arrivals from
several Muslim-majority countries.
In a voicemail to employees
on Sunday, Blankfein said diversity was a hallmark of Goldman's success, and if
the temporary freeze became permanent, it could create "disruption"
for the bank and its staff.
"This is not a
policy we support, and I would note that it has already been challenged in
federal court, and some of the order has been enjoined at least
temporarily," Blankfein said, according to a transcript seen by Reuters.
In Silicon Valley,
the heads of companies such as Apple and Facebook swiftly denounced Trump's immigration
ban. [nL1N1FI0GK]. But the rest of corporate America has been more circumspect
in speaking out, underscoring the sensitivities around opposing policies that
could provoke a backlash from the White House. [nL1N1FK0M0]
Tepid responses from
many of Blankfein's peers made his comments all the more potent, especially
because Goldman has gotten attention for the number of its alumni who have
joined Trump's administration.
Top BlackRock Inc
executives including CEO Larry Fink, sent a memo to staff on Monday saying
Trump's order presented "challenges" to its goals of diversity and
inclusion. BlackRock is examining the direct impact on its employees, as well
as the broader implications of the order, they said.
"We, of course,
all want to promote security and combat terrorism, but we believe it needs to
be done with respect for due process, individual rights and the principle of
inclusion," they wrote.'
Citigroup CEO Mike
Corbat said in a memo to employees on Monday the bank is concerned about
"the message the executive order sends" as well as the impact
immigration policies might have "on our ability to serve our clients and
contribute to growth."
JPMorgan Chase &
Co's operating committee, which includes CEO Jamie Dimon, avoided directly
criticizing the policy. In a note to staff over the weekend, the firm said it
was reaching out to all employees affected and noted that the country was
"strengthened by the rich diversity of the world around us."
Other banks,
including Morgan Stanley and Wells Fargo & Co, said they were reviewing the
executive order and its implication on staff.
Bank of America Corp
declined to comment, as did representatives for stock exchange operators Bats
Global Markets, Nasdaq Inc and New York Stock Exchange parent Intercontinental
Exchange Inc.
The U.S. hedge fund
industry was also virtually silent on the immigration restrictions.
Representatives for most major firms —including Bridgewater Associates,
Renaissance Technologies, Millennium Management and Two Sigma Investments — did
not respond to requests for comment over the weekend.
Private equity
firms, including Blackstone Group LP, whose CEO, Stephen Schwarzman, chairs
Trump's advisory panel of business leaders, also would not comment on the
travel ban.
People familiar with
some of the banks' and firms' decisions in making public statements said a fear
of riling President Trump was inhibiting most CEOs' responses.
Since the election,
he has taken to Twitter to excoriate certain companies, causing stock price
swings. And because Wall Street is hoping for an easing of financial reform
regulations, most firms want to stay in Trump's good graces, they said.
The most
high-ranking Goldman executive to have joined the Trump administration is
former Chief Operating Officer Gary Cohn, who left the bank in December to
become head of the White House National Economic Council. Others include
Treasury Secretary nominee Steven Mnuchin and Trump advisers Steve Bannon,
Anthony Scaramucci and Dina Powell.
Those recruits have
put the Goldman back in the spotlight as a bank that long had influence in
government and public policy, from the days of the Great Depression to the 2008
financial crisis.
But after the bank
was embroiled in scandals over its mortgage-market bets, it embarked on a
campaign to improve its image. Blankfein has promoted its focus on philanthropy
and diversity initiatives, as well as Goldman's role in job creation.
REUTERS
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