Every time that the Trump White House added another team member with a "Goldman Sachs" line on their résumé, anti-Wall Street types and political opportunists made a show to rend their garments, scream at the sky and make snide jokes about "draining the swamp."
But Steve Mnuchin has spent the last few months confusing himself about what Glass-Steagall means while Steve Bannon has slunk ever deeper in cirrhotic obscurity, and Gary Cohn found himself pimping Trump's non-existent tax plan armed with only a fact-free one-sheet and his dick in his hand. Suffice it to say that if these GoldMen have been trying to funnel riches and power back towards 200 West Street, they have proven to suck at it. But apparently that's not because one cannot use our vainglorious president to cut deals that boggle the mind and scramble the moral compass.
Steve Schwarzman knows what we're talking about...
U.S. private equity firm Blackstone and Saudi Arabia's main sovereign wealth fund said on Saturday they planned to create a $40 billion vehicle to invest in infrastructure projects, mainly in the United States.
Blackstone and the Public Investment Fund (PIF) signed a non-binding memorandum of understanding for the project, which will depend on further negotiations.
According to reports, Blackstone is looking to pump about $100 billion total into US infrastructure projects, which would be a great help to a president who talked a lot about infrastructure during the campaign but is trying to bleed a stone with his attempt to pull$1 trillion out of a Republican Congress that can't even get his Obamacare repeal done. Everyone likes infrastructure, but a Wall Street private equity titan taking $20 billion from the Saudis to do it makes for a scalding political hot potato. Or at least it used to...
The proposed venture was announced during the visit to Riyadh of President Donald Trump, who has said he wants to rebuild crumbling U.S. infrastructure.
Schwarzman has been the most unapologetic Trump supporter in finance and has been a major player in Trump's borderline thirsty outreach to the private sector. While Steve hasn't always been on script, he has shown 'loyalty' to the embattled president and is now reaping the benefits of that by cutting a huge deal with an ally that not everyone thinks is an ally, and do it without out any concern of blowback from the White House because the only way to piss off this White House is to not give the guy in charge credit for literally everything.
The Saudis have definitely picked up on this...
The new fund "reflects our positive views around the ambitious infrastructure initiatives being undertaken in the United States as announced by President Trump," the PIF's managing director Yasir al-Rumayyan said.
Blackstone got suddenly somehow even bigger and more powerful over the weekend and by doing so proved this new political reality is one in which no one even worries about how it will play in Peoria to have a massive New York private equity firm team up with The Saudis to pay for a new bridge in Peoria.
Even Lloyd Blankfein is sitting at his desk right now and mutttering "Really?"