Levin Report

Billionaire Who Compared Obama to Hitler Offended That People Are Calling Him a Nazi

After standing by Trump, Stephen Schwarzman gets a taste of his own medicine.
stephen schwarzman
By Simon Dawson/Bloomberg/Getty Images.

Stephen Schwarzman, the billionaire founder of private-equity giant Blackstone, has had a rough life. In 2007, his became synonymous with Wall Street excess when, on the eve of the financial crisis, he threw himself a 60th birthday party that featured Martin Short as the master of ceremonies; performances by Patti LaBelle and Rod Stewart; a meal of “lobster, filet mignon, and baked Alaska,” along with “an array of expensive wines”; “replicas of Schwarzman’s art collection” on the walls, “a full-length portrait of him by Andrew Festing, the president of the Royal Society of Portrait Painters”; around 350 guests, including Barbara Walters, Maria Bartiromo, Tina Brown, and Melania and Donald Trump; and a “large-scale replica of . . . Schwarzman’s Manhattan apartment.” Later that year, his culinary preferences—stone crabs that run $400, or $40 per claw—and low tolerance for noise pollution (“while sunning by the pool at his 11,000-square-foot home in Palm Beach, Fla., he complained . . . that an employee wasn’t wearing the proper black shoes with his uniform . . . [explaining] that he found the squeak of the rubber soles distracting”)—were revealed in the pages of The Wall Street Journal, a publication you would’ve thought he could count on not to traffic in populist dreck. For decades, Schwarzman, who’s worth an estimated $12.4 billion, has had to suffer through the ignorant public’s hurtful attacks on the private-equity industry and total lack of understanding about what a great public service it provides. Presumably, he wanted to throw himself a lavish 65th birthday party but had to consider the optics of it all, instead waiting until his 70th to celebrate himself at a soirée that included trapeze artists, live camels, acrobats, Mongolian soldiers, “a giant birthday cake in the shape of a Chinese temple,” and Gwen Stefani singing “Happy Birthday.”

And now, he’s had to suffer through some incredibly mean e-mails for his association with Donald Trump. Per CNBC:

Schwarzman said Tuesday he was accused of being a Nazi in e-mails he received following President Donald Trump’s comments that appeared to support white supremacists in Charlottesville, Virginia. Schwarzman, who is Jewish, described the time as one of “astonishing pressure” on a group of corporate C.E.O.s like himself who had been part of a White House policy forum advising the president. “You should have seen some of the e-mails I got,” Schwarzman said at the Delivering Alpha conference in New York. “I was accused of being a Nazi.”

Incidentally, in 2010 Schwarzman likened the possibility of President Barack Obama raising taxes on private-equity firms like Blackstone to actions taken by Adolf Hitler during World War II. “It’s a war,” Schwarzman told a room full of nonprofit board members. “It’s like when Hitler invaded Poland in 1939.” (In the end, Obama never actually closed the loophole on carried interest that could have increased taxes on private-equity profits from 15 percent to 35 percent, and threatened Schwarzman’s ability to source elaborate Halloween costumes that must require a team of people to dress him in.) That, apparently, was completely acceptable. But throw around the word “Nazi” just because of his close association with a guy who literally said a group containing actual neo-Nazis had some “very fine people” among it? How dare you.

Schwarzman, who was head of the president’s Strategic and Policy Forum before the group decided to disband in the wake of Trump’s Charlottesville comments, also said on Tuesday that despite The New York Times report that he was “outraged” by Trump’s decision to give Nazis and white supremacists a pass, he wasn’t offended in the slightest. “No, I wasn’t outraged,” Schwarzman said. “I don’t know where The New York Times got that one.”

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Lawmakers would love it if they could see the details of a tax-reform bill before voting on it

Over the next seven weeks, Donald Trump is expected to visit as many as 13 states as part of his big pitch to sell tax reform. The strategy, which Bloomberg reports was shared with administration allies by top advisers on September 8, has everything: the president visiting states he won where Democratic senators are up for re-election; Cabinet members who will be “deployed behind Trump in a second wave to . . . amplify his message”; speeches drafted by Stephen Miller, the communications team, and economic advisers, with input from Trump; and a Treasury Department spokesman who has been “detailed” to the White House to organize “all the moving pieces.” There’s just one thing it’s missing and it’s totally minor but lawmakers have nevertheless been griping about it to anyone who will listen: an actual plan.

“There’s nothing concrete yet,” Rep. Carlos Curbelo told Politico. “It is frustrating and concerning that we don’t have the details and yet we’re going to be asked in 60 days to vote on something,” a killjoy member of the House Ways and Means Committee said. One major detail that has not been finalized is the proposed new corporate tax rate, which Trump keeps suggesting will be as low as 15 percent, despite his advisers desperately sending the message that the odds of achieving a 15 percent rate are lower than Jared Kushner’s odds of bringing peace to the Middle East.

“The president has made it clear since the campaign, ideally he’d like to get it down to 15 percent. I don’t know if we’ll be able to achieve that given the budget issues, but we’re going to get this down to a very competitive level,” Treasury Secretary Steven Mnuchin said Tuesday at CNBC’s Delivering Alpha Conference. “What the exact number is is less important, what’s important is making sure we have a competitive system.”

Wells Fargo C.E.O.: gird your loins

When Wells Fargo first disclosed that up to 2.1 million customers may have had accounts created in their name without their knowledge, one imagines the bank might have been overestimating to be safe, and that there was no chance the number would be that high. Then, at the end of August, Wells revealed that, actually, the number was more like 3.5 million. At the same time, it was forced to admit that hundreds of thousands of customers were charged for auto insurance they didn’t need, in a separate, completely unrelated scam. Now, C.E.O. Tim Sloan is just coming out and saying it: you might as well assume the numbers will grow and, and at this point, he doesn’t feel comfortable guaranteeing that Wells Fargo won’t screw over more customers in the future.

“We’ve been very focused on opening every drawer and turning over every rock in the company,” Sloan said on Tuesday at an investor conference. “I can’t promise you that it’s exactly over with. . . . We will be reporting more progress in the months ahead that will no doubt result in additional headlines. And I certainly can’t promise perfection in the future.”

Jamie Dimon has strong feelings about Bitcoin

“It won’t end well. Someone is going to get killed,” he said Tuesday. “Currencies have legal support. It will blow up.” In case his feelings on the cryptocurrency weren’t clear, Dimon added that he would “fire in a second” any JPMorgan employee who was trading bitcoin, because “it’s against our rules” and it’s “stupid.” If you bought bitcoin or were previously a fan and are now hanging your head in shame, don’t beat yourself up too much; a member of the Dimon family was right there with you and likely received a similar admonishment.

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