In a recent โVictory Tourโ speech in Des Moines, Iowa, President-elect Donald Trump told the audience that he sought to pick a Cabinet and team of advisors composed of โpeople that made a fortuneโ because โnow theyโre negotiating with you, OK?โ
Carl Icahn, the 26th richest man on the planet according to Forbes, fits the โmade a fortuneโ bill. Icahn, a business partner of Trumpย and major donor to his presidential campaign, has been named by the President-electย as his Special Advisor on Regulatory Reform.
However, as recently reported by DeSmog, Icahn stands to gain directly from deregulation in the energy and environmental sphere. He has already made his mark on the future Trump administrationย by vetting and recommendingย the regulation-averse Scott Pruitt, whom Trump eventually picked to head the U.S. Environmental Protection Agency (EPA).ย
To get a taste for Icahn’s approach to business, look no further than his holding company,ย Icahn Enterprises, whichย bought the Atlantic City Trump Taj Mahal out of bankruptcy in 2014 and then decided to close it down rather than meet the demands of strikingย workers
Icahn Enterprises owns a controlling stake in the petroleum refining company CVR Energy and its subsidiary CVR Refining, both of which have a long track record of EPAย violations. The two companies own the Wynnewood Refining Company inย Wynnewood, Oklahoma, which receives some carbon-intensive tar sands oil from theย Keystone Pipeline System owned by TransCanada.
Beyond CVR, Icahn also owns large stock-holding stakes in hydraulic fracturing (โfrackingโ) giant Chesapeake Energy and the fracked gas exporting companies Cheniere and Freeport-McMoran, as well as in the offshore oil and gas drilling company TransOcean. Transocean was the driller responsible for the catastrophic BP Deepwater Horizonย oil spill in the Gulf of Mexico inย 2010.
โIndividualย Capacityโ
Trump made an official statement on the Icahn hire. In it, his transition team said Icahn will be serving in an โindividual capacityโ and will continue to own and operate Icahn Enterprises as his full-timeย job.
โCarl was with me from the beginning and with his being one of the worldโs great businessmen, that was something I truly appreciated,โ Trump said in the statement. โHe is not only a brilliant negotiator, but also someone who is innately able to predict the future especially having to do with finances and economies. His help on the strangling regulations that our country is faced with will beย invaluable.โ
Icahn was also given a chance to offer a first take on how he seesย his new role in the looming Trump Whiteย House.
โUnder President Obama, Americaโs business owners have been crippled by over $1 trillion in new regulations and over 750 billion hours dealing with paperwork,โ said Icahn in the Trumpย press statement. โItโs time to break free of excessive regulation and let our entrepreneurs do what they do best: create jobs and support communities. President-elect Trump is serious about helping American families, and regulatory reform will be a critical component of making America workย again.โ
Conflicts of Interest? Icahn Says That’sย โCrazyโ
Critics of Icahn landing this job in the Trump administration have raised the issue of his numerous potential conflicts of interest, which seems to be the rule rather than the exception amongย Trump’s White Houseย team.
โIt is very disconcerting and troubling to people who take investor protection issues seriously,โย Andrew Stoltmann, aย partner at securities law firm Stoltmann Law, told USA Today. โIt’s a little like asking the fox to guard the henย house.โ
Unhappy about the analogy, Icahn responded on CNBC and called it a โcrazyโ comparison, dismissingย concerns aboutย conflicts of interest. In that interview, Icahn also directly addressed his involvement with CVRย Energy.
โI would ask you, should Jamie Dimon be discussing banking regulations because he’s also the CEO of JP Morgan?,โ said Icahn in response to a question about his ownership stake in CVR. โI mean, it’s almost a crazy issue if you think of it that way. You know, I can understand saying that I shouldn’t be involved in owning these if I were making policy, as is true of Cabinet members that are really makingย policy.โ
Since first reported that Icahn was interviewing Cabinet nominees on Trump’s behalf, includingย the climate change-denying Pruitt, CVR Energy’s stock price has risen fromย $16.75 per share toย $23.69 per share. The Wall Street Journal reported that Icahn hasย made over $600 million dollars on CVR stocks since this past election day, a 67-percent rate ofย return.
Many believe Pruitt,ย who currently serves as Attorney General of Oklahoma and lists being a โleading advocate against the EPAโs activist agendaโ in his official biography, would likely reduce the number of violations and fines slapped against Icahn’s companies and otherย companies.
Icahn Enterprises has also seen its stock rise from $42.93 per share on election Day to $56.01per share as of publishing time for this article, a 76-percent return onย investment.
Katrina Vanden Huevel, Editor-in-Chief of The Nation Magazine, was quick to point out Icahn’s potential to act in his own financial, rather than the public, interest in a commentย onย Twitter.
How many more billionaires can Trump fill the swamp with? Carl Icahn to regulate how his own industry isย regulated.
โ Katrina vandenHeuvel (@KatrinaNation) December 21, 2016
Photo Credit:ย DeSmog
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