Michael Cohen’s Raskolnikovian Nightmare Just Got Even Worse
There is a saying in Russian, Пья́ному мо́ре по коле́но, which translates to something like, “to a drunk, the sea is only knee-deep.” When you think about it, that’s a pretty fitting way to describe the oceanic mess into which Thomas M. Cooley Law School alumnus Michael Cohen appears to have waded without a life vest or, really, even knowing how to swim. Last year, Cohen told my colleague Emily Jane Fox that he would “take a bullet” for Donald Trump. Now, in the wake of three simultaneous F.B.I. raids that resulted in investigators carting off his computer, phone, thousands of documents, and a safe-deposit box, virtually all of Trump’s allies seem more worried that Cohen will take whatever deal the Southern District of New York (or, if he’s particularly screwed, even Robert Mueller) has to offer him. “When anybody is faced with spending a long time in jail, they start to re-evaluate their priorities, and cooperation can’t be ruled out,” one Trump ally recently said. Again, that’s a Trump ally.
In the days since the raid, things have only gotten worse for the president and his once-loyal fixer. On Friday, The New York Times suggested that Trump’s past treatment of Cohen, which Trump ally Roger Stone characterized as “like garbage,” may inspire him to talk. The night prior, Trump’s longtime divorce lawyer, Jay Goldberg, told CNN that Cohen would flip in order to avoid becoming someone’s “wife” in prison. Under investigation for potential wire fraud, bank fraud, and campaign violations, Cohen is facing years in prison, should he decide to take a metaphoric bullet for Trump. So at the moment, the fact that he owes hundreds of thousands of dollars in unpaid taxes related to his taxi company is probably not top of mind. Given that he’s likely going to owe millions in legal fees, however, his deteriorating financial situation is certainly worth mentioning:
Taxicab companies owned by Michael Cohen or family members just got hit with nearly $80,000 in new claims for unpaid taxes, according to records filed in New York.
New York state filed tax liens in Manhattan this week against five companies owned by Cohen and members of his family, including Mad Dog Cab Corp., Martha Cab Corp., LAF Hacking Corp. and NY Funky Taxi Corp. The Cohens own medallions for 32 taxis in New York City through 16 companies. Most of those companies are now encumbered by liens: State tax authorities are seeking about $174,000 in all in taxes from Cohen family taxi companies, including the latest claims.
Cohen, the chief executive officer of the five companies, disputed the figure and said the tax obligation isn’t his. “These are the obligations of the operator, not the passive investor,” he said in a telephone interview.
In related news that Cohen is likely praying to the gods of hush money will come true, Rudy Giuliani, the newest member of Trump’s legal team, has predicted that the Mueller probe will be over in a week, two weeks tops. “They’re almost there,” Giuliani, who may have been brought on simply for moral support, told the New York Post. For all you bookmakers out there, the last Trump attorney to predict a quick resolution to the Russia investigation was Ty Cobb, who claimed the whole thing would be wrapped up by Thanksgiving 2017.
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The Trump administration actually fined a bank
It was Wells Fargo, poster child for fraud, so there wasn’t really any getting out of it, though we’re sure Mick Mulvaney tried:
Two federal regulators are fining Wells Fargo $1 billion for forcing customers into car insurance and charging mortgage borrowers unfair fees.
The penalty was announced Friday by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency.
It is the harshest action taken by the Trump administration against a Wall Street bank.
In a statement, Wells C.E.O. Tim Sloan—who got a sizable raise last month—said the bank had made progress in its newfound commitment to “review all of our practices and make things right . . . our customers deserve only the best from Wells Fargo, and we are committed to delivering that.”
Surprise: Trump’s steel tariffs will lead to U.S. job losses
“Although it is difficult to say exactly how many jobs will be affected, given the history of protecting industries with import tariffs, we can conclude that the 25 percent steel tariff is likely to cost more jobs than it saves,” Fed economists wrote in a post for the New York Fed’s Liberty Street Economics blog. “The new tariffs are likely to lead to a net loss in U.S. employment, at least in the short to medium run.” Earlier in the week, New York fed president William Dudley said that “a tariff war would be a terrible, terrible outcome,” adding, “I would not look at a trade war as something we can win. I don’t really think a trade war is a winnable proposition.” (That, obviously, is different from Donald “Trade wars are good and easy to win” Trump’s take on the situation.)
And speaking of tariffs . . .
As it turns out, Trump’s threats might get China to lower its import tariffs on foreign cars, long the subject of his ire. But the companies that will benefit are, wait for it, not America ones.
That’s according to Robert Zoellick, who is both a former U.S. trade representative and erstwhile head of the World Bank. Mr. Zoellick, who is now chairman of investment-management firm AllianceBernstein, told The Wall Street Journal in Tokyo that if China’s leader Xi Jinping were to lower car import tariffs from 25 percent closer to the U.S.’s 2.5 percent, it would only offer the Trump administration a symbolic victory that wouldn’t aid American car makers much.
“You could easily see Xi Jinping saying, ‘O.K., well, I’ll lower the tariff on autos.’ And it would be a great win,” Mr. Zoellick said. But he said it would most likely only help German car makers that export to China from their plants in the U.S.
That is “because the U.S. producers are Ford and GM, and they’ve got their plants in China, so what difference is it going to make? It would make a difference for BMW, and BMW in South Carolina exporting and so on and so forth,” he said.
Elsewhere!
Mnuchin Urges IMF to “Step Up to the Plate” in Fair Trade Debate (Bloomberg)
Wall Street doesn’t care about your good earnings right now (CNBC)
SunTrust Employee May Have Stolen Information About 1.5 Million Clients (W.S.J)
Herbalife prepared a “secret dossier” on Bill Ackman as it geared up for fight with activist (CNBC)
Wall Street still nervous about pot investments (N.Y.P.)
Trump lied to me about his wealth to get onto the Forbes 400. Here are the tapes. (Washington Post)
Why the Dodd-Frank Rollback Has Some Small Banks Yawning (W.S.J.)
Lighthizer favors hardball tactic with Congress on NAFTA (Politico)
Trump rails against high oil prices, OPEC pushes back (Reuters)
Naked Burglar Found In Tub Eating Cheetos (TSG)
