WASHINGTON— Eugene Scalia, President Trump’s nominee to lead the Labor Department, earned more than $6 million since the beginning of last year as a corporate attorney, according to government disclosures.
Mr. Scalia, a partner at the law firm Gibson, Dunn & Crutcher, also said in the disclosures that his legal clients include a range of businesses, from megabanks such as Bank of America and Goldman Sachs Group Inc. to tech giant Facebook Inc. and retailer Walmart Inc.
The disclosures came in filings released by the Office of Government Ethics late Thursday or early Friday.
The White House formally announced its intent to nominate Mr. Scalia earlier this week to succeed Alexander Acosta as Labor secretary. Mr. Acosta stepped down earlier this summer.
The ethics disclosures show that Mr. Scalia received $6,232,021 in “partnership share and bonus” between January 2018 and the time he signed the document in late July.
Mr. Scalia’s ties to the financial-services industry and other big businesses could complicate his tenure on high-profile initiatives should he win Senate confirmation to lead the department.
For instance, he is expected to sit out the department’s rewrite of a closely watched investment-advice rule, after successfully leading an industry challenge to the Obama administration’s version of the regulation, The Wall Street Journal reported this month.
The position of director of national intelligence was created after the 9/11 terror attacks to prevent another such assault on the American homeland. The DNI, as the director is known, must oversee 17 intelligence agencies with a total budget of about $60 billion. There are few jobs more important in the federal government — or the entire country. Yet President Trump treated the selection of a DNI with less care and forethought than he would give to picking an interior designer for Mar-a-Lago.
When Dan Coats decided last month that he had suffered enough as Trump’s DNI, Trump reportedly called Sen. Richard Burr (R-N.C.), chairman of the Senate Intelligence Committee, to ask what he thought about Rep. John Ratcliffe (R-Tex.) as a replacement. “Burr responded that he didn’t know much about the lawmaker but would consult with a few people,” Politico reported. “But less than a half hour later, Trump tweeted that Ratcliffe was his choice.”
Trump picked Ratcliffe, it seems, because he liked the congressman’s obnoxious questioning of former special counsel Robert S. Mueller III in July hearings and his role in spreading cuckoo conspiracy theories about a nonexistent “secret society” of FBI agents supposedly out to get the president. But it soon emerged that Trump didn’t know much about his new nominee.
In the days after Trump impetuously announced Ratcliffe’s nomination on July 28, The Post and other news organizations discovered that the three-term congressman from Texas had greatly embellished his résumé. He had boasted that he had “arrested over 300 illegal immigrants in a single day” and had “firsthand experience combating terrorism. When serving by special appointment in U.S. v. Holy Land Foundation, he convicted individuals who were funneling money to Hamas behind the front of a charitable organization.” Turns out that Ratcliffe had played only a small role in a sweep of undocumented immigrants and an even smaller role in the Holy Land case; an aide told the New York Times that Ratcliffe only “investigated side issues related to an initial mistrial.”
With Senate opposition growing, Trump withdrew Ratcliffe’s nomination on Friday just five days after putting him forward. He had lasted less than half a Scaramucci. In pulling the plug, Trump both credited and blamed the media, saying, “You are part of the vetting process. I give out a name to the press and you vet for me, we save a lot of money that way. But in the case of John [Ratcliffe], I really believe that he was being treated very harshly and very unfairly.”
Ratcliffe was treated “very harshly and very unfairly” — but by Trump, not the news media. There’s a reason presidents normally vet nominees before, not after, they’re announced. It’s better both for the prospective appointee and for the president to have any skeletons uncovered before swinging the closet door wide open.
By ignoring the traditional way of doing things, Trump subjected his personal physician, Rear Adm. Ronny L. Jackson, to considerable embarrassment in 2018 by nominating him to become secretary of veterans affairs and then having to withdraw the nomination after stories emerged accusing Jackson of “freely dispensing medication, drinking on the job and creating a hostile workplace.” The Defense Department inspector general even launched an investigation of Jackson. Learning nothing, Trump repeated the same mistake this year when he nominated Herman Cain and Stephen Moore to the Federal Reserve Board of Governors — posts for which they were utterly unqualified. Facing Senate resistance, Trump had to withdraw their names — but not before unflattering details of Moore’s divorce became public.
And those are the good-news stories: the nominees who never took office. Much more common for Trump has been his discovery, after the fact, that his appointments were terrible mistakes. His clunkers have included a secretary of state
- (Rex Tillerson) who devastated morale at the State Department; a national security adviser
- (Michael Flynn) who was convicted of lying to the FBI; three Cabinet officers (Interior Secretary
- Ryan Zinke, Veterans Affairs Secretary David Shulkin, Health and Human Services Secretary
- Tom Price) who were forced out for improper travel expenses and other ethical improprieties; a secretary of labor
- (Alexander Acosta) who had given a sweetheart deal to a wealthy sex offender; and of course a communications director
- (Anthony Scaramucci) who was fired after 11 days for giving a profanity-filled, on-the-record interview to a reporter.
Coats is the 10th Cabinet member to leave the Trump administration. In President Barack Obama’s first two years in office, not a single Cabinet member departed. Trump also has a record-setting rate of 75 percent turnover among senior, non-Cabinet officials. The cost of this constant churn and chaos is high: It becomes nearly impossible to develop or pursue coherent policies.Trump is a president straight out of “The Great Gatsby.” F. Scott Fitzgerald wrote of his protagonists: “They were careless people, Tom and Daisy — they smashed up things and creatures and then retreated back into their money or their vast carelessness or whatever it was that kept them together, and let other people clean up the mess they had made.” In Trump’s case, the thing that he has smashed up is America’s government, and the cleanup cannot begin until January 2021 at the earliest.
.. The Labor Department’s landmark retirement-savings rule is set to take effect in 2½ weeks, a move that underscores the difficulty the Trump administration is encountering in undoing Obama-era financial regulations... The Obama administration said conflicted financial advice costs American families $17 billion a year and pushes down annual returns on retirement savings by a percentage point... Some brokerages have already moved to solidify their compliance plans for retirement savers. J.P. Morgan Chase & Co., for example, will now move forward with its plans to shift wealth-management clients who pay commissions in IRAs to either a self-directed option or its fee-based platform .... Ms. Sweeney, the regulation saves investors $147 million every 60 days.