Protection Team Convened

PUBLISHED: 4:14 PM 24 Dec 2018

Treasury Secretary Convenes ‘Plunge Protection Team’ Amid Stock Situation

Steve Mnuchin is working to stop falling stock prices.

Steve Mnuchin is convening a 'protection' team to help control plunging stock prices after the federal reserve acts.

President Donald Trump’s Treasury secretary, Steve Mnuchin, called top U.S. bankers yesterday making plans to convene a group of officials known as the “Plunge Protection Team.”

The move comes as stock prices have fallen in recent weeks, with the S&P 500 index .SPX on “pace for its biggest percentage decline in December since the Great Depression.”

“Today I convened individual calls with the CEOs of the nation’s six largest banks,” Mnuchin wrote on Twitter.

Reuters reported, “U.S. equity index futures dropped late on Sunday as electronic trading resumed to kick off a holiday-shortened week. In early trading, the benchmark S&P 500’s e-mini futures contract ESv1 was off by about a quarter of a percent.”

“The Treasury said in a statement that Mnuchin talked with the chief executives of Bank of America (BAC.N), Citi (C.N), Goldman Sachs (GS.N), JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Wells Fargo (WFC.N).”

“The CEOs confirmed that they have ample liquidity available for lending,” the Treasury said.

Mnuchin “also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly,” according to the department.

“The Treasury said Mnuchin will convene a call on Monday with the president’s Working Group on Financial Markets, which includes Washington’s main stewards of the U.S. financial system and is sometimes referred to as the ‘Plunge Protection Team.’”

The group will include officials from the Federal Reserve as well as the Securities and Exchange Commission.

Some suggest that the slowing growth and falling prices have more to do with democrats regaining power of the House than anything the president has said or done.

In fact, when looking at the behavior of the markets, it wasn’t until democrats gained the seats in the house that the declines began to have an impact.

Unemployment numbers are still the best in decades, and the President seems more willing to act like the disrupter his supporters voted for than he has in months. Rather than kowtowing to career politicians, President Trump has begun to push back.

The withdrawal of troops, the government shutdown over border security, and his general lack of patience demonstrates that he’s had enough.