Goldman's Donovan Drops Out of No. 2 Treasury Job Consideration

Goldman Sachs Group Inc. executive Jim Donovan withdrew from consideration to be the next deputy Treasury secretary, according to a White House official.

His decision stemmed from difficulties related to financial disclosures and the vetting process, according to a person familiar with the move. Donovan helped Treasury Secretary Steven Mnuchin recruit senior officials and he’s now shifting his focus to family, the department’s spokesman Tony Sayegh said in an emailed statement on Friday.

A Goldman Sachs spokesman didn’t immediately reply to a request for comment.

The departure is a setback for Mnuchin’s effort to handle an ambitious agenda including an historic tax overhaul this year, de-regulation of the financial industry and reform of the housing finance system.

Mnuchin has been in office since February with most key senior-level Treasury positions unfilled, including undersecretaries for domestic finance and international affairs. While in public forums Mnuchin often heaps praise on career Treasury staffers, he’s had to rely on counselors who don’t require Senate confirmation to step into senior positions. Counselors have more limits on their policy making powers than officials approved by Congress.

Nominees for Senate-confirmed government positions must disclose their finances and sign an ethics agreement before going through a vetting process by lawmakers.

The Trump administration has been wary of recruiting too many former Goldman Sachs alumni for higher-up positions.

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