NEW YORK — After Ivanka Trump appeared on CBS’s “60 Minutes” wearing a $10,800 bracelet from her line, someone at her company sent photos from the interview to fashion writers to drum up publicity. A firestorm of criticism erupted over the impropriety of profiting off the presidency, and the company apologized.
Experts on government ethics are warning President-elect Donald Trump that he’ll never shake suspicions of a clash between his private interests and the public good if he doesn’t sell off his vast holdings, which include roughly 500 companies in more than a dozen countries. They said just the appearance of conflicts is likely to tie up the new administration in investigations and lawsuits.
“People are itching to sue Donald Trump and stick him under oath,” said Richard Painter, chief White House ethics lawyer for George W. Bush.
In an interview with The New York Times on Tuesday, Trump insisted that the “law’s totally on my side,” and ethics experts agree that federal conflicts of interest rules exempt the president from running his businesses the way he pleases while in office. The Trump Organization reiterated its plans to transfer control of the company to his adult children.
Painter doesn’t think that goes far enough. In a letter to Trump last week, he joined watchdog groups and ethics lawyers from both Democratic and Republican administrations in predicting “rampant, inescapable” conflicts that will engulf the administration if the president-elect does not liquidate his business holdings.
A look at five areas where conflicts may arise:
1. NEW HOTEL
For use of the government-owned Old Post Office for his new Washington hotel, Trump agreed on annual rent to the government in a contract that was signed more than three years ago.
According to Steven Schooner, a professor of government procurement law at George Washington University who has studied contract. In addition to base rent, the president-elect agreed to additional annual payments based on various financial measures of how well the hotel is doing. Schooner said such payments typically require negotiations.
“How can anyone expect a government employee to negotiate with the Trump family at arm’s length and treat the Trump family like any other contractor?” Schooner asked.
2. FOREIGN AFFAIRS
Trump’s extensive operations abroad raise the possibility that his foreign policy could be shaped by his business interests, and vice versa. Trump has struck real estate deals in South Korea, the Philippines, Indonesia, Uruguay, Panama, India and Turkey, among other countries.
3. TRUMP LENDER
One of Trump’s biggest lenders is Deutsche Bank, a German giant in settlement negotiations with the Department of Justice on its role in the mortgage blowup that triggered the 2008 financial crisis. The hit to Deutsche could be substantial, with the government reportedly demanding $14 billion.
Will a Justice Department under Trump go easy on the bank? Trump will nominate the head of that agency, too.
4. TAX AUDIT
The odds that the IRS will rule against Trump may be no different than before he was elected.
Trump has cited a long running audit by the Internal Revenue Service in refusing to release his tax returns. If he is under scrutiny, it’s not surprising. In his Oct. 9 debate with Hillary Clinton, Trump confirmed he used a $916 million loss in 1995 to avoid paying federal taxes for years.
The president nominates the commissioner of the IRS who, assuming the Senate approves, serves for five years.
5. FLURRY OF LAWSUITS
Trump said Friday that he agreed to pay $25 million to settle three lawsuits alleging fraud at his Trump University so he could focus on preparing for presidency.
