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Finance

Goldman Sachs CEO Lloyd Blankfein says Trump policies are 'market supportive'

One person not surprised by the post-election stock market rally is Goldman Sachs CEO Lloyd Blankfein.

While virtually every strategist on Wall Street predicted before Tuesday's results that a Donald Trump victory would lead immediately to stock market losses, Blankfein didn't feel that way.

"His policies are market-supportive," he said Thursday at the DealBook Conference in New York. "I'm not saying it's good or bad … just as far as asset prices in the market are concerned, how could they not be supportive?"

Market watchers were concerned that the sheer unpredictability of a Trump win would knock equities for a loop. The projections for near-term market losses ranged from a few percent to more than 10 percent.

Just the opposite happened. Stock market futures cratered Tuesday evening and Wednesday morning as it became clear that Trump would score a historic upset over Hillary Clinton, but turned around by the market open.

Thursday's trading closed with the Dow at a record high.

For his part, Blankfein was noncommittal about Trump's prospects. He laughed when asked about a Trump ad that cast him, Wall Street and Fed Chair Janet Yellen in a harsh light.

"After I got up off the floor, I was thinking I didn't take it that personally," he said. "I've been in the press a lot from time to time. That does not make my top 30 list of things that I would be concerned about."

During the campaign, Trump gave divergent views about banks: He pledged to dismantle Dodd-Frank but to reinstitute the Glass-Steagall Act that separated commercial and investment banking activity. Blankfein said it would be counterproductive to take deregulation too far.

On other issues, he responded to a CNBC report earlier in the day that JPMorgan Chase CEO Jamie Dimon was being considered to head the Treasury Department by saying, "He'd be a great treasury secretary." Blankfein also called Dimon a "terrific competitor" so having him take a Cabinet spot would "kill two birds with one stone."

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