When news broke that President-elect Donald Trump had tapped controversial Florida Representative Matt Gaetz to head the Department of Justice, Wall Street executives found themselves shocked, even shaken. CNBC “Squawk Box” host Andrew Ross Sorkin shared this reaction firsthand during an appearance on MSNBC’s Morning Joe, recounting a shift in tone that rippled through a roomful of investors as they heard the announcement.
“I was at a conference yesterday and there were a whole bunch of investors when the news came down,” Sorkin recalled. “I would say up until that moment so many of them had a big grin on their face about where the market was going, the economy, all of that.” According to Sorkin, there was optimism in the air, a sense that Trump’s return to the Oval Office might boost the economy and ease concerns about market volatility.
However, the mood quickly darkened. As soon as the news of Gaetz’s nomination circulated, there was an immediate reaction, one of disbelief and worry. “When it first came across the phone, there were people, including myself, who thought it was a parody account,” Sorkin said. “We literally thought it was The Onion and didn’t believe it.” But disbelief turned to genuine concern as they absorbed the reality of the situation.
In an instant, the room’s confident outlook shifted to one of apprehension. “The shift in tone went from, ‘Wow, we’re going to have a great economy, and I don’t have to worry,’ to, ‘Okay, maybe now I have to worry,’” Sorkin observed, describing the palpable change in atmosphere. Throughout the night, Sorkin’s phone continued to light up with messages from members of the business community, individuals who had felt hopeful about Trump’s economic promises but were now re-evaluating their outlook.
He explained, “People in the business community who I think are still hopeful in their own ways about the economic issues…when it comes to law and order when it comes to the Justice Department and what this is ultimately going to look like, what prosecutions are going to look like, that threw a lot of people back on their feet.”
Gaetz, a controversial figure known for his populist and often combative style, is not the typical Justice Department head many would expect. His appointment raised pressing questions for investors about how law enforcement might be handled under his direction, casting doubt on whether the legal and regulatory climate would remain stable.
The stakes are high, and the implications of a Gaetz-led Justice Department loom large, especially for those in finance, who are sensitive to the impact that policy shifts in justice and regulation can have on the markets. Sorkin went on to highlight a deeper issue at play: reluctance within the business community to voice their concerns publicly. “The question is whether they can stand up and say so publicly, and I think, unfortunately, the answer is still no,” he remarked, alluding to the complex political dynamics that have led many executives to remain silent on their true opinions.
“Especially no because of the role this individual may ultimately play,” he added, pointing to Gaetz’s potential influence on significant legal and enforcement matters. For Wall Street execs who had hoped Trump’s second term might bring economic stability, Gaetz’s nomination has introduced an unexpected twist, raising doubts and concerns. As Sorkin’s account reveals, the nomination has triggered a shift from confidence to caution, underscoring just how deeply political appointments can ripple through the world of finance.