As ace investigative reporter Gretchen Morgenson of the New York Times noted in a piece back on April 7th, Phillips headed a division that sold billions of dollars of mortgage-backed investments to Fannie and Freddie. Many of those investments were as bad as the ones his unit sold to the Chinese. In fact, as Morgenson noted, Phillips became a named defendant in a lawsuit filed by the Federal Housing Finance Authority (FHFA), which essentially charged, as the Chinese did, that Morgan Stanley knowingly sold Fannie and Freddie a pile of crap.

Donald Trump, then, has essentially picked one of the last people on earth who should be allowed to help reshape the mortgage markets. This is like putting a guy who sold thousand-dollar magazine subscriptions to your grandmother on the telephone in charge of the Consumer Financial Protection Bureau, or the A.A.R.P.

The Trump kakistocracy continues.

http://www.rollingstone.com/politics/news/taibbi-trump-named-craig-phillips-to-fix-wall-street-w479332