Donald Trump's transition team ended months of speculation Wednesday as officials announced that the president-elect will resign from all positions he holds with the Trump Organization and give control of his businesses to his sons.
Donald Trump's transition team ended months of speculation Wednesday as officials announced that the president-elect will resign from all positions he holds with the Trump Organization and give control of his businesses to his sons.
The incoming president, who has faced questions over possible conflicts of interest between his new position and his businesses, will further appoint an ethics adviser to oversee new transactions and deals, as well as donate all foreign government payments to his hotels to the U.S. Treasury, officials announced at a news conference.
Sheri Dillon, a lawyer with the firm Morgan, Lewis & Bockius who detailed Trump's arrangement to reporters, stressed that the incoming president will be focused on advancing the interests of the American people, not his own pocket.
Contending that conflicts of interest laws don't apply to the president and vice president, Dillon stressed that Trump has voluntarily decided to separate himself from his financial assets.
The president-elect, she said, will convey his Trump Organization assets to a trust prior to taking office on Jan. 20. Under the trust agreement, Don Jr. and Eric Trump, as well as longtime executive Allen Weisselberg, will manage the Trump Organization and make decisions throughout the duration of Donald Trump's presidency.
The incoming president will have no impact or influence whatsoever on those decisions, Dillon stressed.
Trump reiterated such claims, saying his sons will run the company "in a very professional manner."
"They're not going to discuss it with me," he told reporters.
Additionally, an ethics adviser will be appointed to the trust's management team. The adviser's written approval will be needed for new deals, actions and transactions that could raise ethics or possible conflicts of interest questions, Dillon said.
Trump will further resign from positions he holds with Trump Organization entities and his daughter, Ivanka, will have no management authority with the family's businesses.
Dillon said the president-elect has already disposed of his investments in publicly traded or "easily liquidated investments," adding that the trust will have two kinds of assets: liquid and business assets.
The incoming president has also moved to limit his information rights, so that information will only reflect profits or losses on the company as a whole, she said.
"In sum, all of these actions -- complete relinquishment of management, no foreign deals, ethics adviser approval of deals, sharply limited information rights -- will sever President-elect Trump's presidency from the Trump organization."
Addressing questions of why the president-elect would not divest or sell off his assets, Dillon contended that selling alone would not eliminate possible conflicts of interest and could exacerbate them as Trump would be entitled to royalties for the use of his brand.
Any price paid for such assets, she added, would be subject to criticism.
Dillon further argued that "you cannot have a totally blind trust with operating businesses" and Trump can't un-know he owns Trump Tower.
To avoid even the appearance of a conflict of interest, Dillon noted that Trump also intends address possible Constitutional bans on foreign government payments by donating any profits from foreign payments to his hotels to the U.S. Treasury.
"The approach he is taking allows Don and Eric to preserve this great company and its iconic assets and this approach is best from a conflicts and ethics standpoint," she said.
Massachusetts lawmakers have been critical of Trump's plan to transfer power of his businesses to his sons, contending that they only way to truly eliminate possible conflicts of interest would be for the president-elect to divest his financial interests and place them in a blind trust.
Elizabeth Warren, Democrats push for President-elect Donald Trump to divest his business holdings
U.S. Sen. Elizabeth Warren, D-Mass., and U.S. Rep. Katherine Clark, D-Melrose, have both introduced legislation that would require Trump and future presidents to resolve any conflicts of interests between their financial interests and government responsibilities.