Senator Press Howard Lutnick’s former investment firm deals with tariff conflict
Last month, wired The investment banking unit of Cantor Fitzgerald, a financial services company headed by the sons of U.S. Commerce Secretary Howard Lutnick, is exploring the creation of financial products for clients to bet on whether President Donald Trump’s signature tariffs will be approved in court.
In response to Wired’s reports, Democratic Senators Ron Wyden and Elizabeth Warren wrote a letter Wednesday from Cantor Fitzgerald Chairman Brandon Lutnick asking for more information about the company’s activities. “Given that one of the architects of President Trump’s tariff policy is Commerce Secretary Howard Lutnick, your father and former chairman and CEO of Cantor Fitzgerald, LP, the company’s actions have caused obvious conflicts of interest and insider concerns,” the lawmakers wrote.
“The reporting on our business is absolutely wrong. Cantor is not about disposing of any risks, taking opinions or promoting business in litigation claims involving the legality of U.S. tariffs,” Cantor Fitzgerald spokesman Erica Chase said in an emailed statement.
Howard Lutnick ran Cantor Fitzgerald for nearly 30 years until he was confirmed by the Senate in February, when he handed over control of the company to Brandon and his brother Kyle. After joining the Trump administration, Howard Lutnick became one of the most outstanding public supporters of the president’s tariffs.
But according to previous reports from Wired, the investment bank that made Lutnik a billionaire recently made certain clients bets as Trump’s tariffs will eventually be ruled illegal, when companies that have paid their import obligations can apply to get back money. Experts say the proposed deal is a form of litigation financing, an increasingly popular investment category where financial companies try to make money from potential legal settlements.
Trump announced in February that the United States would impose huge tariffs on goods in Mexico and Canada under the International Emergency Economic Powers Act (IEPA). He expanded the trade war in April, including nearly every country selling goods to the United States, and Trump said he would now suffer a “countdown” tariff of 10% to 50%.
State officials and small businesses responded, filed a series of lawsuits against the Trump administration, saying the president exceeded his powers under Ieepa and that tariffs should be ruled illegal. In one of the cases, the U.S. Court of International Trade supported the plaintiff, but the Trump administration quickly appealed the ruling. The Court of Appeal allows the tariffs to remain in effect until a final decision is reached.
Wyden and Warren specifically asked Brandon Lutnick in the letter if anyone had any regard for tariffs with the Trump administration.
“Did anyone at Cantor Fitzgerald’s record label communicate with anyone in the executive branch, including President Trump, Secretary Lutnik, any individual hired by the Department of Commerce, or any other person, regarding tariffs, refunds or exclusions, and legal cases involving IEEPA?” the letter asked. “If so, please provide a list of all such conversations, including the date, the person concerned and the nature of the conversation.”
Senators asked Brandon Lutnick to answer their questions by August 27.
