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Billionaire Financial Executive Agrees to Divest Holdings to Assume Commerce Secretary Post
Howard Lutnick, the billionaire financial executive nominated by President Trump to head the Commerce Department, has agreed to divest his corporate holdings and relinquish his position as Chief Executive Officer (CEO) of Cantor Fitzgerald.
According to an ethics filing obtained by CBS News, Lutnick will step down from his role at Cantor Fitzgerald, a brokerage and investment bank where he has served for many years. This move is seen as crucial in order to avoid any potential conflicts of interest that may arise during his tenure as Commerce Secretary.
As the head of the Commerce Department, it would be Lutnick’s responsibility to promote U.S. corporate interests, including funding new computer chip factories, imposing trade restrictions, and releasing economic data. His connections with CEOs and the wider business community will also play a crucial role in this position.
It is worth noting that Cantor Fitzgerald has become increasingly involved in the crypto space in recent years, backing a particular company called Tether. This move could potentially create conflicts of interest given the Trump administration’s stance on weakening crypto regulation.
Lutnick has pledged to avoid any such conflicts and ensure a smooth transition into his new role as Commerce Secretary. His agreement to divest his holdings is seen as an attempt to quell concerns over potential conflicts of interest.
The filing also reveals that Lutnick will step down from his position at BGC Group, Inc., a global brokerage and financial technology company, which holds significant government contracts. He has also agreed to depart as chairman of Newmark Group, Inc., a commercial real estate firm.
Lutnick’s appointment to the Commerce Secretary post has raised eyebrows due to his strong advocacy for imposing wide-ranging tariffs. As someone who will retain vast holdings even after stepping down from his corporate positions, the task of divestiture is expected to be complex.
As previously reported, Lutnick had hosted a fundraiser for Trump last August that raised $15 million and donated $5 million to the Make America Great Again PAC, according to Federal Election Commission records.
Source: http://www.cbsnews.com
