Howard Lutnick Pledges Business Sale for Commerce Department Confirmation
In a Senate confirmation hearing, Howard Lutnick, President Trump's nominee for U.S. Commerce Secretary, announced plans to divest all business assets if confirmed. Lutnick, CEO of Cantor Fitzgerald LP, stated that he would "sell all of my business interests" within 90 days of confirmation.
Convertible Bond with Tether Holdings
During the hearing, Lutnick acknowledged a convertible bond between Cantor Fitzgerald and Tether Holdings Ltd., a controversial cryptocurrency firm. The arrangement allows Cantor to earn interest payments and acquire shares in Tether if specific conditions are met.
Concerns over Financial Holdings
Lutnick's financial situation has raised concerns due to his extensive involvement in over 800 entities. He disclosed assets worth at least $806 million and income of over $356 million in 2023-2024.
Plans for Divestment
Lutnick emphasized his commitment to divesting from all financial holdings, including Cantor Fitzgerald, Newmark Group Inc., and BGC Group Inc. He also pledged to resign from his role at Cantor Fitzgerald upon confirmation.
Tariff and Trade Agenda
Trump has tasked Lutnick with leading the administration's tariff and trade agenda at Commerce. Lutnick expressed support for "across-the-board" tariffs on a "country-by-country" basis. He believes tariffs can promote reciprocity, fairness, and respect.
Domestic Chip Manufacturing
Lutnick praised the Biden administration's initiative to allocate billions in grants and loans for domestic chip manufacturing. However, he suggested that these investments should be reviewed.
Semiconductor Export Controls
The Commerce Department faces scrutiny over its management of semiconductor export controls aimed at curbing China's advancement in artificial intelligence. Lutnick indicated that the administration is reviewing the effectiveness of these measures.