Unlock the White House Watch newsletter for free
Your guide to what Trump’s second term means for Washington, business, and the world
Donald Trump’s commerce secretary, Howard Lutnick, is set to sell stakes in two publicly listed companies for a total of $361 million in order to comply with government ethics rules. This move comes as Wall Street investor and Trump campaign mega donor, Lutnick, aims to avoid conflicts of interest while serving in his government role.
According to the companies involved, Lutnick will be selling his shares in BGC and Newmark for $234 million and $127 million, respectively. Additionally, Lutnick has transferred his ownership in Cantor Fitzgerald into trusts for the benefit of his children, with control passing to his son, Brandon Lutnick.
It is common practice for Wall Street executives who join the government to divest or place their holdings in trust to prevent any conflicts of interest. These rules allow for such sales to be made without immediate taxes on the gains, ensuring top talent can join the government without financial penalties for liquidating assets.
Under the terms of the deal announced, BGC will repurchase Lutnick’s class A shares, while Cantor Fitzgerald will acquire his class B stock. Newmark will also buy back his entire stake in the company. This consolidation of control within Cantor Fitzgerald sees Brandon Lutnick taking on a more prominent role within the firm, having been named chair of the holding company earlier this year.
Brandon Lutnick, at just 27 years old, is emerging as a rising force on Wall Street under the Trump administration. Recently, he partnered with SoftBank, Tether, and Bitfinex on a bitcoin-focused blank-check company, looking to capitalize on the crypto revival under the new administration.
In light of the leadership transition, Cantor has appointed Pascal Bandelier, Sage Kelly, and Christian Wall as co-chief executives of the investment bank. Additionally, the firm has brought in Mike Whitaker from Citi as chief operating officer, working alongside chief financial officer Danny Salinas and general counsel Stephen Merkel.
Furthermore, Cantor announced that 26North, a private capital firm led by Apollo co-founder Josh Harris, and Glenn August, founder of Oak Hill Advisors, have become minority investors in the company. Brandon Lutnick expressed confidence in the management team and growth strategy, citing the support of these world-class investors.
Howard Lutnick, a close ally of President Trump, has been instrumental in shaping the administration’s trade agenda, particularly in negotiating tariff agreements with China and the EU. He was even considered for the role of US Treasury secretary and has been a top fundraiser for Trump’s 2024 campaign, personally donating over $10 million and helping raise around $75 million in total.
Similar to Lutnick, other wealthy individuals have utilized mechanisms to sell shares in order to reduce conflicts of interest and avoid significant tax liabilities. For example, Hank Paulson sold nearly $500 million in Goldman Sachs shares in 2006 after becoming Treasury secretary under President George W. Bush. To take advantage of this tax-saving strategy, the gains must be reinvested in US Treasuries or a broad mutual fund, with eventual taxes due if these investments are later sold.
