Democrats Probe $1.6 Billion USA Rare Earth Deal Over Cantor Fitzgerald Ties
Updated
Updated · Bloomberg · Jul 7
Democrats Probe $1.6 Billion USA Rare Earth Deal Over Cantor Fitzgerald Ties
3 articles · Updated · Bloomberg · Jul 7
Summary
Democratic lawmakers are examining whether last month’s $1.6 billion USA Rare Earth deal created a conflict of interest tied to Commerce Secretary Howard Lutnick’s former firm, Cantor Fitzgerald.
Cantor acted as placement agent on the transaction, and lawmakers said the deal likely benefited two of Lutnick’s adult sons, who now run the firm.
A letter sent to Cantor Chairman Brandon Lutnick centers the probe on whether the arrangement improperly advantaged the secretary’s family through a critical-minerals deal.
The scrutiny lands on a transaction involving USA Rare Earth, a company in a sector the U.S. views as strategically important for critical-minerals supply.