Senators Accuse Cantor Fitzgerald of Possible Insider Trading Over Trump Tariffs

US Senators Ron Wyden and Elizabeth Warren have launched an investigation into Cantor Fitzgerald, led by Brandon Lutnick — the son of current US Commerce Secretary Howard Lutnick. They claim the case could be a “textbook example of insider trading” tied to financial products linked to tariffs imposed during the Trump administration.

Suspicion: Trading on Political Uncertainty According to an investigation published by Wired, Cantor Fitzgerald was developing a financial product that would allow clients to profit from the legal uncertainty surrounding Trump’s sweeping tariffs.

If courts were to rule these tariffs illegal, companies that paid them could be entitled to large refunds. Cantor allegedly offered these companies upfront cash equal to 20–30% of the tariff value in exchange for the right to claim the full refund if the court ruled in their favor. Wyden and Warren argue this represents a clear conflict of interest — saying that Cantor is essentially betting against a policy promoted by the Commerce Secretary, who happens to be the CEO’s father. “This product allows the firm to profit if the courts overturn Trump’s tariffs,” they wrote in a letter to Brandon Lutnick.

Demand for Transparency The senators want details: how many such agreements Cantor has signed, the size of these deals, and who the counterparties are. They are also asking whether the product was developed internally or at the request of a specific client, and whether there was any communication with Donald Trump, Commerce Secretary Howard Lutnick, or other government officials.

Denial of Allegations Cantor Fitzgerald denies the accusations. Spokeswoman Erica Chase called the reports “entirely false,” stating the firm “does not engage in betting, take positions, or broker trades” related to lawsuits over the legality of US tariffs. However, the senators say there is evidence Cantor has already signed at least one contract worth $10 million, with the potential to expand into the hundreds of millions depending on demand.

Potential Political and Ethical Fallout Wyden and Warren warn that such conduct not only raises ethical concerns but could also undermine public trust in government. In their letter, they describe it as an example of how financial firms can leverage government policy to create private profit channels. The Senate is now waiting for Brandon Lutnick’s response. If no answer comes, the case could pull Cantor further into political and legal turmoil.

#insidertrading , #USPolitics , #TRUMP , #Tariffs , #USGovernment

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