Trump's Commerce Secretary Loves Tariffs. His Bank Is Taking Bets Against Them
9 days ago
- #litigation
- #finance
- #tariffs
- Cantor Fitzgerald is creating a financial product allowing investors to bet against Trump's tariffs being upheld in court.
- The firm, now led by Howard Lutnick's sons, is offering to buy potential tariff refund rights from companies at 20-30% of the paid duties.
- This move is seen as a form of litigation finance, where investors profit from legal settlements by paying a fraction of potential refunds.
- Experts note the irony of the commerce secretary's firm betting against tariffs he publicly supports, raising ethical questions.
- Companies face financial strain from ongoing tariff payments, with refund processes being slow and cumbersome, making Cantor's offer appealing to some.
- Legal challenges to Trump's tariffs are ongoing, with cases potentially reaching the Supreme Court, delaying final resolutions.