Howard Lutnick also offloaded stakes in BGC and Newmark in order to meet federal conflict-of-interest rules.
Commerce Secretary Howard Lutnick has divested his longstanding ownership in Cantor Fitzgerald, transferring control to his children and a select group of private investors, in a move that fulfils federal ethics requirements.
An investor group led by 26North Partners—the alternative asset management firm founded by Josh Harris, Apollo co-founder and managing partner of several sports teams—joined the new ownership structure as minority stakeholders. Glenn August, CEO of Oak Hill Advisors, is also part of the group.
“Kyle and I are honored to continue building on our father’s legacy, leading Cantor Fitzgerald alongside the exceptional executive team we have in place today,” Brandon Lutnick said in a statement.
“We are thrilled to welcome Josh Harris’ 26North and Glenn August as minority investors. As we enter the next chapter of our corporate journey, having the support of these world-class investors underscores the confidence in our management team and growth strategy.”
Lutnick had promised to divest from Cantor and related firms during his Senate confirmation hearings, where lawmakers raised concerns about potential conflicts of interest. As commerce secretary, Lutnick plays a key role in shaping U.S. trade and economic policy—areas with a direct impact on the kinds of markets in which his businesses operate.
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“Upon my confirmation, my businesses will be for sale, and someone else will lead them going forward,” Lutnick told senators in January.
In addition to the Cantor transfer, Lutnick has sold his personal stakes in two public companies affiliated with Cantor—BGC Group and Newmark Group—collectively worth more than $275 million. Both companies said in statements that the transactions were completed in accordance with Lutnick’s ethics agreement and that he will no longer receive any financial benefit from the firms.
Lutnick has also agreed to give up all voting rights and economic interests in Cantor Fitzgerald itself, formally severing his control over a company that now employs more than 13,000 people globally.
Federal ethics rules require high-ranking government officials to divest from assets that could pose a conflict of interest. To mitigate the tax burden associated with such divestitures, such officials are allowed to defer capital gains taxes if they reinvest the proceeds in “permitted properties” such as mutual funds or U.S. Treasury bonds.
Original News Source Link – Epoch Times
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