Senators Wyden and Warren accused Cantor of profiting from insider access to Trump-era tariff policy

Senators Ron Wyden and Elizabeth Warren are demanding answers from Cantor over what they say could be a textbook case of insider trading.

The company, run by Brandon Lutnick — son of current U.S. Commerce Secretary Howard Lutnick — is under scrutiny for offering trades connected to Trump-era tariffs.

Wyden, who’s the ranking Democrat on the Senate Finance Committee, and Warren, who holds the same position on the Senate Banking Committee, sent a letter to Brandon asking how deep this thing goes and whether his firm had any backdoor contact with Donald Trump or anyone in his administration.

According to reporting from Wired, which triggered the Senate inquiry, Cantor was allegedly working on a financial product that lets clients make money off the legal uncertainty surrounding Trump’s sweeping tariffs.

If the courts throw out those tariffs, the clients (and possibly Cantor) stand to gain. That’s not just a risky investment strategy. That’s the kind of thing that lands people in hearings.

Senators link Howard Lutnick’s policy to Cantor’s trades

The tariffs in question were pushed by Donald Trump, now serving his second term as President. Trump claims they’re legal under the International Emergency Economic Powers Act. But if courts say otherwise, companies that paid those tariffs could be owed massive refunds from the U.S. government.

Cantor allegedly stepped in to offer those companies cash upfront, about 20 to 30 percent of the original tariff cost, in exchange for the rights to claim the refund if the court later says those tariffs were illegal.

Wyden and Warren say that means Cantor is betting against a policy that was designed by the Commerce Secretary, who just happens to be the father of the firm’s CEO. That, they say, reeks of conflict of interest.

“Cantor has created a litigation finance product that puts the firm in a position to profit if courts strike down Trump’s tariffs,” they wrote in the letter to Brandon. They pointed out that Howard previously ran Cantor as its Chairman and CEO.

The letter dives into detail. Wyden and Warren want to know how many refund agreements exist, how many are signed, and who the counterparties are. They also asked whether this financial product was dreamed up by the company itself or requested by a specific client.

They even want to know if anyone at Cantor communicated with Trump, Howard, or other government officials. “We are requesting full transparency on whether your firm has had any contact with Trump administration officials regarding these transactions,” they wrote.

Cantor says the reports are false, but pressure grows

Brandon hasn’t responded publicly, but the firm did push back. Erica Chase, speaking for Cantor, said, “What is being reported about our business is absolutely false. Cantor is not in the business of positioning any risk, taking views or facilitating business in litigation claims involving the legality of U.S. tariffs.”

But Wyden and Warren say otherwise. They claim Cantor already signed one deal worth $10 million and told others that it could scale up to hundreds of millions depending on demand.

That’s not just pocket change. If the Supreme Court ultimately rules Trump’s tariffs illegal, that $10 million could turn into a serious payout. And if Cantor has already positioned itself to cash in, the Senators want that exposed. “This financial product effectively represents a bet that President Trump’s tariffs will be struck down,” the letter says.

The concerns are not just about ethics. Wyden and Warren argue that this could directly undermine public confidence in the government. They also say it shows how financial firms like Cantor might be using government policy to build private profit pipelines.

“We are concerned about the negative impacts of these tariffs and seek additional information regarding efforts by Cantor to profit from them,” they said to close out the letter.

Right now, the ball’s in Brandon’s court. The Senate’s waiting for a response. And if they don’t get one, this thing could end up dragging Cantor even deeper into legal and political chaos.

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