Last month, WIRED revealed that Cantor Fitzgerald’s investment banking division, a financial services company managed by the sons of US Commerce Secretary Howard Lutnick, was considering developing a financial product allowing clients to gamble on the court removal of President Donald Trump’s notable tariffs.
In response, Democratic senators Ron Wyden and Elizabeth Warren sent a letter to Cantor Fitzgerald chairman Brandon Lutnick, requesting more information about the firm’s activities. They expressed concerns about conflicts of interest and insider dealings due to Howard Lutnick’s involvement in shaping Trump’s tariff policy as Commerce Secretary.
Cantor Fitzgerald spokesperson Erica Chase denied the allegations, stating the firm is not involved in litigation claims regarding US tariffs’ legality.
Howard Lutnick led Cantor Fitzgerald for nearly three decades before transitioning control to his sons Brandon and Kyle after his Senate confirmation in February. He became a vocal advocate for Trump’s tariffs after joining the administration.
WIRED previously reported that the bank, which contributed to Lutnick’s wealth, allowed some clients to bet against Trump’s tariffs, anticipating their potential nullification and resulting refunds for companies that paid import duties. These deals represent a form of litigation finance, a growing investment category.
In February, Trump announced hefty tariffs on Mexican and Canadian goods under the International Emergency Economic Powers Act (IEEPA), extending in April to nearly all trading nations with tariffs between 10 to 50 percent.
State officials and small businesses sued the administration, asserting Trump overstepped his IEEPA authority, making the tariffs illegal. The US Court of International Trade ruled in favor of the plaintiffs in one case, but the administration appealed, maintaining the tariffs while awaiting a final decision.
Wyden and Warren’s letter asked Brandon Lutnick about any Cantor communications with the Trump administration regarding tariffs, seeking details on all such interactions, including dates, participants, and discussion topics.
They requested Lutnick’s response by August 27.