Last month, WIRED reported that the investment banking arm of Cantor Fitzgerald, a financial services company led by the sons of US commerce secretary Howard Lutnick, was exploring creating a financial product for clients to bet on whether President Donald Trump’s signature tariffs would be struck down in court.
In response to WIRED’s reporting, Democratic senators Ron Wyden and Elizabeth Warren sent a letter to Cantor Fitzgerald chairman Brandon Lutnick on Wednesday demanding more information about the firm’s activities. “Given that one of the purported architects of President Trump’s tariff policy is Commerce Secretary Howard Lutnick, your father and the former Chairman and CEO of Cantor Fitzgerald, LP, the firm’s actions raise obvious conflict-of-interest and insider dealing concerns,” the lawmakers wrote.
“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 US tariffs,” Erica Chase, a spokesperson for Cantor Fitzgerald, said in an emailed statement.
Howard Lutnick ran Cantor Fitzgerald for nearly 30 years until he was confirmed by the Senate in February, when he turned over control of the firm to Brandon and his brother Kyle, who are both in their twenties. After joining the Trump administration, Howard Lutnick became one of the most prominent public supporters of the president’s tariffs.
But according to WIRED’s previous reporting, the investment bank that made Lutnick a billionaire was recently letting certain clients wager that Trump’s tariffs will eventually be ruled unlawful, at which point companies that have paid the import duties could apply to get their money back. Experts said the proposed deals are a form of litigation finance, an increasingly popular category of investing in which financial firms seek to make money from potential legal settlements.
Trump announced in February that the US would put steep tariffs on goods from Mexico and Canada under the International Emergency Economic Powers Act (IEEPA). He widened the trade war in April to include nearly every nation that sells goods to the US, which Trump said would now be subject to “reciprocal” tariffs ranging from 10 to 50 percent.
State officials and small businesses responded by filing a flurry of lawsuits against the Trump administration, arguing that the president exceeded his authority under IEEPA and the tariffs should be ruled illegal. The US Court of International Trade sided with the plaintiffs in one of the cases, but the Trump administration quickly appealed the ruling. The appeals court has allowed the tariffs to stay in effect until a final decision is reached.
In their letter, Wyden and Warren specifically asked Brandon Lutnick whether anyone at Cantor was in contact with the Trump administration about the tariffs.
“Has anyone at Cantor or Cantor Fitzgerald, LP communicated with any person within the Executive Branch, including President Trump, Secretary Lutnick, any individual employed by the Commerce Department, or any other individuals, about tariffs, refunds or exclusions and the legal cases involving IEEPA?” the letter asks. “If so, please provide a list of all such conversations, including the date, the individuals involved, and the nature of the conversation.”
The senators requested that Brandon Lutnick respond to their questions by August 27.