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Leading Senate Democrats have started a new probe of Howard Lutnick, the Commerce Secretary's former family business, the one that's currently being run by his sons and led by Brandon Lutnick. I think he's 28 years old because Elizabeth Warren and Ron Wyden, the two ranking Democrats on the Senate Finance Committee, want to know more about what was reported last month that Canner is betting against Donald Trump and his tariffs by offering to buy buy potential refunds from companies who are being overcharged on tariffs that are likely as, as as we have reported, likely to be struck down as an improper exercise of presidential power. So let's get this straight. Cantor Fitzgerald, a family business run by the family, the sons of the commerce Secretary, where the commerce secretary has control over the tariffs is bet tariffs. That was the reporting from a month ago in Wired magazine. By offering to sell a instrument or a product to its counterparties, to its clients, that would allow them to effectively sell their potential refunds for cents on the dollar, where Cantor would reap hundreds of millions of dollars. And now Elizabeth Warren wants to know more about that, Michael Popak, and hopefully you want to know more about it here on the Midas Touch Network and on Legal af. Okay, let's get to the story. What happened? Well, we, I did the report original on the Midas Dutch network about the instrument, the product that Cantor Fitzgerald was selling. Now look, Cantor Fitzgerald may no longer be run by Howard Lutnick any longer, but only by his two sons. However, it's also done an extraordinary job since the election at increasing its revenue. Now, people there say they're not getting inside information from Howard Lutnick, who recently departed and sold the business to his sons under a trust or whatever it is. But, well, they know how Howard thinks and so they're doing things, knowing what it's almost like. What would Howard think? That's how they're doubling their profits. Does anybody really believe that? But in any event, then the announcement came that they are effectively betting against the Trump policies, which struck people as, you know, inappropriate, if not downright odd. Here's what the letter to Brandon Lutnick, chairman and CEO of Cantor Fitzgerald at 110 East 59th street, says. Mr. Lutnick, we write regarding recent reports that your investment banking subsidiary, Cantor Fitzgerald & Co. Has created a financial product for the purpose of betting on the outcome of litigation related to President Trump's tariffs. Specifically, Cantor has created a litigation finance product that places the company in the position of betting that courts will strike down Trump's tariffs. Given that one of your purported architects 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 the company. These actions raise obvious conflict of interest and insider dealings concerns. And then they go on with the rest of it. And what they want is the following. This is on page two. How many tariff refund agreements have been drafted to date? How many have been finalized? Is Cantor or any affiliated entity the counterparty in any tariff refund agreement? In other words, are they a participant? And if they aren't, which canor entity is? Did Cantor create the tariff refund agreements at the request of a specific client, or did Cantor originate the agreements? Has Cantor sold its rights under any of the agreements? Please provide the language used to assign potential refunds. Does the language in the tariff refund agreements with duty paying companies, meaning those that had to pay the tariff, only apply to refunds as a result of litigation or to any potential refund as a result of any action? Has anyone at Cantor or Cantor Fitzgerald communicated with any person within the executive branch, including President Trump, Secretary Lutnick, any individual employed by the Commerce Department about tariffs? That's a good question. Or about the court cases? We are concerned about the negative impacts of the tariffs and seek additional information regarding efforts by Cantor to profit from them. Sincerely, Ron Wyden Elizabeth Warren Ranking Members, Committee on Banking, Housing and Urban affairs and Committee on Finance now let me break this all down for you. And while you're here, hit the Free subscribe button for Midas. Come on over to Legal. I have and do the exact same thing. The American dream has changed. Forget the white picket fence. For most Americans, the real dream now is getting out of debt. If you're feeling the pressure from rising prices, mounting credit card debt and just trying to stay afloat, I want you to know there's a way out. Done with debt. Their one goal to break you free from debt permanently. They're not pushing loans or bankruptcy. Instead, they're tough negotiators. Go straight to your creditors, slashing what you owe, wiping out interest, and eliminating penalties. They don't stop until your debt is gone. And here's the best part. Most clients see more money in their pocket in the very first month. You've worked too hard to let debt steal your future. With Done with debt, your dream of being debt free is actually possible. Visit donewithdebt.com talk with one of their experts. It's completely free, but some of their solutions are time sensitive. So don't wait. Go to done with debt.com that's done with debt.com Cantor Fitzgerald is a financial services business. Full disclosure, I worked there a million years ago as global head of litigation for them, but I don't have any insider knowledge about what's going on there. I left a long time ago. Now Cantor as part of its business has counterparties and conducts transactions and sometimes creates products. And the reporting from Wired magazine that I relied on and so did Elizabeth Warren and Senator Wyden is that they decided to profit by selling a product where they can or Fitzgerald would buy cents of the dollar. Opportunities for people to get refunds on tariffs. So let's say I thought I overpaid my tariffs by 10%, overtake overpaid in tariffs 10%. And let's say that's $10 million. Well, Cantor would buy it from me for 1 or 2 million. And if the refund gets overturned, Canor profits the extra 8 million. Do you see? They pay cents on the dollar. It's sort of like these companies that are out there buying your tax refund or other types of refund or your lottery winnings. You know, it's like that. It's like the viaticals business. So that was reported and it was weakly denied, if at all, by Canor Fitzgerald at the time. Just all the news reports about that is not accurate. There's been a lot of news reports coming out of Canter Fitzgerald that they're making money hand over fist, mainly because they're following what would Howard do as a model. That's what they want us to believe. Now this comes out. I report on it and we train our fire on it. And now it looks like they're no longer going to go into the business. Their new story is, well, we thought about it. We were approached by a counterparty to do it, but we ended up not doing it. That sounds like weasel words to me. And if it's true. Then let them give full disclosure to the Senate. Let them trot down one of their executives to go appear in front of a bank of microphones, in front of Senators Wyden and Warren, and they can answer all those questions. But that doesn't sound like an honest answer to me. Well, we, somebody came to us and they, and they, they, they talked to us about doing this, but we thought better of it and we never did it. Okay, I think I'll give you my version. The media, including Midas Touch and Legal af, focused on the hypocrisy of Howard Lutnick's family business run by his sons, profiting on going against Trump policy. And the irony of that. And we weren't the only ones, but we were one of the leaders. And then it looked bad for Kantor, who always is worried, as most financial services companies are, about their reputation, you know, their reputation, their brand issues. And so they thought, well, that looked a little, little too on the nose, a little too close. Why don't, why don't we not do that anymore? And maybe that was killed by some executive committee within the company, but we have a right to know. And it looks bad and it smells bad. What's the phrase for that? The optics are terrible. And let's get down to it. Howard Lutnick announced to the world when he sold off his company to his sons that he was very ethical, that he, there are no conflicts of interest. He solved all the conflicts of interest. He turned the company over to his sons, the two, the 28 year old, the 27 year old. And that's what we're supposed to believe. But I don't think the senators here, Wyden and Warren should be focused on that. I think they should be focused on getting real, true answers and determine if we have a real ethical conflict of interest and whether there's insider trading issues and they're allowed to do that. And that's what senators do on those committees. So I'll continue to follow the probe of Canter Fitzgerald, a family owned business that recently was owned and controlled by one Howard Lutna, Commerce Secretary under Donald Trump. And because it's the right thing to do, I'll continue to follow it right here. While you're here, hit the subscribe button on Midas Touch, slide over to Legal AF YouTube channel, do the exact same thing and follow me on podcasts, Legal af, the podcast on Midas Touch, Wednesdays and Saturdays and and my other podcast, the intersection, Tuesday nights, 8pm Eastern time. Also on Midas Touch. I'm Michael Popak. Until my next report. In collaboration with the Midas Touch network, we just launched the Legal AF YouTube channel. Help us build this pro democracy channel where I'll be curating the top stories the intersection of law and politics. Go to YouTube now and free subscribe at Legalafe MTN. That's at Legal AFMTN. What do you think makes the perfect snack?
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Hmm, it's gotta be when I'm really craving it and it's convenient.
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A
Could you be more specific?
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C
When it's cravinient.
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B
Okay.
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Like a freshly baked cookie made with real butter available right down the street at a.m. p.m. Or a savory breakfast sandwich I can grab in just a second at a.m. pM.
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B
I'm seeing a pattern here.
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C
Well yeah, talking about what I crave.
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B
Which is anything from AM pm, what.
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More could you want? Stop by AMPM where the snacks and drinks are perfectly craveable and convenient. That's cravenience am pm too much good stuff.