Trump’s Cabinet Choices Highlight Wall Street Connections #

President-elect Donald Trump is selecting past senior Wall Street figures for cabinet positions. He named Scott Bessent, from Key Square Group hedge fund, as Treasury secretary, and Howard Lutnick of Cantor Fitzgerald as commerce secretary. Bessent may need to navigate ‘key man provisions’ at Key Square. Lutnick plans to resign from Cantor Fitzgerald, BGC Group, and Newmark upon senate confirmation.

Wall Street executives entering government often face complex divestiture processes. Federal law mandates avoiding asset conflicts, which involves divesting holdings like Lutnick’s 128 million shares in BGC. Special protections can allow tax-free asset diversification if sales proceeds are reinvested in approved funds.

Tax implications can be complicated, with trusts ineligible for certain benefits. Senator Ron Wyden indicated potential concerns about Lutnick’s involvement in BGC’s joint venture with China Credit Trust. An undefined confirmation process for Trump’s cabinet nominees is expected, as the U.S. Office of Government Ethics awaits leadership.

Meanwhile, Amazon made a significant $8 billion investment in Anthropic, focusing on artificial intelligence. The Justice Department seeks a judicial order for Google to sell its Chrome browser after an antitrust ruling. Bitcoin neared $100,000, buoyed by hopes for a crypto-friendly Trump administration.

Biden’s chief economist expressed dismay following Trump’s election. Despite economic achievements under the American Rescue Plan, challenges like inflation impacted public perception of Biden’s economic policies. The inflation was seen as partly driven by supply issues, exacerbated by demand.

The divergence in performance between major retailers Target and Walmart marked a notable contrast in the stock market. Target shares fell nearly 20% following poor sales and profit figures, whereas Walmart’s stock surged amid a shift toward value seeking consumers.