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Trump Pentagon considers equity stakes in defence contractors
Trump Pentagon considers equity stakes in defense contractors like Lockheed, says Commerce Secretary Lutnick
Trump Pentagon considers equity stakes in defence contractors like Lockheed, says Commerce Secretary Lutnick
In Short:
– Pentagon officials are considering equity stakes in major defence contractors like Lockheed Martin.
– Discussions on defence financing are ongoing, with concerns over generous funding methods.
– Pentagon officials are considering equity stakes in major defence contractors like Lockheed Martin.
– Discussions on defence financing are ongoing, with concerns over generous funding methods.
Top officials at the Pentagon are considering acquiring equity stakes in major defence contractors such as Lockheed Martin. Commerce Secretary Howard Lutnick revealed this interest during an interview on CNBC’s “Squawk Box,” following the government’s recent acquisition of a 10% stake in Intel.Lutnick mentioned that there is significant discussion around defence financing, asserting that Lockheed operates closely with the U.S. government.
He indicated the Trump administration’s reconsideration of how to fund munitions and other defence capabilities, describing current methods as excessively generous.
Major Changes
A spokesperson from Lockheed stated they are maintaining a strong working relationship with President Trump’s administration to bolster national defence. The Pentagon has yet to comment on the matter.
Trump’s recent control over a stake in Intel is seen as a part of a broader strategy to enhance governmental influence over the economy.
The action has sparked criticism, including concerns about potential shifts from commercial to political decision-making within Intel.
