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  • 2 days ago
The Trump administration has taken rare equity stakes in U.S. companies to secure chip and mineral supply chains, raising concerns over market distortion and conflicts of interest.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02The Trump administration has taken or agreed to take equity stakes in at least 10 U.S. companies,
00:07reaching a scale rarely seen outside wartime or economic crises, according to CNBC.
00:13The stakes span smaller critical mineral firms, such as USA Rare Earth and MP Materials,
00:18as well as larger companies, including U.S. Steel and Intel.
00:22Administration officials say the investments aim to reduce reliance on Taiwan for semiconductors
00:27and China for critical minerals.
00:30Critics argue that the open-ended ownership model creates legal, political, and market risks
00:34and raises conflict of interest concerns.
00:37Historically, the U.S. has taken equity stakes only as temporary bailout measures,
00:42with the expectation that the government would exit once a company regained financial viability.
00:46For all things money, visit Benzinga.com.
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