Lutnick to Review Pentagon Deals Involving Cerberus Companies

Commerce Secretary Howard Lutnick has been tasked by the Department of Defense with reviewing any business deals between the Pentagon and companies linked to Cerberus Capital Management, according to Bloomberg. The private equity firm, established by Deputy Defense Secretary Stephen Feinberg, possesses significant interests in the national security sector, including entities that have secured contracts with the Defense Department during Feinberg's tenure.

Lutnick's responsibilities involve scrutinizing the activities of a firm with which the investment bank he formerly managed, Cantor Fitzgerald, has been collaborating since 2012. Cantor Fitzgerald, currently directed by Lutnick’s sons, serves as the prime broker for several Cerberus funds. Lutnick's appointment to oversee these potential conflicts is intended to surpass the Defense Department's existing ethical guidelines, as outlined by the Pentagon's Standards of Conduct office.

In his new role, Lutnick will oversee the vetting of transactions carried out by firms that have benefited from equity investments from the Pentagon, which has also provided loans to critical resource suppliers.