Trump is leveraging presidential authority to extract concessions and equity from private companies and institutions under the rationale of national security and American competitiveness. The administration purchased a stake in Intel described as a "down payment" toward creating a sovereign wealth fund, and Trump indicated intent to seek more such investments. Corporations have faced demands including revenue shares for export licenses, massive domestic investment commitments, transfer of golden shares, and pro bono legal services. Sports, entertainment, and broadcasters have also faced pressure, including stadium name threats, Hall of Fame demands, and threats to local broadcast licenses.
The latest: The director of the National Economic Council, Kevin Hassett, told CNBC Monday morning the government's new stake in Intel was a "down payment" on the creation of a sovereign wealth fund, adding it was "absolutely right" that Trump would seek more such investments. Trump told reporters yesterday "I want to try and get as much as I can." He later added: "I hope I'm going to have many more cases like it."
In other words, if you're a private company, you may soon be invited to sell a chunk of your business to the government, even at the cost of diluting existing shareholders. There are plenty of other examples this year of Trump telling businesses how to do business: š° Chip companies that wanted to do business in China being ordered to hand over 15% of their revenue to get export licenses.
#government-equity-stakes #industrial-policy-and-national-security #corporate-coercion #sovereign-wealth-fund
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