Commerce Secretary Says Pentagon Weighing Equity Stakes in Defense Contractors

The Department of Defense (DOD) is weighing taking equity stakes in defense contractors such as Lockheed Martin and others, Commerce Secretary Howard Lutnick said in an interview on Tuesday. Speaking on CNBC’s “Squawk Box,” Lutnick was asked about whether the Trump administration would attempt to acquire equity stakes in companies, days after the U.S. government acquired 10 percent of Intel stock for around $9.5 billion. “Oh, there’s a monstrous discussion about defense,” Lutnick said in response, adding that Lockheed is now “basically an arm of the U.S. government” because it makes most of its revenue through federal contracts. “But what’s the economics of that? I’m going to leave that to my secretary of defense and the deputy secretary of defense,” he said, referring to Defense Secretary Pete Hegseth and his deputy, Steve Feinberg. “These guys are on it and they’re thinking about it.”...