Source: Fortune
Summary
The Trump administration has invested $26.7 billion in 30 equity or quasi-equity deals, including a 9.9% stake in Intel worth $42 billion. However, there is no consolidated ledger of the government’s holdings, which are scattered across at least four agencies. The White House has not provided a clear accounting of the portfolio, and some deals remain ambiguous. The Council on Foreign Relations has created a tracker to monitor the government’s investments.
Our Reading
The numbers tell one story. The Trump administration’s $26.7 billion investment in corporate stakes is a significant move, but the lack of transparency and clear accounting raises questions. The Intel deal, worth $42 billion, is the most well-documented, but even that has some unusual aspects, such as the government’s agreement to vote with Intel’s board on most matters. The government’s stakes in private companies, such as Vulcan Elements and xLight, are not publicly disclosed.
The administration’s handling of the portfolio is reminiscent of a sovereign wealth fund, but without the same level of oversight. The lack of transparency and accountability is concerning, especially given the president’s personal holdings in some of the companies involved.
The situation is a familiar one: a government program with good intentions, but poor execution and a lack of transparency. The real test will be whether Washington can build a system to effectively manage its growing portfolio of investments over the long run.
Author: Evan Null
