When U.S. President Trump nominated Howard Lutnick for Commerce Secretary last year, he emphasized Lutnick's touching story of rebuilding investment bank Cantor Fitzgerald after the 9/11 tragedy.
However, behind this inspiring image, he is also a controversial business figure. This financial expert worth over $1.5 billion, reported by Bloomberg as the "most hated guy on Wall Street," has frequently raised questions about his business methods, from unfair treatment of partners to multiple confrontations with regulatory agencies.
Against the backdrop of U.S. tariff policies going awry and causing market unease and stock market plunges, Wall Street executives have recently pointed their finger at Lutnick, believing his public statements have exacerbated market chaos. Rumors suggest that Wall Street is actively lobbying Trump's team to dismiss Lutnick, hoping to reduce market uncertainty and panic.
What experiences have shaped this unique financial tycoon? And how will his business style similar to Trump's influence U.S. business policies?
A Story of Rebirth and Its Dark Shadow
Lutnick experienced a series of setbacks early in life, losing his mother at 16 and his father at 18, experiences that shaped his resilient and even cold personality.
After graduating from college, he joined Cantor Fitzgerald and quickly rose through the ranks with his exceptional business acumen and diligence, taking over the company's daily operations at just 30 years old. However, the biggest turning point in his life and career was the 9/11 event in 2001. The terrorist attack destroyed Cantor Fitzgerald's office in the World Trade Center, taking the lives of 658 employees, including his own brother, which was three-quarters of the company's New York staff.
Facing this devastating blow, Lutnick demonstrated remarkable resilience. He quickly mobilized resources, using the company's electronic trading platform eSpeed to maintain operations and promised to donate 25% of future profits to the families of deceased employees, totaling $180 million.
This action won public praise, creating an image of a leader who rose from tragedy. However, even during the reconstruction, controversy followed. He was later criticized for suspending salaries of deceased employees, though he argued it was for the company's survival and subsequent compensation, this decision still angered many families.
'The Most Hated Person on Wall Street': Controversial Business Tactics
Lutnick's "most hated on Wall Street" title stems from decades of controversial business practices.
He engaged in fierce legal battles with the Cantor family over control, and under Cantor Fitzgerald's partnership system, many employees felt exploited, especially in difficulty retrieving their rightful funds after leaving. Former employees' complaints painted a picture of a leader who placed company and personal interests above employees.
His company has also repeatedly clashed with regulatory agencies. The SEC has fined Cantor Fitzgerald multiple times for reasons including poor record-keeping and alleged market manipulation. The CFTC has also imposed fines for problematic trading practices. These events have deepened external doubts about his business ethics.
From Business Tycoon to Cabinet Member: Connections and Potential Conflicts with Trump
This controversial figure is quite similar to Trump, sharing a comparable business style: both adept at using changing strategies to make money, both having provoked controversy in business conduct, including issues involving fraud and record-keeping.
While Trump tends to focus on macro perspectives and Lutnick on details, they are highly aligned in business pragmatism and the pursuit of "winning". Lutnick has shown high loyalty to Trump, becoming a crucial campaign donor and ally, which is considered a key factor in his Commerce Secretary nomination.
However, this nomination has raised serious conflict of interest concerns from the start. Lutnick's business empire, including Cantor Fitzgerald, BGC Partners, and Newmark, has extensive business relationships with numerous federal agencies, from bond trading to real estate services. His personal massive wealth and investments in areas like cryptocurrency could potentially conflict with the Commerce Department's regulatory responsibilities.
On Wall Street, including well-known investor Bill Ackman, many have openly expressed concerns about potential conflicts of interest. But with a madman like Trump, even if he has serious suspicions of using his position to manipulate the market, in the short term, people can only curse angrily without being able to legally sanction them...
Commerce Department Under Lighthizer, Wall Street Furious
Moreover, many Wall Street professionals believe that Lighthizer, as the US Secretary of Commerce, has repeatedly defended tariff policies in the media with inconsistent, exaggerated, and even incoherent attitudes, making him one of the main culprits behind the shaking confidence in the capital market. A Wall Street senior executive once criticized that Lighthizer is a "complete destroyer".
Currently, there are rumors that the mainstream Wall Street circle has initiated a "Fire Lighthizer" campaign, vigorously lobbying the Trump team, hoping to quickly remove him from tariff-related duties and preferably have him exit the core decision-making circle.
