Commerce Secretary Howard Lutnick is poised to secure what could be a large capital gains tax break. But to get it, he'll have to lock in about $54 million in paper losses as the tariff policies he's championed have hammered financial markets.
The value of two of Lutnick's biggest publicly traded holdings — brokerage BGC Group Inc. and property firm Newmark Group Inc. — fell by $54.3 million since his Senate confirmation in February, according to a Bloomberg analysis of filings from the Office of Government Ethics released Monday.
He has promised to sell those stakes by May 20 in order to comply with conflict-of-interest laws.
The latest disclosures don't include figures for Lutnick's actual gains from the sales. Federal ethics officials approved his requests for tax reprieves on more than two dozen holdings, including his stakes in Cantor Fitzgerald LP, the Wall Street investment bank and brokerage he led.
The Commerce Department didn't immediately respond to a request for comment.
His paper losses from BGC and Newmark are even larger because he owns additional shares through Cantor Fitzgerald which are not covered in the latest filings.
Lutnick will also get the tax break for selling his shares in Nasdaq Inc., Walt Disney Co. and a trust stake in Kimberly Akimbo LLC, an entity linked to the Broadway musical.
To get the capital gains break, Lutnick must invest the proceeds of the sales in U.S. Treasury bonds or widely diversified exchange-traded or mutual funds. If he sells any of those bonds or funds later, a tax bill would come due.
Much of Lutnick's wealth comes from his stake in Cantor Fitzgerald, which is closely held. The certificates of divestiture don't include values for that holding.
Equity markets have taken a beating since President Donald Trump announced sweeping new tariffs on nearly every U.S. trading partner, including some of the country's main sources of imports: Canada, Mexico and China.
Lutnick's disclosure demonstrates how even one of the most public administration advocates of the new import duties can't escape the financial fallout of moves that have proved to be
The combative Wall Street billionaire has one of the more complex divestiture situations among Trump's cabinet officials after a three-decade career in finance.
In his financial disclosure, Lutnick listed assets worth at least $806 million. Nominees disclose assets in broad ranges, with the highest tier at more than $50 million. Lutnick listed 12 holdings in that range, including his stakes in Cantor Fitzgerald. Lutnick is worth $1.9 billion, according to the Bloomberg Billionaires Index.
Lutnick's holdings in BGC and Newmark were worth a combined $347.3 million at the close of markets on Friday, the day that ethics officials issued the documents formally granting him the tax deferments. Those same shares were worth $399.2 million the day of his Senate confirmation. Officials have to wait for federal approval before selling to receive the tax break.
