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The U.S. government invested $27 billion in corporate stakes. Good luck finding them - Fortune

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The U.S. government invested $27 billion in corporate stakes. Good luck finding them - Fortune
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What the report says

Fortune reported that the Trump administration has built an estimated $26.7 billion portfolio of 30 corporate equity or equity-like positions, but that there is no single public government record showing the holdings. The reported stakes include a 9.9% position in Intel, a $400 million investment in rare-earth company MP Materials, a “golden share” tied to U.S. Steel’s sale to Nippon Steel, and several quantum-computing deals.

According to Fortune, the holdings are dispersed across agencies including Commerce, Defense, the Development Finance Corporation and Energy. The publication said the Development Finance Corporation is the only one among them with clear legal authority to hold equity under a framework Congress created in 2018 for overseas development finance. A Treasury spokesperson told Fortune that agencies account for equity interests differently depending on the authority used; the White House did not immediately comment.

The Intel investment is the clearest example because it appears in company securities filings, which identify the Commerce Department as party to an agreement covering 433.3 million shares. Fortune reported that the stake is passive, with no board seat or special information rights, and that some shares remain in escrow pending milestones under a Pentagon chip program. The article also noted that public budget documents do not reflect the rise in the Intel position’s value from $8.9 billion to about $42 billion.

Fortune contrasted the current portfolio with the 2008 Troubled Asset Relief Program, which had an inspector general, congressional oversight and GAO reviews. The concern raised by the report is governance: as Washington takes more ownership positions in private firms, there is no consolidated ledger or dedicated watchdog comparable to past crisis-era equity programs.

Read the full report at Fortune →

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