Who Is Stephen Feinberg? Trump Picks Billionaire Investor As Pentagon Deputy

President-elect Donald Trump selected Stephen Feinberg for the position of Deputy Defense Secretary, a move that raised questions about conflicts of interest and his qualifications for the role. Despite Feinberg’s lack of direct expertise with the Department of Defense (DoD), the selection was made as part of Trump’s efforts to mold his new government.

Feinberg’s Background in Private Equity

The CEO of Cerberus Capital Management and a billionaire in private equity, Feinberg played a significant role in Trump’s inner circle. In the first term of the president-elect, he had been a member of Trump’s Intelligence Advisory Board. However, rather than military or political activities, his experience is mostly in banking and investment. His company, Cerberus, has made significant investments in defense-related fields, including as military vehicle manufacturing, maintenance, and aviation training.

A Career in Defense Investments

He established Cerberus Venture One, a fund dedicated to making investments in defense technologies, through Cerberus. His responsibilities as Deputy Defense Secretary, which include managing the Pentagon’s budget and technological development initiatives, can clash with the fund’s investments, Politico reported. Officials are typically required by federal ethics standards to abstain from decisions regarding businesses with whom they have financial links. Feinberg may find it difficult to handle the responsibilities of his new position as a result of these rules.

Potential Conflicts of Interest

Feinberg’s firm’s majority stake in Navistar Defense, a manufacturer of military vehicles, complicates the situation, as Politico detailed. Cerberus’s interests in various defense-related companies, combined with Feinberg’s appointment, might create a difficult balancing act as he works in a government position that involves defense budgeting and technology oversight.

Who Else Was Considered?

There were other candidates for the position besides Feinberg. The other hopefuls for the Deputy Defense Secretary post were Robert Wilkie, who oversaw the Pentagon transition, and Trae Stephens, co-founder of the drone startup Anduril. The deputy in Trump’s first administration, David Norquist, has surfaced as a possible candidate.