Democratic Lawmakers Expand Probe Into $16B Rare Earth Deal, USAR Stock Plunges 8.11%

According to Wall Street Journal, Democratic lawmakers expanded their investigation into the Trump administration's $16 billion rare earth investment case on July 7, focusing on potential conflicts of interest involving Commerce Secretary Howard Lutnick and financial services firm Cantor Fitzgerald. Democratic senators Elizabeth Warren and Ron Wyden, along with other lawmakers, sent a letter to Cantor Fitzgerald demanding details on how the firm was selected as lead placement agent for USA Rare Earth's $1.6 billion government investment and what fees were collected. Cantor Fitzgerald was previously led by Lutnick for over 30 years before he transferred ownership to his children. USA Rare Earth (USAR) shares tumbled 8.11% to $17.78 on the news, marking their lowest close since April 14, while other rare earth stocks including Critical Metals, MP Materials, and Energy Fuels also declined.
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