President-elect Donald Trump appointed Stephen Feinberg as Deputy Defense Secretary, a choice that raised questions about his qualifications and potential conflicts of interest. Despite Feinberg’s lack of direct experience with the Department of Defense (DoD), the appointment was part of Trump’s broader strategy to shape his new administration.
Feinberg, the CEO of Cerberus Capital Management and a billionaire in private equity, has been a significant figure in Trump’s inner circle. During the first term, he served on Trump’s Intelligence Advisory Board. However, Feinberg’s experience has largely been in banking and investment rather than military or political fields. Through his firm, Cerberus, Feinberg has made substantial investments in defense-related sectors, including military vehicle manufacturing, maintenance, and aviation training.
Feinberg also established Cerberus Venture One, a fund dedicated to investing in defense technologies. His new role as Deputy Defense Secretary, which involves overseeing the Pentagon’s budget and technological developments, could lead to conflicts with the fund’s investments. Federal ethics guidelines typically require officials to refrain from making decisions that could affect businesses in which they hold financial interests. This could pose a challenge for Feinberg, as he will have to navigate the responsibilities of his new role while adhering to these standards.
Feinberg’s firm holds a majority stake in Navistar Defense, a company that manufactures military vehicles, adding complexity to his new position. Politico reports that Cerberus’s broad involvement in defense companies, combined with Feinberg’s appointment, could create challenges as he balances his duties overseeing defense budgeting and technology while managing his financial interests.
Feinberg wasn’t the only candidate considered for the Deputy Defense Secretary role. Robert Wilkie, who handled the Pentagon transition, and Trae Stephens, co-founder of the drone startup Anduril, were also in the running. Additionally, David Norquist, the deputy during Trump’s first term, has been mentioned as a potential candidate.
