Richard W. Painter, former chief White House ethics lawyer under President George W. Bush, has expressed concerns about newly-listed Trump Media & Technology Group Corp DJT.
What Happened: Painter, in an MSNBC opinion piece on Tuesday, warned that the merger could pose significant risks to investors and the country. He cautions that previous Trump ventures have led to substantial losses and bankruptcy.
“The last time a Trump company went public — with the ticker symbol DJT, no less — Trump Hotels and Casino Resorts lost more than $1 billion and went bankrupt. There's little reason to think that this deal will end well for anyone other than for Trump,” he said.
Painter also highlights potential conflicts of interest if Trump were to secure the 2024 presidential election. With Trump’s social media company, Truth Social, potentially becoming the president’s primary communication tool, the balance of power within the social media industry could be significantly altered.
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Painter points out that the federal financial conflict of interest statute does not apply to the president, which could provide significant advantages for Trump and his social media platform.
Moreover, Painter suggests that the Truth Social deal could lead to the consolidation of American social media in the hands of a few influential individuals, threatening the future of American politics.
“History has shown that Trump is about as good at respecting democracy as he is at respecting the interests of his investors. For those who vote for him and those who invest with him, the result may be pretty much the same,” he concluded.
Why It Matters: The merger has sparked a range of reactions. Renowned economist Peter Schiff predicted that if MAGA investors push DJT to $2k per share, Trump could become the world’s 7th richest person. Schiff suggested that DJT should add Bitcoin to its balance sheet and rebrand as Trump AI and Crypto Technology Group.
However, financial commentator Herb Greenberg expressed skepticism about the company’s valuation on CNBC’s “Last Call”. Greenberg suggested that without Trump’s name, the company would be considered a penny stock.
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