The Cerberus Men: How Private Equity Is Reshaping Trump’s Pentagon

Three recent developments reveal how Cerberus Capital Management's influence has spread through the Trump administration's Pentagon—from Navy leadership, to defense procurement, to a new $200 billion investment initiative. When I first heard about the firing of Navy Secretary John Phelan, I naively assumed it might have something to do with reports from sailors complaining about poor food and deteriorating conditions aboard U.S. warships. That theory was far too old-fashioned. Instead, I was reminded who Phelan really is: a billionaire private-equity executive, Trump fundraiser and co-founder of Cerberus Capital Management—the same firm whose executives now appear throughout the upper ranks of the Pentagon. Helping smooth things over after Phelan's departure is Deputy Defense Secretary Stephen Feinberg, another Cerberus co-founder with no military experience. And the connections don't stop there: Feinberg now oversees a new Economic Defense Unit expected to help direct as much as $200 billion over the next three years. Another former Cerberus executive, David Lorch, has joined the Defense Department's investment apparatus. Whether discussing warships, defense contracts or Pentagon finance, the same names keep appearing. Cut off one head, and another seems to emerge. The question isn't whether Cerberus has influence in Washington. It's how much influence Americans are comfortable giving it. The post The Cerberus Men: How Private Equity Is Reshaping Trump’s Pentagon appeared first on Ms. Magazine.