S. Defense Secretary Pete Hegseth's broker at investment bank Morgan Stanley attempted to invest several million dollars in defense stocks weeks before the war with Iran began. Sources told the newspaper that in February, Hegseth's broker contacted asset management giant Blackrock to invest in the Defense Industrials Active ETF, a fund containing major defense contractors including RTX, Lockheed Martin, and Northrop Grumman.
The investment, reportedly for a "high-profile client," was flagged internally at Blackrock but ultimately did not proceed because the fund was not available to Morgan Stanley clients at the time. Pentagon spokesperson Sean Parnell has denied the allegations, calling them "false and fabricated" in a statement on social media platform X. Parnell stated that neither Hegseth nor any of his representatives contacted Blackrock about such an investment.
false and fabricated
Both Blackrock and Morgan Stanley have declined to comment on the reports.
neither Hegseth nor any of his representatives contacted Blackrock about such an investment