Plus: Billionaire Trump Donor Paulson Scores Windfall Thanks To Government’s Investment In Trilogy Metals |
Good morning,
The federal government holds $1.6 trillion in student loan debt on its books. Now, the Trump Administration wants to offload some of that to the private market. Treasury and Education Department officials have reportedly discussed the idea and are weighing hiring an outside firm to value the government’s portfolio. The conversations come as the administration has sought to shrink the Education Department. But taxpayers likely won’t come out ahead, according to Preston Cooper, a senior fellow at the conservative American Enterprise Institute think tank. “I think the most likely scenario is that taxpayers get less than the loans are actually worth,” he told Politico.
Let’s get into the headlines, |
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| Tesla unveiled more affordable alternatives to its popular Model Y and Model 3 vehicles in an apparent effort to offset the loss of federal tax incentives to purchase electric vehicles, which is expected to dampen demand. It’s the company’s first product release since the Cybertruck in 2019, which was ultimately delayed until 2023 due to production issues. The owner of the New York Stock Exchange will invest $2 billion in Polymarket, valuing the firm—which has evolved from a fringe prediction platform to one of the fastest growing startups in decentralized finance—at over $8 billion. The company was fined and ordered to shut down certain markets by the Commodity Futures Trading Commission in 2022, but the agency ended its probe in July 2025, and the startup is expected to relaunch in the U.S. |
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| The federal government’s $35.6 million investment for a 10% stake in a small Vancouver-based mining business produced a windfall for its investors, one of whom President Donald Trump is already very familiar with. Billionaire John Paulson owned an 8.7% stake in Trilogy Metals as of the end of June. The stock tripled in after-hours trading Monday night after the deal was announced and opened 245% higher Tuesday, pushing the value of Paulson’s shares from $30 million to $100 million. Trump’s White House statement crowed that the agreement will “prioritize economic growth and national security, delivering where Democrats have failed to harness America’s resources.” It didn’t mention the personal benefit for one of his most loyal allies. Paulson, who founded the hedge fund Paulson & Co. in 1994 and now runs it as a family office, was one of Trump’s earliest supporters on Wall Street. It’s not the first time Trump’s government has moved the market by investing directly in stocks this year—it has taken stakes in Intel, MP Materials and Lithium Americas, and is rumored to be in discussions with other miners. All of their shares leaped higher on the news, but none as significantly as Trilogy, the smallest company of the group. For Paulson, whose net worth is an estimated $4 billion, Tuesday’s stock move builds on a standout year for his portfolio. A longtime gold bull, he owns stakes in gold miners Perpetua Resources, Agnico Eagle Mines and Novagold Resources, which were worth a collective $600 million as of his second-quarter filing and would be worth upwards of $1 billion today if he hasn’t sold any during gold’s summer rally. |
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| “Government policy has always influenced the stock market, but it’s hard to remember a time the federal government has been so explicit about picking and choosing winners as it’s been this year by taking equity stakes directly in several companies,” says Forbes staff writer Hank Tucker. “While we don’t know for sure whether John Paulson personally lobbied his friend Donald Trump to provide a lifeline to Trilogy Metals, it would be a very convenient coincidence for Paulson to gain $70 million as a result of Trump’s actions. Such access to the president isn’t an option for everyday investors, but in this era of blurred lines, if you’re looking for which businesses the government might be more inclined to boost, following the stocks Trump’s allies are invested in wouldn’t be a bad place to start.” |
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The City of Baltimore sued 12-year-old fintech MoneyLion, accusing it of deceptive and unfair practices related to its cash advances to consumers, including allegedly charging interest at annual percentage rates (APRs) that regularly exceed 350%. As the Trump Administration has dramatically rolled back federal financial regulation and slashed the Consumer Financial Protection Bureau, state and local regulators have been filling the void by stepping up their regulatory enforcement.
Gold hit another record Tuesday, surpassing the $4,000 mark as the precious metal has typically been a safe haven for investors. Uncertainty over the government shutdown fueled the latest rally, wrote Adam Turnquist, chief technical strategist for LPL Financial, but tariffs, a weaker U.S. dollar, and higher hopes for the Federal Reserve to slash interest rates have also contributed to gold’s gains this year. |
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| WEALTH + ENTREPRENEURSHIP |
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| The United Kingdom has seen an exodus of ultra-wealthy residents since scrapping a tax loophole earlier this year, and Nik Storonsky, cofounder of digital banking app Revolut, is among the latest and most high-profile departures. In a recent U.K. corporate filing, Storonsky now lists the United Arab Emirates as his place of residence—and Forbes estimates his stake in Revolut is now worth over $7.9 billion. |
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| As the government shutdown stretched into its seventh day, the FAA saw staffing shortages at six airports, and more air traffic controllers could call out sick as the week goes on. “The air traffic system, in general, is stressed to the max,” a veteran air traffic controller told Forbes. Legally, air traffic controllers should have their back-pay restored after the shutdown ends—but President Donald Trump suggested Tuesday that might not happen. |
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| John F. Kennedy and Jackie Kennedy’s former home in Washington, D.C. is for sale, the latest past presidential residence to hit the market. The house served as an informal campaign office during his 1960 presidential campaign: |
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$7.5 million | The list price on the home, more than double what it last sold for in 2004 | |
| 1811 | The year the house was built for William Marbury, the namesake of the landmark Marbury v. Madison Supreme Court case, which established the principle of judicial review | |
| 5,215 | The square footage of the single-family townhouse |
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| Being an effective manager shouldn’t necessarily mean drowning in work yourself—the best approach is to focus your energy on what is most important. Concentrate on outcomes, and don’t worry about “seeming” busy. It’s critical to not just delegate tasks to direct reports, but also ownership of the work. And don’t be afraid to cut back on meetings, weekly reports or anything that takes away from your team’s valuable time. |
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