By Breaking Editor 
U.S. House Oversight Committee has launched an investigation into allegations regarding Pete Hegseth’s broker at Morgan Stanley attempting to make a multimillion-dollar investment in defense-related stocks just weeks before military actions against Iran. The inquiry raises questions about potential conflicts of interest and ethics surrounding defense industry investments amid heightened geopolitical tensions.
According to reports, in February, the broker allegedly contacted BlackRock about allocating funds into its Defense Industrials Active ETF, which includes major players like Lockheed Martin and Northrop Grumman. This move reportedly coincided with U.S. and Israeli military planning against Tehran, although the investment did not materialize as the ETF was not available to Morgan Stanley clients at that time, sources said.
California Congressman Robert Garcia expressed urgent concerns over what he termed “pure corruption,” directing the committee to seek answers from both Hegseth and executives at Morgan Stanley and BlackRock regarding the implications of this investment attempt.
Recent data from Morgan Stanley also indicated significant changes in market dynamics, highlighting a decline in foreign ownership of U.S. Treasuries to levels not seen since 1997, suggesting a potential for speculative actions regarding outright sales. This growing unease in equity markets accompanies scrutiny over investment decisions linked to military actions.
The unfolding events underscore the intersection of finance, politics, and military activity, demanding transparency and accountability in how investment strategies are formulated in relation to national security actions.