One Golden Share To Rule Them All

Summary

• President Trump supports the US Steel-Nippon Steel deal, contingent on a 'golden share' granting government control.
• Golden shares give the US government significant influence, reminiscent of past interventions like GM, Fannie Mae, and Freddie Mac.
• The article focuses on the broader market implications of government control via golden shares, not just the US Steel deal itself.
• This deal may be a tester and could expand if proven successful with US Steel, setting up a potential off-ramp for Fannie and Freddie.
• Investors should view this deal skeptically, as history shows us that government intervention of this nature is not usually best for shareholders.
• Looking for a helping hand in the market? Members of Sungarden Investors Club get exclusive ideas and guidance to navigate any climate. Learn More »

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.