Pentagon eyes Goldman, JPMorgan for $200B defense deals

The Pentagon is forming a 30-member investment banking team focused on private equity to manage a $200 billion defense investment over three years to counter China. Key recruiting targets include Goldman Sachs, Morgan Stanley, JPMorgan, and Bank of America. The initiative is presented as a short-term program to "serve your country" and manage large capital flows.

Led by former Cerberus executives David Lorch and George K. Kollitides II, the team will support private equity firms with national security-related deals. Deputy Secretary of Defense Stephen Feinberg is leading efforts to reshape the Pentagon’s investment strategies. The proposal criticizes past trade policies and aims to deter adversaries while providing insiders with access to crucial government information.