Warren Presses Treasury to Rule Out Taxpayer Guarantee for Wall Street War Profiteering in Venezuela

Warren Presses Treasury to Rule Out Taxpayer Guarantee for Wall Street War Profiteering in Venezuela

"President Trump should not launch illegal foreign wars or deploy taxpayer resources to facilitate Wall Street war profiteering, especially as his economic policies are failing here at home."

"I am deeply concerned that President Trump may use taxpayer resources to reward hedge funds and other financial institutions for supporting his effort to 'run' the country and extract oil from it."

Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to Secretary of the U.S. Department of the Treasury, Scott Bessent, requesting confirmation that the Trump Administration will not use the Treasury Department's Exchange Stabilization Fund (ESF) to provide taxpayer guarantees or backstops to wealthy financial firms, such as hedge funds, seeking to profit from President Trump's illegal military action in Venezuela.

"I am writing to request confirmation that the Treasury Department will not use the Exchange Stabilization Fund (ESF) to provide taxpayer guarantees to enrich hedge funds or other financial institutions considering investments in Venezuela following President Trump's illegal military attack on the country," wrote Ranking Member Warren.

Following Trump's illegal attack on Venezuela, hedge funds and financial institutions are reportedly exploring investment opportunities in the country. At the same time, President Trump has suggested that taxpayers could reimburse oil companies for expenses incurred in developing Venezuelan oil operations, and the Department of Energy has disclosed that it has already engaged banks to provide financial support for crude oil sales.

"President Trump should not launch illegal foreign wars or deploy taxpayer resources to facilitate Wall Street war profiteering, especially as his economic policies are failing here at home," the Ranking Member wrote. "I am deeply concerned that President Trump may use taxpayer resources to reward hedge funds and other financial institutions for supporting his effort to 'run' the country and extract oil from it."

Ranking Member Warren warned that the President could attempt to use the ESF to enrich Wall Street investors and oil companies at taxpayers' expense, recalling a similar situation where Trump deployed public resources to to serve his personal political interests abroad.

"President Trump has previously used the ESF in service of his personal political interests abroad. Last year, he bailed out Argentina's financial markets, juicing profits for global investors and bolstering his close ally's electoral prospects ahead of a critical midterm election," wrote Ranking Member Warren. "Specifically, in October, the Treasury Department used the ESF to establish a $20 billion swap line with the Central Bank of Argentina and purchased more than a billion dollars worth of Argentine pesos directly."

She continued: "In addition, the Treasury Department reportedly tried to arrange a $20 billion Argentine investment vehicle funded by U.S. banks, which included discussions regarding potential taxpayer guarantees."

Ranking Member Warren requested Treasury confirm in writing by January 20, 2026 the agency will not use the ESF to guarantee or subsidize financial institution investments connected to Venezuela.

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