Bloomberg Businessweek ICYMI: The Tiny Bank Enriching the Trump Bros
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May 20, 2025 Dive into the world of a tiny investment bank that made a risky pivot from biotech to finance, resulting in $70 million lost. Discover the intriguing link to Donald Trump Jr. and Eric Trump, who now play advisory roles. Explore the volatility of stocks connected to the Trump Organization and the family's diverse ventures, including controversial IPOs and Bitcoin mining. Unravel the business dynamics at play in a firm that highlights both financial ambition and familial connections.
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Dominary's Business Shift and Losses
- Dominary Holdings shifted from biotech to investment banking in under three years, now losing about $70 million.
- The company's focus on penny stock IPOs raises questions about their financial stability and quality.
Trump Sons Boost Stock Value
- Trump sons Donald Jr. and Eric Trump joined Dominary's advisory board, causing its stock price to spike more than 80%.
- The company's shares increased nearly 500% year-to-date due to their involvement.
Dominary's IPOs Often Lose Value
- Many IPOs Dominary underwrites are penny stocks mainly from Hong Kong and China and tend to lose significant value quickly.
- About one third dropped over 75% in less than a year, raising doubts about their credibility.