Finance

We must finance a new wave of industrialization in the US

Published

10 months ago

March 13, 2025

We must finance a new wave of industrialization in the US

A blend of equity, private debt and public investment drove the country’s growth in the Industrial Revolution. To remain globally competitive, the U.S. needs more creative financing of large infrastructure projects, writes Gregory Bernstein, of The New Industrial Corporation.

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At JPMorgan Chase, revenue recently surged 21%, to $7 billion. The bank has never had a better fourth quarter. The equities business at Goldman Sachs raked in $13.4 billion for 2024, another record-setting result. Morgan Stanley far exceeded analysts’ expectations in the fourth quarter, as well. Despite some temporary shocks caused by policy uncertainty from the new administration, 2025 has also shown strong performance so far. But Wall Street’s blockbuster results obscure a larger, structural problem with the finance community’s approach to the many serious challenges we face today — playing a reactive game of whack a mole with each new crisis that pops up.

Whether it’s the apocalyptic images of whole neighborhoods razed by wildfires in Los Angeles (or hurricane-battered cities like Houston and Tampa before that); the economic dislocations caused by American tariffs on our largest trade partners and further inflation; or the intense uncertainty surrounding the emergence of generative AI, perpetual crisis seems to be the new normal. And the finance community — while flush and in the mood for dealmaking — is trapped in a reactive stance, unable to take a more proactive, thoughtful and strategic approach that anticipates the ways in which our world is transforming.

What would that approach look like?

First, it would acknowledge the need for significant industrialization: lithium processing facilities, modular nuclear reactors, biomanufacturing plants, compute capacity and novel electrical assembly operations. For far too long, Wall Street’s capital has flowed primarily to digital and consumer-focused assets, while heavy industry — increasingly indispensable to economic security — has struggled to attract the scale of financing required to thrive in the new, globally hypercompetitive era that’s now upon us.

Second, it would recognize that the benefits of these investments — though they will take years to materialize — are essential to whether we continue to win, and that to meet the moment, Wall Street needs to quickly align itself with this long-term vision.

Third, a better approach can help realize a new industrial asset class: the bio-manufacturing plants, the networks of data centers we desperately need, and the specialty manufacturing for tool and die making. But only if we figure out how to finance them.

If capital markets fail to support new industrial projects — from new semiconductor foundries to clean energy infrastructure — the U.S. risks falling behind, ceding industrial and technological leadership to foreign competitors. Our ambitions will only be realized if private investment, public policy and industry innovation work in tandem, and work fast.

History reminds us of what’s at stake if we don’t adapt and how entire nations have fallen behind in worst-case scenarios.

Germany’s shift to renewable energy starting in the early 2000s was not immediately matched by its financial sector, which was slow to finance renewable projects. It took years before banks and investors fully backed the transition, leaving much of the early capital needs to government subsidies. Similarly, despite the rapid adoption of mobile payments worldwide in the 2010s, many Indian banks were initially slow to invest in digital infrastructure. This misstep allowed third-party tech players like Paytm to dominate the market while major banks had to play catch-up.

But history has also shown that when markets adjust to emerging challenges, those ready to think creatively and embrace change stand to gain the most.

To remain resilient, the United States needs to pivot to new models of blended finance to invest in new industrial infrastructure. Established financial players, alongside venture firms, family offices and institutional investors have a vital role to play in marshaling resources for this new era. We can meet this challenge by providing targeted products that address the needs of this “missing middle” — those ventures too large for venture capital alone but not yet suited to traditional public markets.

We’ve done it before. Finance can be an adaptive industry. Consider the rise and dominance of investment banking in the 1980s, spurred by deregulation, relaxed antitrust laws and lower taxes. Or Wall Street shifting to accommodate the rise of personal technology in the 1990s. Similarly, the growth of the internet and new methods of electronic trading demolished barriers to entry and spawned thousands of lucrative hedge funds.

In facing another industrial revolution, we would do well to remember the lessons of an earlier success, beginning in the 1870s. With European powers asserting new imperial dominance abroad, the U.S. faced pressure to strengthen its economic foundations at home. This competitive landscape spurred the American government and private sector to adopt innovative financing models, particularly in building the transcontinental railroads that became the backbone of economic growth and innovation. Blended financing that combined equity, private debt and public investment enabled these massive infrastructure projects to materialize, creating a resilient economy capable of holding its own amid turbulent geopolitical shifts.

If the private sector, policymakers and investors fail to evolve now, the promise of this new era will remain elusive. A commitment to reshaping American manufacturing with a focus on innovation and productivity could hold the key, but only if we recognize the urgency and act accordingly. As we enter a new age as a nation, America is faced with a choice: Either continue with the status quo that only reacts to the latest dislocation or adapt by adopting an economic model that unlocks a new industrial revolution.

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Finance

Spanberger taps Del. Sickles to be Secretary of Finance

Published

21 minutes ago

December 23, 2025

Press Room

Spanberger taps Del. Sickles to be Secretary of Finance

Republishing guidelines

by Brandon Jarvis

Gov.-elect Abigail Spanberger has tapped Del. Mark Sickles, D-Fairfax, to serve as her Secretary of Finance.

Sickles has been in the House of Delegates for 22 years and is the second-highest-ranking Democrat on the House Appropriations Committee.

“As the Vice Chair of the House Appropriations Committee, Delegate Sickles has years of experience working with both Democrats and Republicans to pass commonsense budgets that have offered tax relief for families and helped Virginia’s economy grow,” Spanberger said in a statement Tuesday.

Sickles has been a House budget negotiator since 2018.

Del. Mark Sickles.

“We need to make sure every tax dollar is employed to its greatest effect for hard-working Virginians to keep tuition low, to build more affordable housing, to ensure teachers are properly rewarded for their work, and to make quality healthcare available and affordable for everyone,” Sickles said in a statement. “The Finance Secretariat must be a team player in helping Virginia’s government to perform to its greatest potential.”

Sickles is the third member of the House that Spanberger has selected to serve in her administration. Del. Candi Mundon King, D-Prince William, was tapped to serve as the Secretary of the Commonwealth, and Del. David Bulova, D-Fairfax, was named Secretary of Historic and Natural Resources.

This work is licensed under CC BY-NC-ND 4.0

Stories posted on Virginiascope.com are available for publications to republish in their entirety for free.

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Finance

Bank of Korea needs to remain wary of financial stability risks, board member says

Published

12 hours ago

December 23, 2025

Press Room

Bank of Korea needs to remain wary of financial stability risks, board member says

SEOUL, Dec 23 (Reuters) – South Korea’s central bank needs to remain wary of financial stability risks, such as heightened volatility in the won currency and upward pressure on house prices, a board member said on Tuesday.

“Volatility is increasing in financial and foreign exchange markets with sharp fluctuations in stock prices and comparative weakness in the won,” said Chang Yong-sung, a member of the Bank of Korea’s seven-seat monetary policy board.

The won hit on Tuesday its weakest level since early April at 1,483.5 per dollar. It has fallen more than 8% in the second half of 2025.

Chang also warned of high credit risks for some vulnerable sectors and continuously rising house prices in his comments released with the central bank’s semiannual financial stability report.

In the report, the BOK said it would monitor risk factors within the financial system and proactively seek market stabilising measures if needed, though it noted most indicators of foreign exchange conditions remained stable.

Monetary policy would continue to be coordinated with macroprudential policies, it added.

The BOK held rates steady for the fourth straight monetary policy meeting last month and signalled it could be nearing the end of the current rate cut cycle, as currency weakness reduced scope for further easing.

Following the November meeting, it has rolled out various currency stabilisation measures.

The BOK’s next monetary policy meeting is in January.

Reporting by Jihoon Lee; Editing by Jamie Freed

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Finance

Mike Burkhold: A Blueprint for South Carolina’s Financial Future – FITSNews

Published

1 day ago

December 22, 2025

Press Room

Mike Burkhold: A Blueprint for South Carolina’s Financial Future – FITSNews

“I am running because the system needs to be fixed and I have the skills and mindset to do it…”

by MIKE BURKHOLD

***

Earlier this month, at the invitation of Virginia Secretary of Finance Steve Cummings, I spent a full day in Richmond meeting with leaders from across that state’s financial infrastructure. These were not ceremonial handshakes. These were working meetings — substantive, focused and highly instructive.

I met with teams overseeing budgeting, taxation, regulatory oversight, accounting and administration. What I found was a modern, integrated and disciplined approach to managing public money. And it made me even more certain of one thing: South Carolina is ready for change.

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TEAMWORK AND TALENT MATTER

What stood out most in Virginia was the cohesion. From top to bottom, everyone I met shared the same mission — being responsible stewards of the taxpayers’ money. No silos. No blame games. Just a united focus on efficiency, transparency and performance.

That mindset doesn’t happen by accident. It is baked into the culture. The Secretary of Finance meets quarterly with department heads to review budgets, resolve audit findings and keep teams on track. There is accountability at every level. And it works.

That is what I want to bring to South Carolina. As Comptroller General, my job is to revitalize and modernize a critical finance function and to do it in close partnership with the legislature, the governor and the treasurer. I want to build an office that operates with precision, earns trust and gives lawmakers the clarity they need to govern wisely.

***

THIS IS BIGGER THAN ONE SEAT

I am not running for this office because I want a long political career. I am running because the system needs to be fixed and I have the skills and mindset to do it.

If part of that fix means rethinking whether this seat should remain an elected position then I welcome that conversation. In other states like Florida, voters elect a Chief Financial Officer with broad oversight. In Virginia, the Secretary of Finance is appointed by the governor and oversees all fiscal functions. Either model can work – but both reflect a commitment to modern coordinated financial management.

What matters most is that we have a structure that delivers results and earns the public’s trust. That structure needs to be part of a bigger conversation focused on delivering value to citizens – not maintaining fiefdoms or political turf.

***

RELATED | S.C. ‘REPUBLICANS’ REBUFF TRUMP ON REDISTRICTING

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PUBLIC SERVICE STARTS WITH LEADERSHIP

One of the most inspiring parts of my trip was seeing the caliber of leaders who had left high-paying private sector roles to serve the people of Virginia. They brought with them a culture of excellence and a belief that good government is possible when the right people step forward.

We have that kind of talent in South Carolina. We just need to encourage more of it. I am stepping up because I believe in servant leadership. I see a seat that has not been led this way in a long time and there is a lot to fix. Not just the systems and operations but also the teamwork and coordination across agencies.

My goal is not what is best for Mike. It is what is best for South Carolina. I want to rebuild the Comptroller General’s office into a trusted partner, a respected institution and a model for modern financial leadership. Then I want to help figure out what structure will best serve the next generation.

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A MOMENT OF OPPORTUNITY

The recent $3.5 billion error exposed just how outdated and fragile our current systems are. But we are not starting from scratch. We are starting from a place of strength. We have smart people, a strong economy and the will to do better.

Now we need to modernize our expectations. We need to align talent. We need to redesign the systems that manage $40 billion of taxpayer money. And we need leadership that sees the big picture, listens well and gets the details right.

South Carolina’s future is full of promise. But to get there, we need to treat government finance with the same rigor, discipline and urgency as any top-performing business.

That is why I am running. Not to keep a seat – but to serve the mission.

***

ABOUT THE AUTHOR…

Mike Burkhold is a Republican candidate for comptroller general of South Carolina.

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