During a heated House Financial Services Committee hearing on September 10, 2025, Ranking Member Maxine Waters (D-CA) accused President Donald Trump of steering the United States toward what she described as a “communist takeover” of its markets.
Speaking at the session titled “Proxy Power and Proposal Abuse: Reforming Rule 14a-8 to Protect Shareholder Value”, Waters framed her remarks as a defense of capitalism and shareholder rights, arguing that Trump’s policies threaten both.
“For years, this Committee has proudly championed the values of capitalism and the free market,” Waters began. “But Donald Trump’s actions with companies like NVIDIA, Intel, and U.S. Steel is not capitalism by any definition of the word.”
Waters pointed to recent job numbers showing a loss of more than 40,000 manufacturing jobs since April, a figure she attributed to tariffs that she said have raised consumer prices instead of boosting industry. She also criticized Trump for what she called selective targeting—using government power against cities, universities, nonprofits, media organizations, and now corporations.
“This is the kind of sweeping authoritarian-style, communist takeover that China’s leadership would applaud,” Waters declared, adding that Trump’s motivations were about consolidating power, punishing adversaries, and rewarding loyalists.
Beyond Trump himself, Waters warned that Republicans are enabling these moves by advancing legislation through the Securities and Exchange Commission (SEC) that, she argued, would “silence the voice of shareholders.” She pointed to Tesla as an example of why shareholder oversight is essential, citing the company’s decision to relocate to Texas and pursue what she described as an “obscene” executive compensation package for Elon Musk despite legal setbacks in Delaware.
Waters also highlighted the risks of undermining investor input, suggesting that without accountability, companies could collapse as disastrously as Enron or WorldCom. “If Republicans get their way by silencing investors and remaking their boards to no longer be independent, public companies may experience a fate similar,” she warned.
In closing, Waters said Democrats will continue to defend shareholder rights and ensure taxpayer dollars serve the public good rather than corporate or political interests. “Workers—not just the corporate elite—must see and feel the benefits,” she said, pledging to fight for housing, healthcare, and social support programs as alternatives to what she described as Trump’s misuse of government authority.
Source: U.S. House Committee on Financial Services
