Trump's new clash is panicking 'doomed' Wall Street investors: Fox News reporter

President Donald Trump's desire to punish Harvard University at all costs for defying him on MAGA culture issues is causing headaches among Wall Street's private equity firms and hedge funds, according to a report in The New York Post.

In addition to barring the Ivy League university from admitting international students, Trump has pulled billions of dollars in federal funding and is seeking to cancel contracts the school negotiated with the federal government.

"On The Money's" Charles Gasparino, a Fox Business reporter, claimed that Trump's retaliation has Wall Street investors predicting "a huge hit to their businesses."

Gasparino explained, "As Team Trump ramps up the pressure, colleges will need quick and sometimes immediate access to cash in their endowments. Currently, much of the money is locked up in private equity investments – pools of cash invested in private companies that earn a return when they IPO; and hedge funds – sophisticated trading shops that promise outsized returns and charge high fees."

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To pull their money out faster and easier, "the endowments will be forced to place cash in more liquid vehicles like so-called passive index funds – investments that don’t need an active manager and don’t charge exorbitant fees," he wrote.

Gasparino quoted one hedge fund manager lamenting, "Our fund may be doomed. All these college CIOs (chief investment officers) will think they’re OK in a passive fund.”

By going after endowments, Trump is hoping to browbeat elite schools into embracing "a more centrist approach to higher education," Gasparino wrote.

"Congress, meanwhile, is looking to increase its excise tax on endowment returns to 21% from the current paltry rate of 1.4%," Gasparino wrote. "The hike would be lower than past proposals but still significant enough to squeeze budgets further."

Read The New York Post article here.