U.S. senators defend selling shares before coronavirus crash

By Richard Cowan, David Morgan and Susan Cornwell

 

The American Flag flies at the U.S. Capitol Building, as Mayor Muriel Bowser declared a State of Emergency due to the coronavirus disease (COVID-19), on Capitol Hill in Washington, U.S., March 18, 2020. REUTERS/Tom Brenner

 

WASHINGTON (Reuters) - Two Republican senators defended themselves on Friday against heavy criticism, including calls that they resign, for selling substantial amounts of stocks before the coronavirus-induced market meltdown and after closed-door briefings on the outbreak.

 

Senate Intelligence Committee Chairman Richard Burr sold up to $1.7 million worth of stock on Feb. 13 in 33 separate transactions after offering public assurances the government was ready to battle the virus. His financial filings were first reported by ProPublica.

 

Senator Kelly Loeffler also sold millions of dollars in shares in the weeks after lawmakers were first briefed on the virus, according to public filings.

 

Media reports about Burr and Loeffler, who have denied wrongdoing, prompted calls they leave office and other criticism from people as disparate as a progressive Democratic lawmaker and a conservative commentator.

 

Burr made public comments in line with Republican President Donald Trump's early assurances that the country could easily deal with the outbreak. Trump has since taken a markedly more serious tack.

 

But the senator told a private Washington luncheon two weeks after the stock sales that the coronavirus was much more aggressive "than anything that we have seen in recent history," according to a recording obtained by National Public Radio.

 

The comments predated Wall Street's series of avalanches.

 

In a statement Friday, Burr said he relied only on public news reports to guide his decision on the Feb. 13 stock sales.

 

"Understanding the assumption many could make in hindsight, however, I spoke this morning with the chairman of the Senate Ethics Committee and asked him to open a complete review of the matter with full transparency," Burr said.

 

Senate Ethics Committee Chairman James Lankford declined to comment.

 

Loeffler sold up to $3.1 million in stocks in 27 transactions from Jan. 24 through mid-February, as first reported by The Daily Beast. The report said the sales began the day her health committee hosted a private coronavirus briefing for senators. She also made two purchases.

 

Loeffler said she was informed of the transactions three weeks after they occurred and that she is not involved in investment decisions for her portfolio.

 

"This is a ridiculous and baseless attack," she wrote on Twitter.

 

Trump said the senators should "possibly" be investigated.

 

"They said they did nothing wrong. I find them, the whole group, very honourable people," he told reporters.

 

'STOMACH-CHURNING'

 

Critics on both ends of the political spectrum called on Burr and Loeffler to consider resigning or at least explain the sales.

 

"Senator Burr owes North Carolinians an explanation," fellow North Carolinian and Republican Senator Thom Tillis wrote on Twitter. "His self-referral to the Ethics Committee for their review is appropriate, there needs to be a professional and bipartisan inquiry into this matter."

 

Democratic Representative Alexandria Ocasio-Cortez tweeted, "It is stomach-churning that the first thoughts these Senators had to a dire & classified #COVID briefing was how to profit off this crisis." Ocasio-Cortez is a prominent member of the party's progressive wing.

 

Conservative Fox News commentator Tucker Carlson told viewers on Thursday: "Maybe there is an honest explanation for what (Burr) did. If there is, he should share it with the rest of us immediately. Otherwise, he must resign from the Senate and face prosecution for insider trading."

 

Republican Senator James Inhofe and Democratic Senator Dianne Feinstein also sold stock, according to filings, but, like Loeffler, both said they were not involved in the transactions.

 

Inhofe said he has divested most of his stock and is not involved in investment decisions. Feinstein's money is in a blind trust.

 

The activist group Common Cause filed complaints with the Justice Department, Securities and Exchange Commission and Senate Ethics Committee demanding investigations of all four senators.

 

The controversy swirled as senators from both parties negotiated with Trump administration officials on a rescue plan for an economy reeling from the coronavirus, after Republicans made a $1 trillion opening bid.

 

The Republican proposal included checks of up to $1,200 each for many Americans, and hundreds of billions of dollars in loans for small businesses and industries.

 

Senate Majority Leader Mitch McConnell said he wanted a deal by the end of Friday. That would allow for Senate passage on Monday, sending the bill to the House of Representatives and clearing the way for Trump to sign it into law early next week.

 

Negotiations centred around possibly combining expanded unemployment insurance benefits demanded by Democrats with the direct payments for Americans, which have been touted by the White House.

 

Treasury Secretary Steve Mnuchin was optimistic. "It's going fabulous. It’s the best bipartisan work we’ve ever had," he told reporters, elbow-bumping Democratic Senator Ron Wyden.

 

Democrats said they were wary.

 

Senate Democratic Leader Chuck Schumer said the bill was skewed in favour of corporations, and includes tax cuts for multinational corporations and restrictions on paid sick leave Congress had just expanded.

 

"Senator McConnell's bill is not pro-worker at all. It puts corporations ahead of people. We need workers first," Senate Democratic Leader Chuck Schumer told reporters.

 

(Reporting by Doina Chiacu, Susan Cornwell, Richard Cowan, Susan Heavey, Lisa Lambert, David Morgan and Patricia Zengerle; Writing by Patricia Zengerle and David Morgan; Editing by Scott Malone and Jonathan Oatis)

 

-- © Copyright Reuters 2020-03-21

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The lowest of the low.

Put them in jail.

I am sure the FBI is turning their head at the moment.

3 minutes ago, Kelsall said:

Feinstein is a Democrat.

“During my Senate career I’ve held all assets in a blind trust of which I have no control,” Feinstein tweeted. “Reports that I sold any assets are incorrect.”

 

https://www.sfchronicle.com/politics/article/Feinstein-denies-wrongdoing-in-stock-sale-before-15145862.php

1 hour ago, simple1 said:

“During my Senate career I’ve held all assets in a blind trust of which I have no control,” Feinstein tweeted. “Reports that I sold any assets are incorrect.”

 

https://www.sfchronicle.com/politics/article/Feinstein-denies-wrongdoing-in-stock-sale-before-15145862.php

What Feinstein says may be true it does beg the question on whether senators, red or blue, passed on information to portfolio managers, administrators of blind trusts, or friends.

The actual sales point to a potentially bigger problem that is not limited to one side.  Isn't it illegal to benefit from insider knowledge.  In a situation like this it certainly seems immoral at least.

You know it’s almost reminds me of insider trading you know that Martha Stewart got thrown in jail for doing it these politicians in America should be thrown in jail scum bags TIA

Can we just dispense with any pretense that many of our politicians aren't simply scoundrels?  Anyone with a thinking brain knows that this is not a partisan problem. There should be legislation introduced for market trading disclosure by every House/Senate member as well as staff that had the information.  I want a full transparent investigation of every last one of them not political gamesmanship. Otherwise, we get some selective process that enables them to claim how ethical they all are while avoiding scrutiny for themselves.

 

Don't you worry your little heads, if the Security and Exchange Commission will go after Martha Stewart for inside training these mopes in Congress will soon get a visit 

3 minutes ago, simple1 said:

Yes, insider trading is illegal. Anyone found guilty, especially those in political / law making roles, must be prosecuted with the full force of law. However, it appears that members Rabas, Nyezhov, & Kensall find Fienstein's disclaimer laughable - you know the ones first to the fore to support trump's inane conspiracy theories. 

Thank you, I fully agree that the full force of the law should be applied unilaterally.  Most of the disclaimers currently circulating from red or blue senators seem laughable.  A thorough investigation of their communications records may lead to a much better insight on how they or others have benefitted from insider knowledge.  I do not have much time or patience for many people in power after observing their actions, there are very few who do the job they are elected to do and represent the people's best interests.

Troll posts and the replies have been removed. 

3 hours ago, rooster59 said:

Trump said the senators should "possibly" be investigated.

 

"They said they did nothing wrong. I find them, the whole group, very honourable people," he told reporters.

Lock them up. 
 

maga

As fas as I am aware, same in Aus, all Members anbd Senators musy remain 'distant' from their share portfolios upon taking office.  In other words their assets are managed by others - just like mine are in a fund.  I doubt very much that any one of them (Dem or GOP) rang their broker and said 'sell'.  More likely is that their fund manager/s got a hold of the info and they took action by themselves - or it could be just coincidence.

 

However, if any of them actually was personally involved in the decision to sell - put them in jail.  This will not go away - after things calm down these claims will be investigated - quietly I am sure.  Re-elections may not be sought.

 

Profiteering. That's why politicians become politicians.

TOP secret meeting... and then they sell (maybe 40 sell order and NO buy orders for Burr).  He's not senator "rich" so that was a lot for him.

 

i'm sure they told all their friends, and they know how to keep their friends safe......well, they think they do.

 

the WORST WORST is that AFTER they sold they tweeted, "economy is super strong, everything is fine."
 

jail

1 hour ago, stevenl said:

How much is Trump worth and how much did he dump?

I think if Trump had a dump then that would be most of him down the pan ...

46 minutes ago, AussieBob18 said:

As fas as I am aware, same in Aus, all Members anbd Senators musy remain 'distant' from their share portfolios upon taking office.  In other words their assets are managed by others - just like mine are in a fund.  I doubt very much that any one of them (Dem or GOP) rang their broker and said 'sell'.  More likely is that their fund manager/s got a hold of the info and they took action by themselves - or it could be just coincidence.

 

However, if any of them actually was personally involved in the decision to sell - put them in jail.  This will not go away - after things calm down these claims will be investigated - quietly I am sure.  Re-elections may not be sought.

 

Why is that more likely considering that the only one to have claimed something along those lines is a Senator whose funds are in a blind trust. That they haven't come up with such a reason makes it less likely that such is the case.

4 hours ago, bkk6060 said:

The lowest of the low.

Put them in jail.

 

4 hours ago, JimmyTheMook said:

Nancy Pelosi is worth 61 Million via stock and real estate holdings with her husband - how much did they dump?

 

 

They're all worthless scum- Republican and Democrat

Burr had voted against these reporting requirements. One of only 3 that did. He was reelected a number of times afterward. People get the politicians they deserve. 

To be fair, it wasn't all selling for Senator Loeffler, the Republican Senator for Georgia. She also bought stock in Citrix...a company that sells teleworking software. Oh wait a minute...

https://www.ajc.com/news/state--regional-govt--politics/perdue-loeffler-among-senators-whose-stock-trading-during-coronavirus-raises-questions/YjEYsWqAVwZh52HTpl1EpL/

You can view the filings here... https://efdsearch.senate.gov/search/home/

 

Besides the insider trading, which most cannot defend (resorting to whataboutism is the sign of a simpleton), burr gave a radically different perspective on the virus to The Tarheel Circle, than he was giving publicly.

 

If loeffler has half a brain she'd resign ASAP. burr was greedy, loeffler was a pig.

put them in jail and take all THEIR money ?

It's only issue and article because they are Republicans.

Please, these are Republicans.  We have no right to question their financial dealings while they are in office.  They will also pass legislation for workers that will send cash payments.  But only for workers and their bosses and their corporate owners.  Hmmm, maybe not the workers!

Some off topic posts and replies have been removed.

5 hours ago, simple1 said:

“During my Senate career I’ve held all assets in a blind trust of which I have no control,” Feinstein tweeted. “Reports that I sold any assets are incorrect.”

 

https://www.sfchronicle.com/politics/article/Feinstein-denies-wrongdoing-in-stock-sale-before-15145862.php

Betcha all didn't know that Feinstein's "blind trust" is being managed by her husband.

Akin to insider trading, albeit not directly working in those companies but having information that only they were privy to at the time.  It appears to be a form of corruption as they used privileged information in government office to personally profit.  Whereas the rest of us punters are left with our portfolios ravaged.  But of course they "did nothing wrong'. 

16 minutes ago, Iron Tongue said:

Betcha all didn't know that Feinstein's "blind trust" is being managed by her husband.

 

I only see one sale by Feinstein, Allogene Theraputics.

 

Maybe you know something we don't?

 

1 hour ago, bristolboy said:

To be fair, it wasn't all selling for Senator Loeffler, the Republican Senator for Georgia. She also bought stock in Citrix...a company that sells teleworking software. Oh wait a minute...

https://www.ajc.com/news/state--regional-govt--politics/perdue-loeffler-among-senators-whose-stock-trading-during-coronavirus-raises-questions/YjEYsWqAVwZh52HTpl1EpL/

They can play around with disclosures and blind trusts all they like, but it doesn't take care of the problem. All of these politicians should be made to liquidate the shares they own in all corporations before they assume office and that policy should remain in force for the period they remain in office. They'll still need monitoring for insider information they pass on, which this Burr guy most certainly did.

Edited March 21, 20206 yr by lannarebirth

1 hour ago, mtls2005 said:

You can view the filings here... https://efdsearch.senate.gov/search/home/

 

Besides the insider trading, which most cannot defend (resorting to whataboutism is the sign of a simpleton), burr gave a radically different perspective on the virus to The Tarheel Circle, than he was giving publicly.

 

If loeffler has half a brain she'd resign ASAP. burr was greedy, loeffler was a pig.

Even worse, from my perspective, Senator Loeffler's website says she  " earned the Chartered Financial Analyst (CFA) designation." 

 

I have not seen her claim it was a blind trust (in which she truly would have no knowledge of the holdings of the account), but says she has a signed piece of paper saying she knew nothing about the trades at the time they were made - indicating it was NOT a blind trust.

 

That won't cut it. Time to investigate.

SDNY has jurisdiction!