Posted on 12/15/2021 2:16:15 PM PST by DFG
It is illegal for Congress members to trade based on non-public information gathered during their official duties
House Speaker Nancy Pelosi’s husband cashed in on Big Tech just as Congress was set to pounce
BY SOPHIE MELLOR, Fortune, July 8, 2021 8:26 AM EDT
The week before the House Judiciary Committee voted on reigning in big tech, Speaker Nancy Pelosi’s husband exercised a bullish bet on Google-parent Alphabet, in a timely transaction that netted him $5.3 million.
The antitrust bill was advanced as a push by the government to curb the “unregulated power” of big tech firms Google, Amazon, Apple and Facebook. It was the final part of a six-part package called “Ending Platform Monopolies Act” aimed at restricting how big tech companies offer their products to ensure they don’t use their size to dominate the market.
However, despite its good intentions, the market reaction to the judiciary panel approving the legislation was muted—shares in big tech companies in fact rose after investors found the House proposal to be no real threat.
Paul Pelosi, who bought 4,000 shares of Alphabet on June 18 (as revealed in a financial disclosure signed by Nancy Pelosi and filed on July 2), made an initial $4.8 million gain from Alphabet’s rising share price, and has since seen his gain grow to $5.3 million.
Paul bought the stock by exercising a call option, which allows investors to speculate on stocks they do not own by entering into a contract that allows them to buy a stock at a later date at a promised price. The upshot: a call option is a good tool for an investor who believes the stock price will go up in the future. In Pelosi’s case, the call options he’d previously bought for Alphabet (which were due to expire the day of his purchase) allowed him to buy it at $1,200 a share while the shares closed that day just over $2,500, a difference that accounted for his profit.
Paul Pelosi also reported buying call options for Amazon, Apple and NVIDIA, but he did not report exercising them.
Nancy Pelosi’s spokesperson said “The speaker has no involvement or prior knowledge of these transactions,” in an emailed statement on Wednesday, adding that Speaker Pelosi doesn’t own any stock.
Capitol gains
Great stock timing in DC isn’t exactly novel. Republican senators Richard Burr and Kelly Loeffler had inside knowledge of the impending COVID-19 crisis when they sold shares in January 2020.
Burr sold $1.7 million worth of stock holdings, while the former senator, Loeffler, wife of New York Stock Exchange chairman Jeffrey Sprecher and richest member of Congress at the time, unloaded up to $3.1 million worth of stock after getting closed-door briefings on the COVID-19 threat.
It is illegal for Congress members to trade based on non-public information gathered during their official duties, but it is hard to charge members of Congress with insider trading. Neither Burr not Loeffler faced any charges following inquiries.
But while it is hard to prosecute politicians over such stock sales, Twitter is less forgiving. ‘Nancy Pelosi Insider Trading’ began to trend on the social media service and people have called for her removal from office.
“If the Republicans were smart they’d jump all over this and submit legislation forbidding sitting congressmen from trading individual stocks.”
Unfortunately, the Republicans are also compromised:
“DOJ will not charge Sen. Richard Burr for Covid stock trades”
https://www.cnbc.com/2021/01/19/doj-will-not-charge-sen-richard-burr-for-covid-stock-trades.html
“Jan 19, 2021 ... Sen. Richard Burr was the only remaining senator to face a criminal probe related to stock trades made in advance of the coronavirus ..”
Okay for elites but not for us. 2 tier system.
or they do it too
glass houses
Keep talking Pelosi, we’re listening.
Lol. How can the Babylon Bee compete with this?
She’s not going to prohibit a practice that’s paid her such rich rewards.
It may be a 'free market', however when members of Congress legislate, they aggregate and command 'insider information' which is not available to the general population.
That is the very definition and essence of 'insider information' which is criminally punishable if done in the general population.
This information is then disseminated to spouses, relatives , business allies, and friends (even perhaps for 10% to 'the big guy'.
The legislation passed by these members of Congress actually determine the winners and losers of businesses,
and seem to always favor the larger corporations who contribute to the political candidate fund raisings.
She and her husband just happen to outperform all the people who do nothing but trade for a living. Just a kionkydint
“House Speaker Nancy Pelosi (D-CA) said Wednesday she believed members of Congress should be allowed to trade stocks despite ethical questions, citing the “free market.”
Its not a Free Market when People like Ms.Pelosi have insider knowledge that they learn as a result of doing their Government duties. Thats called insider trading and its a felony.Politicians like Ms.Pelosi should be required to Notify the authorities of her trading history during that calendar year.
This crap Pelosi’s been doing should be placed into law again and it should include all Members of the House and Senate.
It should only be removed with a 2/3 vote in both houses and the Public must be notified 60 days before it could be expunged.
The only way I see to make these Politicians follow the laws they inflict on the people.
“Then why is insider trading against the law?”
I suspect you don’t get it yet. Hillary Clinton can commit crimes that would put you and me in prison for decades and the FBI has a jokey interview where they don’t even take notes. I understand she sighed autographs. To my knowledge they’ve never conducted an “interview” without notes. Without notes she can lie all she wants and there’s no way to prosecute. And, that’s what happened. So there are laws for the little people and laws for the elite. Congress are the elite.
because they too are doing this....if you go to congress and come out poor you did it wrong.
I was thinking that. All of us will go to jail, for barely doing what they themselves routinely do.
Nancy admits Congress Critters get Rich from insider trading
Not everyone get s insider info.
Did this crook Pelosi forget about the “Stock act of 2012” signed into law by her buddy Barack Obama which makes it illegal for members of Congress to trade on insider information? Well her and her husband have been doing just that since 2012. WHY isn’t this pig of a woman busted? Read the law.......
https://en.wikipedia.org/wiki/STOCK_Act
It’s against the law for them now as well. Obama in 2012 signed a law prohibiting them from cashing in but he damn well knew they would keep doing it.....
https://en.wikipedia.org/wiki/STOCK_Act
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