Posted on 10/01/2005 4:24:32 AM PDT by abb
Senate Majority Leader Bill Frist began exploring ways to sell his shares in HCA Inc. on April 29, more than two months before a July 13 earnings warning caused the stock to fall, according to documents reviewed by The Wall Street Journal.
The timing of his communications about the sales will likely be a key defense for Mr. Frist, who is under investigation for potential insider trading by the Securities and Exchange Commission and the Department of Justice. Mr. Frist's shares weren't sold until July 1 and July 8, just several days before HCA's warning caused the stock to fall 9%. But the timing could help Mr. Frist, since it suggests he started the process long before HCA knew of its financial problems. [Bill Frist]
In an email to his personal accountant on April 29, Mr. Frist said he wanted "to dispose of all hospital stocks in all the accounts that I have control of." On May 20, Mr. Frist drafted a letter to the Senate Ethics Committee asking for permission to "sell assets consisting of (i) securities issued by HCA Inc. and (ii) securities received as a result of owning securities of HCA Inc."
Mr. Frist's decision to unload shares in HCA, a for-profit hospital chain founded by his family, came as he was reviewing his Senate financial-disclosure forms that were due May 16, according to people with knowledge of the matter. The Tennessee Republican, who is considering a 2008 presidential run, had long been dogged by criticism for owning the shares while also helping to shape health-care policy. He has said he wanted to sell the stock to avoid the appearance of a conflict of interest.
The stock sales sparked federal probes because of the proximity to HCA's earnings warning.
(Excerpt) Read more at online.wsj.com ...
It's not ILLEGAL ! The Illegal ones are
Sen Corzine, Sen Reid, Sen Schumer !!
It was two and a half months, this story is an MSM smear campaign.
What is the cut off, if he had sold it six months before would the MSM still be attacking.
Yes, one of the things that "looks bad" according to the MSM is that Frist was saying that he didn't even know if he had stocks in HCA, then he's busy selling his stake in HCA right before the stock takes a hit.
Move along folks, there's less than nothing to this "scandal" and it's SHAMEFUL resources of investigative bodies are being wasted on it.
Can a "blind trust" include exclusions of speciific stocks/sectors? Could one instruct the trustee not to buy shares in, say, any waste companies? Or oil companies?
Would it still be "blind"?
Much ado about nothing, except for the fact that Frist is tidying up his personal profile before his '08 run. He won't get my vote.
ping
When you know that your blind trust includes shares of your family's own stock, HCA, then you also have no problem knowing that it's better to sell high than to sell low.
HCA was at historic highs early this year....in the 50's...the highest it had ever been. Of course it was a good time to sell for those who were contemplating selling.
Additionally, when it fell into the 40's it was STILL at historic highs. It's not like the stock tumbled into the netherworld.
Frist is the victim of a witch hunt and a media smear.
The rush by insiders to sell HCA seems to have begun with the Chairman's disposing of 1,000,000 shares on February 2. This is followed by heavy insider selling in March and April. Probably Frist could have been "following the leader", or he could have been acting on inside information and the paperwork took longer for him than for the others.
Wow. So many "may be" phrases in your comments.
Does that not point to the urgent need to wait for the facts rather than speculate?
Indeed it does, and thus it is too early to say whether Frist will be exonerated or not.
The main investigation is really about whether a number of persons traded HCA stock on the basis of inside information. Frist's trades are just one of many being examined by the SEC.
Go to the Yahoo business site, pull up the HCA stock, and click on insider trades to see for yourself.
Sure. SEC launches many such investigations. No problem with that at all. Judging people guilty, or insinuating that they are guilty is the problem.
The WSJ article was conjecturing that the fact that Frist began the sale process in late April would help clear him.
However, if you look at the insider sales, the volume grows prior to April, suggesting that insiders at HCA began selling in February and March because they knew of trouble in the offing.
In a business like HCA, the CFO can stave off the bad result for a quarter or two. Note that the CFO was one of the sellers.
SEC is better at getting to the bottom of this than us. So, I would rather wait for the investigation to complete.
The bar for insider trading is EXCEEDINGLY high.
wow!!!!!!!!!!
the stock fell a whole 9%!!!!!!!!!
shazaam!!!!!!!
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