Revealed: Members of Congress profited from bank stocks as they voted on bailouts
Published: June 26, 2009
Updated 4 months ago
Several members of Congress who oversee the banking industry and bemoaned the industry’s greed actually pocketed cash from investing in or selling the same banks they were rebuking when the market collapsed last year.
At least two members of Congress — an Ohio Democrat and a Florida Republican — invested or cashed out of bank stocks just as the fortunes of those companies fell. Ohio Democrat Charlie Wilson sold between $15,000 and $50,000 worth of Huntington Bancshares stock Nov. 14 — the same day the bank got $1.4 billion in bailout money from the Troubled Asset Relief Program.
“Wilson’s transactions over the course of last autumn also included Bank of America and BB&T, both beneficiaries of the bank rescue program that Treasury implemented after congressional passage,” the Plain Dealer reported Friday.
A Republican congresswoman, meanwhile, bought between $1,001 and $15,000 of Citigroup stock the day before the House passed a major financial rescue bill in October (and then voted against the bill).
Members of Congress are obliged to report only estimates of their wealth in filings on their personal holdings, which are required by law.
Adds the Plain Dealer: “Eleven days later, she bought $1,001 to $15,000 worth of Bank of America stock. It was on the same day that then-Treasury Secretary Henry Paulson told leading banks that he expected them to accept billions in bailout money to prevent a financial meltdown.”
Two more Democrats took heat in Friday’s report.
“A spokesman for Rep. Carolyn McCarthy, a New York Democrat also on the Financial Services Committee, said she similarly leaves transactions solely to the discretion of account managers,” the paper said. “McCarthy’s trades included a $2,275 purchase of bailout recipient J.P. Morgan Chase while Congress was still hammering out its rescue bill.”
Finally, “Democratic Rep. Jackie Speier of California, said on a recent financial disclosure report that she bought up to $15,000 in Citigroup stock on Nov. 7. That was 10 days after the bank got a $25 billion bailout. “
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Something else is ” in the works” in Congress..the bribes being paid to Congressional members, especially in the Senate, from the Private Health Care Companies to STOP any form of “public option” (will be small potatoes) compared with the high paying Executive positions they are being promised…(just in case they loose their next election)
It is a federal crime for a member of congress to profit from legislation that they helped pass. But what else is new since they can hide their investments.
Is this not the very epitome of “Insider Trading”? I was thinking that we need some new Democrats, but I am getting back to believing that we need to push the reset button on Government in Amerika. There all in on it. Hang ‘em high!
[Finally, “Democratic Rep. Jackie Speier of California, said on a recent financial disclosure report that she bought up to $15,000 in Citigroup stock on Nov. 7. That was 10 days after the bank got a $25 billion bailout. “]
So? EVERYONE in America had the exact same opportunity: I won’t criticize Jackie for being optimistic the bailout would cause Citi stock to go up. THAT IS what investors do.
Now, if she had purchased it BEFORE the bailout vote, was on the Finance Committee and pushed to get Citi the bailout then voted YES to the bailout, THEN I would have issue with it.
This is just smearing her to include her with the ones with interest in the stocks BEFORE the vote.
I say HANG UM, and not high. Just high nuff their toes will be an inch from the ground. that would come under torture tho. dam.
Just take them out back and shoot um.
This is a liberal leaning site? This guy Byrne names 4 dems with shaky info but intimates that there is a repub from fla but doesn’t name her.
What a guy! Some libs.
If we had laws that prohibited congress or senate from owning any stocks while in office we would have “normal” people doing “normal” tasks.
Its getting harder and harder to buy a good government these days.
I don’t know.
But I thought this was called “Insider Trading.” Ain’t it what Martha Stewart was originally accused of? Obviously she went to jail for telling the FED’s a lie, but hey we’ve been lied to by our officials? So where are the COPS!?
By the way I don’t agree with ezrider. I think life in prison would be much more suitable until breaking oath of office and the clarification of ACTION to be take against oath breakers who are OFFICIALS is clarified. (Which it currently isn’t)