Despite a populist grassroots movement seeking to prohibit Congress members from stock trading, one which has attracted bipartisan political support, Democratic House Speaker Nancy Pelosi – arguably one of the most prolific Congressional traders – said two weeks ago that lawmakers ought to be allowed to make trades while serving.
“ We’re a free market economy, ” Pelosi informed reporters during a news conference. “ They should be able to participate in that. ”
Pelosi’s statement came times after progressive New Yorker, Alexandria Ocasio-Cortez, reiterated her support for banning congress from the practice. Ocasio-Cortez as well as other members of Congress argue that lawmakers have access to information the general public is not privy to and the ability to write and pass plan, they should abstain from buying and selling person stock and other assets. The lady and other lawmakers support members of Congress investing in index funds.
“ I choose not to hold any kind of so I can remain impartial about policy making, ” Ocasio-Cortez wrote on Instagram.
Pelosi’s statement also came in the wake up of a series of scandals regarding federal lawmakers, Fed and government officials making believe trades throughout the coronavirus pandemic.
Currently, Senator Richard Burr (R-N. D. ), is under analysis by the Securities and Exchange Commission for trades this individual made in the early days of the pandemic (Burr has said all his trades were based on news reports, not non-public information), and other lawmakers had been investigated by the Department associated with Justice for their trades.
It’s not limited to Congress: In October the Given announced it would ban authorities from owning individual stocks and bonds after 2 officials – Dallas Fed president Robert Kaplan plus Boston Fed president Eric Rosengren – resigned following allegations of insider investing.
Members of Congress are theoretically banned from trading on nonpublic information thanks to the Stop Trading on Congressional Knowledge, or even STOCK, Act, and during the press conference, Pelosi noted that lawmakers need to follow that law. “ In case people aren’t reporting [stock trades], they should be, ” the girl said.
We mention all of this because according to the latest Periodic Transaction Report covering Nancy Pelosi’s latest trades, the California Democrat purchased hundreds of thousands worth of call options in companies from Alphabet, to Micron, to Roblox, Saleforce and Walt Disney. Unfortunately, the strike price of the options was not disclosed, even though with maturities well in to 2022 and in some cases 2023, this particular appears to be a long-term levered bet.
And while the particular presumption is that there Pelosi did not trade on within information, something tells us all of those trades will be profitable.