Home WebMail Friday, November 1, 2024, 07:36 AM | Calgary | -4.0°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Posted: 2020-03-20T19:01:36Z | Updated: 2020-03-20T19:47:08Z

Two Republican senators defended their actions Friday after coming under fire for selling hundreds of thousands, if not millions, of dollars in stock shortly after they received closed-door coronavirus briefings.

Sen. Kelly Loeffler (R-Ga.), whose stock sales were first reported by The Daily Beast on Thursday, said she had no knowledge of her stock sales, which ran for several weeks starting on Jan. 24, the same day the Senate Health Committee held a private briefing from top officials about COVID-19, the disease caused by the coronavirus.

These were completely discretionary trades at the decision of our investment managers, the freshman senator said in a CNBC appearance Friday afternoon. We had no involvement in them, and in fact, I dont find out about these trades until these reports are compiled at the end of the reporting period.

Loeffler and her husband, Jeffrey Sprecher, the chairman of the New York Stock Exchange, sold between $1,275,000 and $3.1 million in joint stocks during the period in question, including from companies whose shares have fallen by half since the private briefing. Though she emphasized to CNBC that her third-party advisers also purchased stocks, that accounted for only two of the transactions, one of which was a company that offers teleworking software.

Its against the law for lawmakers to use non-public information to influence their financial decisions, such as a move to sell stock before a market crash to limit potential losses.

Loeffler also said on CNBC that when she received the Jan. 24 briefing, the threat the coronavirus posed was not yet entirely clear.

I dont think it was until ... at the start of this month when we started to realize the severity of it, she said.

Sen. Richard Burr (R-N.C.), the chairman of the Senate Intelligence Committee, has also come into question for offloading between $628,000 and $1.72 million in holdings starting Feb. 13, ProPublica first reported. That was just after he assured the country that the government was prepared to deal with the unfolding health crisis.

In a statement Friday morning, he said he chose to sell stock based on reports coming out of Asia. But understanding the assumption many could make in hindsight, he said, hes asked to the Senate Ethics Committee to open a review of the matter.

Sens. Dianne Feinstein (D-Calif.) and James Inhofe (R-Okla.) made stock sales around the same time.

Feinstein said Friday she was not at the Jan. 24 briefing and that all of her assets are in a blind trust.

Your Support Has Never Been More Critical

Other news outlets have retreated behind paywalls. At HuffPost, we believe journalism should be free for everyone.

Would you help us provide essential information to our readers during this critical time? We can't do it without you.

You've supported HuffPost before, and we'll be honest we could use your help again . We view our mission to provide free, fair news as critically important in this crucial moment, and we can't do it without you.

Whether you give once or many more times, we appreciate your contribution to keeping our journalism free for all.

You've supported HuffPost before, and we'll be honest we could use your help again . We view our mission to provide free, fair news as critically important in this crucial moment, and we can't do it without you.

Whether you give just one more time or sign up again to contribute regularly, we appreciate you playing a part in keeping our journalism free for all.

Support HuffPost

Inhofe tweeted Friday that in 2018, he instructed his financial advisor to move all his stocks and into mutual funds to avoid any appearance of controversy.

Later on Friday, the watchdog group Common Cause filed complaints with the Department of Justice, the Securities and Exchange Commission and the Senate Ethics Committee. The group is calling for immediate investigations into all four senators for possibly violating the STOCK Act of 2012 and insider trading laws. Demand Progress, another watchdog group, called for an investigation into Burr.

Keep up with the latest updates on the coronavirus at our live blog .