Senator purchased stock in defense contractor after pushing for more military spending

[poweRob]

Another self-dealing crook exposed.

Senator purchased stock in defense contractor after pushing for more military spending

Republican Sen. James Inhofe of Oklahoma, the chairman of the powerful Senate Armed Services Committee, purchased thousands of dollars in defense stock after successfully pushing the Trump administration for more Defense Department spending.

According to his Senate financial disclosure report, Inhofe listed a purchase of $50,000-$100,000 in stock in US defense contractor Raytheon. Inhofe's communications director said he canceled the transaction when he became aware of it.​

 

[poweRob]

So he purchased it... of course he didn't know about the purchase until after it was purchased but then it was cancelled so he didn't REALLY own the stock... that's some fancy dancing right there.

Inhofe's communications director Leacy Burke told CNN in a statement that "the senator was not aware of this stock purchase until it came through the system very early this morning."

"All of Sen. Inhofe's financial transactions are handled by a third-party adviser," Burke said. "The senator has had no involvement in and has not been consulted about his stock transactions."
Burke said that Inhofe told his financial adviser to reverse the transaction once he was aware.

"This means that the transaction was canceled before it was settled; the senator never took ownership of it," she said.​

 

[Dutch Uncle]

So he purchased it... of course he didn't know about the purchase until after it was purchased but then it was cancelled so he didn't REALLY own the stock... that's some fancy dancing right there.

Inhofe's communications director Leacy Burke told CNN in a statement that "the senator was not aware of this stock purchase until it came through the system very early this morning."

"All of Sen. Inhofe's financial transactions are handled by a third-party adviser," Burke said. "The senator has had no involvement in and has not been consulted about his stock transactions."
Burke said that Inhofe told his financial adviser to reverse the transaction once he was aware.

"This means that the transaction was canceled before it was settled; the senator never took ownership of it," she said.​

If true, then he's fine. If not, then he should be prosecuted.

 

[Beaudreaux]

If true, then he's fine. If not, then he should be prosecuted.

Congress is exempt from insider trading laws.

 

[cabse5]

Congress is exempt from insider trading laws.

I suppose someone in the new dem house will want to remedy that situation. Actually, any congressperson should want to remedy that situation.

 

[What if...?]

We're supposed to believe that his financial adviser is that bad?

That they thought putting him in raytheon would be perfectly fine?

Any defense contractor/business should have been a no-go in their instructions, right?

 

[cabse5]

We're supposed to believe that his financial adviser is that bad?

That they thought putting him in raytheon would be perfectly fine?

Any defense contractor/business should have been a no-go in their instructions, right?

Is it against the law, even now? Did the congressperson from Oklahoma sell the defense stock?

 

[OrphanSlug]

As sad as this will sound, it happens all the time. Congress has de facto exemptions (for lack of a better way to put it) from some Insider Trading Laws and SEC provisions, which allow them to capitalize (be it dubious as all hell) on the information they have.

Market sectors like defense, transpiration, energy, technology, even healthcare all end up with stories like this were members of Congress will buy and sell equities based on assumptions from what legislation and/or spending is pending.

It really should end, but Congress rarely if ever passes something that limits themselves.

 

[rjay]

So he purchased it... of course he didn't know about the purchase until after it was purchased but then it was cancelled so he didn't REALLY own the stock... that's some fancy dancing right there.

Inhofe's communications director Leacy Burke told CNN in a statement that "the senator was not aware of this stock purchase until it came through the system very early this morning."

"All of Sen. Inhofe's financial transactions are handled by a third-party adviser," Burke said. "The senator has had no involvement in and has not been consulted about his stock transactions."
Burke said that Inhofe told his financial adviser to reverse the transaction once he was aware.

"This means that the transaction was canceled before it was settled; the senator never took ownership of it," she said.​

To me this is an example of what should happen.
The Senator in this case, set things up at arms length and then acted promptly when it became apparent that the appearance of impropriety existed.

Sounds honorable to me.

 

[Common Sense 1]

Another self-dealing crook exposed.

Senator purchased stock in defense contractor after pushing for more military spending

Republican Sen. James Inhofe of Oklahoma, the chairman of the powerful Senate Armed Services Committee, purchased thousands of dollars in defense stock after successfully pushing the Trump administration for more Defense Department spending.

According to his Senate financial disclosure report, Inhofe listed a purchase of $50,000-$100,000 in stock in US defense contractor Raytheon. Inhofe's communications director said he canceled the transaction when he became aware of it.​

Oh the outrage.... "According to his Senate financial disclosure report" So it was reported as required!! Do you think that a Senator buys and sells his own stock? No a broker does it.
But I do think the proper thing was to sell the stock after this became apparent.

 

[Dutch Uncle]

Congress is exempt from insider trading laws.

Close, but not quite...albeit the trades can be "fuzzy". OTOH, you point out a great disparity and a level of corruption that Americans shouldn't tolerate; the habit of Congress to exempt themselves from laws others must follow.

https://theintercept.com/2015/05/07/congress-argues-cant-investigated-insider-trading/


https://www.bloomberg.com/opinion/a...ess-s-guide-to-insider-trading-and-corruption
Collins didn't gather the inside information in Congress — that would violate the 2012 Stock Act, which made it illegal for members and their staff to trade on privileged knowledge having to do with ongoing legislation.

https://www.politico.com/story/2017/05/14/congress-stock-trading-conflict-of-interest-rules-238033
POLITICO found that 28 House members and six senators each traded more than 100 stocks in the past two years, placing them in the potential cross hairs of a conflict of interest on a regular basis. And a handful of lawmakers, some of them frequent traders and some not, disproportionately trade in companies that also have an interest in their work on Capitol Hill.

 

[Beaudreaux]

I suppose someone in the new dem house will want to remedy that situation. Actually, any congressperson should want to remedy that situation.

Both sides benefit from that and all the other exemptions. So I wouldn’t expect anything to change.

 

[cabse5]

Both sides benefit from that and all the other exemptions. So I wouldn’t expect anything to change.

Laws that benefit congress and not the American people could and do result from these exemptions. It's time to put pressure on congress to eliminate the exemptions in the next elections.

 

[poweRob]

We're supposed to believe that his financial adviser is that bad?

That they thought putting him in raytheon would be perfectly fine?

Any defense contractor/business should have been a no-go in their instructions, right?

I can actually believe Inholfe might not have known but his hired investor... I cannot believe they didn't take into account that their client is the chairman of the armed services committee of the majority party who pushes for more military spending.

 

[Common Sense 1]

Congress is exempt from insider trading laws.

Members of Congress come across a lot of information in the course of their official duties. Can they use “insider information” to make a quick buck by buying and selling stock at opportune times?

The answer to this question is a resounding and unequivocal no. Statutory law forbids it, and even if it did, Congress has always had the constitutional power to discipline its Members.

In mid-November 2011, CBS’ 60 Minutes ran a story alleging that Members of Congress were using insider information to benefit on stock trades. The story provoked a furor among the public, leading to the enactment of the STOCK Act, which President Obama signed into law on April 4, 2012. The act had several effects, but the most notable was that it explicitly stated that Members and congressional employees “are not exempt from the insider trading prohibitions arising under the securities laws…” (§4(a)). Additionally, it amended the Securities Exchange Act of 1934, to specify each Member or employee “owes a duty” when in receipt of “material, nonpublic information” obtained as a result of their public office (§4(b)(2)).

https://www.conginst.org/2018/08/16/can-members-of-congress-engage-in-insider-trading/

 

[Beaudreaux]

Close, but not quite...albeit the trades can be "fuzzy". OTOH, you point out a great disparity and a level of corruption that Americans shouldn't tolerate; the habit of Congress to exempt themselves from laws others must follow.

https://theintercept.com/2015/05/07/congress-argues-cant-investigated-insider-trading/


https://www.bloomberg.com/opinion/a...ess-s-guide-to-insider-trading-and-corruption
Collins didn't gather the inside information in Congress — that would violate the 2012 Stock Act, which made it illegal for members and their staff to trade on privileged knowledge having to do with ongoing legislation.

https://www.politico.com/story/2017/05/14/congress-stock-trading-conflict-of-interest-rules-238033
POLITICO found that 28 House members and six senators each traded more than 100 stocks in the past two years, placing them in the potential cross hairs of a conflict of interest on a regular basis. And a handful of lawmakers, some of them frequent traders and some not, disproportionately trade in companies that also have an interest in their work on Capitol Hill.

I’ve consistently been against Congress being exempt from the laws they pass. Even when they remedy it, they actually leave themselves loopholes, as you point out.

States do the same. Here in NC the members of the General Assembly have special license plates on their cars, because they are exempt from traffic laws while they are in session.

 

[KevinKohler]

Business as usual.


In other news, water...is STILL wet.

 

[Dutch Uncle]

I’ve consistently been against Congress being exempt from the laws they pass. Even when they remedy it, they actually leave themselves loopholes, as you point out.

States do the same. Here in NC the members of the General Assembly have special license plates on their cars, because they are exempt from traffic laws while they are in session.

Agreed. It's an item more Americans should support.

Yes, the downside of a representative government; representatives cutting themselves deals.

 

[Rexedgar]

Congress is exempt from insider trading laws.

https://en.wikipedia.org/wiki/STOCK_Act

2012 this was addressed......

 

[Dutch Uncle]

https://en.wikipedia.org/wiki/STOCK_Act

2012 this was addressed......

Still too many loopholes as noted previously.

 

[Mycroft]

Another self-dealing crook exposed.

Senator purchased stock in defense contractor after pushing for more military spending

Republican Sen. James Inhofe of Oklahoma, the chairman of the powerful Senate Armed Services Committee, purchased thousands of dollars in defense stock after successfully pushing the Trump administration for more Defense Department spending.

According to his Senate financial disclosure report, Inhofe listed a purchase of $50,000-$100,000 in stock in US defense contractor Raytheon. Inhofe's communications director said he canceled the transaction when he became aware of it.​

OH NO!!! A Senator...a REPUBLICAN Senator...did something legal!! STRING HIM UP!!

:doh

 

[Khayembii Communique]

How'd I know he was a Republican before I opened the thread

 

[Barnacle]

How'd I know he was a Republican before I opened the thread

Because PowerRob is the OP ...

 

[jimbo]

If true, then he's fine. If not, then he should be prosecuted.

For what? The Senator's account is in a blind trust managed by a portfolio manager. It's most likely that he had no knowledge of the purchase. That's what blind trusts do.

In any event the trust acted on public knowledge. A few days after the info became public.


Anybody who owns any retirement or mutual accounts owns a share of defense and other companies some might find objectional.

 

[poweRob]

How'd I know he was a Republican before I opened the thread

To be fair of course most corruption at this point will be Republican. The majority party is generally the target for most corruption. This case aside, lobbyists and people outside government who wish to compromise government to their ends aren't going to try and compromise a minority party member who can't even bring bills to the floor.