John Ransom is a political and financial writer and editor whose work has appeared at Townhall.com, Newsmax, the Daily Caller and IBT. He splits his time between the US and Asia.
In case you missed it, Speaker Nancy Pelosi (D-California) is being panned by the Twitterverse, if not by regulators and ethicists, for a series of stock transactions conducted by her husband Paul.
“The week before the House Judiciary Committee voted on reigning in big tech,” reported Fortune in July, “Speaker Nancy Pelosi’s husband exercised a bullish bet on Google-parent Alphabet, in a timely transaction that netted him $5.3 million.”
See? It’s really easy.
All you have to do is become a party leader in Congress with access to information that no one else has, and bingo, you too can become a dot-com, or Big Tech, or biotech millionaire, by trading on that insider information.
Of course, that’s not really how it happened in this case. According to a spokesperson for Pelosi: “The speaker has no involvement or prior knowledge of these transactions.” That hasn’t stopped some voters expressing, well, some skepticism.
@SpeakerPelosi just made 7-figures exercising options in tech companies she regulates 🧐 Please show me more blatant insider trading. pic.twitter.com/XgR389Ktmi
While technically the practice of insider trading is illegal, if you are a member of Congress, it seems you don’t really have to follow the laws they make for the rest of us.
Insider trading has a long and hallowed history amongst ambitious, yet hungry politicos, who find the six-figure salary that comes with public power inadequate to their national position.
Former Senate majority leader Harry Reid (D-Nevada) made money off of Obamacare and oil stocks back in 2008. He sold oil stocks in the summer of 2008, right before the historic energy market crash that precipitated the real estate meltdown and nearly a trillion dollars in federal bailouts – and invested the proceeds in healthcare stocks that he later regulated while punishing the oil companies that he also regulated.
That might be how he accumulated a fortune of $10 million while in public office.
That’s small beer for Pelosi, 81, who’s represented California since 1987 and whose husband owns a venture capital, financial consulting and real estate firm. She has an estimated net fortune of $120 million, while her congressional salary is $223,500 a year.
A study done in 2011 tracked investment returns of members of Congress between 1985 to 2001 and found. Brinkwire Summary News. For more information, search on the internet.