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U.S. Senators Richard Burr, Kelly Loeffler under fire for selling stock before coronavirus slide
Burr and Loeffler insist they did nothing wrong in unloading stocks before markets tanked
♦By Rich Shumate, ChickenFriedPolitics.com editor
WASHINGTON (CFP) — Republican U.S. Senators Richard Burr of North Carolina and Kelly Loeffler of Georgia are facing a torrent of criticism after revelations that they and family members unloaded millions of dollars worth of stock before U.S. markets tanked over concerns about the coronavirus — and while both senators were still making upbeat assessments about its threat.
Prior to his stock sales, Burr, as chair of the Senate Intelligence Committee, was receiving daily briefings from Trump administration officials about coronavirus; Loeffler and her husband, Jeffrey Sprecher, whose company owns the New York Stock Exchange, sold stock after she attended a private briefing for senators on the topic in late January.
Another Southern senator, James Inhofe of Oklahoma, also sold stock after that briefing but says he did not attend.
All three senators insist they did nothing wrong, although Burr has asked the Senate Ethics Committee to review his sales.
“I relied solely on public news reports to guide my decision regarding the sale of stocks,” Burr said in a statement posted on Twitter. “Specifically, I closely followed CNBC’s daily health and science reporting out it its Asia bureaus.”
Loeffler — a multimillionaire business executive appointed to the Senate in January by Governor Brian Kemp — called the reports about the stock trades “completely false,” saying they were made by her financial advisers.
“I’m not involved in the decision-making of these trades, nor have I been in communication with my third-party financial advisors about them,” she said in a statement posted on Twitter. “I have no knowledge of these trades until well after they are made.”
However, Democrats and even some Republicans are calling for investigations into the trades — and even for the senators to resign.
Among those calling for Burr’s head is Fox News host Tucker Carlson, who told his viewers that “there is no greater moral crime than betraying your country in a time of crisis.”
While Burr is retiring in 2018, Loeffler is facing a tough special election battle for the remainder of her term in November, a race that includes an intra-party challenge from Republican U.S. Rep. Doug Collins.
Collins — still in self-quarantine after being exposed to the virus — said he was “sickened” by Loeffler’s actions.
“People are losing their jobs, their businesses, their retirements, and even their lives and Kelly Loeffler is profiting off their pain?” he said in a tweet.
The leading Democrat in the race, Raphael Warnock, called Loeffler’s conduct “unconscionable.”
“As the coronavirus pandemic is busy taking lives and livelihoods, Kelly Loeffler has been busy looking out for herself,” Warnock said on Twitter.
An analysis of disclosure reports by the Center for Responsive Politics, a non-partisan research group, showed that on February 13, Burr sold 33 stocks worth between $628,000 and $1.7 million dollars, including stocks in hotel companies hard hit by the coronavirus. The stock market began to plunge about a week later.
Senators only have to report financial transactions within ranges on disclosure reports, so the exact amount of Burr’s stock sales is unknown.
Loeffler and Sprecher sold up between $1.3 million and $3.2 million worth of stock in the weeks after she attended a private January 24 briefing for senators in which administration officials discussed the spread of coronavirus, according to a financial disclosure report she posted on Twitter.
In that report, Koeffler said she wasn’t notified of those transactions until Feb. 16, which she said was “proof” that the stock sales weren’t improper.
At the time of the briefing, Loeffler had been in office just three weeks.
Two other senators — Inhofe and Dianne Feinstein of California — also sold stock after the January 24 briefing.
In a statement, Inhofe, who is seeking re-election in November, said he did not attend the briefing and that the sales were part of an ongoing effort to shift his stock portfolio into mutual funds after he became chair of the Senate Armed Services Committee. His sales were on a smaller scale than those of Burr and Loeffler, between $180,000 and $400,000.
A Feinstein spokesman said her holdings were in a blind trust run by her husband and she was not involved in the sale.
Members of Congress are permitted to own and trade stocks. However, trades have to be disclosed, and it is illegal for them to buy and sell stock based on insider information that isn’t available to the general public.
In addition to the stock sales themselves, statements made by Burr and Loeffler about coronavirus as their stocks were being sold have also come under scrutiny, as have Burr’s remarks at a private gathering in late February where he likened the coronavirus to the 1918 flu epidemic that killed millions of people worldwide.
On February 28, Loeffler took to Twitter to allege that “Democrats have dangerously and intentionally misled the American people on #Coronavirus readiness. Here’s the truth: @realDonald Trump & his administration are doing a great job working to keep Americans healthy & safe.”
On March 10, following a meeting with the president, she said on Twitter: “Concerned about #coronavirus? Remember this: The consumer is strong, the economy is strong, & jobs are growing, which puts us in the best economic position to tackle #COVID19 & keep Americans safe.”
By the time of those tweets, at least $355,000 worth of her stock had been sold and possibly as much as $950,000; her husband’s total was between $926,000 and $2.2 million, according to her disclosure report.
On February 7, Burr co-wrote an opinion article for Fox News in which he said that the United States “is better prepared than ever before to face emerging public health threats, like the coronavirus” and said public health officials were moving “swiftly and decisively” to deal with the threat.
A week later, he began selling stock, and on February 27, he told a private meeting of North Carolina business leaders that coronavirus “is much more aggressive in its transmission than anything that we have seen in recent history,” according to audio of the speech obtained by National Public Radio.
Burr also likened coronavirus to the 1918 Spanish flu pandemic that is believed to have killed at least 17 million people worldwide, NPR reported.