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As Covid hit, Washington officials traded stocks with exquisite timing

381 点作者 lxm超过 2 年前

30 条评论

Relive3778超过 2 年前
<a href="https:&#x2F;&#x2F;archive.ph&#x2F;Zlhkj" rel="nofollow">https:&#x2F;&#x2F;archive.ph&#x2F;Zlhkj</a>
nyc_data_geek1超过 2 年前
At this point it&#x27;s pretty much common knowledge that legislators engage in insider trading using nonpublic, oftentimes classified information and intelligence gathered on the taxpayer dime routinely and with no fear of political or legal repercussions. They&#x27;re not particularly motivated to close this loophole either, for reasons which should be obvious.<p>This should be a much bigger issue, IMO. We the People need to make them understand this blatant self dealing will not be tolerated.
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PragmaticPulp超过 2 年前
&gt; That same day, while the stock market remained lofty, Dr. Auchincloss reported selling $15,001 to $50,000 of a stock mutual fund. Days later he sold two more mutual funds and a stock<p>&gt; Dr. Auchincloss disclosed six sales of mutual funds that day, totaling between $111,006 and $315,000 in value.<p>And<p>&gt; The rate cuts hadn’t immediately calmed investors. Stock trading was halted for 15 minutes on the morning of March 16 when the S&amp;P 500 fell 7%, triggering a so-called circuit breaker. The index staggered to the closing bell, down 12%.<p>&gt; That same day, Ms. Chao, the transportation secretary, made three purchases in stock funds that track the S&amp;P 500 and the U.S. stock market broadly, totaling between $600,003 and $1.2 million, according to her financial disclosures.<p>Every time I click on one of these articles, I expect to find some individual stock trading related to specific companies on the receiving end of government action. However, when it ends up being vague examples of officials buying and selling broad-market or S&amp;P index funds, it&#x27;s much harder to see where the &quot;insider trading&quot; angle comes from. Especially when we have examples of officials trading in March, a full month after the viral panic had already spread through even public forums like Twitter.<p>The line needs to be drawn somewhere, and I&#x27;m not convinced that forbidding public officials from buying and selling generic index and mutual funds is really that big of a concern, IMO.<p>Now if someone can find evidence of government officials buying something like Moderna stock ahead of the FDA approval, then by all means let&#x27;s prosecute with stiff consequences.
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jallen_dot_dev超过 2 年前
This article does an annoying thing where it gives you stats without proper comparison so you can&#x27;t tell if the numbers are actually out of the ordinary.<p>&gt; <i>A deputy to top health official Anthony Fauci reported 10 sales of mutual funds and stocks totaling between $157,000 and $480,000 that month.</i><p>Impossible to tell if that&#x27;s suspicious without knowing how much that deputy normally trades.<p>&gt; <i>officials at another health agency, Health and Human Services, reported 60% more sales of stocks and funds in January than the average over the previous 12 months</i><p>A better comparison would be to January 2019 to account for seasonality. Maybe people rebalance&#x2F;reevaluate their investments at the start of the year.<p>&gt; <i>Then-Transportation Secretary Elaine Chao purchased more than $600,000 in two stock funds</i><p>Again, impossible to tell if that is unusual without comparison. Apparently she is worth 10s of millions of dollars.<p>&gt; <i>Nearly 400 officials across 50 agencies reported owning stocks in airline, resort, hotel, restaurant and cruise companies in early 2020, the review found.</i><p>Okay...?<p>&gt; <i>[March] was the most active for trading by officials across the federal government, including at HHS</i><p>March was the most active for trading, period. Because the markets were melting down. Also, by March the impact was more widely known to the public.<p>There&#x27;s more stuff below the fold but this is getting tedious.
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ISL超过 2 年前
Medical officials selling in March 2020 makes, um, sense? The pandemic&#x27;s potential for destruction was massively clear to medical-professionals by mid-February.<p>It is easy to believe that those making the trades were acting primarily on information known widely to the public.<p>Washington State announced its first deaths in late February [1]<p>It isn&#x27;t that hard to put two and two together and expect that at least a fraction of skilled medical professionals will react.<p>I&#x27;m a physicist and I was still able to recognize by late Feb&#x2F;early March that we were headed for trouble. Similarly, just before the Federal government stepped in with stimulus in late March&#x2F;early-April 2020, as a value-investor, I&#x27;d just begun to feel that the markets had fallen enough to begin buying equities again after a multi-year hiatus.<p>Trading on both signals (imminent pandemic, increasingly-reasonable trailing P&#x2F;E ratios) will look &quot;exquisite&quot;, but required nothing but reading the news and making sober assessments of both situations.<p>One may also be able to look at the same trading data and find officials who made exquisitely-terrible trades, especially after late-March 2020, where volatile markets created outsized losers and winners.<p>[1] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;COVID-19_pandemic_in_Washington_(state)" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;COVID-19_pandemic_in_Washingto...</a>
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JumpCrisscross超过 2 年前
There are two kinds of problematic trading by members of Congress:<p>1. Straight-up insider trading. Buying or selling shares in individual stocks based on inside information. This is flagrantly illegal [1].<p>There are bills seeking to go further, banning the trading of individual stocks by Congressmen [2]. While we have limited evidence of this being a widespread problem, it&#x27;s a good measure for public trust purposes.<p>But this article is not about that! It&#x27;s about:<p>2. Insider trading on indices. This is also illegal! The FBI subpoenaed a sitting Congressman&#x27;s phone [3] when investigating concerns around this. But absent an incriminating text or e-mail, it&#x27;s difficult to convince a jury the sales were made because of insider information versus because they felt like selling that day.<p>Fortunately, this is an old problem with an old solution: 10b5-1 plans [4]. These are not without issue [5]. But given the power and insider access a sitting Congressman has relative to most public company CEOs, it makes sense to implement. To my knowledge, nobody has suggested a 10b5-1 analogue for public officials.<p>[1] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;STOCK_Act" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;STOCK_Act</a><p>[2] <a href="https:&#x2F;&#x2F;www.congress.gov&#x2F;bill&#x2F;117th-congress&#x2F;senate-bill&#x2F;3494" rel="nofollow">https:&#x2F;&#x2F;www.congress.gov&#x2F;bill&#x2F;117th-congress&#x2F;senate-bill&#x2F;349...</a><p>[3] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;2020_congressional_insider_trading_scandal" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;2020_congressional_insider_tra...</a><p>[4] <a href="https:&#x2F;&#x2F;corpgov.law.harvard.edu&#x2F;2016&#x2F;03&#x2F;24&#x2F;a-guide-to-rule-10b5-1-plans&#x2F;" rel="nofollow">https:&#x2F;&#x2F;corpgov.law.harvard.edu&#x2F;2016&#x2F;03&#x2F;24&#x2F;a-guide-to-rule-1...</a><p>[5] <a href="https:&#x2F;&#x2F;www.wsj.com&#x2F;articles&#x2F;executive-stock-sales-are-under-scrutiny-heres-what-regulators-are-interested-in-11628682985" rel="nofollow">https:&#x2F;&#x2F;www.wsj.com&#x2F;articles&#x2F;executive-stock-sales-are-under...</a>
tb_technical超过 2 年前
&quot;We know that they are lying, they know that they are lying, they even know that we know they are lying, we also know that they know we know they are lying too, they of course know that we certainly know they know we know they are lying too as well, but they are still lying. In our country, the lie has become not just moral category, but the pillar industry of this country.&quot; -Aleksandr Solzhenitsyn
NickC25超过 2 年前
Immediate disclosure of all trades (and reasons for the trade) needs to be the absolute minimum we have to push for as a society. Otherwise, all federal officials and their families should be completely banned from owning any kind of publicly available equity whatsoever for the entirety of the term.
eej71超过 2 年前
If you want the money to stop flowing into politicians, you have to be willing to revoke the power they have over your economic liberties.
matt3210超过 2 年前
We could all see it happening in china but said &quot;it won&#x27;t happen here!&quot; Lawmakers might have timed well, but they aren&#x27;t the ONLY ones who did.
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neilv超过 2 年前
It might simplify anti-corruption compliance for certain lawmakers, if investments by Congresspersons and other upper officials were required to follow Bogleheads good practice conventions:<p>&quot;You&#x27;re permitted investment in one primary home, one vacation home, a 6-month emergency fund, and everything else in a specific asset allocation of index funds (your-age-in-bonds percent US total-market bonds index fund, and the rest divided 4&#x2F;5 total-US-stock-market and 1&#x2F;5 total-international-stock-market index funds).&quot;<p>&quot;This rule will help you to be aligned with citizens&#x27; interests in their retirement accounts, while suppressing the unfair advantage of unprecedented clairvoyant genius market-timing that you discovered shortly after gaining office.&quot;
boomskats超过 2 年前
When I saw this headline, I assumed it would be an article discussing the military stock trading activity of members of Congress in the week or two prior to to Russia&#x27;s surprise unilateral decision to invade Ukraine.
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qclibre22超过 2 年前
&quot;Unknown to the public&quot;. Not true. People that read the news knew something was up and that they couldn&#x27;t control the spread. Some smart money was trimming stock positions before the Senators.
Aperocky超过 2 年前
Should just have trade windows, preferably during recess.<p>This has been proven to work (and even applies to plebs like me) so why not implement it there?<p>Mr. Senator big brain going to take advantage of the 2 week recess to trade - go for it.
TotoHorner超过 2 年前
Shaming people for purchasing&#x2F;selling S&amp;P 500 mutual funds is really dumb. Expected better from the WSJ.<p>But yeah, trading individual stocks is highly suspect and should be illegal.
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BlueTemplar超过 2 年前
I pretty much have to also point out two bigger conspiracies (or at best, unconscious ass-covering, which is still bad) :<p>- &quot;Masks do not work&quot;<p>- &quot;The lab leak theory is not to be taken seriously&quot;<p>Where specialists with a conflict of interest <i>and</i> governments pushed both really hard, <i>against</i> specialist(-without-conflict-of-interest-the-only-one-that-matters) opinion.
nightski超过 2 年前
Honestly just making them disclose trades before they make them would be a huge step forward. This wait 30 days nonsense is ridiculous.
papito超过 2 年前
The concept of &quot;public service&quot; is being slowly erased. The United States is becoming just like any other country, where people will do anything to get to power to get to the trough - it&#x27;s the fastest way to get rich.<p>Obviously has been happening for a long time. but there was some discretion to it. Now it&#x27;s blatant and shameless.
pstuart超过 2 年前
This is a bipartisan problem and should hopefully unite us in demanding an end to the practice.<p>A more problematic issue is legalized bribery via campaign contributions -- our representation should improve when officials are not owned by their patrons.
akudha超过 2 年前
lol. For every person doing it blatantly, there must be more people doing it quietly? Like letting a friend of a friend in another state&#x2F;country trade on the info? Are there ways to track these trades too?
robg超过 2 年前
I was in the executive branch in 2020, there was no mobilization until March.
seventytwo超过 2 年前
Want to fix it?<p>You have to set the expectation and vote for the people who want to make government work.<p>You can’t expect to somehow curtail corruption by voting a bunch of people who want to dismantle the government into the government.
social_quotient超过 2 年前
Does the SEC not still have some domain scope here? Why are different laws needed for a different class of citizen?
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cafard超过 2 年前
I don&#x27;t know.<p>&quot;His January sales amounted to the largest number of transactions he had reported for a single month since 2018, according to his financial disclosures.&quot;<p>Perhaps we could rephrase this as<p>&quot;His January sales amounted to more transactions than he had reported for any month in the preceding year.&quot;<p>Or, if the that higher month in 2018 was early on, then &quot;in the preceding <i>n</i> months&quot;. And for that matter, what was the dollar volume?<p>&quot;On March 13, then-President Donald Trump announced a federal partnership with the private sector to increase the nation’s testing capability for Covid, inviting top executives at 10 companies, including Target Corp., Walmart Inc., CVS Pharmacy Inc. and Walgreens Boots Alliance Inc., to the White House for the announcement. Roughly 300 federal officials reported owning stock in at least one of the 10 companies at the time, their financial disclosures show.&quot;<p>OK, but did they buy that stock the week before?<p>Full disclosure: I own stock in CVS and Boeing, or maybe I don&#x27;t. Like many rational and only moderately prosperous Americans, I have investments in mutual funds. I&#x27;ll save the next statement and see how exquisite my timing has been.
adabyron超过 2 年前
I think the best fix I&#x27;ve heard is that their trades need to be digitally announced immediately (within a few minutes of execution).<p>There are currently fines for not reporting that often get waived. Even if they did make the fines legit, it becomes very difficult to track &amp; indict them for tipping off friends or non-family members unless it&#x27;s a very large amount worth many millions.<p>Though to counter this argument the article mentions a few cases. North Carolina Sen. Richard Burr was not mentioned but he is still being investigated for what seemed like very obvious trading based on knowledge gained &amp; tipping off family members.<p>Alabama Sen. Tuberville is another good one to watch for trades in my opinion. He&#x27;s very active. Last year he put out some big tech puts on MSFT that were very OTM (out of the money) for the spring of this year.<p>Rep. Pelosi is overrated a bit in my opinion but is often the joke of these talks. Her husband Paul (a VC) most likely does all the trading &amp; he seems to have just benefitted from using calls on stocks that are already ITM (in the money) &amp; far dated. He&#x27;s probably not a good person to use if you&#x27;re working in tech in my opinion as your job &amp; personal knowledge probably make you overweight in tech risks. Anyone mentioning Pelosi should also probably not be considered knowledgeable on this subject since she&#x27;s 99% of the noise on it &amp; very little substance.<p>- Edit - It should be noted, anyone frequenting investment forums probably made a lot of these Covid trades before the dates many of these senators did. Not defending the senators but also the Covid thing was gaining a lot of traction in January &amp; February. Many senators &amp; reps didn&#x27;t trade on it until March.
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none_to_remain超过 2 年前
Kinda feeling like our rulers have lost the Mandate of Heaven
coffeeblack超过 2 年前
Your president has been in federal positions of power for 50 years. Same for the speaker of Congress and many others. Why is anybody surprised that this is the outcome?<p>That’s what the “swamp” was all about.
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imwillofficial超过 2 年前
Hmmm it’s as if those in power aren’t looking out for us, but only their wallets.<p>On both the left and the right…
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ChuckNorris89超过 2 年前
Wasn&#x27;t this the biggest wealth transfer in current history?
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whimsicalism超过 2 年前
Washington Officials to me means officials in the state of Washington.<p>It&#x27;s compounded by the fact that most people who live in Washington, DC won&#x27;t say they are &quot;from Washington.&quot; It&#x27;s exclusively a media phenomena.<p>Is saying &quot;Federal officials&quot; so hard?
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