Congressional stock trading has plunged more than 75% so far this year here's why

Published

7 months ago

October 13, 2023

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Congressional stock trading has fallen off sharply this year, according to an analysis by a popular financial news site and some insiders believe its because US lawmakers are feeling heat from a possible legislative clampdown.

The volume of stock trades made by members of Congress tumbled more than 75% in the nine months of this year to just 1,800 trades versus 8,000 a year earlier, according to data from Unusual Whales.

Former House Speaker Nancy Pelosi has made just six trades this year as a congresswoman representing San Francisco. Those include selling Roblox shares, buying Apple and Microsoft shares and acquiring a stake in a luxury hotel, according to recent filings.

Thats a steep dropoff from the 39 trades she made in 2022, the 24 trades she made in 2021, and the 38 trades she made in 2020.

A spokesperson for Pelosi did not respond to a request for comment.

While the markets have been bumpy this year, overall trading volume is down just 10%, according to CBOE data, versus the three-quarters plunge inside Congress.

Passing legislation, sources say, is critical to keep Congress from trading again.

If a movement doesnt turn into a law, Congress isnt going to remain scared, Jeff Hauser, founder of nonprofit watchdog the Revolving Door Project, said. The combination of a bill that could pass and the broader conversation acts as a deterrent.

Ethics experts say the another reason may simply be that members dont feel the trades are worth the trouble anymore.

Federal Reserve governors Eric Rosengren and Robert Kaplan resigned after scrutiny of their trades. Now-retired Sen. Richard Burr stepped down as Chair of the Intelligence Committee and now-ex-Sen. James Inhofe resigned after scrutiny of trades.

It may not be worth the grief, Charles Stewart III, a political science professor at MIT, told On The Money.

The founder of Unusual Whales, who prefers to remain anonymous, notes that members of Congress have lately been far more diligent about filing their trades quickly. The STOCK Act requires members to file their trades within 45 days but members of Congress like Pelosi lately are filing within just a few days.

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There is limited upside and maybe a lot of downside to congressional trading these days, agrees Thomas Hayes, chairman at Great Hill Capital. Shining a light on this has played a big role.

Another issue: Some of the most lucrative, valuable stocks like Google and Amazon which Pelosi had snatched up are presenting an even greater conflict of interest than they did previously.

The tech high flyers that many members wanted to trade in are politically fraught these days a reference to lawsuits both Google and Amazon are facing, Stewart adds.

While some applaud the recent trend, others are more cautious and note stronger laws against stock trading need to be codified.

Attention helps and attention makes transparency more effective, Jeff Hauser, founder of nonprofit watchdog the Revolving Door Project, said. But even more effective than transparency is strict rules.

As for the question of whether regulators will ever be willing to regulate themselves, the answer is almost always no. Still, Hauser is optimistic that with enough sticks not to mention the dwindling supply of carrots lawmakers could eventually succumb.

If the momentum grows big enough, it could pass, Hauser said. And it only has to pass one time.

Entertainment

GB News show with Rishi Sunak broke broadcasting rules, Ofcom finds

Published

12 mins ago

May 20, 2024

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GB News show with Rishi Sunak broke broadcasting rules, Ofcom finds

GB News could face punishment after a programme with Rishi Sunak broke broadcasting rules.

Regulator Ofcom said it was considering a “statutory sanction” after finding ‘People’s Forum: The Prime Minister’ breached impartiality guidelines.

GB News called it “an alarming development” that “strikes at the heart of democracy”.

The hour-long show, which aired on 12 February, saw members of the public put questions to the prime minister. However, it received 547 complaints.

Ofcom said in March that five other GB News programmes featuring politicians acting as presenters – including two hosted by Jacob Rees-Mogg – also broke impartiality rules.

The watchdog said the show featuring Mr Sunak was fine in principle, but “due weight” should have been given to an “appropriately wide range of significant views” other than the Tories’.

These should have happened during the programme itself or “in other clearly linked and timely programmes”.

It said Mr Sunak “had a mostly uncontested platform to promote the policies and performance of his Government in a period preceding a UK General Election”.

“We have therefore recorded a breach of rules 5.11 and 5.12 of the Broadcasting Code against GB News,” it added.

The channel was quick to hit back at the ruling and denied breaking the impartiality rules.

“The regulator’s threat to punish a news organisation with sanctions for enabling people to challenge their own prime minister strikes at the heart of democracy at a time when it could not be more vital,” it said.

“Our live programme gave an independently selected group of undecided voters the freedom to challenge the Prime Minister without interference,” added the channel.

It said neither producers nor the prime minister had seen the questions beforehand and Mr Sunak was kept “under constant pressure and covered a clearly diverse range of topics”.

Sports

Source: Boeser (blood clots) not expected in G7

Published

12 mins ago

May 20, 2024

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Source: Boeser (blood clots) not expected in G7

Greg Wyshynski, ESPNMay 19, 2024, 09:52 PM ET
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Vancouver Canucks right wing Brock Boeser is not expected to play in Game 7 of their second-round series against the Edmonton Oilers on Monday because of a blood-clotting issue, a source told ESPN, confirming a report.

There’s no timeline for his return to action. The Canucks had no comment on Boeser’s status.

Boeser didn’t skate in practice Sunday. Coach Rick Tocchet would only say at a media availability that “he needed the maintenance day.”

Boeser, 27, leads the Canucks in goals (7) and is tied for the lead in points (12) during the postseason. He established career highs in goals (40), points (73) and games played (81) during the regular season.

The Canucks winger has had some MVP moments during their playoff run. His hat trick in Game 4 against the Nashville Predators led them to a comeback win. Boeser’s three points in the first period of Game 3 led Vancouver to a win over Edmonton.

It’s the second significant injury for Vancouver in the playoffs after a regular season of relatively good health for the team’s core players. Starting goaltender Thatcher Demko, a finalist for the Vezina Trophy as the NHL’s best netminder, hasn’t played since Game 1 of the first round because of a knee injury. Edmonton won Game 6 at home Saturday night to force Monday’s Game 7, the only seventh game of the second round of the Stanley Cup playoffs. The winner faces the Dallas Stars in the Western Conference finals.

The Boeser injury news was first reported by Vancouver-based hockey journalist Irfaan Gaffar.

Sports

U.S. advances at hockey worlds; Canada now 6-0

Published

12 mins ago

May 20, 2024

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U.S. advances at hockey worlds; Canada now 6-0

Associated Press

May 19, 2024, 06:46 PM ET

PRAGUE — Dylan Cozens scored two goals and had an assist to rally Canada past Switzerland 3-2 for its sixth win in six games at the ice hockey world championship on Sunday.

Canada leads Group A with 17 points, two more than the Czech Republic in second with Switzerland another point back in third. The three teams had already clinched a spot in the playoff round.

Cozens has scored six goals at the tournament and is tied atop the scoring table with American Brady Tkachuk and Finland’s Oliver Kapanen.

Nick Paul also scored for Canada and goaltender Jordan Binnington made 20 saves including a penalty shot in the second period when the score was 2-2.

Cozens found the roof of the net on a power play 1:42 into the game to give Canada an early lead.

Switzerland answered with two goals.

Kevin Fiala wristed an equalizer past Binnington in the opening frame on a power play.

Romain Loeffel put the Swiss 2-1 up in the middle period with a slap shot from the blue line.

Cozens tied it again at 2-2 from the top of the left circle on a power play.

Paul scored the winner for Canada on a power play, completing a series of passes by scoring into an open goal midway through the second.

Canada will complete the preliminary round on Tuesday against the Czech Republic, when Switzerland will face Finland.

In Group B, Latvia prevailed over Slovakia 3-2 in a penalty shootout. The result sent the United States to the next round.

Tkachuk scored three power play goals and added an assist to help the United States rout Kazakhstan 10-1.

Its fourth victory lifted the Americans to second place in Group B with 13 points, one ahead of Germany and Slovakia with a game against Latvia, which has nine points, on Tuesday to play in the preliminary round.

Johnny Gaudreau had a goal and four assists to become the United States record scorer with 43 points, one more than Patrick Kane.

Matt Boldy scored twice and had four assists, Brock Nelson and Luke Kunin both had a goal and an assist, and Gavin Brindley and Kevin Hayes also scored.

Alex Nedeljkovic made 13 saves.

In a four-goal opening period, Tkatchuk tipped in a shot by Zach Werenski on a power play to increase the U.S. lead to 2-0, and buried a rebound to make it 4-0 on a power play.

He completed his hat trick to increase the advantage to 8-0 with a one-timed shot from the right circle on another power play in the final period.

Alikhan Omirbekov scored the consolation goal for Kazakhstan when his team was 9-0 down.

In Group A, Austria beat Norway 4-1 and is tied for fourth place with Finland.

The top four from each group advance to the playoff round.