WASHINGTON — On March 10, amid fears swirling over the health of the country’s banks, the investment accounts of the children of Florida Democratic Rep. sold Seacoast Banking Corporation stock worth between $65,000 and $150,000.
Two days later, Moskowitz said on television that the government was working to manage the crisis. interview He attended a bipartisan Congressional briefing on the disturbance. And on March 13, Seacoast Banking’s stock fell nearly 20% as investors panicked over the failures of Silicon Valley Bank and two of his other smaller banks.
A spokesman for Moskowitz said in an email that the Seacoast stake sale was suggested by the congressman’s financial advisers as a way to diversify his young children’s holdings. Moskowitz said the congressional briefing on the banking crisis took place just before the televised interview and after the shares were sold.
But the deal is just one example of how lawmakers continue to buy and sell stocks and other financial assets in an industry that intersects with public affairs.
At least eight members of Congress or their immediate family members sold bank stakes in March, according to an analysis by . capitol tradedata firm 2iQ’s project – could rise in the coming days as lawmakers make additional disclosures of deals that took place last month.
Stock trading by members of Congress, while largely legal, is a flashpoint because they may have sensitive information about companies and industries overseen by legislators.
new york times investigation Last year, nearly one-fifth of members of Congress or their immediate family members were shown to have bought or sold stocks or other securities that could be affected by legislative action over the past three years.
Efforts to pass legislation to limit or prohibit transactions by members of Congress have stalled in recent years. On Capitol Hill Tuesday, Democratic Senator Jeff Marcley of Oregon and Democratic Senator Sherrod Brown of Ohio said in the Senate that he would approve a new campaign aimed at eliminating the practice of having 19 co-sponsors. announced the bill.
The House version of the bill is co-sponsored by Republican Texas Rep. Michael Cloud and Illinois Democrat Raja Krishnamooti.
“Since Silicon Valley Bank was closed, there were reports that members of Congress were trading bank shares during that time,” Brown said. “I mean, just imagine, Congressmen, we have more inside information,” he said, adding, “Congressmen know more about the economy because of our work. ‘ added.
New York Democrat Rep. Dan Goldman gave his shares in First Republic Bank, a large depositor that was rapidly losing both cash and customers, the day before he received a $30 million industry bailout. Sold on March 15th.
California Democrat Law Khanna’s wife and children sold their shares in First Republic on the same day. Utah Republican Rep. John Curtis sold his Republic stock first from a joint account with his spouse on March 16, when an industry bailout took place.
By then, First Republic’s stock had already fallen nearly 80% from its peak in February. The timing of the sale by these three legislators or their relatives meant the seller avoided an additional price plunge that was yet to come. First Republic shares are down nearly 90% since the beginning of the year.
A spokesman for Goldman said his portfolio is managed by a third party without his knowledge and has set up a blind trust to avoid the appearance of a conflict of interest. Khanna said his filings related to transactions made by a diverse trust owned by his wife and young children, in which he was not involved. A representative did not respond to a request for comment.
Some members were buying bank stocks during periods of volatility. On March 17, New York State Republican Rep. Nicole Malliotakis purchased her shares in Bancorp from the New York Community after private discussions with New York state banking regulators.her deal The Wall Street Journal first reported.
Two days later, New York Community Bancorp purchased the assets of the failed undersigned bank. Maximum share rally ever. Around the same time, other lawmakers, including Senator Gary Peters of Michigan and Khanna’s family, bought stakes in major US banks such as Truist Financial. Goldman bought stakes in foreign banks such as Lloyds Banking Group and Mizuho Financial Group in a series of transactions.
A spokeswoman for Mariotakis said her financial advisor recommended buying it and it was worth less than $5,000. A spokeswoman for Peters did not respond to questions about her transaction.
