Global Courant 2023-05-06 02:28:51
A first-term Democratic congressman representing Wall Street has become one of Congress’s most prolific stock traders, recently selling shares of a troubled California bank just days before the shares plummeted.
Rep. Dan Goldman, who represents a congressional district that includes New York City’s lower Manhattan financial district, sold PacWest Bancorp stock for $15,000 on March 6, according to his financial disclosures. The sale took place just two days before shares of the Beverly Hills-based bank holding company plummeted as investors fled from small and medium-sized banks amid news of Silicon Valley Bank’s imminent bankruptcy.
PacWest’s stock was valued at $27.40 when Goldman sold its shares, but fell to about $5.75 on Friday and free-falled after Silicon Valley Bank collapsed on March 10.
“The timing doesn’t look good, that’s for sure,” Dylan Hedtler-Gaudette of the Project on Government Oversight told the Washington Examiner. “It’s just another reason members of Congress’ practice of trading stocks is so problematic.”
Rep. Dan Goldman, DN.Y., listens during a news conference on new legislation to support Holocaust education nationwide at the U.S. Capitol Building on January 27, 2023 in Washington, D.C. (Anna Moneymaker/Getty Images)
DEMOCRAT, REPUBLICAN WORK TOGETHER TO BAN MEMBERS OF TRADING STOCKS WHILE THEY ARE FOR TAXPAYERS
The PacWest trade is one of hundreds Goldman made during his short time in Congress, where he quickly became one of the most prolific stock traders. Goldman made more than 500 trades worth between $10 million and nearly $31 million since he was sworn in as a member of Congress in January. reveal disclosure forms.
Goldman, a multimillionaire and heir to the Levi Straus & Co. fortune, serves on the Committee on Homeland Security and the Select Subcommittee on the Weaponization of the Federal Government. While holding those positions, he bought into Northrop Grumman, one of the nation’s largest defense contractors, for $50,000, and gun makers Raytheon Technologies and L3 Harris Technologies for $15,000 each.
Goldman’s office told Fox News Digital that the congressman does not manage his own stock trading and supports legislation to prohibit federal lawmakers from trading stocks.
“Congressman Goldman is not involved in any stock trading in his portfolio, which is managed entirely by an investment advisor, with whom he has had no discussions regarding stock transactions since entering Congress,” said Goldman spokesperson Simone Kanter. “The congressman supports legislation to ban members of Congress from trading stock and immediately began the complicated process of entering into a blind trust when entering Congress.”
Goldman is hardly alone in trading stocks as a congressman, even if he does so at a higher rate.
Rep. Dan Goldman, DN.Y., speaks at a news conference at the entrance to the Migrant Reception Center at the Brooklyn Cruise Terminal on February 2, 2023 in New York City. (Michael M.Santiago/Getty Images)
TWO-PARTY LEGISLATION IN HOUSE AND SENATE AIMS TO BAN ‘Deeply Corrupt’ STOCK TRADING BY MEMBERS OF CONGREGATION
Last Friday, Rep. Lois Frankel, D-Fla., revealed that she sold up to $15,000 in shares of First Republic Bank on March 16, then bought up to $15,000 in JPMorgan shares on March 22. The congressman told the Daily Caller that her “account is independently managed by a money manager who buys and sells stocks” at his discretion.”
Stock trading is a bipartisan pastime in Congress, not just limited to Democrats. Rep. John Curtis, R-Utah, sold $15,000 worth of First Republic Bank stock on March 16, when the stock was trading about $34 a share. They now sit at $0.35 per share.
Perhaps the member of Congress most notorious for her stock activity is Rep. Nancy Pelosi, D-Calif., who has long been criticized for her husband’s profitable dealings in businesses she has subsidized.
Critics argue lawmakers can use their positions in Congress to profit from insider trading, in part because they have the ability to influence policies that can help or hurt certain companies and industries. Goldman’s frequent stock trading and proximity to Wall Street may make him particularly susceptible to such criticism.
Rep. Nancy Pelosi, D-Calif., is joined by her family and husband Paul Pelosi as they attend the unveiling ceremony of her portrait at Statuary Hall at the Capitol in Washington, December 14, 2022. (AP Photo/J. Scott Applewhite)
PELOSI SLAMMED FOR SELLING GOOGLE APPLICATIONS JUST BEFORE DOJ ANNOUNCED ANTITRUST SUIT: ‘CONVENIENT TIMING’
Members of Congress are increasingly supporting legislation that prohibits lawmakers from trading stocks. Last month, senators introduced a bill that would prohibit Congress from buying or selling stock and would mandate divestment or holdings in a blind trust.
The issue of banning stock trading has led to unusual alliances in Congress. Earlier this week, Rep. Alexandria Ocasio-Cortez, D.N.Y., and Rep. Matt Gaetz, R-Fla., teamed up to introduce legislation that would similarly ban legislators, their spouses and dependents from trading stocks.
“AOC is often wrong, she would probably say the same thing about me, but she is not corrupt,” Gaetz said. “And I will work with everyone to make sure Congress isn’t compromised like that.”
CLICK HERE TO GET THE FOX NEWS APP
Members of Congress reportedly traded $788 million worth of securities last year. According to an analysis according to the popular stock trading news site Unusual Whales, many lawmakers beat the stock market on total returns, despite Wall Street having its worst year since 2008.
Aaron Kliegman is a political reporter for Fox News Digital.
