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Senators Sold Stocks Before Coronavirus Threats Crashed Market

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  • U.S. Senator Richard Burr has faced public scrutiny after records revealed that he sold thousands of dollars worth of stock prior to the market’s crash in the midst of the coronavirus pandemic.
  • Burr was also reported to have warned a small party of the severity of the issue while the Trump administration was delivering a much more relaxed message to the rest of the nation.  
  • Several other U.S. senators including Kelly Loeffler, Dianne Feinstein, and James Inhofe also made stock sales prior to the escalation of the U.S. health crisis.
  • Some are concerned that the lawmakers might have exploited their early access to special information by selling stocks, but all have denied this is the case.   
  • Amid criticisms, Burr invited the Senate Ethics Committee to review his sales to promote full transparency.

Burr in Hot Water

Several U.S. Senators have come under fire after public records revealed they sold personal stocks just before the market crashed under the pressure of the coronavirus pandemic.

Documents show that Sen. Richard Burr (R-NC) and his wife sold hundreds of thousands worth of stocks in 33 separate transactions in mid-February. Collectively the stocks were worth between $628,000 and $1.7 million, but exact numbers are not clear as the records display the transactions in ranges. Some of the stocks sold were holdings in a hotel and resort line that has since lost two-thirds of its value. 

Just days before Burr made these transactions, he wrote an op-ed for Fox News saying that “the United States today is better prepared than ever before to face emerging public health threats, like the coronavirus.” 

Burr serves as chairman of the Senate Intelligence Committee, a position in which he receives regular briefings on safety threats to the country. According to Reuters, the committee was getting updates about the outbreak on a daily basis around the time Burr sold his stocks. Senate aides told NBC that the reports the committee received in January and February included non-public information about the coronavirus that remains classified. 

On Feb. 27, two weeks after Burr sold his stocks, he spoke to a small, nonpartisan group at a social club in Washington, D.C. delivering a concerning message. 

“There’s one thing that I can tell you about this: It is much more aggressive in its transmission than anything that we have seen in recent history,” he said, according to a recording obtained by NPR. “It is probably more akin to the 1918 pandemic.”

The same day, Donald Trump downplayed the seriousness of COVID-19 to the rest of the country, saying, “it’s going to disappear.” 

“It could get worse before it gets better,” Trump said on Feb. 27. “It could maybe go away. We’ll see what happens.”

NPR reported that among the attendees at the luncheon where Burr spoke were companies and organizations that contributed to Burr’s election campaign several years ago.

On his Twitter page, Burr called the NPR story a “tabloid-style hit piece.” He addressed the accusations in a string of tweets, saying the luncheon was held by the North Carolina State Society.

“It was publicly advertised and widely attended,” Burr wrote on Thursday. “NPR knew, but did not report, that attendees also included many non-members, bipartisan congressional staff, and representatives from the governor’s office.”  

“Every state has a state society. They aren’t ‘secretive’ or ‘high-dollar donor’ organizations,” Burr added. “They’re great civic institutions that bring people in D.C. together for events, receptions, and lunches.”

Burr’s representatives also addressed the criticism he has faced.

“Senator Burr has been banging the drum about the importance of public health preparedness for more than 20 years,” spokesperson Caitlin Carroll told NBC. “His message has always been, and continues to be, that we must be prepared to protect American lives in the event of a pandemic or bio-attack.”

Carroll also addressed Burr’s stock sales. 

“Senator Burr filed a financial disclosure form for personal transactions made several weeks before the U.S. and financial markets showed signs of volatility due to the growing coronavirus outbreak,” Carroll said.

More Senators Under Fire

Burr was not the only one to sell big stocks right before the market dropped. According to public records, a handful of other senators did the same. 

Records reveal that Sen. Kelly Loeffler (R-GA) and her husband, a chairman of the New York Stock Exchange, reported millions of dollars worth of stock sales across 27 transactions beginning at the end of January. Loeffler began selling stock on Jan. 24, the day she was apart of a Senate Health Committee private briefing with updates on the coronavirus.

Like Burr, Loeffler sold sales in companies that have suffered from the coronavirus pandemic. Furthermore, she and her husband bought between $100,000 and $250,000 worth of stock in a teleworking software company that has spiked in value as more citizens are working remotely.

“I want to set the record straight: This is a ridiculous & baseless attack,” Loeffler wrote in a tweet. “I don’t make investment decisions for my portfolio. Investment decisions are made by multiple third-party advisors without my or my husband’s knowledge or involvement.”

On Jan. 27, Sen. James Inhofe (R-OK) sold as much as $400,000 worth of stock in multiple companies including Apple, PayPal, and a real estate company. In two separate transactions on Jan. 31 and Feb. 18, Dianne Feinstein (D-CA) and her husband sold $1.5 million to $6 million worth of stock in a bio-technology company. Feinstein also serves on the Senate Intelligence Committee.

According to the Los Angeles Times, Inhofe and Feinstein’s financial moves seem to be routine. Both have said their investments are made without their involvement and noted they were not at the Senate Health Committee briefing on Jan. 24.

“Reports that I sold any assets are incorrect, as are reports that I was at a Jan. 24 briefing on coronavirus, which I was unable to attend,” Feinstein said in a statement. “Under Senate rules, I report my husband’s financial transactions. I have no input into his decisions. My husband in January and February sold shares of a cancer therapy company. This company is unrelated to any work on the coronavirus and the sale was unrelated to the situation.”

Calls for Resignation

Under the STOCK act, it is illegal for members of Congress to participate in trading based on nonpublic information. After the recent reports came out yesterday, multiple figures questioned the ethics of Sen. Burr’s stock sales and called upon him to step down from his position. 

Texas Democrat Rep. Joaquin Castro addressed the controversy on Twitter.

“As a member of the House Intelligence Committee, I know that our committee receives sensitive information, including assessments and projections, before others in Congress and the general public (if ever),” Castro wrote. “Sen. Burr should suspend his chairmanship pending investigation.”

Fox News Host Tucker Carlson made fiery remarks about Burr during his show on Thursday night. 

“He dumped his shares in hotel stocks so he wouldn’t lose money, and then he stayed silent,” Carlson said. “Maybe there is an honest explanation for what he did. If there is, he should share it with us immediately. Otherwise, he must resign from the Senate and face prosecution for insider trading.”

U.S. Representative Alexandria Ocasio-Cortez also called for Burr’s resignation.

“Burr knew how bad it would be. He told the truth to his wealthy donors, while assuring the public that we were fine,” Ocasio-Cortez wrote. “THEN he sold off $1.6 million in stock before the fall. He needs to resign.”

Several hours later, AOC reiterated a similar message about Sen. Loeffler, calling for her resignation as well. 

“It is stomach-churning that the first thoughts these Senators had to a dire & classified #COVID briefing was how to profit off this crisis,” Ocasio-Cortez wrote.

Burr’s Call For Investigation

On Friday, in the midst of all the backlash, Burr said that he made a request to the Senate Ethics Committee to review his recent transactions.

“I relied solely on public news reports to guide my decision on the sale of stocks February 13,” Burr said in a statement Friday morning. “Specifically, I closely followed CNBC’s daily health and science reporting out of its Asia bureaus at the time.” 

“Understanding the assumption many could make in hindsight however, I spoke this morning with the chairman of the Senate Ethics Committee and asked him to open a complete review of the matter with full transparency,” Burr added. 

See what others are saying: (New York Times) (NBC) (Los Angeles Times)

Politics

Campaign Season Gets Rolling This Month With Primaries in 13 States

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Several of the contests taking place this month will serve as important tests for Trump-backed candidates and how much power the former president still has over the GOP.


May Primaries Start With Key Race in Ohio

The 2022 midterm season is officially heating up this month with 13 states heading to the polls.

Voters in Indiana and Ohio will kick off the busy month on Tuesday with several highly anticipated races, including one closely watched contest for the seat being vacated by long-time Senator Rob Portman (R-Oh.)

The fight for Portman’s seat has been a heated one: candidates have spent tens of millions of dollars, held numerous debates and forums, and at one point, two of them even got into a physical confrontation. 

The main reason there are so many eyes on this race is because it will prove to be a key test for former President Donald Trump and the influence he has over the party. While Portman has generally been moderate and, at times, more readily critical of Trump than many others in his party, the Republican primary campaign has basically been a fight to see who is the most in line with Trump.

According to FiveThirtyEight, all but one of the seven Republican senate candidates embraced the former president’s election fraud lies as they fought for his coveted endorsement in a state he won by eight points in both 2016 and 2020.

Trump, for his part, ultimately ended up endorsing Hillbilly Elegy author J.D. Vance in a move that surprised many, because Vance had previously been vocally opposed to the former leader and his competitors had spent months running ads noting that fact.

However, the fight for Trump’s backing appears to have been worth it. Last week, a Fox News poll found that support for Vance has surged by double-digits since Trump’s endorsement, making him the front-runner.

Still, as FiveThirtyEight reports, “other factions of the party haven’t given up the fight either — which means the primary will be a direct test of how much clout Trump has when other Republican elites dare to defy him.” 

Meanwhile, there are also concerns regarding the ongoing legal battle over Ohio’s congressional map and the confusion that has caused for the state’s election calendar. For weeks, it was widely believed the state’s primaries would be pushed back after the Ohio Supreme Court ordered GOP lawmakers to redraw their map.

The map had been gerrymandered to give Republicans 12 out of the 15 congressional seats in the state even though they had only won around 55% of the popular vote. Ohio voters also previously passed a constitutional amendment in 2018 that effectively banned partisan gerrymandering.

The election, however, is still going forward anyway, even as early voting was down a whopping 40% from the last election, and the legislative races will not be on the ballot Tuesday, meaning there will have to be a second primary, which will likely drive down turnout even more.

Other Major Races This Month

There are also other notable contests scheduled for later this month. On May 17, there will be two additional races for seats vacated by Republican senators in North Carolina and Pennsylvania that will serve as important indicators of the former president’s sway over the party.

Meanwhile, in Georgia, the main Trump test focuses on two statewide races for the positions currently held by Gov. Brian Kemp (R) and Secretary of State Brad Raffensperger (R). The two infamously angered Trump after they refused to help him overturn the election, and as a result, many are watching to see if the former president’s full-fledged pressure campaign against them will work.

In Georgia and other battlegrounds voting this month, Democrats are also hoping they can make inroads — particularly in Pennsylvania. But recent polls have not painted a good picture for the party. Last week, an NPR/PBS NewsHour/Marist poll found that 47% of voters said they were more likely to vote for the Republican in their district, while just 44% said they would back Democrats. 

The poll marked the first time in eight years that a Marist survey found the GOP with an advantage for congressional ballot tests. 

See what others are saying: (NPR) (FiveThirtyEight) (PennLive)

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New York’s Highest Court Strikes Down Democrat-Gerrymandered Map

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The move represents a major blow to Democrats, who stood to gain as many as three seats in Congress if their map had been accepted.


Appeals Court Ruling

The New York State Court of Appeals struck down a congressional map drawn by the state’s Democrats Wednesday, dealing the party a major blow.

In the decision, the state’s highest court agreed with Republicans who had argued that the map was unconstitutionally gerrymandered to benefit Democrats. The justices called the map “substantively unconstitutional as drawn with impermissible partisan purpose.”

The court also condemned the Democrats for ignoring a constitutional amendment approved by voters in 2014 that aimed to limit political influence in redistricting, which included the creation of an independent entity to draw maps that the legislature would then vote on. However, the commission created to prevent partisan gerrymandering was unable to decide on a map because of its own partisan stalemate. As a result, Democrats in the legislature took it upon themselves to draw a final map.

But the version that the legislature passed and New York Gov. Kathy Hochul (D) signed into law re-drew lines so that Democrats could have gained as many as three new seats in the U.S. House of Representatives. 

Such gains would be highly significant in the upcoming 2022 midterm elections, where Republicans are expected to make substantial gains and may very well take back the House. Unsurprisingly, Republicans sued, and a lower court struck down the map.

In their order, the Appeals Court justices took away the legislature’s ability to make the map and instead delegated that power to a court-appointed “neutral expert.” 

While the judges did say there was enough time to finish the map before the primary elections in June, they also added that the Congressional contests would likely need to be moved to August. Races for governor and other statewide officials, however, would stay the same.

Broader Trends

The Appeals Court ruling is unique in that it targets Democrats, but it also comes as part of the broader trend of state courts cracking down on gerrymandering — though most other instances have stemmed from GOP-drawn maps.

In just the first four months of 2022, state courts in Ohio, North Carolina, Kansas, and Maryland have all struck down redistricting plans crafted by lawmakers.

Unlike the New York ruling, some of those other courts have implied that they will still allow those maps to be used in the 2022 elections. Such a decision would very likely disadvantage Democrats even more.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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McCarthy Warned Far-Right Lawmakers Could Incite Violence After Jan. 6 in New Audio of Leaked Call

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The conversations represent a marked difference from the public efforts of McCarthy and other Republican leaders to downplay their members actions.


Leaked Audio

Four days after the Jan. 6 insurrection, House Minority Leader Kevin McCarthy (R-Ca.) expressed concern about far-right Republicans inciting violence and openly voiced support for censoring them on Twitter, according to audio published by The New York Times on Tuesday.

The recordings, which come from a call among party leaders and aides on Jan. 10, are by far the clearest evidence top Republicans acknowledged that their members played a role in stoking violence before the insurrection and threatened to do so after.

They also emphasize the vast difference between what top Republicans, especially McCarthy, said behind closed doors, and how they downplayed and ignored the actions of their members in public. 

One of the most notable elements of these recordings is that McCarthy and the others explicitly identified several individuals by name. They focused mainly on Reps. Matt Gaetz (R-Fl.) and Mo Brooks (R-Al.) as the primary offenders.

In the audio, McCarthy can be heard flagging Gaetz right off the bat.

“Tension is too high. The country is too crazy,” he added. “I do not want to look back and think we caused something or we missed something and someone got hurt. I don’t want to play politics with any of that.” 

Specifically, McCarthy and the others talked about how Gaetz had gone on TV to attack multiple Republicans for being unsupportive of former President Donald Trump after Jan. 6. They particularly expressed concern over his targeting of Rep. Liz Cheney (R-Wy.), who was a member of the leadership team and had already been facing threats.

Others on the call also noted that Brooks had spoken at the rally before the insurrection, where he made incendiary remarks that many have viewed as direct calls to violence. McCarthy said the public comments from his members “have to stop,” adding he would call Gaetz and have others do the same to tell him that this “is serious shit” and “to cut this out.”

Rep. Steve Scalise (R-La.), the second-ranking House Republican, asserted at one point that Gaetz’s actions were “potentially illegal.” 

“Well, he’s putting people in jeopardy, and he doesn’t need to be doing this,” McCarthy responded. “We saw what people would do in the Capitol, you know, and these people came prepared with rope, with everything else.”

Republicans on the call also mentioned incendiary remarks from other members, including Reps. Louie Gohmert (R-Tx.), Barry Moore (R-Al.), and Lauren Boebert (R-Co.). Cheney pointed to Boebert as a security risk, noting she had tweeted out incredibly sensitive information about the movements of top leaders like House Speaker Nancy Pelosi (D-Ca.) during the attack on the Capitol.

“Our members have got to start paying attention to what they say, too, and you can’t put up with that shit,” McCarthy added later. “Can’t they take their Twitter accounts away, too?”

McCarthy in Hot Water

The newly published recordings also come just days after The Times reported that McCarthy had told members on a call after the insurrection that he would urge Trump to resign.

McCarthy initially called the reporting “totally false and wrong,” but shortly after his denial, The Times received permission from their source to publish audio where he can be heard saying precisely that.

McCarthy, for his part, has tried to spin the situation, claiming that his remarks were still true because he never actually followed through on the plan to call Trump. 

Still, the situation prompted widespread backlash from the far-right faction of the Republican party. 

Multiple people expressed hesitancy about their support for McCarthy as Speaker of the House if Republicans take control of the chamber in the midterm elections. Some said they could not trust him.

Speaking on his show Tuesday, Foxs News host Tucker Carlson called McCarthy “a puppet of the Democratic Party.”

Gaetz also responded with ire, tweeting out a statement in which he referred to the call as “sniveling” and said of McCarthy and Scalise: “This is the behavior of weak men, not leaders.”

Other members mentioned in the call, however, appeared to brush it off. In a statement to Axios, Moore claimed that the story was engineered by “RINOS” (Republicans in Name Only), and that “Republicans will be more united than ever after taking back the House this November.”

It currently remains unclear whether these revelations with pose any long-term threat to McCarthy, but if Trump is any indication of the far-right party line, the House leader may be in the clear.

After The Times published the audio of McCarthy saying Trump should resign, the former president told The Wall Street Journal that the relationship between the two men was untroubled.

“I think it’s all a big compliment, frankly,” he added. “They realized they were wrong and supported me.”

See what others are saying: (The New York Times) (Axios) (The Washington Post)

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