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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)

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Supreme Court Begins Contentious New Term as Approval Rating Hits Historic Low

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The most volatile cases the court will consider involve affirmative action, voting rights, elections, and civil rights for the LGBTQ+ community.


High Court to Hear Numerous Controversial Cases

The U.S. Supreme Court on Monday officially kicked off a new term that will be marked by a number of very contentious cases.

The justices, led by a conservative super-majority, will hear many matters that have enormous implications for the American people.

The first case the court will hear this term involves a major environmental dispute that will determine the scope of government authority under the Clean Water Act — a decision that could have a massive impact on U.S. water quality at a time when water crises’ have been heightened by climate change.

The case also comes amid increasing concerns about federal inaction regarding climate change, especially after the Supreme Court significantly limited the government’s power to act in this area at the end of its last term.

Cases Involving Race

Several of the most anticipated decisions also center around race, including a pair of cases that challenge affirmative action programs at Harvard University and the University of North Carolina.

For over four decades, the high court has repeatedly upheld that race can be a factor in college admissions to ensure a more equitable student body. Despite the fact that multiple challenges have been struck down in the past, the court’s conservative super majority could very well undo 40 years of precedent and undermine essential protections.

The high court will decide a legal battle that could significantly damage key voting protections for minorities set forth under the Voting Rights Act (VRA). The case in question stems from a lower court opinion that invalidated Alabama’s congressional map for violating a provision in the VRA prohibiting voting rules that discriminate on the basis of race.

Alabama had drawn its map so only one of its seven congressional districts was majority Black, despite the fact that nearly one in every three voting-age residents in the state are Black. 

States’ Power Over Elections 

Also on the topic of gerrymandering and elections, the justices will hear a case that could have a profound impact on the very nature of American democracy. The matter centers around a decision by the North Carolina Supreme Court to strike down the Republican-drawn congressional map on the grounds that it amounted to an illegal gerrymander that violated the state’s Constitution.

The North Carolina GOP appealed that decision to the Supreme Court, arguing that the U.S. Constitution’s Elections Clause gives state legislatures almost total control over how federal elections are carried out in their state under a theory called the independent state legislature doctrine.

“That argument, in its most extreme form, would mean that [sic] no state court and no state agency could interfere with the state legislature’s version of election rules, regardless of the rules set down in the state constitution,” NPR explained.

In other words, if the Supreme Court sides with the North Carolina Republicans, they would essentially be giving state legislatures unchecked power over how voting maps are designed and elections are administered.

LGBTQ+ Rights

Another notable decision the justices will make could have huge implications for the LGBTQ+ community and civil rights more broadly. That matter involved a web designer in Colorado named Lori Smith who refused to design websites for same-sex couples because she believed it violates her right to religious freedoms.

That belief, however, goes against a Colorado nondiscrimination law that bans businesses that serve the public from denying their services to customers based on sexual orientation or identity.

As a result, Smith argues that the Colorado law violates the right to free speech under the First Amendment. If the high court rules in her favor, it would undermine protections for the LGBTQ+ community in Colorado and likely other states with similar laws.

Experts also say such a ruling could go far beyond that. As Georgetown University’s Kelsi Corkran told NPR, “if Smith is correct that there’s a free speech right to selectively choose her customers based on the messages she wants to endorse,” the Colorado law would also allow white supremacists to deny services to people of color because that “would be a message of endorsement.”

Record-Low Approval Rating

The court’s high-stakes docket also comes at a time when its reputation has been marred by questions of legitimacy.

A new Gallup poll published last week found that the Supreme Court’s approval rating has sunk to a record low. Specifically, less than half of Americans said they have at least a “fair amount” of trust in the judicial branch — a 20% drop from just two years ago.

Beyond that, a record number of people also now say that the court is too conservative. Experts argue that these numbers are massively consequential, especially as the U.S. heads into yet another highly-contentious court term.

“The Supreme Court is at an important moment,” Julian Zelizer, a professor of history and public affairs told The Hill

“Trust in the institutions has vastly diminished, certainly among Democrats, and many have a close eye on how they rule on other vital matters. If decisions seem to keep coming from a very pointed political direction, frustration and calls for reform will only mount.”

See what others are saying: (The Hill) (CNN) (The Wall Street Journal)

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Biden Mistakenly Calls Out For Dead Lawmaker at White House Event

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The remarks prompted concerns about the mental state of the president, who previously mourned the congresswoman’s death in an official White House statement.


“Where’s Jackie?” 

Video of President Joe Biden publicly asking if a congresswoman who died last month was present at a White House event went viral Wednesday, giving rise to renewed questions about the leader’s mental acuity.

The remarks were made at the White House Conference on Food, Nutrition, and Health, which Rep. Jackie Walorski (R-In.) had helped convene and organize before her sudden death in a car accident.

The president thanked the group of bipartisan lawmakers who helped make the event happen, listing them off one by one, and appearing to look around in search of Rep. Walorski when he reached her name.

“Jackie, are you here? Where’s Jackie?” he called. “I think she wasn’t going to be here to help make this a reality.” 

The incident flummoxed many, especially because Biden had even acknowledged her work on the conference in an official White House statement following her death last month.

“Jill and I are shocked and saddened by the death of Congresswoman Jackie Walorski of Indiana along with two members of her staff in a car accident today in Indiana,” the statement read.

“I appreciated her partnership as we plan for a historic White House Conference on Hunger, Nutrition, and Health this fall that will be marked by her deep care for the needs of rural America.”

The Age Maximum Question

Numerous social media users and news outlets presented the mishap as evidence that Biden, who is 79, does not have the mental capacity to serve as president. Others, meanwhile, raised the possibility of imposing an age maximum for the presidency.

Most of the comments against the president came from the right, which has regularly questioned his mental stability. However, the idea of an age limit goes beyond Biden and touches on concerns about America’s most important leaders being too old.

While Biden is the oldest president in history, former President Donald Trump — who is 76 and has also had his mental state continually questioned — would have likewise held that title if he had won re-election in 2020.

These concerns extend outside the presidency as well: the current session of Congress is the oldest on average of any Congress in recent history, and the median ages are fairly similar among Republicans and Democrats when separated by chambers.

There is also a higher percentage of federal lawmakers who are older than the median age. Nearly 1 out of every 4 members are over the age of 70.

Source: Business Insider

What’s more, some of the people in the highest leadership positions are among the oldest members. Rep. Nancy Pelosi (D-Ca.), is the oldest-ever House Speaker at 82, Sen. Patrick Leahy (D-Vt.) — the president pro tempore of the Senate and third person in line for the presidency — is the same age, and Senate Minority Leader Mitch McConnell (R-Ky.) is 80.

As a result, it is unsurprising that a recent Insider/Morning Consult poll found that 3 in 4 Americans support an age max for members of Congress, and more than 40% say they view the ages of political leaders as a “major” problem.

Those who support the regulations argue that age limits are standard practice in many industries, including for airplane pilots and the military, and thus should be imposed on those who have incredible amounts of power over the country.

However, setting age boundaries on Congress and the President would almost certainly necessitate changes to the Constitution, and because such a move would require federal lawmakers to curtail their own power, there is little political will.

See what others are saying: (The New York Times) (Business Insider) (NBC News)

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Churches Protected Loophole in Abuse Reporting for 20 years, Report Finds

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In some cases, Clergy members failed to report abuse among their congregation, but state laws protected them from that responsibility.


A Nationwide Campaign to Hide Abuse

More than 130 bills seeking to create or amend child sexual abuse reporting laws have been neutered or killed due to religious opposition over the past two decades, according to a review by the Associated Press.

Many states have laws requiring professionals such as physicians, teachers, and psychotherapists to report any information pertaining to alleged child sexual abuse to authorities. In 33 states, however, clergy are exempt from those requirements if they deem the information privileged.

All of the reform bills reviewed either targeted this loophole and failed or amended the mandatory reporting statute without touching the loophole.

“The Roman Catholic Church has used its well-funded lobbying infrastructure and deep influence among lawmakers in some states to protect the privilege,” the AP stated. “Influential members of the Mormon church and Jehovah’s witnesses have also worked in statehouses and courts to preserve it in areas where their membership is high.”

“This loophole has resulted in an unknown number of predators being allowed to continue abusing children for years despite having confessed the behavior to religious officials,” the report continued.

“They believe they’re on a divine mission that justifies keeping the name and the reputation of their institution pristine,” David Finkelhor, director of the Crimes Against Children Research Center at the University of New Hampshire, told the outlet. “So the leadership has a strong disincentive to involve the authorities, police or child protection people.”

Abuses Go Unreported

Last month, another AP investigation discovered that a Mormon bishop acting under the direction of church leaders in Arizona failed to report a church member who had confessed to sexually abusing his five-year-old daughter.

Merrill Nelson, a church lawyer and Republican lawmaker in Utah, reportedly advised the bishop against making the report because of Arizona’s clergy loophole, effectively allowing the father to allegedly rape and abuse three of his children for years.

Democratic State Sen. Victoria Steele proposed three bills in response to the case to close the loophole but told the AP that key Mormon legislators thwarted her efforts.

In Montana, a woman who was abused by a member of the Jehovah’s Witnesses won a $35 million jury verdict against the church because it failed to report her abuse, but in 2020 the state supreme court reversed the judgment, citing the state’s reporting exemption for clergy.

In 2013, a former Idaho police officer turned himself in for abusing children after having told 15 members of the Mormon church, but prosecutors declined to charge the institution for not reporting him because it was protected under the clergy loophole.

The Mormon church said in a written statement to the AP that a member who confesses child sex abuse “has come seeking an opportunity to reconcile with God and to seek forgiveness for their actions. … That confession is considered sacred, and in most states, is regarded as a protected religious conversation owned by the confessor.”

See what others are saying: (Associated Press) (Deseret) (Standard Examiner)

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