WASHINGTON — On March 10, as concerns swirled around the health of the nation’s banks, an investment account belonging to the children of Representative Jared Moskowitz, Florida Democrat, sold shares of Seacoast Banking Corporation valued at between $65,000 and $150,000.
Two days later, with the government working to bring the crisis under control, Mr. Moskowitz said on television interview that he attended a bipartisan congressional briefing on the turmoil. And on March 13, as investors worried about the failure of Silicon Valley Bank and two other small banks, shares of Seacoast Bank fell nearly 20%.
A spokesman for Mr Moskowitz said in an email that the sale of the Seacoast stake was suggested by the congressman’s financial adviser as a means of diversifying the holdings of his young children. Moskowitz said the congressional press conference on the banking crisis took place shortly before the televised interview and after the shares were sold.
But this transaction is just one example of how members of Congress continue to buy and sell stocks and other financial assets in industries related to their official duties.
According to an analysis of Trading capitala project by data company 2iQ — a number that is likely to grow in the coming days, as lawmakers reveal more about transactions made last month.
While generally legal, stock trading by members of Congress has become a hotbed because lawmakers are sometimes kept secret about the companies and industries they oversee.
New York Times investigation last year found that over a three-year period, nearly one-fifth of federal legislators or their immediate family members bought or sold stocks or other securities that could be affected by their legislative work.
Efforts to pass legislation to limit the trading of members of Congress or ban it have stalled in recent years. On Capitol Hill on Tuesday, Senator Jeff Merkley, Democrat of Oregon and Senator Sherrod Brown, Democrat of Ohio, announced a new bill that would eliminate the practice of having 19 co-sponsors in the Senate.
A House version of the bill was co-sponsored by Representative Michael Cloud, Republican of Texas, and Representative Raja Krishnamoorthi, Democrat of Illinois.
“As the Silicon Valley Bank closed, even during that time, there were reports that members of Congress were trading bank stocks,” Brown said. “I mean, imagine that – members of Congress, we have more inside information,” he said, adding, “Members of Congress can, through the work of us, know more about the economy.”
Representative Dan Goldman, a New York Democrat, sold shares of First Republic Bank, a large deposit bank that is rapidly losing both cash and customers, on March 15, a day ago. when the bank received a $30 million industry bailout.
The wife and children of Representative Ro Khanna, a California Democrat, sold shares of the First Republic that same day. Representative John Curtis, Republican of Utah, sold shares of First Republic from a joint account with his spouse on March 16, the day of the industry bailout.
At the time, shares of First Republic were down nearly 80% from their February peak. The timing of the sales by those three legislators or their loved ones means that sellers have avoided an additional sale that is still impending. Shares of First Republic are now down nearly 90% since the start of the year.
A spokesman for Mr. Goldman has said that his portfolio is managed by a third party without his knowledge and that he is setting up a blind trust to avoid any occurrence of conflicts. conflict of interest. Mr Khanna has said that his records relate to transactions made by a diversified trust belonging to his wife and young children and that he was not involved in that. A spokesman for Mr. Curtis did not respond to requests for comment.
Some members also bought bank stocks during volatile times. On March 17, Representative Nicole Malliotakis, Republic of New York, purchased shares of New York Community Bancorp after private discussions with New York State banking regulators. Her transaction is First reported by The Wall Street Journal.
Two days later, New York Community Bancorp bought the failed Signature Bank assets – a deal that spurred it on. biggest stock rally when. Around the same time, other lawmakers, including Senator Gary Peters, a Michigan Democrat, and members of Khanna’s family, bought shares in larger US banks. States, like Truist Financial. Mr. Goldman has, among other transactions, made a series of share purchases in foreign banks, such as Lloyds Banking Group and Mizuho Financial Group.
A spokesperson for Ms Malliotakis said that her financial advisor recommended the purchase and it was worth less than $5,000. A spokesman for Mr. Peters did not respond to questions about the transaction.
