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Yahoo: Nancy Pelosi Buys Tesla Calls, Stands To Benefit From New Biden EV Plan

Samiya

Samiya

Alt Account
Banned
Nov 30, 2019
4,811
I guess all this stock market talk made the social media algorithms show me this. I forgot that it's legal for members of Congress to buy and sell stocks, it's so crazy:

finance.yahoo.com

Nancy Pelosi Buys Tesla Calls, Stands To Benefit From New Biden EV Plan

The ability of members of U.S. Congress to buy and sell stocks has been controversial over the years. One of its most prominent members made some purchases in December that could benefit from the new Biden administration. What Happened: It was revealed over the weekend that Speaker of the House...
finance.yahoo.com finance.yahoo.com

The ability of members of U.S. Congress to buy and sell stocks has been controversial over the years. One of its most prominent members made some purchases in December that could benefit from the new Biden administration.

What Happened: It was revealed over the weekend that Speaker of the House and California Rep. Nancy Pelosi purchased 25 call options of Tesla Inc (NASDAQ: TSLA). The purchases could have been done by Pelosi or her husband Paul, who runs a venture capital firm.

The options were bought at a stake price of $500 and expiration of March 18, 2022. Pelosi paid between $500,000 and $1,000,000 for the options, according to the disclosure.

Pelosi also disclosed that she bought 20,000 shares of AllianceBernstein Holdings , 100 calls of Apple Inc and 100 calls of Walt Disney Co.

Tesla shares have risen from $640.34 at the time the calls were purchased to over $890 today. The call options were valued at $1.12 million as of Monday.

Why It's Important: The purchases by Pelosi are questionable as arguments could be made that the companies stand to benefit from new President Joe Biden's agenda.

Biden's push for electric vehicles, which could include lifting the cap on sales, would give buyers tax credits again and is advantageous for Tesla. The president has also suggested a possible cash-for-clunkers program that could incentivize customers for trading in used vehicles towards the purchase of an electric vehicle.

Pelosi could now have a conflict as she works to pass clean energy initiatives from which her family could profit.

Former U.S. Senator David Perdue, a Republican, was criticized for making numerous stock trades during his six years in Congress. Perdue was the most prominent stock trader from Congress, making 2,596 trades during his time served.

Some of Perdue's transactions came while he was a member of several sub-committees. The Justice Department investigated Perdue and found no wrongdoing.

What's Next: It's legal for members of Congress and their spouses to own stocks. The transactions have to be disclosed per the STOCK (Stop Trading on Congressional Knowledge) Act that was passed in 2012.

U.S. Senator Jeff Merkley of Oregon is one member of Congress who has co-sponsored legislation to ban the adding of individual stocks by members of Congress. Both Merkley and Pelosi are Democrats.

Pelosi's transactions could push for more regulations concerning stock purchases by members of Congress.
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It reminds me of last year when I rad that Senator Kelly Loeffler sold at least $18 million more in stocks before the coronavirus crash than previously reported. (a much more egregious case, obviously). If there was legislation against politicians being able to enjoy stocks while being involved in political decisionmaking it might be possible to avoid this type of grift.

Would be cool if Merkley's legislation to ban individual stocks by members of members will get passed, especially if Pelosi and others like her have a conflict of interest in the environmental legislation they might be working on in the future.
 
GoldenEye 007

GoldenEye 007

Roll Tide, Y'all!
Banned
Oct 25, 2017
13,833
Texas
Legislators being able to buy individual stocks should be banned in general. But I think this is also very different than Burr/Loeffler acting on secret info regarding life and death vs someone buying on a publicly known policy position.
 
Palette Swap

Palette Swap

The Fallen
Oct 25, 2017
11,212
The purchases could have been done by Pelosi or her husband Paul, who runs a venture capital firm.
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This doesn't solve the inherent conflict of interest here, that should be absolutely prevented legally, but isn't it more likely that the husband did it?
 

Deleted member 70788

Jun 2, 2020
9,620
At the end of the day people who are federal politicians shouldn't be able to trade stocks.
 
zooj

zooj

Avenger
Oct 25, 2017
858
Ames, IA
We really need to pass some reform that prevents elected officials from profiting off the stock market. Likely will never happen and dies in the same grave as term limits and federal audits
 
OP
OP
Samiya

Samiya

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Nov 30, 2019
4,811
GoldenEye 007 said:
Legislators being able to buy individual stocks should be banned in general. But I think this is also very different than Burr/Loeffler acting on secret info regarding life and death vs someone buying on a publicly known policy position.
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Definitely agreed as I also noted in the OP. I'm just so suprised that it's still possible for politicians to buy and sell stocks, even their spouses who run a venture capital firm!
 
hwarang

hwarang

Member
Oct 27, 2017
3,452
Chromie said:
But fuck regular people with Gamestop, amirite?
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the GME craze ain't the feel good story you think it is. you do realize financial institutions and hedge funds are also making bank off of it? most especially the ones that are getting commissions through market making those massive amount of trades. so yes some rich people might be taking a hit but other rich people are getting richer. it all balances out.
 

Deleted member 46493

User requested account closure
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Aug 7, 2018
5,231
I mean, politicians in Congress made bank from stocks when they were briefed on covid before the general population knew about it.
 
Joe

Joe

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Oct 25, 2017
8,615
Members of Congress shouldn't be allowed to buy stocks, but if they're gonna have a conflict of interest in any direction, I'd definitely prefer it be in favor of green companies. And buying Tesla doesn't really seem exactly like some shrewd move based on inside info.
 
ChrisR

ChrisR

Member
Oct 26, 2017
6,798
She made them (or rather, someone made them for her, since I'm pretty sure she doesn't trade them on her own) in December, after the election in November, where Biden won.

Of course she should have no part in the fine details of the various green things that Biden will try to accomplish, but you have people in the Stock thread here on ERA pushing green energy because

a) We know it's the future
b) We know Biden is going to push for it.

Just keep her from adding anything to a bill that affects Tesla and she should be good.
 
OP
OP
Samiya

Samiya

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Nov 30, 2019
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Joe said:
Members of Congress shouldn't be allowed to buy stocks, but if they're gonna have a conflict of interest in any direction, I'd definitely prefer it be in favor of green companies. And buying Tesla doesn't really seem exactly like some shrewd move based on inside info.
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I agree that it's somewhat better with a "green" company rather than fossil fuels, but at the same time, Tesla isn't necessarily a good company in terms of its working conditions nor are their products available to lower social classes. There's also the problem of lithium and where to get it from. But those details don't really matter, the point is that there shouldn't be a conflict of interest when making legislation.
 
MrRob

MrRob

Banned
Oct 26, 2017
6,671
This info wasn't exactly privileged like the early COVID stuff was. I don't see much of an issue tbh
 
mugurumakensei

mugurumakensei

Elizabeth, I’m coming to join you!
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Oct 25, 2017
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Unless there's something that benefits Tesla over all other electric vehicle companies, there's not really a conflict of interest.
 
Quixzlizx

Quixzlizx

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Oct 25, 2017
2,591
This isn't insider trading. Unless everyone thought Biden was going to double down on fossil fuels, and only Democratic leadership knew that he wouldn't. Which is obviously not what happened.
 
Volimar

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Oct 25, 2017
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I don't think this is a matter of Pelosi intervening to be favorable to Tesla. She was probably going to always be friendly toward the kind of industry that Tesla operates in. The problem here is that she's going to make bank doing it, even if it was something she was going to do anyway. That's pretty skeezy in and of itself.
 
Beignet

Beignet

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Aug 1, 2020
2,638
This isn't really insider trading like the COVID senators did but Congressmen shouldn't hold stocks on principle imho. Not utterly and egregiously corrupt, just sketchy and leaves a bit of a mixed taste in your mouth
 

Deleted member 70788

Jun 2, 2020
9,620
First off, writing was on the wall. I mean, I bought green energy stocks like crazy last fall because I figured they'd be a part of Biden's plan.

I just think that if you get into congress at that level, all finances should be put into a target date fund or some other blind asset that is diversified to the point of being hard to manipulate. Once you leave, you can have it back and do whatever.
 
Jogi

Jogi

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Jul 4, 2018
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What ever even happened to Loeffler and Perdue? I assume nothing, so can't imagine anything happens here, sadly.
 
platocplx

platocplx

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Oct 30, 2017
36,072
I mean this isn't anything bad this is kind of literally what I'm looking to more long term renewables def will be booming the next few years.
If she had info that the govt was going to contract Tesla then that's a conflict in interest.
 
Garrett 2U

Garrett 2U

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Oct 25, 2017
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What an outrage! I can't believe she would take advantage of the situation! But it also could be her husband, a venture capitalist.
 
a916

a916

Member
Oct 25, 2017
8,838
Eh, this might be legal but this shit really needs to stop. Like I get it, going green is good, and her pushing that agenda is good. It may be obvious that's where the world is headed.

But pushing policies to make you richer and vice versa is the bridge that people will absolutely fucking abuse.
 
Joe

Joe

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Oct 25, 2017
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Samiya said:
I agree that it's somewhat better with a "green" company rather than fossil fuels, but at the same time, Tesla isn't necessarily a good company in terms of its working conditions nor are their products available to lower social classes. There's also the problem of lithium and where to get it from. But those details don't really matter, the point is that there shouldn't be a conflict of interest when making legislation.
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All good points, and 100% agreed on that conclusion.
 
loco

loco

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Jan 6, 2021
5,525
I might have this wrong but I think these same politicians are able to buy stock early right before it goes public.
 
Ether_Snake

Ether_Snake

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Oct 29, 2017
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mugurumakensei said:
Unless there's something that benefits Tesla over all other electric vehicle companies, there's not really a conflict of interest.
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Not if it benefits electric vehicles in general.

They should at best be able to just buy ETFs, and probably only from a vetted list of funds.

We need fewer people interested in getting rich in government. Teachers aren't asking to be millionaires. Get more people like those.
 
TarpitCarnivore

TarpitCarnivore

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Oct 25, 2017
20,229
Volimar said:
She made the deal in December, and this names two other companies and not Tesla, so probably not.
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It just says "us made companies" and then lists two, nowhere does it explicitly say they're involved in the contracts. I agree that Tesla likely would not be fleet choice (Ford or GM more likely) but this still looks bad. December yea, but it's also plausible to think she had an idea on this plan. It's not like she bought them in May before the election
 
mugurumakensei

mugurumakensei

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Oct 25, 2017
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TarpitCarnivore said:
It just says "us made companies" and then lists two, nowhere does it explicitly say they're involved in the contracts. I agree that Tesla likely would not be fleet choice (Ford or GM more likely) but this still looks bad. December yea, but it's also plausible to think she had an idea on this plan. It's not like she bought them in May before the election
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likely not even Ford or GM. US government has existing contractors that only make vehicles at scale for the government. It's highly likely they would be the ones who stand to gain.
 
Cipherr

Cipherr

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Oct 26, 2017
13,436
Beignet said:
This isn't really insider trading like the COVID senators did but Congressmen shouldn't hold stocks on principle imho. Not utterly and egregiously corrupt, just sketchy and leaves a bit of a mixed taste in your mouth
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Yeah all of this. This isnt even remotely the same thing as the insider trading stuff last year.

But its also clearly a case where the people responsible for policy that effects this stuff should NOT be able to partake in the market. Nor should their spouses (just to shut that shit down asap). You want to serve the public? Then fucking serve it, and give up your access to the market during and after your service for at least 15 years after you leave office IMO.
 
moblin

moblin

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Oct 25, 2017
2,107
Москва
I don't think the evidence is there right now for "insider trading" but when you very literally control the flow of legislation that can affect specific industries directly there's a very clear conflict of interest.

...But I don't know if I'm comfortable with a total freeze on someone's assets just because they hold elected office. There are a handful of MoC who aren't, in fact, obscenely wealthy and they deserve to have investment options. I think the solution, if any, would have to be narrowly tailored.
 
Pandora012

Pandora012

Moderator
Oct 25, 2017
5,496
these look to be purchased in December. Alot of clean energy and EV stocks have been pumping especially since biden was elected. Not sure if there is anything to note here.
 
OP
OP
Samiya

Samiya

Alt Account
Banned
Nov 30, 2019
4,811
Operations said:
Being long on EVs is not particularly an insider trade.
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xxracerxx said:
Especially with Biden in office. She didn't need to see shit to make this prediction.
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Sure, but it can still potentially be a conflict of interest. For example, if there are multiple competing contractors for EVs then Tesla would have an advantage if Pelosi was somehow involved in the decision-making.

At the same time, if what we need is green public transportation and not EVs (which only reproduce class inequalities given their expensive and private nature), then someone involved in legislation trying to benefit all Americans should not have a vested interest in a specific company producing EVs.
 
RocketKiss

RocketKiss

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Oct 30, 2017
4,691
Business as usual so it's ok.

she's just an independent woman hustlin' out there making that paper
 
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