Sunday, May 3, 2020
Cashing In on Pandemic? Documents Show Lawmakers Made 1,500 Stock Transactions Worth $158 Million as Covid-19 Spread
"As Covid-19 cases began to increase, senators and representatives from both parties traded securities—many related to the pandemic itself."
by
Jake Johnson, staff writer
39 Comments
https://www.commondreams.org/news/2020/04/30/cashing-pandemic-documents-show-lawmakers-made-1500-stock-transactions-worth-158
A new analysis of financial disclosure documents found that Republican and Democratic members of Congress made nearly 1,500 stock transactions worth up to $158 million between February and April as the coronavirus spread across the U.S., heightening suspicions that elected officials in charge of the federal response to the pandemic have opportunistically cashed in on it.
"Of those transactions, some members of Congress were strategically buying stocks in companies that might see a boost during the crisis, as well as selling stocks that seemed likely to tank," CLC said. "Public servants made purchases in remote work technologies, telemedicine companies, and car manufacturers that were shifting their production to ventilators. Sales were made in companies in the restaurant and hospitality industries."The Campaign Legal Center (CLC), a non-partisan watchdog group, uncovered at least 127 purchases or sales in securities by senators and at least 1,358 transactions by members of the House between February 2 and April 8.
Last month, as Common Dreams reported, Sens. Richard Burr (R-N.C.) and Kelly Loeffler (R-Ga.) faced calls to resign after it was revealed that they sold off stock in late January and early February just before the market tanked due to the Covid-19 crisis.
The CLC analysis (pdf) shows that Burr and Loeffler—both of whom remain in the Senate—are not alone.
"The stock trading was bipartisan—27 Democrats, 21 Republicans, and 1 independent were making trades as the devastation that Covid-19 would exact on the U.S. crystallized," CLC said. "Most congressional members are millionaires and a number have investments in the tens of millions and far more likely to have investments in the markets."
Rep. Phil Roe (R-Tenn.) had the most transactions of any member of Congress with 366 worth between $2.4 and $10.6 million. Rep. Gilbert Cisneros (D-Calif.) trailed Roe with 219 transactions worth between $1.9 and $6.7 million.
"It's ridiculous that the public should even have to wonder if a member's personal financial interests are playing a role in any public policy, let alone the response to a crisis like Covid-19," tweeted Delaney Marsco, ethics counsel with CLC.
While it is not clear whether any of the transactions were illegal, CLC said "the volume of trading during this short time period highlights a serious problem."
"The onslaught of public disclosure in the next few months coupled with the increased financial hardship of Americans creates an opportunity for constituents to unite and demand a change from their elected representatives," CLC said. "Disclosure is the first step towards government accountability, but to rebuild public trust in government, Congress needs to go further and restrict trading of certain individual stocks."
Top Unions Accuse Trump of Exploiting Loopholes in Covid-19 Stimulus to 'Enrich Corporate Executives'
"The Trump administration has, once again, shown complete disregard for the well-being of working families and failed to implement any requirements that would benefit workers."
by
Jake Johnson, staff writer
14 Comments
https://www.commondreams.org/news/2020/04/28/top-unions-accuse-trump-exploiting-loopholes-covid-19-stimulus-enrich-corporate
Leaders of some of the largest labor unions in the United States are warning that the Trump administration is brushing aside the interests of workers in its distribution of trillions of dollars in coronavirus bailout funds and instead using the taxpayer money to further enrich wealthy corporate executives.
As funds authorized by the multi-trillion-dollar CARES Act begin to fly out the door, the unions wrote in letters (pdf) to Democratic leaders Monday that they "are troubled that important worker protections are not being required of recipients."
"Specifically, we are alarmed that the Federal Reserve's lending facility for large businesses does not require those companies to maintain workers on payroll, while the program for mid-sized businesses fails to include anti-outsourcing provisions or any provisions protecting workers' right to organize," the unions wrote. "This means that, rather than protect good, family-supporting jobs as you intended, the funds can be used to enrich corporate executives and shareholders without regard for workers."
The CARES Act, which President Donald Trump signed into law last month, contains some restrictions on corporate recipients of federal bailout funds—including limits on layoffs, stock buybacks, and executive compensation—but the law also empowers Treasury Secretary Steve Mnuchin to waive those restrictions, effectively rendering them meaningless.The unions sent the letters to House Speaker Nancy Pelosi (D-Calif.), Senate Minority Leader Chuck Schumer (D-N.Y.), and Sen. Sherrod Brown (D-Ohio.). The letters' signatories include Dan Mauer of the Communications Workers of America, Tor Cowan of the American Federation of Teachers, and John Gray of the Service Employees International Union.
"We were happy to see that one of the provisions of the CARES Act required that most employers receiving taxpayer funds would be required to keep 90% of their employees on payroll," the unions wrote Monday. "Unfortunately the Trump administration and the Federal Reserve effectively waived any requirement to maintain workforces at companies receiving aid."
"The Treasury Department, meanwhile, has failed to follow guidance under the CARES Act protections for airline payrolls, potentially risking good jobs in those sectors, as well," the unions said.
The unions' warnings came as progressives continue to raise alarm about how the trillions of dollars in corporate bailout funds are being utilized, particularly given that the limited oversight mechanisms established by the CARES Act are not yet fully functional.
The Federal Reserve has committed to making public the names of companies that receive bailout money, but the central bank has not said it will release the terms and conditions of the taxpayer loans.
The unions demanded Monday that Democratic lawmakers work to guarantee that any future stimulus package contains enforceable restrictions to protect workers and prevent profiteering by corporate executives.
"We urge you to ensure that any future legislation responding to the pandemic and the economic fallout includes not only robust worker protection provisions, but that those provisions are binding and enforceable on recipients of federal taxpayer assistance, without the loopholes in the CARES Act that the Trump administration has exploited to undermine them already," the labor leaders wrote.
"We cannot yet again have the federal government bailing out corporations and major employers and leaving workers with no meaningful protections," they added.
Read the full letter to Schumer and Brown:
On behalf of our millions of members, thank you for the leadership that you have shown during these extraordinarily challenging times as our country battles the COVID-19 pandemic. We especially want to thank you for your efforts to prioritize workers and worker protections during the drafting of the CARES Act and your continued efforts to provide help to the millions of workers across the U.S. who are suffering from this pandemic and the economic fallout.
Unfortunately, as the implementation of the legislation is carried out, and funds are beginning to flow to various employers and corporate entities, we are troubled that important worker protections are not being required of recipients. Specifically, we are alarmed that the Federal Reserve's lending facility for large businesses does not require those companies to maintain workers on payroll, while the program for mid-sized businesses fails to include anti-outsourcing provisions or any provisions protecting workers' right to organize. This means that, rather than protect good, family-supporting jobs as you intended, the funds can be used to enrich corporate executives and shareholders without regard for workers.
We know that you share our belief that the most important step that Congress can take is to ensure that federal taxpayer funds are used first and foremost to keep employees on payroll. Ensuring that workers keep their jobs and the economic certainty those jobs provide is critical to blunting the impact of the economic fallout from this pandemic on the overall U.S. economy. That is exactly why we were happy to see that one of the provisions of the CARES Act required that most employers receiving taxpayer funds would be required to keep 90% of their employees on payroll. Unfortunately the Trump Administration and the Federal Reserve effectively waived any requirement to maintain workforces at companies receiving aid. The Treasury Department, meanwhile, has failed to follow guidance under the CARES Act protections for airline payrolls, potentially risking good jobs in those sectors, as well.
Meanwhile, the importance of workers being able to form a union and have a voice in their workplaces has been made abundantly clear during this pandemic. The protections provided by union contracts and the ability of unionized workers to speak out on the job without fear of employer retribution allow millions of front line essential workers to shape workplace policies that not only protect their health and safety on the job during this pandemic, but the general public as well. Moreover, union contracts also provide important protections for workers unable to work during the crisis. The CARES Act could be used to require mid-sized employers receiving taxpayer funding in response to the pandemic to remain neutral when their employees choose to exercise their legal rights to organize into a union. Again, the Trump Administration and the Federal Reserve are apparently choosing not to make any requirements related to neutrality in union organizing efforts.
Given the extraordinary nature of the support that the federal government is providing for the private sector through the CARES Act, the intent of the CARES Act to protect good jobs as a condition of receiving aid were a completely reasonable effort to ensure that taxpayers money is used well. We have been highly disappointed that the Trump Administration has, once again, shown complete disregard for the well-being of working families and failed to implement any requirements that would benefit workers.
As powerful voices and leaders in the U.S. Senate for working families, we urge you to take steps to ensure that the worker protection provisions are actually imposed on recipients of federal aid in response to the current pandemic. In addition, we urge you to ensure that any future legislation responding to the pandemic and the economic fallout includes not only robust worker protection provisions, but that those provisions are binding and enforceable on recipients of federal taxpayer assistance, without the loopholes in the CARES Act that the Trump Administration has exploited to undermine them already. We cannot yet again have the federal government bailing out corporations and major employers and leaving workers with no meaningful protections.
Thank you again for your leadership in working to incorporate worker protections into the CARES Act and thank you in advance for working with us to ensure that those protections become reality for working families across the country going forward.
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