House Speaker Nancy Pelosi is in the spotlight once again but this time it’s her personal finances that are being called into question, specifically her success in the stock market.
Background: In 2012, Congress passed a law making it illegal for lawmakers to use information from their work in Congress for their personal gain. The law requires them to disclose stock transactions by themselves or family members within 45 days.
Recently, reports revealed that last year congressional lawmakers invested $290 million in stocks, options, cryptocurrency, and other assets and that they outperformed the market, on average.
From this report, House Speaker Nancy Pelosi, a multimillionaire, ranked 6th amongst congressional colleagues sparking scrutiny.
Last year, Pelosi filed transaction reports showing her husband, financier Paul Pelosi, made trades valued at over $5 million in tech companies now facing an antitrust bill in Congress.
In December 2020, Nancy Pelosi fiercely defended the ability for members of Congress to be able to participate in stock trading.
Context: Congressional lawmakers are allowed to buy and trade stocks and are often privy to certain information on companies due to their work.
This has caused a recent renewal of a push to ban stock trading amongst members of Congress. On Monday, 27 House members signed a letter calling for a floor vote on recent proposals to prohibit Congress members from owning stocks “in light of recent misconduct.” (per Newsmax)
What Is Happening: Now, more and more people are closely monitoring Pelosi’s financial disclosures, likely hoping for an edge on the stock market.
In early January, Google searches for “Pelosi stock trades” hit a record high.
The Catch: “It’s nonsense, it’s very hard to replicate what other people are doing and gain some edge,” said Sahak Manuelian, Managing Director of Trading at Wedbush Securities in Los Angeles.