Political prop bets are currently trading on the market with respect to the latest ‘insider trading’ scandal to hit US Politics amidst the coronavirus outbreak.
US Politics was dealt with a bombshell this week following reports that several senators benefited from top-secret briefings on the coronavirus outbreak.
Two Republican senators are facing corruption accusations ever since reports surfaced they’d sold substantial amounts of stock immediately before stock markets crashed after gaining insider information.
Senate Intelligence Committee chair Sen. Richard Burr and Senator Kelly Loeffler are leading in the headlines as the two biggest culprits to come under fire for insider trading – a fact that has prompted BetOnline to roll out political prop bets on whether the pair will resign by April 30, 2020. However, Burr and Kelly are not the only two senators to be suspected of shady dealing.
(Odds courtesy of BetOnline)
Will Sen. Kelly Loeffler resign by April 30, 2020?
- No -500
- Yes +300
Will Sen. Richard Burr resign from the US Senate?
- No -300
- Yes +200
Sen. Dianne Feinstein, a California Democrat, and Sen. James Inhofe, an Oklahoma Republican, are a couple of other names that have surfaced as well amidst this political scandal for their own fire-sale of stocks in the leadup to the market crash.
Given this unprecedented global turmoil, which has seen vast numbers of people (the average Joe, so to speak) lose their jobs, businesses, and livelihoods in the blink of an eye and that have herded large populations into the confines of their homes under strict instruction from government leaders and officials to lockdown cities, all to rally around a common cause: to defeat coronavirus; the indelible impression left by American politicians lining their pockets isn’t a good look, to say the least.
Then again, greed has always appeared endemic in the corporate world and among its political cronies. That it would rear its ugly head during this public health crisis isn’t a total shocker, is it?
Senator Burr is coming under fire for having reportedly sold stocks worth approximately $1.7 million last month in companies that sank in the ensuing market plunge. The sale involved stocks in industries worst hit by the coronavirus pandemic, from hotels and restaurants to shipping and health care.
The timing of his sell-off is particularly crucial to raising suspicion of alleged insider trading because up until recently, American politicians took a relatively optimistic stance on the outbreak and the nation’s ability to cope with any challenges COVID-19 might present. The theory maintains that Senator Burr, along with others, was influenced by privileged knowledge gained during daily briefings on the threat of the virus.
Senator Loeffler and her husband, Jeffrey Sprecher, who is the chairman of the New York Stock Exchange, reportedly sold upwards of $3 million in stock the very same day after Loeffler attended a closed-door COVID-19 briefing from administration officials on the public health threat the virus posed.
Loeffler sold shares in companies such as ExxonMobil and Auto Zone, both of which saw their share price drop during the pandemic-induced havoc on the markets. At the same time, Loeffler purchased shares in teleworking software providers.
Senators Feinstein and Inhofe liquidated their stocks as well ahead of the crisis with the former selling off around $1 million and the latter around $500,000, of which were shares in Apple, Paypal and Brookfield Asset Management, amongst several others.
Feinstein’s husband also reacted with a massive sell-off in February, anywhere between $1 to $5 million worth of Allogene shares.
Naturally, all the senators in question are denying allegations of corruption and insider trading, claiming that the accusations were totally unfounded.
It is obviously against the law to use information that isn’t public knowledge and that is gained by virtue of their positions for personal gain. Martha Stewart learned the hard way almost 20 years ago when she was identified as being involved in an insider trading scandal. Despite denying any wrongdoing, she went on to spend five months in jail after being found guilty of conspiracy, obstruction of justice and lying to federal investigators.