Nancy Pelosi continues to cause controversy for the questionable investment her husband made in Microsoft stock, shortly before the government awards them million-dollar contracts.
Here are what to know about the purchase of Pelosi’s husband on Microsoft and Roblox stock:
- Paul Pelosi exercised call options and paid $1.95 million to buy 15,000 shares of Microsoft at a strike price of $130 on March 19, according to an April 9th filing with the House clerk.
- On the same day, Pelosi, who owns and operates a California venture capital investment and consulting firm, paid $1.4 million for 10,000 shares valued at $140 apiece.
- Paul Pelosi spent between $500,001 and $1 million to purchase 10,000 shares of Roblox Corporation stock the day it went public on March 10.
- In late March, Microsoft was awarded a contract with the Army to build 120,000 HoloLens augmented reality headsets that could be worth as much as $21.88 billion over 10 years.
- Since Pelosi made the purchase, Microsoft share prices have climbed from about $230 to roughly $255 – an increase of close to 11%.
- Roblox, valued at roughly $41.9 billion, began trading on the New York Stock Exchange at $64.50 per share. Prices have since climbed to about $80 per share.
Fox News reported that:
Lawmakers’ spouses are allowed to trade in companies or industries that their partner may help regulate. But under the STOCK Act, passed in 2012, it’s illegal for family members and members of Congress to profit from inside information.
Drew Hammill, Nancy Pelosi’s deputy chief of staff, told the Washington Examiner that the speaker “has no involvement or prior knowledge of these transactions.”
Pelosi causes controversy
Pelosi has already caused disgruntlement among constituents over similar investments, the most recent being her husband’s investment in electric vehicles, which will be heavily subsidized by the spending bill passed by the president, Joe Biden.
This would be an example of Pelosi “using her power to tax the middle class and personally profit from it,” condemned the national press secretary of the Republican Congressional Committee, Torunn Sinclair, according to Fox News on April 5.
For his part, Take Back.org executive director John Pudner had already criticized that investment by Pelosi, who purchased $1.5 million in stock in electric carmaker Tesla, days before Biden’s announcement.
“It’s corrupt and unacceptable for members of Congress, particularly the speaker, to trade stocks in companies affected by their votes in Congress,” Pudner said.
Likewise, University of Florida management professor Aaron Hill referred to the controversial case, explaining that Congress members can obtain information or even influence and take advantage of significant investment decisions.
He said, “The problem is that there are a lot of things that any congressman could do behind the scenes to positively influence Tesla’s [actions], such as delaying legislation and introducing it.”
Along these lines, Twitter user @kwisatz35925990 commented, “Insider trading much. Must be nice to be in the privileged elite that can just get away with the laws they wrote.”
Also weighing in was @LindaVT, another netizen expressing her proposal to prevent these types of investments, which could eventually involve conflicts of interest.
“It’s way past time to make it illegal for members of Congress to trade individual stocks. Period..”
Comments by Krystal and Saagar
- This is an extremely bad look at the very least. And at worst, it’s outright corrupt.
- It has the appearance of using insider knowledge of where the US government is headed.
- Access to that knowledge if you are Speaker of the House you may have special insights in order to profit massively off of your stock trades.
- Nancy Pelosi is already a very wealthy woman.
- Why are members of Congress allowed to trade stock while they are holding public office?
- We covered this on the Republican side at the beginning of Covid.
- Even the appearance of this is so disgusting.
According to data tracked by the Center for Responsive Politics, Pelosi, a California Democrat, is worth an estimated $114 million, according to her 2018 personal financial disclosure, making her the sixth-richest member of the House of Representatives and the tenth-richest overall.
Here are recent Pelosi Insider Moves. The list shows the Microsoft call options.