Sen. Loeffler responds to reports she sold off stocks before COVID-19 crash
Ed Henry grills Senator Kelly Loeffler over reports she sold off stocks before the coronavirus market crash
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Sen. Kelly Loeffler defended her stock trades Wednesday by stressing that her investment portfolio is “managed independently by third-party advisors,” after she was criticized for investing in a chemical giant that manufactures COVID-19 protective clothing.
Loeffler, R-Ga., already had come under fire for dumping stocks prior to the coronavirus outbreak, though she has insisted she is not directly involved in trading decisions.
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“Senator Loeffler filed another Periodic Transaction Report and the facts are still the same,” a spokesperson for Loeffler told Fox News. “These transactions are consistent with historical portfolio activity and include a balanced mix of buys and sells.
“Her stock portfolio is managed independently by third-party advisors and she is notified…after transactions occur,” the spokesperson continued. “Sen. Loeffler continues to operate with integrity and transparency—following both the spirit and the letter of the law.”
The spokesperson added: “While some will continue to make baseless accusations devoid of facts, Senator Loeffler will continue working to keep Americans safe and provide much-needed relief to Georgia families and businesses impacted by COVID-19.”
The explanation comes as the largest newspaper in her state reported this week that she sold stocks in retail sectors and bought shares in DuPont de Nemours Inc., which is a top provider of protective gear for hospitals.
The Atlanta Journal-Constitution reported that Loeffler’s $206,774 purchase in DuPont stock came in the last six weeks. During that time, Loeffler also sold shares in T.J. Maxx and Lululemon.
The Journal pointed out that the stocks they bought declined in value since their purchase and as a result, as of Monday, the couple actually has a paper loss of $102,000.
Loeffler’s husband, Jeffrey Sprecher, is the CEO of Intercontinental Exchange Inc. and chairman of the New York Stock Exchange. According to her office, the couple has managed significant financial services businesses at “the highest levels of compliance” for nearly two decades.
Loeffler and her husband, upon her Senate appointment, hired separate legal counsel to advise on and establish compliance with Senate Ethics rules. The couple relies on third-party investment managers to plan their investment strategy and implement trades, and they are notified of securities transactions after they occur, according to her office.
Loeffler's office also said that the trades in question are a very small portion of the senator's wealth.
The Daily Beast reported last month that the couple sold stock on Jan. 24, the same day she sat in on a closed-door coronavirus briefing as a member of the Senate Health Committee with the Trump administration and with Dr. Anthony Fauci in attendance.
Loeffler last month defended the sales.
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“If you actually look at the personal transaction reports that were filed, it notices at the bottom that I’m only informed of my transactions after they occur—several weeks,” Loeffler said at the time. “So, certainly, those transactions—at least on my behalf—were a mix of buys and sells. Very routine for my portfolio.”
Loeffler is not the only senator whose financial transactions have come under the microscope.
The Justice Department is reportedly investigating the series of stock transactions made by Senate Intelligence Committee Chairman Richard Burr, R-N.C.
The investigation, according to the report, is still in its early stages and is being done in coordination with the Securities and Exchange Commission. The FBI has reportedly reached out to Burr for information.
Both the Justice Department and the SEC declined to confirm the existence of the reported probe on Monday.
Burr’s attorney told Fox News this week that the senator will cooperate with any “inquiry” or ethics review necessary, while maintaining that any review “will establish that his actions were appropriate.”
Sens. Dianne Feinstein, D-Calif., and James Inhofe, R-Okla., also have been criticized for their pre-coronavirus stock sales.
Meanwhile, Loeffler is in a heated primary battle with Rep. Doug Collins, R-Ga., who has slammed the Georgia senator for her alleged “profiting” off the coronavirus crisis.
On Wednesday, a spokesman from Collins’ Senate campaign again blasted Loeffler.
“She’s not a public servant; she’s a pandemic profiteer,” spokesman Dan Mclagen told Fox News. “We will know that every dollar she spends on TV ads was stolen from terrified families and shuttered businesses. We won’t ever forget that.”
Mclagen added: “Nobody believes her excuses. We’re not stupid.”
Collins announced his Senate bid for Loeffler’s seat in January and faced a stunning rebuke from the party establishment, including the National Republican Senatorial Committee, which slammed him for what they called an ill-advised and self-centered bid for higher office.
The party infrastructure has largely rallied to Loeffler's side, concerned that Collins' bid could complicate Republicans' chances given the state's unique "jungle primary" system, where candidates from all parties compete on the same ballot.
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