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Saturday, June 13, 2009

Dick Durbin's Timely Trades

The Chicago Sun Times has a story today that raises some serious questions about how Senator Dick Durbin used information he learned during the course of his Senatorial duties.

As U.S. stock markets plummeted last September, the Senate's No. 2 Democrat, Dick Durbin, sold more than $115,000 worth of stocks and mutual-fund shares and used much of the money to invest in Warren Buffett's Berkshire Hathaway Inc.

The Illinois senator's 2008 financial disclosure statement shows he sold mutual-fund shares worth $42,696 on Sept. 19, the day after then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke urged congressional leaders in a closed meeting to craft legislation to help financially troubled banks. The same day, he bought $43,562 worth of Berkshire Hathaway's Class B stock, the disclosure shows.


The article goes onto point out that within days the S&P, along with most of the market, began to tank. Durbin got out just before and got himself back in at the beginning of October. Durbin's spokesperson claims that Durbin was merely acting in a prudent manner. The timing is awfully suspicious however.

If you're keeping score, Durbin now joins Charlie Rangel as a Democrat embroiled in a financial scandal. He also joins John Murtha and Nancy Pelosi as Democratic leaders embroiled in scandal. We'll see if the MSM notices that the party that claimed they would "drain the swamp" of corruption has most of its leadership knee deep in it.

8 comments:

billypaintbrush said...

Martha Stewart was unavailable for comment

Grace Nearing said...

Here's the problem with the Sun-Times story: It does an excellent job of implying that something illegal or unethical was done, but it doesn't provide any evidence that Durbin did anything bad. If anything, the article provides evidence that Durbin did nothing wrong!

Durbin's spokesman states that Durbin made his stock and mutual fund sales after Paulson publicly revealed what had been discussed in the closed-door meeting the day before. And the Sun-Times, referring to Durbin's financial records, concurs.

It is not insider trader to buy or sell stocks or mutual funds based on public information.

So what exactly is the story here?Clearly, the Sun-Times has access to Durbin's financial records. These records identify by name the stocks and mutual funds that were sold and indicate the exact date they were sold (this is necessary for determining capital gains and losses). This information would unequivocally resolve the matter.

Curiously, the Sun-Times pretends that it doesn't have this information, even though it tells us exactly what day Durbin sold the stocks and mutual funds. I can only conclude that the Sun-Times has terrible writers, terrible editors, and/or a political agenda.

Anonymous said...

Insider trading to the highest degree.

TOM said...

GOOD "OL" BOY NETWOK! OF COURSE HE DIDN'T CAPITALIZE ON AMERICAS' MISFORTUNE BROUGHT ABOUT BY THE PRIVATELY OWNED "FEDERAL" RESERVE! KEEP UP THE GOOD WORK ILLINOIS WE NEED MORE SELF SERVING CONGRESSMEN LIKE DICKY!

Anonymous said...

Maybe you should look at the wife of his staff person, Pat: Amy Ford Souders and see the earmarks she gets through her hubby in Durbin's office -- and then ask yourself if Durbin's outrage over ethical issues with Rod and Burris, etc. isn't a bit of the pot calling the kettle black.

Bill Baar said...

Why waste a crisis by not cashing in?

It may not have been illegal or agianst anyone's rules, but it was politically stupid if financially smart.

Anonymous said...

I sincerely hope the FBI nails this arrogant dolt to the proverbial wall and then he lands in jail for a few years as Bubba's cell mate!

Larry said...

Typical - Typical
Slim Ball from Illinois

Are there any thinking voters
in this state? Or are they
all followers 'n believers
of the Durbin's and other
unethical politicians that come
from Illinois?