Speaker of the House Nancy Pelosi was questioned by a reporter if her husband Paul had ever purchased or sold stocks using information she had obtained. She said, “No, definitely not.”
Following one of her husband’s most recent stock acquisitions, Speaker of the House Nancy Pelosi found herself at the center of a controversy, but his stock transactions have been in the news and under scrutiny for quite some time.
Paul Pelosi, the owner of a San Francisco investment and consulting firm, purchased more than $1 million in computer chip maker Nvidia just weeks before a congressional decision that would give the sector significant subsidies, which is what caused Pelosi’s most recent trouble.
When questioned by Fox News Digital on July 21, Pelosi responded that, based on the information she provided him, Paul has never bought stock. The California Democrat was likewise distanced from Paul’s business decisions by her administration.
According to Drew Hammill, Pelosi’s director of communications, “The Speaker does not hold any stocks.” The speaker declares that they have no prior knowledge of or involvement in any transactions.
Nancy Pelosi came under fire for her husband Paul’s most recent stock acquisition. (Getty Images/Chip Somodevilla/Getty Images)
Although Pelosi, one of the wealthiest members of Congress, has previously made headlines for her husband’s stock trading, this wasn’t the first time.
Paul made money off of big tech in the summer of 2021, just before the House Judiciary Committee voted to limit the “unregulated influence” of firms like Google and Amazon, according to Fortune. The action, however, wasn’t seen as posing a threat to the businesses, and the stock prices of the tech firms kept rising.
A week prior to the vote, Paul bought 4,000 shares of Alphabet, the parent company of Google, by exercising call options. He was able to purchase Alphabet shares at $1,200 a share as they ended that day at just over $2,500 thanks to call options, which give investors the right to purchase shares of a firm at a specific price, according to Fortune. Paul’s return on the investment at the time was $5.3 million.
The speaker’s husband, Paul Pelosi, has come under public scrutiny for recent stock acquisitions. ((Image: Tom Williams/CQ-Roll Call, Inc. via Getty Images)/Getty Images))
Paul purchased millions of dollars’ worth of Microsoft stock just days before the business revealed a lucrative government deal a few months before to the Alphabet acquisition.
On March 19, according to Fox Business, Paul bought 15,000 shares of Microsoft for $1.95 million by exercising call options with a $130 strike price. Paul bought 10,000 shares for $1.4 million on the same day, each worth $140.
Just twelve days after Paul made his purchase, Microsoft announced a $22 billion federal deal to provide augmented reality headsets to U.S. Army combat forces. In the weeks that followed the announcement, the company’s share price rose from around $230 to about $255, or over 11%.
Paul also acquired between $500,000 and $1 million in Tesla investments in December 2020, or around a month before President Biden declared the federal government will switch its fleet to electric vehicles, months before the Microsoft acquisition.
In late January 2021, according to the Washington Post, Biden, who was open about switching to electric cars, “ordered government officials to design a strategy for converting all federal, state, local, and tribal fleets, including 225,000 Postal Service vehicles, to “clean and zero-emission vehicles.”
More than $170 billion was later allocated available for electric vehicle subsidies in Biden’s infrastructure proposal.
On “The Evening Edit,” Florida representative Kat Cammack analyzes Nancy Pelosi’s husband’s stock purchase of computer chips.
According to Caitlin Sutherland, executive director of Americans for Public Trust, “The Pelosi family’s record of appearing to leverage her Speakership for their own personal financial profit continues to raise red flags.”
Sutherland continued, “And Mr. Pelosi’s newest stock acquisition in a company slated to get a significant subsidy from Congress is no different. The Speaker’s gavel has been transformed into a massive golden parachute, making it appear as though they have abandoned all prudence.
While wives of lawmakers may engage in business with organizations or sectors that their partners may help to regulate, it is unlawful for family members and members of Congress to gain money off of inside information.
In contrast, a recent Unusual Whales research found that Congressmen routinely outperformed the market.
According to the data, parliamentarians traded $290 million worth of stocks and other assets last year, outperforming the market on average, according to Reuters.
Adam Sabes and Megan Henney from FOX Business provided reporting.