Book: Rahm Emanuel Dumped Tons of Freddie Mac Stock Days Before It Collapsed
Nov. 14, 2011
[edited for grammar]
Rahm Emanuel is the latest lawmaker to get caught up in allegations of insider trading while a member of Congress.
Then-Rep. Emanuel reportedly sold up to $250,000 in Freddie Mac stock on February 21, 2003 –
days before it dropped by 10 percent, and weeks before it was publicly revealed that the entity was under criminal investigation for inflating earnings. The allegations are revealed in Peter Schweizer's new book Throw Them All Out. ["Politicians often come into office with relatively modest assets. As investors, they regularly beat the market and sometimes beat the most rapacious hedge funds. Even without making stock trades, they often retire rich. How do they do it? Billionaires and hedge fund managers often make well-timed investment decisions that anticipate events in Washington. How do they do it?"]
Emanuel served on the board of the Government-backed lender before his election to Congress in 2003, and later held a seat on the House Financial Services Committee's Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises – the very committee charged with regulating Freddie Mac.
[Abel Danger note: On 9/11, Warren Buffett was with executives of Goldman Sachs at Offutt Air Force Base, hosting a "charity golf match." In a promotional interview, Schweizer explained that an entire book chapter exposes Warren Buffett. Supposedly, Warren Buffet is involved in insider trading. This chapter in Peter Schweizer's book discusses how Buffett's Berkshire Hathaway got the sweetheart deal to invest in Goldman Sachs in the midst of the 2008 financial crisis. One member of Congress allegedly purchased Berkshire stock the day before the deal was even announced.]
While by no means illegal, lawmakers are exempted from the insider trading laws they impose on private traders. But the timing of the trades is certainly suspect, especially given Emanuel's service on the board during the time period when the federal government was investigating the actions of Freddie Mac executives.
Emanuel's office did not return a request for comment on the allegations.
Crony Capitalism: Throw Them All
Out - Peter Schweizer
Top Senate Democrat: bankers "own" the U.S. Congress
Pritzker's Hyatt House Hotel (The Purple Hotel, Lincolnwood, Illinois) - Men-Only Drug and Sex Parties Attended by Rezko, Levine, Obama - Synonymous With Sleaze - 1983 Execution-Style Murder of Teamsters Pension Fund Mobster Allen Dorfman - Stan Greenberg, Rosa DeLauro, and Rahm Emanuel's D.C. "Play Condo" - Swim at Your Own Risk