Wynton Hall
Big Government
11/13/2011
Former Speaker of the House–and current Minority Leader–Nancy Pelosi apparently bought $1 million to $5 million of Visa stock in one of the most sought-after and profitable initial public offerings (IPO) in American history, thwarted serious credit card reform for two years, and then watched her investment skyrocket 203%.
The revelation appears in Throw Them All Out, the new book by investigative journalist and Breitbart editor Peter Schweizer, which was the focus of 60 Minutes on CBS this evening, and which is featured in this week’s issue of Newsweek.
Schweizer’s investigation of Pelosi and other members of Congress–from both parties–raises a critical question: should it be legal for lawmakers to buy stocks in companies directly affected by their legislative efforts?
In early 2008, Nancy Pelosi and her real estate developer husband, Paul, were given an opportunity to buy into a Visa IPO. It was a nearly impossible feat–one that average citizens almost certainly could never achieve. The vast majority of purchase opportunities went to institutional investors, large mutual funds, or pension funds.
Despite Pelosi’s consistent railing against credit card companies, on March 18, 2008, the Pelosis bought between $1 million and $5 million (politicians do not have to report the exact amounts, only ranges) worth of Visa stock at the IPO price of $44 per share. Two days later, the stock price rocketed to $65 per share, yielding a 50% profit. The Pelosis then bought Visa twice more. By their third purchase on June 4, 2008, Visa was worth $85 per share. How did Nancy Pelosi snag one of the most coveted initial public offerings in history? The facts are still emerging…
The article continues, with video, at Big Government.
H/T The Astute Bloggers.
Related: Pelosi’s investments questioned in CBS report
Disgraced ex-lobbyist Jack Abramoff said yesterday that more than a dozen members of Congress and their aides have been involved in insider trading.
“I think it was pretty widely known and it is pretty widely known that it is going on,” Abramoff, convicted in 2006 of mail fraud and conspiracy, told CNBC. He declined to name any who took part in such activities…
