(RightWing.org) – House Speaker Nancy Pelosi (D-CA) is one of the wealthiest members of the House of Representatives. The Speaker is a 34-year member of Congress, and her estimated net worth is well in excess of $100 million. On a Congresswoman’s salary over that time, it’s impossible to gain that much wealth through her salary alone.
It’s well-chronicled that before 2010, members of Congress could buy and sell stock based on their insider knowledge of legislation and its potential impact on a business. No one was more legally corrupt or better at it than Pelosi and her husband. In 2008, Congress passed the “Pelosi Provision” to end the practice of lawmakers benefiting from their insider knowledge. Stunningly, Pelosi’s husband, Paul Pelosi, continues to buy and sell stock ahead of proposed legislation.
Is It Just a Coincidence?
In a new disclosure statement released by the Speaker, her husband bought an incredible amount of tech stock ahead of a potential anti-trust legislation bill championed by the Speaker. On May 21, Paul Pelosi exercised $250,000 on 50 Apple call options. He purchased more call options on Amazon and Google as well.
What is a call option, and why is it important?
A call option is what it sounds like. It’s a financial contract that gives an option buyer of a stock the right, but not an obligation, to buy within a specified time at a specific price. Think of it as a form of protection that could protect a stock buyer from losses if a stock tanks. A call buyer profits from the call option when the stock increases in price.
So, how does this apply to Mr. Pelosi? He bought a call option betting that Apple, Amazon, and Google stock would rise and he would make a profit while legislation makes its way through Congress. However, if the stocks drop, he isn’t obligated to purchase them and therefore won’t lose money.
The question here is, did Paul Pelosi buy the stock based on his wife’s knowledge of future legislation, or was it just a coincidence?
Likely Not Illegal, But It Doesn’t Look Good
Paul Pelosi has a long and storied history of buying stocks ahead of legislation and profiting off of them after legislation passes. Since the Speaker isn’t buying the stock herself, she isn’t under any investigative scrutiny. Perhaps she should be. Everyone knows that property owned by one spouse is the joint property of the other.
Are we supposed to believe that Paul Pelosi doesn’t talk with his wife or know her well enough to understand her signals about potential legislation? It may not be illegal what he’s doing, but maybe it should be. It certainly looks like an insider means to acquire wealth in a way the public could never do simply because of a lack of having relationships with powerful and influential individuals.
Will the bad press hurt the power couple?
It never did before. So, why would it now?
It’s a shame we need to be so cynical, but what choice do we have when it’s clear the powerful can make the rules in their favor?
Don Purdum, Independent Political Analyst
Copyright 2021, RightWing.org