SEC warns on coronavirus insider trading after stock sales by NYSE chair, his wife Sen. Loeffler, 3 other senators

SEC warns on coronavirus insider trading after stock sales by NYSE chair, his wife Sen. Loeffler, 3 other senators
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  • The Securities and Exchange Commission issued a sharp warning against trading on nonpublic information related to the coronavirus.
  • The caution came days after news of recent stock sales by the CEO of the owner of the New York Stock Exchange, Jeff Sprecher, and his wife, Sen. Kelly Loeffler, R-Ga., sparked widespread criticism and calls for investigations.
  • In addition to Loeffler’s move, recently disclosed stock sales by three other senators, Richard Burr (R-NC), James Inhoffe (R-OK) and Diane Feinstein (D-CA) have come under scrutiny because they occurred after the coronavirus briefing.
  • Those trades came in the weeks before stock market indexes dramatically fell in value due to the coronavirus pandemic, and on the heels of a private, all-senators briefing on the virus outbreak from Trump administration officials that Loeffler attended on Jan. 24.

The Securities and Exchange Commission on Monday issued a sharp warning against trading on nonpublic information related to the coronavirus — a caution that came days after news of recent stock sales by the CEO of the owner of the New York Stock Exchange and his senator wife sparked widespread criticism and calls for investigations.

The statement from the SEC’s co-directors of enforcement about “market integrity” did not refer to those trades by NYSE Chairman Jeff Sprecher and Sen. Kelly Loeffler, R-Ga., or trades by three other senators in the past two months.

Sprecher and Loeffler’s trades, involving sales of up to $3 million worth of securities, came in the weeks before stock market indexes dramatically fell in value due to the coronavirus pandemic, and on the heels of a private, all-senators briefing on the virus outbreak from Trump administration health officials that Loeffler attended on Jan. 24.

In addition to Loeffler’s move, recently disclosed stock sales by three other senators, Richard Burr (R-NC), James Inhoffe (R-OK) and Diane Feinstein (D-CA) have come under scrutiny and criticism because they occurred after that coronavirus briefing.

Source: CNBC

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