Florida Democrat sold up to $15,000 of First Republic stock and then bought JPMorgan Chase stock
A Democrat congressman sold shares in First Republic Bank as the price plummeted – then bought shares in JPMorgan before it took over the doomed institution.
The news comes on the same day that a bipartisan bill was introduced by leftist “squad” member Alexandria Ocasio-Cortez and Trump supporter Matt Gaetz to ban stock trading by members of Congress.
Florida legislator Lois Frankel sold her First Republic shares on March 16 as the value plummeted.
She then bought stock in JPMorgan on March 22, weeks before it acquired First Republic.
The transactions are revealed in financial disclosures stating that the value of the stock was between $1,001 and $15,000 in both cases. The revelations have brought lawmakers under scrutiny again for their trade.
Florida Congresswoman Lois Frankel sold her First Republic shares on March 16 as the stock price plummeted, then bought shares in JPMorgan on March 22, weeks before it acquired First Republic
First Republic was acquired by federal authorities on Monday and its assets were sold to JP Morgan Chase
Frankel said her “account is independently managed by an asset manager who buys and sells stocks as it sees fit.”
Pennsylvania moderate Republican Brian Fitzpatrick, co-chair of the Problem Solvers’ Caucus, along with Florida Republican Matt Gaetz, Alexandria Ocasio-Cortez, DN.Y., and Raja Krishnamoorthi, D-Calif., introduced the Restoring Faith in Government Act on Tuesday to prohibit financial investments by members of Congress, spouses and dependents.
“The fact that members of the Progressive Caucus, the Freedom Caucus and the Bipartisan Problem Solvers Caucus, which represent the entire political spectrum, can reach agreement on important issues like these should send a strong message to America,” Fitzpatrick said in a statement. statement on the bill.
Ocasio-Cortez added, “If members have access to classified information, we shouldn’t trade on it in the stock market. It’s that simple.’
Gaetz and Ocasio-Cortez have often sparred over the years, with the progressive firefighter calling the Florida Republican a “bad haircut in a cheap suit” when Gaetz said Rep. Jamie Raskin may not be able to perform his job due to the grief of losing his son. to suicide.
“Members of Congress spend their time trading futures rather than securing the futures of our fellow Americans. We cannot allow the swamp to prioritize investing in stocks over investing in our country,” Gaetz said of the new bill.
Public momentum for a stock trading ban came to a head last congress after ex-speaker Nancy Pelosi’s husband made a number of questionable high-value trades.
A stock trading ban has drawn bipartisan support — and silent opposition — from both parties in both chambers.
“If members have access to classified information, we shouldn’t be trading it on the stock exchange. It really is that simple,” Alexandria Ocasio-Cortez said Tuesday at the introduction of the Restore Faith in Government Act
“Members of Congress spend their time trading futures rather than securing the futures of our fellow Americans. We cannot allow the swamp to prioritize investing in stocks over investing in our country,” Gaetz said of the new bill.
“The dirty secret here is members of Congress hate this, they hate this bill,” Sen. Josh Hawley, R-Mo., who introduced another ban earlier this year, told DailyMail.com.
Monday’s collapse of First Republic sent a shock wave through the financial sector, despite the quick sell-off.
The bank was taken over by federal authorities before selling its assets to JP Morgan Chase.
Jamie Dimon, CEO of JP Morgan Chase, stated, “This part of the crisis is over.”
Frankel sold her share when it was worth $34.27 per share. At the time, the price was already battered after the closure of Silicon Valley Bank.
But after the sale, the stock fell further and by the time the bank closed, the shares were worth just $3.51.
The congressman bought shares of JPMorgan on March 22. Since then, the bank’s shares have risen about 10 percent to $136.91 apiece.
After the First Republic crash — the third bank failure in the past two months — pundits and consumers alike wondered if it marked the end of the turmoil — as Dimon said — or the start of a deepening crisis.
Despite JPMorgan Chase buying out the bank, shares of several regional lenders fell early in the week, sparking fears that more banking pain could be to come.
While experts have urged calm and say consumers shouldn’t worry that we’re headed for a similar crisis in 2008, there are suggestions that greater instability could lead to even more heartache for medium-sized companies.
Late last month, credit rating agency Moody’s downgraded 11 regional banks, including Zions Bank, Western Alliance Bank and Bank of Hawaii. The company specifically cited fears for commercial real estate portfolios, with medium-sized banks bearing the brunt of high interest rates and market stress.
Shares in regional banks fell after the fall of First Republic Bank on May 1
Credit rating agency Moody’s downgraded eleven regional banks in April, including the now-collapsed First Republic Bank
A deal was announced on Monday that will allow for an orderly failure of First Republic, following the announcement that JPMorgan Chase has bought the bank.
While financial markets were calmer as the bank headed for bankruptcy, savers fled regional lenders on Monday for fear of more banks.
The KBW Regional Banking Index, an index of smaller regional lenders in the US, lost 2.7 percent to hit a session low.
Shares of Citizens Financial Group, PNC Financial Services Group, Truist Financial Corp and US Bancorp fell between 3 and 7 percent.
Valley National Bancorp, which owns Valley National Bank, lost more than 20 percent.