Facing criticism, senator details stock sales
ATLANTA — U.S. Sen. Kelly Loeffler’s most recent financial disclosures show that millions of dollars in stocks were sold on her behalf at the same time Congress was dealing with the effects of the coronavirus outbreak.
The largest transactions involve $18.7 million in sales of Intercontinental Exchange stock in three separate deals dated Feb. 26 and March 11. Loeffler is a former executive with Intercontinental Exchange, and her husband, Jeff Sprecher, is the CEO of the company, which owns the New York Stock Exchange among other financial marketplaces.
During the same time period reflected on reports filed late Tuesday, the couple also sold shares in retail stores such as Lululemon and T.J. Maxx and invested in a company that makes covid-19 protective garments.
The Atlanta Journal-Constitution got the first look at these disclosures, covering mid-February through mid and shedding new light on Loeffler’s financial transactions during the pandemic. Previous reports — which have put Loeffler in the national spotlight — covered her trading during
the first six weeks of 2020. Loeffler provided the numbers to The Atlanta Journal-Constitution, and they were more exact than what would appear on a federal campaign finance disclosure.
The newer stock sales came as the broader markets were diving. The STOCK Act, a law that went into effect in 2012, makes it illegal for senators to use inside information for financial gain.
Loeffler and her staff have said she did nothing wrong. Her active portfolio reflects a woman of immense wealth who is confident in the market but also committed to following the rules, a spokeswoman said.
“Sen. Loeffler came to Washington on a promise to be a different kind of elected official,” Kerry Rom said. “She holds herself to high standards of ethics and transparency, including acting in accordance with both the letter and spirit of the law, which she has done at every step of her time in the Senate and in her lengthy career in financial services.”
Loeffler’s campaign said an investment firm manages the stocks she and her husband own and that neither of them has control over the day-today decisions to buy or sell fractions of their fortune.
It’s a defense that Loeffler’s team has made for nearly two weeks as government watchdogs and political opponents criticize her investments. There have been calls for investigations and her resignation.
The U.S. Department of Justice, in conjunction with the Securities and Exchange Commission, is looking into stock transactions by lawmakers, CNN has reported.
Spokespeople for the Justice Department and the SEC both declined to comment.
Investigations by the SEC are usually conducted in secret and not made public unless someone is accused of wrongdoing.
According to CNN, investigators have reached out to Sen. Richard Burr of North Carolina, who along with Loeffler has faced widespread criticism about stock trading. Transactions made by Sens. David Perdue of Georgia, Dianne Feinstein of California and Jim Inhofe of Oklahoma were also criticized, but to a lesser extent.
Loeffler’s campaign said the Intercontinental Exchange stock sales were prearranged and were part of her and her husband’s compensation package. Records provided by the campaign show Loeffler and her husband exercised their employee options to buy Intercontinental Exchange stock at a discounted rate, then sold much of it within a few weeks.
The campaign said the sales were to pay taxes, cover transaction costs and produce “liquidity.”
In Tuesday’s transaction report, the couple also sold $845,557 in stock from 13 companies and purchased $590,557 in stock from six companies.
Sprecher bought $206,774 in chemical giant DuPont de Nemours in four transactions in late February and early March. DuPont has performed poorly on Wall Street lately, but the company is a major supplier of needed personal protective gear as the global pandemic strains hospitals and first responders.
At the same time, the couple dumped $70,958 in stock from retail clothier Ross Stores and had a similar sale of $27,580 in stock from the TJX Cos., the parent corporation for T.J. Maxx and Marshalls.
The sales are consistent with Loeffler’s earlier disclosures.
Not every transaction tracks with the pandemic. In their most recent disclosure, the couple sold $111,486 in Facebook stock, which some investors might consider something to buy or hold since millions of Americans are stuck at home and on their social networks.