House Speaker Nancy Pelosi (D-CA), whose husband Paul Pelosi is a prolific and unusually profitable stock trader, has been accused by some of engaging in alleged insider trading, given that some of her husband’s trades of certain stocks appear to coincide with legislation that could impact the value of those holdings.
Paul Pelosi just suffered a substantial financial setback on the recent sale of Nvidia stocks, as he appeared to have lost more than $340,000 on an estimated $4.1 million transaction, the Washington Examiner reported.
The Pelosis had come under sharp criticism over the Nvidia stocks that had been purchased in June due to the fact that Congress is currently working on a bill that would provide grant funding and subsidies to U.S.-based semiconductor chip manufacturers like Nvidia.
Shares sold just prior to big jump in value
According to a required periodic transaction report filed by Speaker Pelosi on July 14, it was disclosed that her husband had exercised call options on June 17 for 20,000 shares of Nvidia, valued between $1 million to $5 million, just prior to those options expiring.
Accusations and backlash quickly ensued, given the pending legislation that would likely bolster Nvidia’s value, and Pelosi strenuously insisted that no wrongdoing had occurred with respect to that or any other questionably timed stock purchases.
In fact, just last week, when Pelosi was asked if her husband “ever made a stock purchase or sale based on information received from you,” the House Speaker scoffed and simply said, “No. Absolutely not,” before pushing down the microphone and walking away from the podium at her weekly press conference.
However, just one day prior to the Senate’s passage of the so-called CHIPS Act, the Speaker filed another disclosure form — this one on the same day as the transaction itself — which revealed that her husband had sold 25,000 shares of Nvidia at a price of $165.05 per share for a loss of $341,365.
According to Forbes, the sale of Nvidia stock by Paul Pelosi on Tuesday meant that he missed a potentially lucrative payout if he had held on to the stocks, as Nvidia’s value surged 7.8 percent on Wednesday to close at a per-share price of $177.90.
With regard to the financial loss suffered by the early sale of the shares as well as the controversy over the initial purchase last month, Speaker Pelosi’s deputy chief of staff Drew Hammill told Forbes, “Mr. Pelosi decided to sell the shares at a loss rather than allow the misinformation in the press regarding this trade to continue.”
If, however, there had been nothing untoward about that stock purchase, as Pelosi has insisted, then it makes little sense for her husband to voluntarily take a loss merely to avoid continued criticism and scrutiny, especially when one considers the constant critiques and scrutinizing of countless other dubiously coincidental and often quite profitable transactions Paul Pelosi typically makes.
It would appear, rather, that the Pelosis acted with awfully convenient timing to potentially dodge something more than just continued “misinformation” in the media about Pelosi’s stock holdings.
There is an effort underway by some in Congress to ban members and their spouses from trading individual stocks that has increasingly gained traction, and that effort is substantially bolstered by instances like this one.