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Sen. Elizabeth Warren is demanding an investigation into whether Wall Street investors violated trading laws by acting on private COVID-19 concerns from the White House in late February.
The New York Times reported Wednesday that top US officials told the board of the Hoover Institution in February that they were concerned about the impact of the coronavirus pandemic, despite painting a rosy picture in public.
The concerns were detailed in a memo that spread through the hedge-fund industry, causing a reaction among investors, the paper said. One told The Times that their reaction was to “short everything.”
Warren said the incident “appears to be a textbook case of insider trading,” in a letter to the Securities and Exchange Commission and Commodity Futures Trading Commission first seen by CNN.
The Massachusetts Democrat urged the Commissions to review the private information provided to investors and the trading that happened afterwards.
Warren also wants the financial regulators to find out which US officials provided the information to investors, who received the information, and how the information differed from the public comments made by the Trump administration.
“If this report is accurate, it represents an appalling abdication of duty by President Trump and …read more
Source:: Businessinsider – Politics