Tip:
Highlight text to annotate it
X
joining me is lynn paramore contributing editor at alternet when we've been
talking up for a week about these uh... insider trades is they're kind of being
colloquial e and may be legally called that appalled ryan may allah may have
uh... participated and this all started related to a meeting in september of two
thousand eight where he met with then treasury secretary hank paulson ben
bernanke he was there
and there's some question as to the timing of certain cell uh... sell-off of
bank stocks that he did relative to this meeting where he was warned about
for lack of a better term
the impending doom of us some of the big banks
now we've seen conservatives quickly come back with kind of too
arguments number one that this was legal at the time because the stock ac had not
been passed if it was so-called insider trading and number two
that because of the time that the meeting took place and the time that the
markets are open
that it's not even really possible for him to have executed the trades he's
accused of having done let's start at the beginning give us the facts as we
know them
well the fact that we know them harm that
home ryan was required as a member of congress seriously and disclosure
uh... forming in two thousand nine
stating uh... giving information on stock trading he'd made during the
previous year
and it turns out that on september eighteenth t_w_ the day you mentioned
he made tractor and trade that looks suspicious he meets rain happened at big
bank dot t_ cells citigroup wachovia j p morgan chase and you purchase coleman
back
now paul ryan had done stray in other months during that year but the
september eighth straight eighteen strains are actually differ from his
usual pattern uh... in instead of that raises suspicion of a blogger over at
the richmond ur blog
military regatta disclosure document and uh... you know raised race in question
so in terms of the timing of the meeting
on september eighteenth into meeting took place after the close of market at
four p_m_ that is true
however
the call for the meeting came n earlier in the afternoon
in people of the by three p m had spoken to see them briefly on the phone
she had been apprised of what the subject of the meeting was going to be
accounts
uh... and they they discussed it and she sends out a call to congressional
leadership
uh... telling in that meeting will take place though
uh... paul ryan had plenty of time to call his
stockbroker or texas broker before the close of market four p_m_
and even if he didn't do that there's office into thing is after-hours trading
there several seasons that allow people to trade after hours that
uh... the idea that he
couldn't get you the information
to make the trade that day
uh... strikes me as ludicrous and also the other thing would be
let's say we believe that
it's it's an incredible coincidence is the coincidence of coincidences that
simply hours before hearing about this information
he did it exactly what any logical person would do once given that
information that exactly right
and we also have to remember that paul ryan republican and the white house
uh... you know with that and a republican administration at the time
then he may well have found out about this i information
well before noon people envy have we can prove that the defense byerly
possible that he did
uh... so that the timing claiming i really doesn't blow up
insurance
and illegality their there is a a lot of confusion on this issue
and it's not surprising
because
you during the time that paul ryan maybe straight on september eighteenth
the legality working with contested that'd tuesday it would really depend on
the giants
to determine whether such actions at that time
would be considered insider trading or not
and activist shru
that members of congress were typically not
prosecuted for such action now that has been come into question since the
financial crisis and as you pointed out a violent crime legislation
in the spring
uh... this year
stating that day
tentatively that kind of action is in absolutely illegal
so the the the legality of the time with a contested issue paul ryan was not
ah...
christina prosecuted for it now nor were other members of congress
but we can certainly say that it is a traveling ethical violation
for a member of the trusted public official to be considering his stock
portfolio on it the day when his country wasn't carol uh... if he does not speak
well to the character of the man and you know we're finding out as i had that the
days go on
you know it home ryan is that no
bt thicket of ryan in romney's improving kind of a private equity take it
we just found out that ryan rother
works forget bain capital at one time uh... you know these are guys who really
do you think about the bottom line for themselves uh... at at the expense that
at least in this case is we can see
and either fellow american sailor it as a vice presidential candidate
this is a serious issue yes
but fascinating to me when that so many of these discussions get into
well it wasn't illegal at the time it just may have been unethical and then
it's like that so many people on the right side
well i think it was an illegal it was only unethical i'm okay with that there
is almost like when you when you create that discussion there's almost like an
implicit acceptance of something that
it may be unethical but by the letter of the law it was legal and therefore
should not be held against him when this is a guy who potentially is is a
heartbeat away from being the president of the united states are you happy with
just following the letter of the law or do you want someone ethical that
conversations out the window
that the maclean writes out hopefully we would want someone who is arguably the
pregnancy
uh... tsetse be above
ethical you know preaches at this time by i i think many people as being that
the ryan romney ticket if you take it pat of brian for the one percent
uh... ryan is not as wealthy as uh... as as romney of course but he added he he
is a man of considerable means his wife inherited and
uh... an up money to make her and millionaire several years ago from
family members uh... that you know that the ryan family values a very very clear
what they value and he gave his brother again is that if the private equity guy
uh... so there's a real question about whether these are the kinds of people
that have been answered that they needed to ordinary americans
that they're on the campaign is trying to paint ball ryan
as a man of the people but
i'm not sure that that's going to stick in the face that uh... you know the fact
that are coming to light at this insider
trading kate make their
and also once a point out
that while the legality of insider trading wave
again contested for members of congress is not really fair to say that it was
completely legal
began began it would have depended on the chats
uh... by it
it was definitely illegal for members of the executive branch there has been this
strange uh... miscarriage of justice whereby one branch of government
is melts he has been
traditionally held steven stricter
uh... he'd say to rule that another and that obama finding that law in the
spring with uh... meant to address that discrepancy members of congress met for
a long time considered it you know sort sort of their own
therein herein right to be able to do this
it was a study became out in two thousand four
several researchers prominent researchers
knots and a half out
members of the senate did in their stock portfolios
from nineteen ninety three nineteen ninety-eight and they found that
that beat the market by twelve percent
on average per year and just to put that in perspective even of corporate insider
like warren office uh... doesn't beat the market by more than five percentage
point the year so that is a really really troubling number and by the way
out yet but the general public during that time period underperformed on their
stock portfolios
by one point four percent there's something had been going on
for a long time
it's outrages
uh... the fact that obama even had to put this into a la
uh... in the spring to make it to be in a billion legal
is is traveling in other felt the owner i_b_m_ and i think this is not something
that was the congress the engaged in it's incredible will keep of the great
work we've been speaking with lynn paramore contributing editor overt
alternet we love alternet we use alternative prep material just about
every day so thanks so much fun
they're going to be here in banking for covering the story about a will take a
break we'll be back with more after this