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David Perdue, the Republican of Georgia facing a second round of the Senate on Tuesday, twice bought a significant number of shares in a U.S. bank shortly after meeting with financial policymakers, raising more questions about his prolific trading in actions during his tenure.
In one case, in May 2015, Perdue bought between $ 15,000 and $ 50,000 in Regions Financial Corporation shares two days after a 10-minute phone call with then-Treasury Secretary Jack Lew.
Perdue bought additional shares of the bank two years later on May 18, 2017, two days after a half-hour meeting with Federal Reserve Chairman Janet Yellen.
It is not clear in either case whether Perdue discussed relevant financial regulation or other market sensitive issues with Lew or Yellen or whether the discussions influenced his decision to buy the stock.
At the time of the call with Lew, members of the Senate Banking Committee, on which Perdue sits, were engaged in close discussions over a possible trade deal.
But buying more shares of the regions in the wake of Perdue’s meeting with Yellen – who will be named Treasury secretary by Joe Biden once the president-elect takes office – may be important, as he is came about two months before Yellen spoke publicly. its support for increasing the $ 50 billion asset threshold for systemically important institutions, a change that meant the Bank of the Regions could see a relaxation of important financial regulations.
As Yellen’s views on the subject publicly evolved in her role as Fed Chairman, Perdue’s stock-building in the regions has also evolved. Perdue separately sought to advance deregulatory legislation that would be beneficial to banks like the regions, which the regions and more than a dozen other banks have publicly endorsed.
Public records show that Perdue sold its entire stake in the regions on October 11, 2019 and October 23, 2019, suggesting that Perdue may have achieved a 21% return on its previous investment. He then bought more shares of the stock in November 2019 and January 2020.
John Burke, director of communications for Perdue, said Perdue does not manage day-to-day decisions about its portfolio, which Perdue says is managed by outside financial advisers.
It is not uncommon for policymakers like Yellen to hold meetings with senators. On the day he met Perdue in 2017, Yellen also met Lord Mervyn King, the former Governor of the Bank of England, had lunch with Treasury Secretary Steve Mnuchin, and then met another senator, the Democrat of the ‘Ohio Sherrod Brown.
Former government insiders say policymakers try to be cautious at such meetings and avoid sharing information that could move markets. At the same time, it can be difficult to avoid sharing potentially valuable information if senators and policymakers discuss any issue in depth, and a senator might be able to assess an evolving political position that might be sensitive. at the market.
The new revelations come as Perdue’s frequent stock trading during his tenure came under increased scrutiny in the press ahead of his second round in the Senate on Tuesday. If the Democrats win two ballots, it will transfer control of the Senate from the Republicans to the Democrats.
Previous media reports have focused on how Perdue came under federal scrutiny for his frequent equity trading during his tenure and whether his position as a senator with access to sensitive market information, in particular particularly during the pandemic, may have influenced certain transactions. The New York Times, citing multiple anonymous sources, said Perdue’s sale of $ 1 million of shares in a financial company called Cardlytics, where he served on the board of directors, had drawn the attention of ministry investigators. Justice last spring, who undertook a broad examination of the Senator’s prolific trade at the start of the coronavirus pandemic for possible evidence of insider trading.
Investigators ultimately concluded that a personal message that was sent to Perdue by the CEO of the company, alluding to “upcoming changes”, was not “non-public information” and declined to press charges. . Perdue sold its shares two days after receiving the CEO’s personal message. About six weeks later, the CEO stepped down and the company revealed that the results were below expectations, causing the stock to drop.
The New York Times separately reported that as a member of the Senate Cyber Security Committee, Perdue and others sought to protect the National Guard from data breaches. The newspaper said that as of 2016, Perdue bought and sold shares in a cybersecurity company called FireEye 61 times. Almost half of those transactions, The New York Times reported, took place while Perdue was on the cybersecurity committee, which could have given her access to sensitive information.
Perdue’s Senate campaign did not respond to the Guardian’s request for comment. He once denied having had a conflict of interest.
But Perdue’s challenger in this week’s senator’s second round, Democrat Jon Ossoff, has repeatedly raised the issue and accused Perdue of using his office to get rich.
Perdue’s spokesman called the criticism “baseless” and said he was “totally exonerated” by federal investigators.
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