Ryan sold stock in US banks on the same day he attended a confidential meeting where top level officials disclosed the sector was heading for a deep crisis. He sold stock in troubled banks including Wachovia and Citigroup.
Not long after the meeting, Wachovia's already troubled share price went into free fall. It plunged 39% on the afternoon of September 26..
Citigroup's share price also fell soon after the meeting. Most interesting, though, while selling other bank stocks Ryan bought shares that day in Goldman Sachs.
September 18, 2008 was a Thursday. On the following Tuesday, Warren Buffett announced that the company he controls, Berkshire Hathaway, was making a $5 billion investment in Goldman Sachs. The stock soared after the news. Buffett's plan to buy Goldman stock was likely discussed at the meeting on the 18th that Ryan attended.
Senator Dick Durbin, who also attended the meeting, made some unusual trades of his own at that time. On the 19th. he sold his mutual funds and bought stock in Buffett's Berkshire Hathaway
In 2009, I wrote:
Goldman stock climbed by more than 40% from its low on the 18th to its closing price on the 19th. It would be interesting to know who was buying that stock, given that just 4 days later Buffett was going to plow billions into the company.Now, we know who one of the buyers was: Paul Ryan.
On October 3, 2008, Ryan voted for the bailout, which resulted in even more money being pumped into Goldman.
Goldman Sachs is now among his largest financial supporters, according to the Center for Responsive Politics.
(ht Travis Holte)