Tuesday, August 14, 2012

Paul Ryan Insider Trading Thief

He babbles about Ayn Rand, but when it comes to his actions, Paul Ryan is a thief right out of the John Maynard Keynes school of using government for insider profit gains.

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)


  1. Dirty, Dirty, Dirty...

    Looks like 4 more years of U No Hoo...

    Plan accordingly.

  2. Like MasterCard, this info is "PriceLess."

    If Rand could only sue.

  3. Please read this article:

    It seems as if all of it may have been simply coincidence as the trades in question occurred prior to the meeting that happened after the markets closed.

    1. Anyone with an ounce of integrity, would have sold all stocks the moment elected.

      But paraphrasing Rand: to trade "integrity," in Washington, D.C., one goes short.

  4. You know, you could become a "broker to the pols"-charge them no commisssion and personally trade off their trades and become wealthy very quickly.

    I wonder if the SEC would consider that "insider trading"?

  5. Oh yeah right, like he didn't get briefed before the meeting. Yes, it was all coincidence. He sells a ton of banks stocks that day that continue to dive and buys into the one Buffett buys into. All just congressional coincidence.

  6. Who was in Obama's top 10 primary donors? Goldman was one and several universities. What happened after inauguration? $$$$ allocated to student loans. Who benefits from that? Universities have almost unlimited funds to raise tuition, teach 1 or two classes, take sabbaticals, build, etc. while students become indentured servants to their loans. Violating the 13th amendment against an indentured servant (working off loan generally for transportation to the US) as no bankruptcy relief for student loans.
    Nothing surprises me.

  7. Because of this issue and given Ryan's record of supporting bailouts etc., and given what a flip-flopper Willard is, I wouldn't be surprised if he eventually dumps Ryan and replaces him with the one that I had long predicted: Rick Sanitorium.

  8. If you or I bought shares based on attending a government meeting we would end up in jail. Why is Ryan not facing charges of insider trading? This is sick.....

  9. It was legal then. It is not now.

  10. It's only been a few days and the dirt on this guy is piling as high as the Empire State Building. It is the perfect comedy for a libertarian (well, a real one).

  11. For one thing, its legal. Just like its "legal" for fed to print, "legal" for wall.st banks to robosign & peddle losing investments, "legal" to use loopholes & not pay taxes, etc.etc.etc.etc.

    Ayn Rand would approve of this. Its just objective, to "do the best" for you, as much as you can, under the "rules of the game" (either it be "nature" or the mudane real world).

    This all does not matter. Look, the choice for upcoming election is real simple. Do you want big .gov or (relatively) small .gov ??? NO, you dont have other choices.

    Pick one, accordingly.

    1. "This all does not matter. Look, the choice for upcoming election is real simple. Do you want big .gov or (relatively) small .gov ???"

      Is there a choice I'm not aware of where we could get small gov.? Are you thinking hell will freeze over and Gary Johnson will get elected?

      You certainly aren't referring to the flip flop twins are you?

  12. "How did you come to libertarianism?"

    "Well, you see, I was following Michelle Bachmann's political career and I heard she read Mises at the beach, so I gave that a try. I wasn't fully convinced and then her career hit the skids so I latched on to this Paul Ryan guy, a real slick number. He joined Romney's campaign and said he was influenced by someone named 'Ayn Rand', so I checked one of her books out at the local library and I was hooked. Been a free market anarchist ever since!"

    You decide which is the most absurd portion of that fantasy anecdote. My vote goes with finding Ayn Rand in the public library.

  13. "Insider Trading Thief"????? The correct Libertarian position is to eliminate insider trading laws, at least according to Walter Block and Rothbard.

  14. You need to read Wenzel on regular insider trading versus government agents who trade on information and the force laws that benefit their position.

    Two totally different worlds.

  15. There is no law that states that Congress may not use confidential information in trading. Further, there is (or was) no law preventing them from sharing that information with their brokers. I watched the dateline special about the immunity that is afforded Congressmen and Congresswoman. Sickening. They, like some of the ultra-wealthy who they protect, should pay the same penalties for insider trading that the rest of people like Martha Stewart had have had to suffer... But that won't happen. Fat Cats love that perk. And since Romney wants to remove the capital gains tax, that will make it even better for investors to capitalize on their investments while the rest of the middle class gets screwed...