Washington (AFP) – A group of US senators on Friday urged the government’s markets watchdog to investigate whether President Donald Trump or his allies broke securities laws ahead of his dramatic reversal on global tariffs. The six senior Democrats noted in a letter to the Securities and Exchange Commission (SEC) that Trump had posted on his website Truth Social early Wednesday that “THIS IS A GREAT TIME TO BUY!!!” as stocks were tanking.
A few hours later, Trump announced a 90-day suspension of additional tariffs against dozens of countries, triggering a historic markets rebound and the best day for the S&P 500 index since the recovery from the 2008 financial crisis. Trump was seen later in the day, in a video circulated by the White House itself, boasting about his already rich associates making a killing on the surge. “We urge the SEC to investigate whether the tariff announcements…enriched administration insiders and friends at the expense of the American public,” the senators told the SEC.
Their letter – spearheaded by Massachusetts progressive Elizabeth Warren – asked the SEC to probe whether “any insiders, including the president’s family, had prior knowledge of the tariff pause that they abused to make stock trades ahead of the president’s announcement.” Trump signed his Truth Social post with the letters “DJT” – both his initials and the stock market abbreviation for his media company, Trump Media & Technology Group. The company’s shares closed up 21.67 percent on Wednesday.
The senators called on the SEC to investigate whether the president, his donors, or other insiders had engaged in market manipulation, insider trading, or other violations of securities laws. White House communications aide Margo Martin posted a video on X Wednesday showing Trump bragging about how much money his billionaire associates had made on the stock market after his reversal.
“This is Charles Schwab,” Trump said, introducing the 87-year-old investor and founder of Charles Schwab Corporation at an Oval Office event for champion motor racing drivers. “He’s not just a company, he’s actually an individual! And he made 2.5 billion today.” Trump then pointed to another attendee whose face was obscured, identified by The Independent newspaper as NASCAR team owner Roger Penske, and said: “And he made 900 million. That’s not bad.”
SEC chairman Paul Atkins has a history with Warren, the top Democrat on the banking committee, who has accused him of having conflicts of interest over his ties to the financial services industry. He is not obliged to do what the senators ask, but four members of the group followed up with a second letter to the National Association of Attorneys General (NAAG) asking for state-level investigations.
“Corruption and lawlessness have become a calling card of the Trump administration,” said Senate Minority Leader Chuck Schumer, who signed both letters. The demand for action came amid concern over the growing number of avenues through which Trump and his family can monetize the power of the presidency, although no evidence of corruption has emerged. Days before his inauguration, Trump released a “memecoin” – a digital cryptocurrency token with no inherent value – opening the door for secret donations from foreign buyers.
“Now anyone in the world can essentially deposit money into the bank account of the President of the USA with a couple clicks,” his former aide Anthony Scaramucci posted on social media after the launch. “Every favor – geopolitical, corporate or personal – is now on sale, right out in the open.” The White House told The Washington Post that Trump’s Truth Social post sought only to “reassure” the public and that he had a responsibility to “reassure markets and Americans about their economic security.”
© 2024 AFP
