Tom Price, Stock Investments, And Some Needed Perspective
Apparently the clutching of pearls has been added as a Festivus holiday activity. The Wall Street Journal published a story last night noting that Congressman Tom Price, now President Elect Trump’s pick for Secretary of Health and Human Services, owned and/or traded $300,000 of stock in medical related companies. The AJC has dutifully followed up referring to this story as a “bombshell” and is openly questioning whether this will derail Price’s nomination.
I’ll take the long road to answering that question. But if you want a spoiler or the TL;DR version, here it is: It won’t.
The simple fact is that the stock transactions were perfectly legal, properly disclosed, and are in no way unique. They represent a small portion of Congressman Price’s net worth. One of the stocks highlighted that he made the most profit on isn’t a US Company nor does it have US operations or sales, so it is completely removed from Price’s Congressional oversight. And the nature of the hyper-critical, hyper-partisan criticism is hyper-hypocritical.
Got that? Let’s break each of those facts down.
How did the Wall Street Journal get this “bombshell” story? From public disclosures. Congressman Price, like every other member of Congress, files an annual disclosure that lists his assets, including stocks. This “bombshell” has been hiding in plain sight all this time. I’m amazed no one was injured before it could be properly detonated at the time most inconvenient for Price.
Now let’s put these investments into perspective for Congressman Price. Recall that before becoming a member of Congress, he built one of the most successful orthopedic practices in the Southeast. As such, he has a substantial net worth, estimated at $13.6 Million in 2014.
Thus, the $300,000 in healthcare stock investments is approximately 2% of his net worth. According to Opensecrets.org, that’s actually an underweight mix of healthcare stocks of an average portfolio for a member of Congress.
But he’s not just any member of Congress you say? He’s about to be over all of Health and Human Services! Well, again, that’s addressed in the WSJ article:
If approved for the HHS post, Mr. Price would be required by federal law to sell stock in companies regulated by HHS, or recuse himself from matters regarding them.
And from the same article:
Phil Blando, a spokesman for Mr. Price and the Trump transition, said in a statement that “Dr. Price takes his obligation to uphold the public trust very seriously,” that he has “complied fully with all applicable laws and ethics rules governing his personal finances,” and that, if confirmed, he would comply with the law.
One of the stocks representing about 20% of the investments in question is that of Innate Immuno. It’s a company researching an experimental treatment for advanced multiple sclerosis. Per the WSJ, “In a statement, Mr. Wilkerson said his company’s drug is governed by regulations in Australia and New Zealand, so it won’t be deeply affected by the 21st Century Cures Act.” So…we’re supposed to be upset that Congressman Price can affect this company…how?
The fact of the matter is that Price has a reputation to be a policy oriented Congressman that can often be described as “dull”. Well, he used to be. Now, he’s the focal point of repealing the signature bill of a two term incumbent President and is moving to a position where he will quarterback the effort to remove government regulations over health care in favor of market based reforms. In short, he’s everything Democrats hate, and as such, expect items like this to be hyped as if Price is doing something unique, illegal, or unethical. The facts demonstrate quite the opposite.
Before partisans attempt this path, they need to be aware of the glass house members of their own party live in. Let’s take Former Speaker turned Minority Leader Nancy Pelosi. Her net worth of over $100 Million dwarfs that of Price. And how did she make this money? A lot of it from trading stock while a member of Congress.
This is what Pelosi told CBS’ Sixty Minutes in 2012 when asked about her stock trading activities:
Kroft: Madam Leader, I wanted to ask you why you and your husband back in March of 2008 accepted and participated in a very large IPO deal from Visa at a time there was major legislation affecting the credit card companies making its way through the– through the House.
Nancy Pelosi: But–
Kroft: And did you consider that to be a conflict of interest?
Pelosi: The– y– I– I don’t know what your point is of your question. Is there some point that you want to make with that?
Kroft: Well, I– I– I guess what I’m asking is do you think it’s all right for a speaker to accept a very preferential, favorable stock deal?
Pelosi: Well, we didn’t.
Kroft: You participated in the IPO. And at the time you were speaker of the House. You don’t think it was a conflict of interest or had the appearance–
Pelosi: No, it was not–
Kroft: –of a conflict of interest?
Pelosi: –it doesn’t– it only has appearance if you decide that you’re going to have– elaborate on a false premise. But it– it– it’s not true and that’s that.
Kroft: I don’t understand what part’s not true.
Pelosi: Yes sir. That– that I would act upon an investment.
Tom Price has done nothing illegal and nothing unethical here. Those seeking to criticize him for having stocks in his investment portfolio – especially those who raise this issue in the Senate when considering his confirmation – need to take stock of the glass house they are living in before casting this stone at an honorable man.
About Author
Charlie
Founder of GeorgiaPol.com; Now weekly columnist Very interested in Georgia and Georginas. Interest in politics is waning daily.
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First you say Price doesn’t need a defense, then you say ‘but Nancy Pelosi did it first’ in his defense.
I’m well aware of what I wrote. Price did nothing wrong. Period. Full Stop.
The Pelosi item is there to save folks like you the embarrassment of saying this is disqualifying for him, so you then don’t also have to call for Pelosi to step down as Minority Leader. The GOP doesn’t want that to happen. She’s been quite good for us.
Well since that is off the table now, and I don’t really read right wing sites, can anyone say what Repubs are going to try to saddle Pelosi with next?
Her own words? Really hard to saddle her with those. Your naked partisanship is showing.
I doubt if many Republicans know why they are supposed to hate her other than because they have been told to.
You’re droll this afternoon, Charlie. I haven’t said anything about Price and disqualification, haven’t even thought about it. I may in the past have commented on Price’s proposed medical plans because they were so flawed and unworkable that even his colleagues ignored them, but nothing about where he gets his money.
Now you’ll have to excuse me while I go look at some other left-wing rags like the WSJ for more reportage on money trickling down to goper reps such as Price and Chris Collins.
You have a very good holiday.
IMO the bombshell didn’t measure up to a cap in my Roy Rogers pistol. Then Disclosure made for a dud cap.
It has nothing to do with Price, a standup guy, but isn’t insider trading by congress members still a non-offense? If so the AJC has opportunity somewhere if they want to talk stock trading.
Illegal? Perhaps not, considering who makes the laws. Unethical? Absolutely.
So you believe Leader Pelosi should step down?
Sadly, this is the kind of “reporting” we can expect over the next 4 to 8 years. The media has learned nothing.
Kindergartners don’t get away with but but they did it too. Your defense of Price is pitiful and only highlights the inappropriateness of his stock trades.
Face it. He’s not fit for the office he has, much less head of HHS. It’s too important a job for a second rate hack.
He ain’t a hack. In any aspect of his life. And as a doctor he’d probably tell you that continuous thumb sucking can result in your getting buck toothed. Something about pressure exerted behind your front teeth. Be careful!
‘Second rate hack’? Typical spewage from CC when he/she falls flat on his/her face in yet another sideways attempt at maliciously attacking an individual with absolutely no regard for the facts. I don’t always agree with Congressman Price but know him to be a highly motivated individual with the knowledge and ability to finally repeal ObamaRobertsCare which was forced on us by a bunch of truly second rate hacks.
His new job isn’t to reduce healthcare and insurance. His job is to run the HHS- a huge agency with real doctors and real scientists and real researchers who need an expert to allow them to do their jobs without political meddling.
Price is a partisan hack who only knows how to destroy what others have created. His plan is so bad it can’t even get a hearing.
Defend your friend but don’t foist him off on the HHS.
HHS is responsible for maintenance of the ACA, thus it falls upon the HHS secretary to ensure the program is accomplishing what it was advertised to do or scrap it. Since it has been a complete disaster when it comes to consumer cost and coverage, Price’s first priority is to overhaul ACA so all the purported experts you reference can get back to expertly carrying out their daily duties.
“…huge agency with real doctors and real scientists and real researchers who need an expert to allow them to do their jobs without political meddling.” – Experts/non-politicos like Kathleen Sebelius and Sylvia Burwell?? You crack me up sometimes CC.
Well the dialogue so far is to keep all the things that cost money and cut all the things that pay for it. So we’ll see how that goes.
The pillorying of Price this past week is of a piece with the reporting the previous week suggesting that Congressman Buddy Carter, a pharmacist, had possibly violated House ethics rules when he – gasp! – co-sponsored legislation that would benefit indendent pharmacies (Georgia-based small businesses, mind you). Both of these spun-up accusations are absurd. They’re entirely politically motivated, and NOT substantive indications of any ethical failing or self-dealing by Price or Carter.
Totally different. Buddy Carter owns small independent pharmacies. That’s the definition of a conflict of interest so lets not try to to call this political mudslinging when Congressman Carter gets caught with his hand in the cookie jar.
I find it much more disqualifying that he is on the record wanting to privative (destroy) Medicare (vouchers will destroy it), which any economist will tell you will be vastly more expensive under Price’s plan. Increased spending for rate of inflation is fine but healthcare costs were increasing way above the rate of inflation before the ACA (which he also wants to be rid of), and he has no way to pay for it other than Randian fantasies. Add to that private insurers as middle men with their fingers in the cookie jar and you end up with most seniors unable to afford premiums. His views are far outside of the mainstream. If thats not disqualifying enough, and this does the trick…so be it
At least you’re honest enough to admit that’s what this is about. But as you know, elections have consequences. Doing what the winning party campaigned to do isn’t disqualifying.
So you admit the GOP campaigned to cut Medicare and Social Security? Gonna be a surprise to all the grannies and their children when the bills come due.
No, it was the Democrats who ran ads against Ryan and Romney throwing grandma off the cliff saying they would cut Social Security. I’m not sure anyone here has mentioned that. Again, your value to this conversation diminishes greatly every time you manufacture partisan talking points in lieu of actual conversation.
Follow the thread, Charlie. And insulting me does not solidify your point.
Yes they ran the ads and now they are coming to fruition. Do you honestly think voucherizing Medicare is a smart idea? Thousands of low income seniors wont be able to afford the premiums that will come with private insurance which will cost more but the Feds will slash spending by a 3rd. Thats a good idea??? Do you think full repeal of the ACA is a good idea??? I bet there are about half a million Georgians that wont think so if it happens. Yes elections have consequences. So does lying to voters.
Yet Charlie, its very telling that you addressed NONE of my criticisms. Trump ran on providing something better than the ACA, and not touching Medicare and Social Security, both of which Republicans have already drafted legislation to cut. Lying eventually has ramifications too.
Paraphrasing Obama, ‘The dems of the 90s called, they want their focus group tested soundbites back.’
You really think the GOP will cut Medicare with 2018 around the corner and the very real opportunity of getting a 60+ senate majority? That would be about as stupid as going into coal country as a dem and telling them that ‘we are going to put a lot of coal miners and coal companies out of business’.
As a doctor and congressman Price would have particular knowledge much like any other professional has knowledge of his or her profession. There is no evidence he had inside information. Ideally, no congressman would invest in individual stocks and would instead, invest in mutual funds only.
Funny…dont remember seeing Price’s time serving as an insurance exec…maybe I missed it.
One thing that’s pointed out in Charlie’s summation that holds absolutely no bearing is Tom Price’s net worth. I don’t care if someone is worth $100 or $100M dollars, if you trade on inside information (even for losses), its against the law. How it affects your position is moot.
Now whether Tom Price made trades on insider information (and the whole Congressional legality thing) isn’t for me to determine, but don’t use the distraction of “he’s wealthy, obviously he’s trading healthcare stocks for a balanced portfolio” distraction.
As someone pointed out earlier, to avoid any and all conflicts of interest, legislators should invest in mutual or index funds in order to avoid giving your opponents anything to swing at.
You can’t commit a “little bit of murder”, just like you can’t commit a “little bit of insider trading”. You either do, or you don’t.
Has there been an allegation that he used insider info on these trades? Or is he just trading stocks like any average Joe Schmoe?