Categorized | Commentary/Editorial

Newsweek Highlights More Revelations from "Throw Them All Out"





In this week’s edition of Newsweek, Peter Boyer takes a look at the new book by Peter Schweizer, "Throw Them All Out" and uncovers even more revelations about the way US lawmakers conduct their own personal business from their seats of public "service." He writes:

While examining trades made around the time of the 2003 Medicare overhaul, Schweizer experienced what he calls his “Holy crap!” moment. The legislation, which created a new prescription-drug entitlement, promised to be a huge boon to the pharmaceutical industry—and to savvy investors in the Capitol. Among those with special insight on the issue was Massachusetts Sen. John Kerry, chairman of the health subcommittee of the Senate’s powerful Finance Committee. Kerry is one of the wealthiest members of the Senate and heavily invested in the stock market. As the final version of the drug program neared approval—one that didn’t include limits on the price of drugs—brokers for Kerry and his wife were busy trading in Big Pharma. Schweizer found that they completed 111 stock transactions of pharmaceutical companies in 2003, 103 of which were buys.

“They were all great picks,” Schweizer notes. The Kerrys’ capital gains on the transactions were at least $500,000, and as high as $2 million (such information is necessarily imprecise, as the disclosure rules allow members to report their gains in wide ranges). It was instructive to Schweizer that Kerry didn’t try to shape legislation to benefit his portfolio; the apparent key to success was the shaping of trades that anticipated the effect of government policy.

Senator Kerry’s office responded:

“Senator Kerry does not buy, sell, or trade stocks,” says Jodi Seth, Kerry’s spokeswoman. She notes that Kerry’s holdings are in family trusts and managed by independent trustees with whom he does not communicate. Further, Seth says, Kerry is not a beneficiary of Teresa Heinz Kerry’s trusts, which were established before they were married. In any case, Seth adds, Kerry was running for president when the Medicare bill was passed, and he missed much of the debate.

Schweizer replied:

“It’s not that I think John Kerry is calling up his broker, on health care, and saying, ‘Buy this company, sell that company,’?” Schweizer says. “The issue is one of a double standard.” He notes that if the executive of a health-care company were in discussions with the White House over pending legislation that would affect his industry, and then made a series of unusual stock transactions related to the industry, the SEC might well open an insider-trading investigation. “The only group in America that we exempt is politicians, who are probably the last people about whom we should be saying, ‘Oh, we’ll take their word for it,’?” he says. “That’s what’s so amazing to me.”

The article continues:

The Kerry trustees’ impeccable timing in drug company trades was evident again in 2007, when the federal government was weighing whether to discontinue Medicare reimbursement for certain anemia drugs used by cancer patients. When the government announced that it would limit reimbursements, shares in Amgen, one of the drugmakers at issue, dropped 15 percent. Kerry’s wife happened to be an Amgen stockholder but avoided losses; her shares, valued at between $500,000 and $1 million, were unloaded more than a week before the government’s announcement.

Schweizer, an unabashed conservative and a foreign-policy adviser to Sarah Palin, has written books about Reagan and the Bushes as well as polemics about the ruinous ways of liberalism. But this latest book is not an overtly partisan work; as the title, Throw Them All Out, suggests, it should discomfit conservatives and liberals, Democrats and Republicans, alike…

Boyer then moves on to the underhanded activities of Rep. Spencer Bachus, of Alabama:

One of the more dramatic episodes in the book recounts the trading activity of Republican Rep. Spencer Bachus, of Alabama, who, as the ranking member of the House Financial Services Committee, was privy to sensitive high-level meetings during the 2008 financial crisis and proceeded to make a series of profitable stock-option trades.

Bachus was known in the House as a guy who liked to play the market, and in fact he was pretty good at it; one year, he reported a capital gain in excess of $150,000 from his trading activities. More striking is that Bachus boldly carried forth his trading in the teeth of the impending financial collapse, the nightmarish dimensions of which he had learned about first-hand in confidential briefings from Treasury Secretary Henry Paulson and Fed chairman Ben Bernanke. On Sept. 19, 2008, after attending two such briefings, Bachus bought options in an index fund (ProShares UltraShort QQQ) that effectively amounted to a bet that the market would fall. That is indeed what happened, and, on Sept. 23, Bachus sold his “short” options, purchased for $7,846, for more than $13,000—nearly doubling his investment in four days.

Around the time Congress and the Bush administration worked out a TARP bailout, Bachus made another options buy and again nearly doubled his money. The House turned down the TARP proposal, and Bachus’s own Financial Services Committee remained clued in to revisions of what became the final TARP package. In the earlier closed-door briefings, Bernanke had warned the congressional members that a “meltdown in the global financial system” was imminent and that it would spill over into the broader economy if something wasn’t done. With TARP completed, Bachus seemed confident in its effect, now buying options that effectively bet that the market would rise—to mixed results.

Bachus was hardly the only member of Congress trading as the government was coming to grips with the financial crisis. After the first briefing from Bernanke and Paulson, brokers for Democratic Congressman Jim Moran, of Virginia, and his wife sold their shares in 90 companies, dodging the losses that others who stayed in the market would soon face. Republican Rep. Shelley Capito, of West Virginia, sold between $100,000 and $250,000 of Citigroup stock the day after the first meeting, recording capital gains on Citigroup transactions in that rocky period.

Let me just say that I stand with Andrew Breitbart and call on Representative Bachus to resign. Had he been a member of the general public, he would be going to prison for his actions. He’s a disgrace to this nation, as are all other members of Congress who engage in this behavior.

May I also remind C4P readers that Rep. Bachus was the man who blamed Governor Palin for the GOP not taking over the Senate in 2010. Never mind his twisted reality, at least we now know why he took that cheap shot at her… He’s one of them.

You can go here to read the entire Boyer article where he also covers more detail concerning Nancy Pelosi’s very profitable Visa IPO.



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  • John_Frank

    Stacy, thanks for the follow up and bringing this article to our attention.

  • wodiej

    This kind of behavior is rampant and I remain skeptical that any of the remaining candidates would do anything about it.  

  • http://twitter.com/TwoLegsGood TwoLegsGood

    Foreign policy advisor to Sarah Palin Peter Schweizer must be the origin of her "crony capitalism"/"permanent political class" perspectives.  

    His forthcoming book and the resultant fallout from it (a complete D.C. meltdown) could be the reason Palin backed off running for office.  I’m stunned by Bannon’s show tonight.  Thanks Stacy.

    • susiepuma

      Sarah has fought crony capitalism since long before she met Peter Schweizer – she did it in Alaska when she was Governor……………….

      What she is fighting now is crony capitalism on steriods in DC – remember, she fought it in her State – take a look at yours – what is it doing?  This is not just centered in DC – every state is involved – State Legislators are privy to info that the general public doesn’t usually get either & could go back further to mayors and council members – look what happened in Bell, CA….

      It’s pervasive and it’s all over – Diogenes may have a rough road tryng to find that honest man these days………………………..

      • onlycuda12

        I wish it was not true but it is, California lost. The only way this state is saved is that she becomes President and creates some kinda order that lets the state go into bankruptcy court and renegotiate its government contracts. Its just awful what the crony’s have done to this once great state.

      • onlycuda12

        I would also like to apologize in advance for California. The leftist and the crony’s that run this state are going to take it down like a cancer kills its host. Unfortunately the rest on the nation I fear is going to pay a terrible price for the decades of corrupt government out here and for that I truly am sorry.

      • http://twitter.com/TwoLegsGood TwoLegsGood

        Dear Susie: Yes, of course, Palin fought crony capitalism in Alaska well before she met Schweizer… 

        … I was only commenting on her more recent coinage/usage of the terms "crony c." and "permanent political class" i.e. during her Labor Day speech. 

         

        • travelingon

          I think you will find it in her February address for Reagan’s 100 weekend celebration, at least the crony capitalism remark is not sure about the ppp.

          • http://twitter.com/TwoLegsGood TwoLegsGood

            As a longtime Palinista now, I’m certainly not trying to preclude the Governor from her just deserts for fighting cronyism whenever and where ever she was able.  

            I’m just stunned at Schweizer’s revelations and that the Governor might have had some inkling about his book’s content before this weekend.  

            Thanks for the info on that Reagan 100th speech, tho, that was a fun live-streaming event as I well recall.  We even got a glimpse of Bannon’s Reagan film on the live stream cam.  

            Seems like a century ago considering Schweizer’s revelations this weekend.

  • Guest

    Fear and trembling, baby!

    That great line from Independence Day bears repeating here: "Let’s bring those suckers down!"

  • michaelgingerly

    Clean out the Bachus, and the dems need to clean out the Maxine Waters, Charlie Rangel, and Princess Nancy.

    • Guest

      We’ll clean out our Augean stables. The Dems? Never! We have to break the back of their party.

  • ss26mar

    Okay Governor Palin the truth comes out about the PPC and their CC. So what are you and by extesnsion us, going to do about it — remain on the sidelines?

    Reconsider and run

  • virginiagentleman1

    Bachus, Kerry, Pelosi etc. are representative of the baser side of congress as a whole. Their long winded non-answers and those of theirs spokespeople are the same old smoke and mirror deflections. No real substance, just obvuscation.  Lies, if you will.

    Palin has made it a point to expose the disgusting, filthy, greedy and power mad elites in every step she has taken in politics, from Wasilla to the national scene.  It is her path, her mission, her modis operandi.

    As the years have rolled on, she has recieved powerful support from folks who like what she does, and believe in the fundamental truth and principles of the Constitution  and not the bastardized social laws of recent admins and congresses.

    Sure, we can insist on resignations. It’s a good idea. 
    A better idea would be to VOTE them out, investigate their actions, try, and imprision the offenders.  It is what THEY do to exercise control over the citizen, and maintain power ;  they punish YOU. They create a FEAR of government in the hearts of citizens. It is the key to rule by government, FEAR!  In this day and age it is the most employed tool of government, FEAR.

    Question: Is it not time to reverse this socialist trend of creating FEAR in the citizen, and instead, move back to constitutional law where Government FEARS the American citizen?  Just askin’.

    • toongoon

      Absolutely VG1, the government needs to fear the people. Officials are rarely held accountable for their decisions. They should be held to the highest standards and punishments, they hold the highest positions. Even term limits mean nothing if there is no accountability, no code of ethics where they themselves are only judged by the people through manipulated elections.

      • virginiagentleman1

        The elites of both parties have used federal law against the citizen at least since Wilson, and possibly even earlier.  ToonGoon my friend, it is way past time to turn the tables on them!  Watch them and listen to them on any topic. Their denials are becoming increasingly panic-stricken responces. They are being exposed for what they are. This weakens them. ……It also makes them more dangerous……..

        Obama, Pelosi and Reid and the democrat party and a bunch of fake repubs launched a massive drive towards socialism from the beginning of Obamas term.  They had been feeding it into the system in tiny little bits over decades.  Obama and minions rushed into force fed socialism with the health care reform bill which provides government mandated PUNISMENT if you don’t accept it.  Punishment and imprisionment are the cornerstones of a despotic government.

        Restoration of and a return to constitutional law is our only option.  Otherwise we sink further into the sewer of socialism. Mr. Obama will find out that Americans aren’t lazy at all !  He and the others are discovering that their miscalculation of using the socialist tenent of demanding compliance from the citizen has backfired badly.  Oddly enough, its the only GOOD thing the socialists have done………..they pissed off the majority of Americans while scaring the hell out of them!   ………It is the logical effect of and reaction to the loss of libertys and freedoms ,to choose the direction of ones life for themselves.

        • toongoon

          VG1, Thank you for your astute comments. You are a gentleman.

  • toongoon

    Why would our politicians care if the economy tanks? They are sitting pretty and will be able to weather the economic crisis they created for everyone else. 

    When you have uncontested power as a government official, can write laws that apply to the citizens but exempt yourself, and can manipulate the stock market so that you enrich yourself and your buddies, not to mention a media that is totally watching your back the next logical step is to replace representative government with a top down repressive government. 

    They have manipulated the education of our children so that they believe our form of government is undo-able when in fact they have abused it’s freedoms. Now the mis-educated children protest as a fun outing with no idea of the why they are even there while our so called representative sit back and don’t say a word, allowing our freedoms to be chiseled away.

    Next time someone tells you we need experience in Washington DC tell them we need people with experience in honesty,and integrity first and foremost, someone who’s experience has shown that they will fight for the people, not for their crony buddies. 

    Experience alone in Washington is what got us here, The experience the American people will get us out.

    By the way, Sarah? Will you reconsider?

    • virginiagentleman1

      Excellent, my friend !   And your ," The experence of the American people will get us out", is inspired!   The American people working together WILL return the nation to her citizens.  The social agenda is dying and rule by the People is rising!  Constitutional law always destroys socialism and socialist laws when the American citizen stands up!

  • votermom

    I linked to this from my post. I have to read that book – wow.

    http://crayfisher.wordpress.com/2011/11/14/throw-them-all-out/

  • http://pulse.yahoo.com/_SDG5AZVRCFTUZJSFAW3C57R7XQ mike

    TERM LIMITS!!! PERIOD!!!!!

  • c4pfan

    Until we get the GOP cleaned up, nothing is going to change.  Another example that a title doesn’t make a difference, because a President of the US willing to put in real reform.  A leader is needed and we have none. 

  • http://pulse.yahoo.com/_FKVDHLYJBY3TUV752RWR5MSIB4 Jack Franklin

    Incredible but exciting news all the way around for a variety of obvious reasons.  Exciting that the truth is emerging, and the truth will set us free!

    After watching 60 Minutes and listening to Bannon’s 3-hour special program (a must listen to) last night with Schweizer, Boyer, and Breitbart, many things came together that were only on a gut level before.  We knew that something BIG was brewing, and all the while wondering why Gov Palin backed off.

    Think about it. Who among the GOP nomination, or even last minute GOP Establishment entries would NOT be involved in this kind of activity???  With Gov Palin introducing the "crony capitalism" talking point, WHO (with rare exception) will be innocent of this hypocrisy during any kind of future exposure?  Hell, Romney has been around politics, via his father, and involved in the financial world most of his life.  Tell me he will stand up under this level of scrutiny?

    On the other side, Obama has been in neck-deep but the media has been covering for him.  Now that MOST of the PPC are being exposed by the TRADITIONAL MEDIA, how does this one get spun?  It has come out that $17B of $20B in green stimulus went to Obummer’s backers.  I’ll bet that the "tree huggers" are loving the smell of that pine cone!

    As far as Gov Palin’s 2012 run, many of us have thought, oh you really need a title to make a difference.  But then, before our very eyes, unassuming Peter Schweizer seemingly pops out of nowhere with his research and book.  It is causing a tsunami and it isn’t even on the shelves yet.  With a research staff of 8 students from a liberal university he has STUNNED most experts in the financial world with their ignorance of this scandalous disease. AND if you heard him on the radio last night, I was blown away that in his book, he is providing a literal "template" for ANYONE to do this kind of exposure for ALL our government officials at ANY level of government.  Talk about a TOOL that will allow us to participate in "unconventional, sudden and relentless reform" throughout this country.

    I do not believe as this game-changer continues to play out that either party will have enough money and media support to cover their butts, especially with the LSM vetting the allegations and taking the lead on this one.  EVERYONE will be running for the hills, and it won’t be Capital Hill.

    Don’t get me wrong.  I would love to see Gov Palin be our President in 2012 as I do not see any other option.  It’s obvious that there is something so much bigger in the works that she is aware of which will stretch the best of our imaginations.  Yesterday, I had a random impression of General Patton being asked to command a major operation comprised entirely of "pirates."  How would that work, seriously???  That’s why I think our idea of "unconventional" and "sudden and relentless reform" is probably different than Sarah Palin’s.  I would go so far as to say that an "unconventional" campaign is shaping up to include a whole lot more than just a presidential one!

  • http://pulse.yahoo.com/_6K6VEPRAR23STTROX3CH46EWDY Rich

    Did you ever play a game with a little kid?

    They ALWAYS want to change the rules!

    Congress gets to change the rules to make themselves a "Special Class"… and get away with all of this insider trading and conflict of interest behavior – Crony Capitalism.

    The Prison Doors need to be opened as ALL of their laws and rules allowing this behavior are unconstitutional and therefore Null and Void.

    Remember, he who makes the rules wins!

    Sarah Palin is our ONLY hope.

    Sarah 2012!

  • http://www.facebook.com/profile.php?id=118500736 Jelayne Sessler

    THROW THEM ALL OUT, SARAH!!!!!

    • toongoon

      That’s the spirit Jelayne. But it’s our job to throw them all out, we ask ask Sarah to lead us.

  • DocBarry1

    I want to know if Bachmann or Santorum or any of the Republican candidates signed on to the potential law that would stop public officials from taking advantage of these loopholes – loopholes that they wrote into law

    I forgot the actual bill but it was a part of the 60 minutes segment

    Gov Palin reconsider – please

  • $8196935

    Following the corruption which is overwhelmingly on the Democrat side and the type that
    takes in Billions of American tax dollars to policy changes
     
     I have Peter Schweizer book pub. in 2009
    "Architects of Ruin" How Big government Liberals Wrecked theGlobal Economy

    –How Liberal Activists, Labor Unions, and Pos in Washington forced banks to make more than 4 Trillion in bad loans to people with poor credit

    .– How Sens Ted Kennedy and William Proxmire put the power of the federal governmentbehind the "affordable housing" scam

    – How the Clinton Adm. pushed billions of dollars in home mortgages to minoritiesknowing they would never be repaid–How subprime mortgages were used to fund radical activist groups, including ACORN, to thetune of $9.5 Billion

    .–How Obama was personally involved in the affordable housing racket as a young Chicago Lawyer

    __ How Rahm Emanuel made more than $46,000 an hour as a board member for Freddie Mac

    – How prominent Democrats parlayed their fair housing activism into lucrative appointments to the boards of subprime lenders–How congressman Barney Frank and Sen. Chris dodd profited from their alliance with subprime lenders and squelched investigations of the looming mortgage fiasco

    –How activists are working with the Obama Adm today to lay the ground for future bubles in real estate,health care, the auto industry and green technologies.

    "Obama’s Corruption Eruption"

    http://atlasshrugs2000.typepad.com/atlas_

    This is several articles from Pamela Geller of Atlas ShrugsOn many of the Obama Adm. corruptions and scandals.

    And some here want to sit home or write in names election day to reelect Obama.

  • patnatasha

    this is an opening for sarah.

  • KentonAK

    NEW RICK PERRY AD: "SEND INSIDER TRADING CONGRESSMEN TO JAIL."

    Presidential candidate Rick Perry released an ad featuring the
    congressional insider trading scandal broken by Breitbart Editor Peter
    Schweizer in his new book "Throw Them All Out."

    Gov. Perry is the first presidential candidate to publicly comment on the scandal.

    http://www.breitbart.tv/perry-responds-to-congressional-insider-trading-investigation/#.TsGcOu4_SyQ.twitter

    *Sheath your long knifes folks. I’m NOT endorsing Rick Perry :)

  • nkthgreek

    A President Palin would ensure there were no foxes guarding the hen house.

  • Ice_Man56

    Throw em out!

    Sick and tired of these crooks in Washington.If you saw the 60 mins piece on how our politicians can commit insider trading and become rich by their vote or knowledge of how a vote will go..Me or you would be locked-up and thrown the key away…But not them cause they wrote the bill that says it’s OK for them to do this..
    If you’re mad-as-H*LL go sign the petition…here is the link for HR# 1148which will make them on the same playing field that we are on..
    http://www.change.org/petition

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