Alexandria Ocasio-Cortez says it's 'absolutely wild' that senators can trade stocks after Rand Paul discloses controversial Gilead stock purchase
Seth Wenig/AP
- Rep. Alexandria Ocasio-Cortez said it's "absolutely wild" that members of Congress can trade stocks.
- She blasted the practice after Sen. Rand Paul disclosed a purchase of Gilead stock 16 months late.
- Paul's office told media outlets that the senator's wife has lost money on the pharma bet so far.
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Rep. Alexandria Ocasio-Cortez declared it was "absolutely wild" that members of Congress are allowed to buy and sell stocks, after Sen. Rand Paul disclosed his wife's investment in coronavirus drug-maker Gilead 16 months late.
Paul revealed on Tuesday that his wife bought up to $15,000 of shares in Gilead - which makes the coronavirus treatment drug remdesivir - on February 26 2020, just as COVID-19 was spreading around the world.
The senator's disclosure of the purchase came 16 months after the 45-day deadline set under the STOCK Act, legislation designed to increase transparency and reduce the threat of insider trading.
Paul's spokesperson Kelsey Cooper told various news outlets that the senator's wife had lost money on the investment. She said Paul had filled out the paperwork within the deadline but that for some reason it hadn't been filed. Insider has contacted Paul's office for comment and will update this story with any response.
Ocasio-Cortez weighed in on the issue with a tweet on Thursday, saying: "It is absolutely wild that members of Congress are still allowed to buy and sell individual stock. It shouldn't be legal.
"We've introduced legislation to end the practice, but as one can imagine it's a very uphill battle to pass. This shouldn't even be controversial though!"
Read more: 11 biotechs primed to make billion-dollar buys and usurp Big Pharma
The stock purchase by Paul - who is a member of the Senate health committee - reopened a long-running debate about whether members of Congress should be able to buy and sell single stocks, given that they often know about important issues ahead of the public.
Kelley Paul bought between $1,001 and $15,000 of stock in Gilead last year. The company's remdesivir became one of the first drugs that US authorities approved to fight COVID-19.
Gilead was worth $74.70 a share at the market close on February 26, according to Bloomberg data. It hit a pandemic peak of $85.97 in March 2020 but was worth $70.88 as of Thursday's closing bell.
Paul has not disclosed that his wife has sold the stock, meaning she has not yet realized any losses or gains.
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