U.S. Senator Tammy Baldwin Seeks Investigation into Possible Market Manipulation Regarding Market Bets Timed to Trump’s Comments on Trade War & Other Geopolitical Events
Lawmakers want DOJ, FBI, SEC & CFTC to probe so-called ‘Trump chaos trades’ and protect U.S. financial markets from insider trading
WASHINGTON, D.C. – U.S. Senator Tammy Baldwin today joined her colleagues in calling for federal authorities to investigate, protect our financial markets, and ensure no one is cashing in on material nonpublic information from the Trump administration, foreign nations, or other entities, after a number of suspicious trades raised red flags about possible market manipulation or insider trading.
Vanity Fair recently reported that a mysterious trader or traders may have made more than a billion dollars in potential profits from suspicious market bets timed to e-mini S&P 500 futures trades and subsequent statements or actions from President Donald Trump regarding trade negotiations with China or from other actors with respect to other geopolitical events.
The Senators, led by Jack Reed (D-RI), Debbie Stabenow (D-MI), and Sherrod Brown (D-OH), are asking investigators and regulators to probe suspicious trading activity in our financial markets to determine if any rules, laws, or regulations were violated.
In a letter to the U.S. Department of Justice, Federal Bureau of Investigation (FBI), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC), the Senators called for an investigation into whether there was wrongdoing, and if so, who is behind the potential windfall.
“Some may have an unfair trading advantage because of privileged access to nonpublic market-moving information potentially from government sources and, as a result, raise concerning questions about the integrity of our financial markets and our public institutions,” the Senators wrote.
In addition to Senators Baldwin, Reed, Stabenow, and Brown, the letter is signed by Senators Bob Menendez (D-NJ), Dianne Feinstein (D-CA), Chris Van Hollen (D-MD), Ron Wyden (D-OR), Kirsten Gillibrand (D-NY), Catherine Cortez Masto (D-NV), Christopher Coons (D-DE), Sheldon Whitehouse (D-RI), Ed Markey (D-MA) and Amy Klobuchar (D-MN).
Dear Chairman Clayton, Chairman Tarbert, General Barr, and Director Wray:
We write regarding disturbing reports of suspicious trading in our futures and equities markets and urge you to investigate immediately whether any rules, laws, or regulations were violated. If any wrongdoing is uncovered, we demand that you swiftly hold violators accountable to the fullest extent possible.
With so many investors and entrepreneurs choosing to access our financial markets, they have become one of our nation’s greatest competitive advantages. Our financial markets, while far from perfect, are more stable and offer greater investor protections than many foreign markets. As such, we must do everything to protect this comparative advantage.
This is why reports of certain traders earning potential massive payoffs of more than $1 billion per trade ahead of actions taken by the Trump Administration, foreign nations, or other entities are so troubling. They suggest that some may have an unfair trading advantage because of privileged access to nonpublic market-moving information potentially from government sources and, as a result, raise concerning questions about the integrity of our financial markets and our public institutions.
Indeed, as a recent article in Vanity Fair states:
…the precision and timing of these trades, and the vast amount of money being made as a result of them, make the traders wonder if all this is on the level. Are the people behind these trades incredibly lucky, or do they have access to information that other people don’t have about, say, Trump’s or Beijing’s latest thinking on the trade war or any other of a number of ways that Trump is able to move the markets through his tweeting or slips of the tongue? Essentially, do they have inside information?
We expect you to answer these and other pressing questions and use all of your authorities to protect our financial markets. In so doing, you must demonstrate concretely that no individuals, including government officials, are above the law, and that those who choose to rig or cheat the system will be held fully accountable.
We thank you for your consideration, and we expect periodic updates on the progress of your investigation into this matter.
More about the Trump Tariffs
- Baldwin Calling on Trump Administration to Take Action and Support Wisconsin Hardwood Businesses Hurt by Trade War - U.S. Sen. Tammy Baldwin - Feb 25th, 2020
- Trade War Wounds May Heal Soon - Erik Gunn - Feb 21st, 2020
- How China Trade Agreement Impacts Wisconsin Farmers - Miranda Suarez - Jan 16th, 2020
- Trump Tariffs Have Cost State $800 Million - Miranda Suarez - Dec 10th, 2019
- U.S. Senator Tammy Baldwin Seeks Investigation into Possible Market Manipulation Regarding Market Bets Timed to Trump’s Comments on Trade War & Other Geopolitical Events - U.S. Sen. Tammy Baldwin - Oct 21st, 2019
- Port Milwaukee Shipping Up in 2019 - Danielle Kaeding - Oct 21st, 2019
- Stuck to Gallagher: Does Your Party Care About Small Business? - State Rep. Amanda Stuck - Oct 10th, 2019
- Evers Blasts Trump “Tweet” Trade Wars - Erik Gunn - Sep 16th, 2019
- Donald Trump’s Administration Laughs in the Face of Struggling Farmers - Democratic Party of Wisconsin - Aug 13th, 2019
- Gov. Evers Calls on President Trump to Listen to Farmers, End Unproductive Trade Wars - Gov. Tony Evers - Aug 12th, 2019
- Harley 2nd Quarter Earnings Down 19% - Brady Carlson - Jul 24th, 2019
- State’s Exports Down in 2019 - Hope Kirwan - Jul 23rd, 2019
- U.S. Senator Tammy Baldwin Urges Trump Administration to Invest in Dairy Innovation with Trade Aid - U.S. Sen. Tammy Baldwin - Jul 19th, 2019
- U.S. Senator Tammy Baldwin Calls on President Trump to Stop Making False Claims About Agriculture Purchases from Mexico and China, and Start Telling Wisconsin Farmers the Truth - U.S. Sen. Tammy Baldwin - Jul 12th, 2019
- Data Wonk: Democrats Now The Free Trade Party? - Bruce Thompson - Jun 26th, 2019
- Murphy’s Law: Trump Tariffs Killing Wisconsin - Bruce Murphy - Jun 4th, 2019
- Senator Baldwin Demands Answers from Trump About $62 Million Going to Brazilian Crooks Instead of American Farmers - U.S. Sen. Tammy Baldwin - May 23rd, 2019
- Data Wonk: How Walker, Trump Hurt Dairy Industry - Bruce Thompson - Mar 13th, 2019
- Ron Johnson Calls for Ending Tariffs - Hope Kirwan - Feb 8th, 2019
- Harley-Davidson Earnings Down - Patty Murray - Jan 31st, 2019
- Tariffs Affecting Great Lakes Ports - Danielle Kaeding - Jan 5th, 2019
- Trump Tariffs Hurt Milwaukee Port - Danielle Kaeding - Sep 4th, 2018
- Harley Riders Oppose Boycott of Company - Laurel White - Sep 3rd, 2018
- Answer the Question, Scott Walker - One Wisconsin Now - Aug 13th, 2018
- Trump’s Aid to Farms Gets Mixed Reviews - Rich Kremer - Jul 26th, 2018
- Voters Unhappy About Tariffs, State Roads - Chuck Quirmbach - Jul 19th, 2018
- Businesses Complain About Trump Tariffs to Johnson - Chuck Quirmbach - Jul 17th, 2018
- Canada’s Tariffs Target Wisconsin - Scott Gordon - Jul 16th, 2018
- Data Wonk: How Trump Threatens State’s Exports - Bruce Thompson - Jul 5th, 2018
- Walker Avoids Harley Issue at Parades - Chuck Quirmbach - Jul 5th, 2018
- Campaign Cash: Harley Gave Generously to Republicans - Wisconsin Democracy Campaign - Jun 26th, 2018
- Harley-Davidson Job Losses: Walker Owns This - Democratic Party of Wisconsin - Jun 26th, 2018
- Scott Walker Flies While Harley Davidson Flees - One Wisconsin Now - Jun 26th, 2018
- Op Ed: Trump Dead Wrong on Canadian Trade - John Torinus - Jun 21st, 2018
- Op Ed: Trump’s Tariffs Hurt Wisconsin Economy - John Torinus - Jun 11th, 2018
- Trump Tariffs Threaten State’s Exports - Steven Deller, Tessa Conroy and Matthew Kures - May 13th, 2018
- Op Ed: Trump Tariffs Will Harm Trump Country - John Torinus - Mar 14th, 2018
- Statement Regarding Governor Walker’s Phone Call with U.S. Department of Commerce Secretary Wilbur Ross - Gov. Scott Walker - Mar 9th, 2018
- Op Ed: Ryan Finally Stands Up to Trump - Gregory Humphrey - Mar 8th, 2018
- Governor Walker Visits Wisconsin Employers in Oshkosh, Janesville that Have Expressed Concern with President Trump’s Proposed Tariffs on Steel and Aluminum - Gov. Scott Walker - Mar 6th, 2018
- Governor Walker Releases Statement on the Trump Administration’s Proposed Steel and Aluminum Tariffs - Gov. Scott Walker - Mar 2nd, 2018
- U.S. Senator Tammy Baldwin Leads Dairy State Senators in Urging Agriculture Secretary Perdue to Take Immediate Action for Dairy Farms Harmed by Canadian Trade Barriers - U.S. Sen. Tammy Baldwin - Apr 27th, 2017
- U.S. Senator Tammy Baldwin Calls on President Trump to Hold China Accountable on Trade During Upcoming Summit - U.S. Sen. Tammy Baldwin - Apr 5th, 2017
- Norquist: Trump Tariffs Will Hurt State Workers - John Norquist - Feb 2nd, 2017
Mentioned in This Press Release
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