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Wednesday, 15 August 2012

Did Paul Ryan trade on insider information to avoid 2008 crash? -

Did Paul Ryan trade on insider information to avoid 2008 crash? - 




Remember that fateful, dour day -- September 18, 2008 -- when congressional leaders met with Bush's Treasury Secretary Henry Paulson and Head of the Fed, Ben Bernanke, and were told that the financial world was about to come to an end?
Details of that meeting have never been released. But the purpose was to beg Congress into passing bailout legislation to save the banks from melting.
Rep. Paul Ryan would have been invited to that meeting as Ranking Member of the House Budget Committee (He is now chairman).
According to Business Insider:
Republican Vice Presidential Pick Paul Ryan sold shares in a number of financial companies including Citigroup, General Electric, Wachovia, and JP Morgan Chase on the same day as then-Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke held a closed meeting with congressional leaders during the financial crisis.
At issue are the sale of troubled banks like Wachovia and Citi, as well as General Electric's struggling capital unit, dated on September 18, 2008 — the same day as the meeting with Bernanke and Paulson according to the Associated Press.
He went out and sold his vulnerable stocks and reinvested in Goldman-Sachs, which the group was told was a safe place to stash their dough.
On Monday October 6, the stock market would start a week-long decline in which the Dow Jones Industrial Average would fall 1,874 points or 18.1%. This was the beginning of the Bush Recession/near Depression that Bush -- to his credit -- tried to forestall with the much-maligned Toxic Asset Recovery Program (the TARP program for which the ill-informed blame President Obama).
The crash did not catch Ryan napping!
On September 18, 2008, the same day as he and the other congressional leaders were warned of the soon-to-come financial catastrophe, Congressman Ryan unloaded the following stocks.
Citigroup, which lost 95% of its value in the next 4 months
GE, which lost 73% of its value in the next 4 months
Wachovia, which crashed and became part of Wells Fargo in the next month
JP Morgan which lost 66% of its value.


Read more: http://www.digitaljournal.com/article/330723

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