Friday, September 23, 2005

Senate Majority Leader Frist In Insider Trading Scandal?

This securities law news story first broke with an AP story, and was picked up on the political blogs. According to the AP, Senate Majority Leader Bill Frist asked the trustee of his BLIND trust to sell all of his stock in his family's hospital corporation, HCA, Inc.

In what may simply be an incredible coincidence, the shares of the company were near a 52 week high when Frist and other insiders sold their stock. It tanked a month later.

The sales were nothing to sneeze at, over 700,000 shares were sold which were worth $42 million.

Insider trading? It might be, and it might not be, given the 52 week high, it could really be a coincidence. But the SEC needs to look into this.

And someone needs to look into Frist's "blind" trust. How is a politician and an insider directing sales of stock that is in a blind trust? Incredibly, Frist has apparently deflected criticism of the inherent conflict was criticized for holding stock in the nation's largest for-profit hospital chain while directing legislation on Medicare reform and patient issues, by relying on the blind trust.

Apparently the trust wasn't so blind, since he was able to reach in and sell the stock just before it dropped.
Post a Comment