Members of Congress are often criticized by the American public for somehow raking in massive fortunes while holding office, which was certainly not the intention of the Founding Fathers.
According to Fox Business, House Speaker Nancy Pelosi (D-CA) has often been on the receiving end of that criticism, or more specifically, her husband, Paul Pelosi. As recently released filings revealed, Paul Pelosi placed a series of million-dollar bets — $6 million in total — on three Big Tech firms, conveniently ahead of a piece of House legislation that aims to reign in the power of such firms.
Paul Pelosi’s disclosures, which were released earlier this month, show that he went big on buying call options in Apple, online retail giant Amazon, and he recent exercised call options purchased earlier this year in Alphabet (Google’s parent company) to the tune of 4,000 shares at a price of $1,200 apiece, or $4.8 million total.
Given his wife’s position in Congress, it’s not unfair to call into question why Paul Pelosi might be going big in Big Tech in the months before powerful legislation could be passed that changes the tech realm forever.
Not surprisingly, a spokesperson for Speaker Pelosi’s office seemed already prepared to defend the stock purchases. “The speaker has no involvement or prior knowledge of these transactions,” one of Pelosi’s spokespersons said. “The speaker does not own any stock.”
Some Democrats, such as former Rep. Jill Long Thompson (D-IN), opined on the criticism of Paul Pelosi’s Big Tech gamble, saying that the husband of the third most powerful person in Washington D.C. probably didn’t violate any ethics or market rules because it’s unlikely that he’d “have any information that someone else wouldn’t.”
While that explanation is laughable to many, one must only look at previous big bets made by Nancy Pelosi’s husband which conveniently came prior to big movements or announcements. Such was the case when Paul Pelosi dropped a cool $1 million on Tesla options in January, prior to President Joe Biden’s administration announcing that electric vehicle makers stand to benefit from massive government incentives.
In March, he exercised nearly $2 million in Microsoft call options just two short weeks prior to the tech giant securing a monumental $22 billion U.S. military contract.
In other words, Paul Pelosi is either one of the savviest, most forward-thinking investors in the United States, or he’s capitalizing on lucrative information gleaned from his powerful, knowledgable spouse. We’ll let you decide.