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US senators urge insider trading probe into Trump after tariff U-turn sparks market surge
The senators urged the regulator to probe whether Trump, his donors or other insiders had engaged in market manipulation and insider trading
A group of US senators urged the country's Securities and Exchange Commission (SEC) to investigate whether the President or White House insiders broke securities laws as Trump's announcement of a pause on tariffs led to a historic stock market gain after a massive fall.
“We urge the SEC to investigate whether the tariff announcements... enriched administration insiders and friends at the expense of the American public,” senators wrote in a letter to regulators at the SEC.
The letter urged the SEC to probe whether “any insiders, including the president's family, had prior knowledge of the tariff pause that they abused to make stock trades ahead of the president's announcement.”
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The senators urged the regulator to probe whether Trump, his donors or other insiders had engaged in market manipulation and insider trading, thus violating the country's security laws to gain personal advantage.
The six Democrats – led by Massachusetts progressive Elizabeth Warren noted in a letter to the regulator that Trump posted on his website Truth Social early Wednesday that “THIS IS A GREAT TIME TO BUY!!!” as stock markets were tanking.
A few hours later, Trump's announcement of a 90-day suspension of additional tariffs triggered a historic stock market rebound. It was also the best day for the S&P 500 since the recovery from the 2008 financial crisis. Shares of the president's media company, Trump Media & Technology Group, also closed up 21.67 percent on Wednesday.
Four senators from the group also wrote a second letter to the National Association of Attorneys General asking for state-level investigations.
Senate Minority Leader Chuck Schumer, who signed both the letters, said, “Corruption and lawlessness have become a calling card of the Trump administration.”
ALSO READ | US stocks skyrocket, see record biggest one-day gains after Donald Trump's tariff pause
The White House had downplayed the impact of Trump's announcements on social media. The administration told The Washington Post that the president's posts were a mere “reassurance” to the public as he had responsibility to “reassure markets and Americans about their economic security.”
The senators demand for probe amid concern over the growing number of ways through which Trump and his family members can monetize the power of the presidency, although no evidence of corruption had emerged, AFP reported.
