WASHINGTON, April 2 (Reuters) – Two Democratic U.S. senators on Thursday called on Wall Street’s top regulator and a Defense Department watchdog to prevent and investigate possible insider trading by government officials following a spate of market activity seemingly timed to President Donald Trump’s announcements.
Reuters and others have reported that major moves over the last year in equity, commodities and prediction markets are consistent with the possibility that traders had advance knowledge of Trump’s announcements concerning the war with Iran, tariffs and the capture of Venezuelan leader Nicolas Maduro, among other examples.
The White House has denied any wrongdoing.
“Recent reports of equity trading that occurred shortly before significant government policy announcements suggest that federal officials are disclosing material non-public information for financial gain,” Senators Mark Warner of Virginia and Adam Schiff of California wrote to the heads of the Securities and Exchange Commission and the Defense Department’s Inspector General.
“These actions undermine public interest and market integrity, and demand oversight by each of your respective authorities, as well as by Congress.”
Warner is the top Democrat on the Senate’s Select Committee on Intelligence.
An SEC spokesperson declined to comment while the Defense Department Inspector General’s office said it had received the letter but declined to comment further.
(Reporting by Douglas Gillison in Washington; editing by David Gaffen)
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