The $1 Million Amazon Conflict: Washington’s Ethics Czars Struggle To Enforce Stock-Trading Laws
Print/Download
The $1 Million Amazon Conflict: Washington’s Ethics Czars Struggle To Enforce Stock-Trading Laws (wsj.com)
Posted
by
msmash
from the greenback-boogie dept.
The U.S. has rules limiting federal officials’ stock-market investing. They can be waived. The Wall Street Journal: Mark Wu held more than $1 million of Amazon.com stock when President Biden tapped him to help craft a trade policy that would benefit U.S. technology companies and online retailers. Ethics officials at the Office of the U.S. Trade Representative said they gave Mr. Wu two options: Get rid of the stock or recuse himself from digital trade issues. He did neither.
For several months, Mr. Wu continued working on the trade matter while keeping the shares. He had “not followed the requirements,” the U.S. Trade Representative’s chief of staff told him in a June 2021 phone call, an email describing the call shows. Eventually, Mr. Wu quit, citing family issues. He kept his Amazon stock. Mr. Wu said he didn’t work on trade issues specific to Amazon and left the government when the restrictions became too much of a burden on his family.
The U.S. has a law aimed at preventing the nation’s thousands of obscure but powerful federal officials from using their influence on regulations, policies and investigations to benefit themselves. With penalties up to $50,000 and five years in prison, the law is supposed to ensure that officials in the executive branch don’t work on any matter that could affect their personal finances. It doesn’t. It has exceptions. Violations often go unpunished. When a problematic holding is identified, if the official resists selling it, the rules often are waived. The result is a system that largely relies on government employees to police their own stock investing.
“Life, loathe it or ignore it, you can’t like it.”
— Marvin the paranoid android
Working…
