NYT: In ’05 Investing, Obama Took Same Path as Donors (I'm...Outraged?)

[wellst0nev0ter]

Less than two months after ascending to the United States Senate, Barack Obama bought more than $50,000 worth of stock in two speculative companies whose major investors included some of his biggest political donors.

One of the companies was a biotech concern that was starting to develop a drug to treat avian flu. In March 2005, two weeks after buying about $5,000 of its shares, Mr. Obama took the lead in a legislative push for more federal spending to battle the disease.

The most recent financial disclosure form for Mr. Obama, an Illinois Democrat, also shows that he bought more than $50,000 in stock in a satellite communications business whose principal backers include four friends and donors who had raised more than $150,000 for his political committees.

It's a typical smear from the librul media, trump up the charges in the first paragraphs, then bury the exonerating evidence towards the bottom of the article:

A spokesman for Mr. Obama, who is seeking his party’s presidential nomination in 2008, said yesterday that the senator did not know that he had invested in either company until fall 2005, when he learned of it and decided to sell the stocks. He sold them at a net loss of $13,000.

<snip>

Mr. Obama has made ethics a signature issue, and his quest for the presidency has benefited from the perception that he is unlike politicians who blend public and private interests. There is no evidence that any of his actions ended up benefiting either company during the roughly eight months that he owned the stocks.

http://www.nytimes.com/2007/03/07/us/politics/07obama.html?ex=1330923600&en=12e0f2ca4a772e5c&ei=5090&partner=rssuserland&emc=rss

[Colobo]

1. Based on the reading

There is no real issue here. As soon as the senator realized there could be some conflict of interest, he sold the shares (at a net loss).

If anything, this shows there's actually nothing on Obama...

[nyublue]

14. Yes, there is a story... looks like classic case of tipping

This REEKS of insider trading. You don't have to make money in order for it to be illegal--its the tipping by a company insider that violates the law. And he's the former HEAD of the Harvard Law Review. He can't POSSIBLY claim he thought it was in a blind trust already.

The selling of the stock later for a loss only indicates that he probably knew he needed to dump the stock because he was considering running for President.

Obama is not a saint. He's as flawed as any other politician--especially other politicians from IL.

[rebel with a cause]

15. Yes, Illinoisans are evil

and politicians from other states are not. Say, NY where Giuliani and nameless others came from that are flawed including Clinton. I will say no more because I am taking the high road as far as Democrats are concerned.

[youngdem]

21. Yep....It was not coincidence he chose these investments

He was tipped to the company's plans before the action that could benefit the shareholder could be known by common shareholders and he attempted to act in a way to purchase an interest in the company of which he held insider information for a personal gain. He failed to make an improper gain, but it was apparently not for lack of trying.

If this isn't illegal, it should be, as it places the interests of the Senator in the same basket as that of someone who a) has contributed financially to a campaign and b) has accepted a financial investment from said Senator. The Senator now has a conflict of interest in the lobbying on whose behalf he is acting, because he is now acting to benefit himself financially as well.

IF true as written, this is simply corruption.

Sad that Obama has done such things, again IF true. Sometimes it seems everyone has to sell themselves to work at the sausage factory.

[yardwork]

25. Where does the article say that he was "tipped" to the company's plans?

I don't see the words "tipping" or "tipped" anywhere in the article, or any evidence that Obama did anything improper. Please enlighten us.

[youngdem]

27. Um, he was being paid by the companies to lobby for an action

That is inside information potentially...the companies are lobbying for a benefit that could improve the company's stock price...Obama buys stock in the companies he is lobbying for, and he stands to benefit personally from his efforts, insider or not.

[rebel with a cause]

33. No he was not paid to to lobby for an action.

He lobbied for no one, and the bio company that he did have stock in received no federal grants/money, which if they had would have meant that he was helping them. Please read the article again.

[pokercat999]

16. Selling the stocks at a net loss (if true) shows he's

walking the walk on ethics........ I hope.

[skipos]

2. They are going to have so find better smears than this

Maybe his ancestors owned slaves or something? :shrug:

[Up2Late]

3. And we should care because........

:boring:

[FrenchieCat]

4. I don't get it.

What's the smear. He invested in the stock market and lost money! Oh Lordie No! :sarcasm:

[depakid]

5. Poor judgment once again

Most reasonable people know better than to create an appearance of impropriety... and Obama is an attorney, so he surely knew better.

[wellst0nev0ter]

6. And I Supposed Bill Clinton Should Be Blamed For Whitewater?

Quit buying into the fever-swamp accusations of reich-wing trolls. Unless they actually, you know, did something wrong, they have nothing to apologize for.

[depakid]

7. The Senator knew better

Ask any attorney whether or not they'd see an ethics problem here- and they'll tell you that there is.

I hate to burst people's bubble- but this doesn't surprise me in the slightest. It's one of half a dozens lapses in judgment that I've seen Obama make over the past 2 years- and I'm pretty sure it won't be the last.

[Ethelk2044]

9. CNBC Talking about the it Now

AVI BioPharma is known. Joe stated he gets daily emails regarding this stock. No federal funds went to AVI. CNBC is stating NYTimes has another person in mind. Hillary Clinton invested 2000.00 in a stock and made money. Therefore who is New York times expected to support. However, they did not bring out Hillary Clinton invested money and took the profit. She did not sell as a lost. Hello Wake up.

[Ethelk2044]

10. Who has Poor Judgement?

Let me get this right. He does not know his blind trust bought the stocks. Therefore he is wrong. Where is your logic? I realize some do not like him that is a given. However, your logic does not hold water. He got rid of the stocks soon as he found out about them. No like some candidates to where they hold on to them and try to make money. Please explain your logic. Let me see. If someone in your family does something in your name, you should be held liable for it because you should know better. That is the same logic you are using here.

On another note

CNBC just brought up the same issue.AVI BioPharma is known. Joe stated he gets daily emails regarding this stock. No federal funds went to AVI. CNBC is stating NYTimes has another person in mind to back during the campaign. They will come out and support Hillary in a matter of time. He went on to say Hillary Clinton invested 2000.00 in a stock and made money. NOw you tell me who should have known better. Therefore who is New York times expected to support. However, they did not bring out Hillary Clinton invested money and took the profit. She did not sell as a lost. Why didn't they bring this out about Hillary who actually made a profit? Do they have some type of Agenda? Hell Yes
Hello Wake up.

[rodeodance]

11. yes, I agree. ---an this is true for all candidates---its the 'appearance" that

will count.

[truthisfreedom]

8. Sometimes you invest in an idea because it's the best idea you've heard of.

Sometimes your donor tells you about it.

[Ethelk2044]

13. Slanting

You are really trying to slant. But this one will not work. However, I want to see what happens when more knowledge of Clinton's investment comes out and they find out she made a profit. That one will pick up steam because of the profit.

[Alhena]

12. Very weak- sounds like the NY Times thought ...

they had a story but then nothing panned out as far as anything incriminating. So then they decided to hype it on Drudge anyway and get hits on their website. Very weak.

[rebel with a cause]

17. Is it just a coincidence that

this story appeared on the front page (according to drudge) right beside the story on Libby's conviction. This could be done for two purposes: 1) to draw attention away from the conviction or 2) to draw a connection to it. It all depends if it is being done to benefit the republicans or another democrat candidate. JMHO

[Doremus]

18. How hard is it to simply avoid situations that might reflect badly?

Is it really that hard to say "No, I won't do x or y because it might have the appearance of impropriety"?

I mean, really. Would lives be permanently harmed if we didn't buy a certain stock? If we took a pass on any given real estate deal?

The answer is no, it isn't hard; it's actually quite easy if someone possesses 1) the wisdom to realize bad calls ALWAYS come back to bite you in the ass; and 2) the integrity to actually care.

These aren't watershed moments, for me at least. They do, however, give me pause and make me question.

[Massachusetts]

19. Quis costodiet ipsos custodies?

Barack Obama Inc.
The birth of a Washington machine

http://www.harpers.org/BarackObamaInc.html

http://www.harpers.org/sb-a-little-bit-more-on-obama-1161881683.html

[cyberpj]

20. The Hillary brigade is leaving no stone unturned - learned well from Bush admin. nt

[Ethelk2044]

22. Dont be surprised

They have to do something because he is moving up in the polls.

[cyberpj]

40. No surprise to me if true. I'm not a Hillary supporter because of her DLC power friends. And

they want to damage him now, not later, especially because his support base is growing.

[rebel with a cause]

42. Honestly, I would say that Barack is getting hit by

more than one camp. There are several that I know play dirty pool, and I don't know about the rest. And then there are the republicans, you know they would not want him running. Pulling a racist trick would be a little harder when the campaign covers the whole country and not just one state. At least I hope it would be.

[closeupready]

23. Disappointing, if true.

I'll wait and see what he says about it.

[Ethelk2044]

24. His Reply

http://thecaucus.blogs.nytimes.com/2007/03/07/obama-on-those-stocks/




March 7, 2007, 3:25 pm
Obama on Those Stocks
By Kate Phillips

Senator Barack Obama faced a barrage of questions today
following the article by our Chris Drew and Mike McIntyre
this morning.
Jeff Zeleny covered the q&a after a news conference on
immigration on the Hill today, and filed this news article.
From Jeff’s account:
At no point did I know what stocks were held,” Mr. Obama told
reporters. “And at no point did I direct how those stocks were
invested.”
Mr. Obama said he retained a broker upon the recommendation
of a wealthy friend and top contributor, George W. Haywood.
The senator said he did not specifically instruct the broker
to follow the investment patterns of Mr. Haywood, who along
with his wife, Cheryl, has contributed nearly $50,000 to his
campaigns and political action committee

[hippiechick]

26. Just once it would be nice ...

... to have a Senator, Representative or Presidential candidate who, like the majority of us, couldn't afford to piss away money on the stock market because they were truly blue collar and trying to support their families in this bullshit-corporate-owned economy.

Then I would truly believe that he or she understands and represents the common folk.

I'm tired of all the millionaires. On both sides.

[Ethelk2044]

29. A Person earning money

I have no problem with someone earning a great deal of money. We all want to be able to earn a decent living. If some one goes to college and end up earning money, I have respect because it was not given to him and he had to work for it. I do not see where Obama was given money. He has worked for what he has therefore I can not knock him. He started of only earning 13,000 a year. Therefore, I know he knows what the middle class go through. It was not given to him on a silver platter.

[hippiechick]

32. I don't hold it against him, and I never said he didn't "earn" it ...

... I said I would like to see some folks representing us who truly resemble "us".


:hi:

[rebel with a cause]

30. I agree, but in today's political environment

a poor man could not afford to run for office. Obama and Kucinich are about the closest to it that I can think of, and once they are in the government circles, their friends and acquaintances take a sharp upward movement. the poor man image is what I liked about Bill Clinton, but that image is gone now from him also.

I volunteered for Barack Obama and I can say that he treated us poor folk respectfully and listened to what we had to say. But then that was back in 2004, and I have not seen him since then because I don't go anywhere any more. I don't know what to say, except I still believe in him and support him, and hope I am right in doing so. I don't tell anyone else what to do, that is up to them.

[Telly Savalas]

41. Then run for office.

[Chomskyite]

43. I love Mr Savalas

He is one of my favorite "personality" actors. And he was a Lefty, too.

[hippiechick]

44. I'd love to, but the 'familiy values' crowd would have a field day

... with the skeletons in my closet. Trust me, its been considered.

[Red1]

28. A Mix - Good & Bad

Less than two months after ascending to the United States Senate, Barack Obama bought more than $50,000 worth of stock in two speculative companies whose major investors included some of his biggest political donors.

-OK so far, bought stock in spec. company that has some investors that contribute to his political treasure chest.


One of the companies was a biotech concern that was starting to develop a drug to treat avian flu. In March 2005, two weeks after buying about $5,000 of its shares, Mr. Obama took the lead in a legislative push for more federal spending to battle the disease.


-OOOOHH, Didn't the lib from nevada, reid, go down this road?
http://www.chicagotribune.com/news/nationworld/chi-0701290181jan29,1,5329059.story?coll=chi-newsnationworld-hed
NOT GOOD - This is the stuff we throw back in the rightys face, BAD OBAMA


The most recent financial disclosure form for Mr. Obama, an Illinois Democrat, also shows that he bought more than $50,000 in stock in a satellite communications business whose principal backers include four friends and donors who had raised more than $150,000 for his political committees.

-Same as the first comment, no biggy, UNLESS he pushes for legislation to pump up the value of his stock,

-Common libbys, if it smells like sh##, Looks like sh##, it probably is sh##.

-Lets try electing an honest man or women.

[rebel with a cause]

31. And who do you think that would be?

Just curious to who you are backing.

[Red1]

34. I Like

http://www.governor.ks.gov/

[rebel with a cause]

38. don't know her, so I can say nothing about her

and won't if I could. But let her run for president and I'll bet you would find out quick that even she had something they could dig up on her. That is the climate of politics today. It is not nice place to be.

[Red1]

39. Agree

Unfortunately, America has gotten into a rut that will be hard
to climb out of .

red1

[Ethelk2044]

35. Obama on Those Stocks

http://thecaucus.blogs.nytimes.com/2007/03/07/obama-on-those-stocks/




March 7, 2007,  3:25 pm 
Obama on Those Stocks
By Kate Phillips

Senator Barack Obama faced a barrage of questions today
following the article by our Chris Drew and Mike McIntyre this
morning.
Jeff Zeleny covered the q&a after a news conference on
immigration on the Hill today, and filed this news article.
From Jeff’s account: 
At no point did I know what stocks were held,” Mr. Obama told
reporters. “And at no point did I direct how those stocks were
invested.”
Mr. Obama said he retained a broker upon the recommendation of
a wealthy friend and top contributor, George W. Haywood. The
senator said he did not specifically instruct the broker to
follow the investment patterns of Mr. Haywood, who along with
his wife, Cheryl, has contributed nearly $50,000 to his
campaigns and political action committee

[On the Road]

36. Ah, That Explains It

Haywood was the connection. There may have been nothing illegal about it, but it did raise the question of insider trading.

[rocktivity]

37. Tell it all, tell it quick

and you'll come out ahead in these situations every time.

:headbang:
rocknation