Tag: stock market

Senate Democrats Block Congressional Stock Trading Ban

Senate Democrats blocked a House-passed congressional stock trading ban that had a voter ID requirement attached to it on Wednesday.

The “Stop Insider Trading Act,” which needed 60 votes to advance, failed in a 53-47 vote.

Every single Democrats voted to block the bill.

The bill would block members of Congress, their spouses and children from purchasing new stocks.

The Hill reported:

Senate Democrats on Wednesday blocked a bill sponsored by vulnerable GOP incumbent Pete Ricketts (Neb.) to restrict members of Congress from buying new stocks of publicly traded companies, arguing the legislation didn’t go far enough to crack down on possible corruption.

The Stop Insider Trading Act failed by a vote of 53-47. No Democrat voted in support of the measure.

It needed 60 votes to advance on the Senate floor.

Schumer called the voter ID bill a “poison pill” on Tuesday after Senate Majority Leader Thune announced the vote.

“The poison pill that will gut mail voting that has failed six times…” Schumer said.

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The Easy Money Fairy Tale Is About To End…Violently

For the better part of the last couple years, I have wondered whether financial markets are permanently broken. Not simply overvalued or temporarily irrational, but actually broken at the mechanical level and permanently distorted. I’ve written about it.

The basic process that is supposed to make capitalism work goes like this. Capital flows toward good ole’ fashioned productive uses (like the George Foreman Grill™) and away from flashy hot-shit stupid ones (like the Apple Vision Pro). Good businesses eventually outperform bad ones. Fraud eventually gets exposed. Making money is the point of a business. Price is a rationing mechanism and is determined by free markets. This system appears to have been dead for the last 10 years, at least.

Nowadays, we function under a derivative of capitalism (hereinafter referred to as “crony capitalism snorting bath salts, operating under policies so disorganized they’d make a Jackson Pollock painting look like the blueprints for a nuclear reactor”) where trillions of dollars can be created overnight, governments and central banks focus obsessively on a handful of key numbers, and preserving the nominal value of stocks and other financial assets has become the priority.

Everything else in the economy is then forced to adjust accordingly, and if you don’t like it, or it causes the price of your Whopper Jr.™ to go to $57, f*ck you…that’s just how money works nowadays.

We’ve spent most of the last 20 years systematically removing consequences from the financial system. Rates went to zero and stayed there for years. The Fed expanded its balance sheet by trillions. Every major crisis was met with an intervention, liquidity facility, bailout or assurance that policymakers stood ready to keep the machine running. Capital was forced to become extraordinarily cheap, and investors eventually became conditioned to believe it would remain that way. We laughed off our country’s credit downgrades. Economists and analysts turned into total pussies and cowards, crumbling into bits every time the market sold off 5%. Financial projections have turned into Hunter Thompson-esque 3AM drug induced astral projections.

And we turned into the real life version of Idiocracy for markets.

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Regulators Find Their Situational Awareness: Fed, BoE Probe Bank Exposure To Jane Street After AI Fund Meltdown

Better late than never…

Nearly two months after Leopold Aschenbrenner’s Situational Awareness went from a $45 billion AI juggernaut to a Citadel block trade after it dumped its entire public book on Ken Griffen’s doorstep at a 10% discount and six weeks after we learned that Jane Street lost $15 billion in July, its first down month in a decade, central bankers on both sides of the Atlantic have noticed that something may have happened.

According to the FT, the Bank of England’s Prudential Regulation Authority and the Federal Reserve have “stepped up scrutiny” of banks’ exposure to large trading firms and market makers. They are asking global lenders how much they have lent to Jane Street and Ken Griffin’s Citadel Securities, and presumably also to such HFT money makers as Susquehanna and Hudson River Trading.

Regulators want to know three things: the firms’ risk appetite, how banks’ exposure to them “evolved during the day,” and how risk controls held up. That’s a polite way of asking whether anyone at the prime brokers was actually watching intraday margin as the AI trade fell apart in July.

While the PRA, the Fed and Jane Street all declined to comment, Jane’s silence is the least surprising. Its last public word on the subject came from partner Turner Batty, who told investors, in the understatement of the year, that “July was a bad month.”

A brief history of a very bad month

For anyone who missed it (i.e., all the regulators), here’s the recap.

Situational Awareness is the fund Aschenbrenner, a former OpenAI researcher, launched in 2024 under the name of his viral essay. It had eight employees and ran long AI infrastructure / short software, with about 4x leverage through Goldman total return swaps. We described that leverage as “batshit insane”, but it was also extremely profitable, if only to Goldman. In a separate piece, the FT today reported that Goldman earned more than $200 million in fees this year from lending to Situational Awareness, the most of any client in its prime brokerage business financing hedge funds. 

As long as the market was going, up it was a party: the extremely levered momentum-chasing fund was was up 439% net through June, reached $45 billion in AUM, and counted Jane Street among its investors.

Then July happened. AI stocks rolled over, software rallied, and both legs of the pair trade lost money at once. Nebius, Sandisk and SharonAI each fell roughly half, and SK Hynix dropped nearly 50%. As the margin calls came in, the fund went looking for fresh capital. It failed to find willing “widows and orphans” and so within days it had exited all of its public equity trades. Citadel bought the whole book in under 24 hours at about a 10% discount, beating Millennium and, fittingly, Jane Street. The fund ended the month down about 78%, with roughly $10 billion of private holdings left, including a large stake in Anthropic.

Griffin did well out of it. Citadel’s Wellington fund rose 5.94% in July, its best month since 2022, and about half of its year-to-date gains came from the Situational Awareness trade. Over the next three weeks, Citadel flipped more than 80% of Leopold’s portfolio to dumb money through roughly 100 block trades worth more than $4 billion. When Griffin later described the unwind, he thanked “the trading and prime brokerage teams at the banks serving both firms” for their “extraordinary cooperation.”

Regulators are now asking those same prime brokerage teams some questions of their own.

Jane Street was the collateral damage: on top of its direct stake in Situational Awareness, its own book, which tends to, cough, be just ahead of whale and retail orders, leaned into the same momentum names: Sandisk, Micron, CoreWeave, Broadcom, SMCI, Dell and Bloom Energy, all the names that defined the momentum trade trough July. And when the AI trade reversed, it lost $15 billion in a month. Most firms wouldn’t survive a hit like that. At Jane Street it barely dented the year: by early August the firm had generated $40 billion in net trading revenue, already more than its record $39.6 billion for all of 2025.

That is also what worries regulators. As the FT puts it, the size of the loss “indicated that Jane Street… appeared to take far more risk than a typical market maker.”

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Since 2025, Trump Made More Stock Trades Than All 535 Congress Members Combined

President Donald Trump made nearly 30,000 stock trades since his return to office, marking a far higher volume of trades than all 535 members of Congress combined, a new Bloomberg analysis finds.

Between his inauguration in January 2025 and the end of June, Trump and his team made nearly 28,700 trades, his financial disclosures show. That amounts to roughly 80 trades per market day for nearly a year and a half.

In that period, House lawmakers reported making 19,400 stock trades, while senators reported 2,900, for a total of 22,300 transactions. A few lawmakers were responsible for a large portion of the trades, like Rep. Ro Khanna (D-California), who reported 8,000 transactions in that time.

Trump’s trades have been a major boon for him, as the only modern president who’s ever disclosed trading individual stocks. Previous reports have found that Trump’s 2025 trades alone were worth as much as $1.8 billion, and his trades in the first three months of 2026 were worth as much as $750 million.

These trades have come as he’s driven policy for and outright publicized companies that he has bought stock in; a recent report by Democrats on Congress’s Joint Economic Committee found that Trump has made up to $15.5 million in profits on his oil and gas holdings as the companies’ stocks have risen due to his war on Iran.

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Nancy Pelosi Disclosed a Multi-Million Dollar AI Investment Just Weeks Before the Stock Blew Up

Former House Speaker Nancy Pelosi disclosed a multimillion-dollar investment last month in an artificial intelligence company whose stocks exploded in value soon after.

Pelosi’s husband Paul invested in Bloom Energy, a California-based company that provides fuel-cell technology and power systems aimed at meeting the enormous electricity demands of AI data centers.

According to a financial transaction report Pelosi signed Aug. 21, her household made several Bloom Energy purchases in late July.

The transactions included 10,000 shares purchased July 24, along with 100 call options, according to reporting from the New York Post. Another 5,000 shares and 100 additional call options were purchased July 28.

The disclosed value ranges put the combined transactions at a minimum of roughly $3 million, although the actual amount could have been as much as $12 million, because congressional financial disclosure forms use broad dollar ranges.

The July 24 purchases came after Bloom Energy’s stock had suffered a significant decline.

Then came July 28.

That was the same day Bloom Energy reported extremely strong earnings, with annual revenue growth of 165 percent, according to the Post.

Bloom Energy’s stock subsequently took off.

Then, on Sept. 4, another major development arrived: Bloom Energy was announced as a new addition to the S&P 500.

The company is scheduled to join the benchmark index Sept. 21, alongside Everpure and Illumina.

Bloom Energy shares surged following the announcement, with the stock gaining nearly 40 percent over a five-day period, according to the Post.

By Tuesday, Bloom Energy shares were trading around $282.50, compared with $184.89 on July 24, the day of the first Pelosi household purchase.

That’s a striking move in a matter of weeks.

And it makes the timing of the disclosure noteworthy.

Pelosi’s office has said the former speaker does not own stocks and had no knowledge of or subsequent involvement in the transactions.

The trades were made by her husband and reported through the congressional disclosure system as transactions involving a spouse.

In an article about the transactions, financial writer Rich Duprey of 24/7 Wall Street  dubbed Pelosi “the queen of capital gains.”

“Pelosi’s trading record in Congress has consistently outpaced the S&P 500 and even Warren Buffett over comparable stretches, fueling suspicion that lawmakers with committee-level oversight enjoy an informational edge,” Duprey observed.

The New York Post said Pelosi “has faced heated blowback for her family’s trading activity — racking up a 65% return on her portfolio in 2023 while her venture capitalist husband made $38 million worth of stock trades in the weeks leading up to President Trump’s inauguration.”

Duprey noted that multiple bills to ban stock trading by members of Congress have been introduced, but they’ve all stalled.

The Democratic former House Speaker’s trades have been so notable that in 2023, GOP Sen. Josh Hawley of Missouri introduced one such bill that he dubbed the Preventing Elected Leaders from Owning Securities and Investments Act – or the PELOSI Act.

Hawley later met with Democrats and agreed to change the name of the bill to the HONEST Act — Halting Ownership and Non-Ethical Stock Transactions — which allowed enough Democratic support to advance the bill out of committee in July 2025.

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Amazon Shares Tumble Amid News Of FTC ‘Advertiser Deception’ Lawsuit

The Federal Trade Commission (FTC) is about to drop a lawsuit on Amazon today alleging that the e-commerce platform manipulated prices paid by businesses to advertise on its retail platform, which made the company tens of billions of dollars over a seven-year period, WSJ reports, citing agency officials. 

According to the report:

The lawsuit, joined by a bipartisan group of more than 20 state attorneys general, will allege that Amazon deceived advertisers by secretly raising the minimum price advertisers had to pay to place ads promoting their products, FTC officials said.

The case, to be filed in a Seattle federal court, will become the consumer-protection agency’s third major case against Amazon, which agreed to pay $2.5 billion last year to settle an earlier suit alleging it tricked people into signing up for its Prime service and made it hard to cancel the subscription. Another lawsuit alleging that Amazon engaged in illegal monopolization is headed for trial next year. -WSJ

Amazon’s digital advertising platform is the third-largest in the world, behind Alphabet’s Google and Meta – earning $68 billion in ads in 2025, according to the report – which claims that advertisers suffered billions of dollars in harm by paying higher prices for ads. Some states may attempt to claw some of the money back. 

Shares shot sharply lower on the news.

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U.S. Military Veterans Appeal Directly to Trump to Help Uncover the MMTLP Financial Scandal

After Years of Regulatory Stonewalling, Veterans Are Taking Their Fight Straight to Their Commander in Chief

American military veterans caught in the unresolved MMTLP financial debacle are taking their fight directly to President Donald Trump.

MMTLP (Meta Materials Class A Preferred Stock) is a controversial security that was abruptly frozen by FINRA in December 2022, leaving thousands of retail investors unable to trade or exit their positions.

After more than three years of unanswered questions, regulatory roadblocks, and congressional inaction, affected veterans say they have exhausted the normal chain of command.

Now they are going to the top.

The President of the United States.

For these veterans, this is no longer simply a story about a stock ticker.

It is about trust.

It is about accountability.

And it is about whether the federal agencies responsible for protecting American investors are willing to show the public what really happened.

VETERANS FOLLOWED THE CHAIN OF COMMAND

Military veterans understand the chain of command.

When something goes wrong, you document it.

You report it.

You move it up the chain.

That is exactly what veterans inside the MMTLP community say they have done.

They contacted state securities regulators, Attorneys General, Congress and the SEC, and filed Freedom of Information Act requests. They asked for investigations, meetings and the records.

And after more than three years, they still do not believe they have received a full accounting of what happened.

The consequences have been real.

Veteran advocates say members of the broader MMTLP community have lost homes, retirement savings and marriages. They also report suicides among affected investors.

For veterans watching their fellow service members suffer, enough is enough.

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Trump Has Made Up to $15M in Oil and Gas Stock Rise Spurred in Part by Iran War

President Donald Trump’s deeply unpopular war on Iran has helped inject millions of dollars into his personal wealth while saddling everyday Americans with a $72 billion bill, a new report reveals.

Amid the war, oil and gas companies’ stocks have skyrocketed in value as companies report staggering earnings; ExxonMobil recently reported its profits doubling year-over-year, while Chevron’s net income has increased nearly 400 percent as a result of the disruptions to the global oil market. In all, oil and gas companies reported $125 billion in profits in the first half of 2026, with a corresponding jump in stock value across the fossil fuel industry.

As a result of that rise, Trump may have profited as much as $15.5 million, and netted at least $4.6 million, from his oil and gas holdings this year, Democrats on Congress’s Joint Economic Committee (JEC) found in a report this week. In all, his oil and gas holdings went from a maximum value of $45.5 million to as much as $61 million.

The analysis was based on stocks that Trump held at the end of 2025, including Exxon, Chevron, and seven other oil and gas companies. His profits may be even higher than the report suggests, as Trump bought additional oil and gas stocks in the first three months of 2026 worth up to $3.6 million. These were bought in a period when the U.S. seized control of Venezuela’s oil profits and launched a war on Iran that has sent oil prices sky-high.

Meanwhile, the rise in energy prices has cost Americans an additional $71.5 billion in gas prices at the pump, the Democrats found, or an average of over $600 a household. That’s before taking into account the hike in prices for things like groceries and other associated costs like increased mortgage rates caused by the war.

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Ro-lling in Dough: Khanna’s Personal Money Machine Kicked Into Overdrive in 2025, Trading $165 Million at Breakneck Pace, New Disclosures Show

Centimillionaire Rep. Ro Khanna (D., Calif.) seized on a banner year for the U.S. stock market in 2025, with the trusts owned by his wife and children trading at a breakneck pace all year. All told, Khanna, who estimated he was worth no more than $78 million when he entered Congress in 2017, now estimates he’s worth as much as $167 million.

Khanna and his family could actually be worth far more. He reported the value of 11 of his family’s assets as being worth more than $1 million with no disclosed ceiling, exemplifying how America’s ultra-rich families manage their money in such a way that congressional reporting requirements often fail to pierce the veil.

The left-wing California congressman—who posted a video on Wednesday saying “people are upset about the cost of living”—filed his 2025 financial disclosure late last week showing his family’s trusts made a staggering 5,402 trades during 244 of the 251 active trading days in 2025, a year in which the S&P 500 notched an above-average 17.9 percent return. In total, Khanna reported a total stock trading volume of up to $165.4 million, which included sales of upward of $70.6 million in stocks, options, ETFs, and hedge funds. It’s a substantial increase from his trading activity in 2024, when he logged 4,665 trades for a total trading volume of $137.2 million, including just shy of $50 million in securities sales.

Khanna filed the disclosure as he crisscrosses the nation advocating for “taxing the billionaires,” as he put it in his Wednesday video. In California—where Khanna represents the country’s wealthiest congressional district—the congressman is backing a statewide ballot initiative to impose a 5 percent wealth tax on billionaires.

Data compiled by the website Rokhanna.Money, which recently digitized the nearly 150 analogue financial disclosure filings Khanna has filed since taking office, lay out the staggering increases in the nine years since Khanna entered Congress on a salary of $174,000. That year, Khanna’s reported net worth ranged between $29 million and $78 million. By the end of 2025, that figure was eclipsed, reaching somewhere between $69 million and $167 million.

Almost all of Khanna’s wealth comes from his in-laws in Ohio who made a fortune in auto parts. The Khanna fortune sits in trusts controlled by Khanna’s father-in-law, Monte Ahuja, that benefit his wife and two children. The trusts include some so-called irrevocable trusts that could shield them from future inheritance taxes.

Khanna insists he has “zero say” and “zero knowledge” of the trades made in his family’s trusts, which he said were set up by Ahuja and are professionally managed. Khanna has criticized members of Congress who trade stocks while in office, claiming they are causing a “crisis of confidence right now in our democracy.”

Members of Congress report their assets in wide valuation ranges, making it impossible to determine Khanna’s exact net worth. At first glance, the numbers suggest Khanna’s net worth dropped in 2025. He reported that the value of his assets ranged from $99 million to $315 million in 2024, whereas in 2025 his assets clocked in at somewhere between $69 million and $167 million.

But 2025 marked another year of exemplary growth in the U.S. stock market, and the wide range of Khanna’s reported assets in both 2024 and 2025 leaves open the likely possibility that his family’s professionally managed fortune grew substantially during the year.

Khanna’s salary has been frozen at $174,000 for years (the House has not given its members a raise since 2008) and his wife, Ritu Ahuja Khanna, is not believed to have had a job beyond board memberships and volunteering for many years. But the Khannas earned up to $10.8 million in dividends and business distributions from their investments in 2025, according to the congressman’s latest disclosure. It’s a staggering amount of purely passive income, suggesting that the Khannas enjoy generational wealth.

The wealth Khanna has accumulated while in office has enabled him to live the sort of oligarchic lifestyle he denounces on the campaign trail. His two young children, for example, are the beneficiaries of trusts that own large ownership shares in three private golf clubs in Ohio where membership initiation fees run upward of $45,000, the Washington Free Beacon reported. As they have in previous years, those golf courses delivered upward of $2 million in unearned income for Khanna’s children in 2025, according to his financial disclosure. Khanna’s children also own a significant stake in a $65 billion wealth management firm as well as investments in hedge funds that focus on distressed debt, of which Khanna has been critical.

Meanwhile, Khanna is in the process of selling his $6 million, 8,000-square-foot luxury Washington, D.C., home equipped with a four-story elevator and two laundry rooms with marble countertops as his family is set to move into an even larger, more expensive custom-built house a few miles away in Northern Virginia, the Free Beacon reported. Ahuja Khanna purchased a luxury Range Rover SUV in October 2024 for $190,000 (which exceeds Khanna’s entire annual salary). Ahuja Khanna alleged in a lawsuit filed in federal court within a year of purchasing the vehicle that it was a lemon. Court records show she settled with Jaguar Land Rover of North America for an undisclosed sum in October.

As his family prepares for their move to a $9 million house in Virginia, Khanna has been pushing hard for the California billionaires’ tax. Khanna proposed on Saturday that California billionaires who are cash poor should be allowed to pay their California wealth tax by pledging shares of their companies to the state government for a period of 10 years, at the end of which the government seizes control of the shares if the loan isn’t repaid in full.

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Raskin Launches Probe of Scheme to Sell Insider Access to Trump Truth Social Posts

“Are you helping the president sell people advance access to market-moving information?”

That’s the opening line of a Thursday letter that US House Judiciary Committee Ranking Member Jamie Raskin (D-Md.) sent to Kevin McGurn, interim CEO of President Donald Trump’s Trump Media & Technology Group (TMTG) Corp.

TMTG runs Trump’s Truth Social platform and earlier this month announced plans to launch “Truth API” by August 1. API, or application programming interface, lets software applications talk to each other. Critics have warned that the new endeavor will give Wall Street firms faster access to posts by the president and other top accounts.

“Trump Media’s target market for buyers of this service is ‘high-frequency and algorithmic trading firms,’ which would each pay a
handsome $100,000 monthly subscription fee,” Raskin wrote. “Nearly half of each fee would go directly into the pocket of Donald Trump, who owns roughly 41% of the company’s shares through a trust that he continues to control.”

“Put another way, Trump Media will soon be selling early access to President Trump’s so-called ‘Truth’ missives to the most sophisticated investment firms in the world,” he stressed. “This insider-information scheme will enable Wall Street to profit from the president’s frequent market-moving posts on major businesses and cash in on swings in stock prices caused by the president’s buying and selling (or pumping and dumping, if you prefer) of publicly traded stocks to unwitting retail investors.”

As Investopedia pointed out Thursday: “In recent months Trump has posted about new developments in the Iran War, which is particularly important for buyers and sellers of futures contracts who are trying to ascertain where oil prices are headed. Over the past year, he has also posted about tariff policy, government investments in publicly traded companies, and other corporate news developments.”

Additionally, as Raskin highlighted, “Trump has promoted over 20 companies on his Truth Social account shortly after purchasing the companies’ stocks, including government contractors where the Trump administration exerted substantial ability to move markets in those companies’ favor. Donald Trump Jr.’s investment firm, 1789 Capital, has posted a staggering 200% investment return since his father’s return to the White House, with the president recently admitting that his oldest sons are coventurers in his corruption.”

Once the new service is up and running, “whenever President Trump uses Truth Social to announce that a ceasefire is imminent, or prematurely leaks US jobs data, his customers will now be able to front-run the market using their privileged access to his social media posts, leaving retail investors, pension plans, and retirement accounts irreparably disadvantaged,” he warned. “This is precisely the type of harm that federal securities laws are designed to prevent.”

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