U.S. politicians have proved to be one of the most prolific stock traders, as their trades usually stem from insider information that is not available to the public, or they hold positions of power that could potentially influence the performance of specific companies.
However, there are instances of double insider trades, where an insider holds both positions, such as Representative Robert Latta’s wife, Marcia Latta, who is married to a U.S. politician and serves as a member of a board in Farmer’s & Merchants Bank (NASDAQ: FMAO), whose stock she bought.
Namely, on June 6, she bought around $50,000 worth of FMAO stock at an average price of $20.47 per share, whose value has risen 36.83% since the trade.
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Her holding is now worth $68,472, for approximately $18,472 profit from the initial investment.
Latta is a frequent investor in FMAO stock
According to data from a U.S. politician stock trade tracker, Latta and his wife have made numerous purchases and dividend reinvestments in FMAO stock since 2020.
Interestingly, this is the only stock the Representative and his wife have traded since he assumed office. Overall, they purchased over $185,000 worth of FMAO stock over the course of four years.
Since then, Latta’s haven’t offloaded their holdings once, even with most trades being negative, due to FMAO shares losing over 30% in value since 2022.
Democrats pushed for a vote for a stock trade ban before the U.S. presidential elections
Senate Democrats are advancing a bipartisan bill to ban stock trading for lawmakers, targeting a vote before the November election. This move is significant because banning congressional stock trading is a highly popular proposal among American voters.
The issue is politically sensitive, with some members opposing the ban. Despite this, Democrats remain hopeful, with Senator Jeff Merkley, a sponsor of the bill, aiming to force a vote through amendments. Senator Jon Ossoff supports a swift vote, while Senator Gary Peters advocates a step-by-step approach.
The bill would immediately ban stock trading by members of Congress, with penalties for violations and a future ban for spouses and dependents starting in March 2027. The legislative calendar limits opportunities for a standalone vote, so the measure may need to be attached to essential legislation like the National Defense Authorization Act.
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