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Loeffler’s Wealth Becomes a Risk as Rivals Charge She Profited on the Coronavirus Loeffler’s Wealth Becomes a Risk as Rivals Charge She Profited on the Coronavirus
(2 days later)
WASHINGTON — When Georgia’s governor picked Kelly Loeffler, a little-known Atlanta businesswoman, to fill the state’s vacant Senate seat late last year, her vast personal wealth and ability to fund her own campaign were top selling points for Republicans.WASHINGTON — When Georgia’s governor picked Kelly Loeffler, a little-known Atlanta businesswoman, to fill the state’s vacant Senate seat late last year, her vast personal wealth and ability to fund her own campaign were top selling points for Republicans.
Ms. Loeffler, whose husband runs the New York Stock Exchange, pledged to put $20 million of her own fortune toward holding onto the seat in a special election this November. She bought a private plane to fly to and from Washington. And she blanketed televisions with ads highlighting her American-dream-style rise from a humble family farm to the pinnacle of high finance.Ms. Loeffler, whose husband runs the New York Stock Exchange, pledged to put $20 million of her own fortune toward holding onto the seat in a special election this November. She bought a private plane to fly to and from Washington. And she blanketed televisions with ads highlighting her American-dream-style rise from a humble family farm to the pinnacle of high finance.
Now, amid an economic crisis brought on by the coronavirus pandemic, Ms. Loeffler’s wealth is threatening to become a major political liability. She is facing questions about whether, in actively trading millions of dollars in stocks over the past couple of months, she and her husband have profited off the crisis based on information she received through her position as a senator.Now, amid an economic crisis brought on by the coronavirus pandemic, Ms. Loeffler’s wealth is threatening to become a major political liability. She is facing questions about whether, in actively trading millions of dollars in stocks over the past couple of months, she and her husband have profited off the crisis based on information she received through her position as a senator.
Ms. Loeffler, who adamantly denies wrongdoing, is one of several senators whose investments have come under scrutiny in recent days. The Securities and Exchange Commission and the F.B.I. are investigating the decision by Senator Richard M. Burr, Republican of North Carolina, to liquidate most of his portfolio in mid-February before the markets collapsed, a review that a person familiar with it said would most likely include multiple other lawmakers.Ms. Loeffler, who adamantly denies wrongdoing, is one of several senators whose investments have come under scrutiny in recent days. The Securities and Exchange Commission and the F.B.I. are investigating the decision by Senator Richard M. Burr, Republican of North Carolina, to liquidate most of his portfolio in mid-February before the markets collapsed, a review that a person familiar with it said would most likely include multiple other lawmakers.
But Mr. Burr is retiring. The fallout for Ms. Loeffler, a political newcomer up for election in just seven months, is potentially much more damaging. She faces a formidable challenge not only from Georgia’s resurgent Democrats but also from Representative Doug Collins, a Republican and vocal defender of President Trump who has refused to drop out of the race despite pleas from party leaders.But Mr. Burr is retiring. The fallout for Ms. Loeffler, a political newcomer up for election in just seven months, is potentially much more damaging. She faces a formidable challenge not only from Georgia’s resurgent Democrats but also from Representative Doug Collins, a Republican and vocal defender of President Trump who has refused to drop out of the race despite pleas from party leaders.
Democrats and Mr. Collins are both working to try to transform what just months ago promised to be one of Ms. Loeffler’s strongest political assets — her financial acumen — into a fatal flaw.Democrats and Mr. Collins are both working to try to transform what just months ago promised to be one of Ms. Loeffler’s strongest political assets — her financial acumen — into a fatal flaw.
“There are a lot of people angry at a person who has possibly used nonpublic information to benefit themselves personally while telling Georgians it was all going to be OK,” Mr. Collins said in an interview on Wednesday, referring to public statements Ms. Loeffler made weeks ago playing down the threat of the virus.“There are a lot of people angry at a person who has possibly used nonpublic information to benefit themselves personally while telling Georgians it was all going to be OK,” Mr. Collins said in an interview on Wednesday, referring to public statements Ms. Loeffler made weeks ago playing down the threat of the virus.
A former financial executive, Ms. Loeffler, 49, calls the charges preposterous, particularly for someone schooled in insider trading laws. Her investments, like her husband’s, are handled by outside financial advisers, she has said, and those advisers alerted her about the transactions in question only well after they were made.A former financial executive, Ms. Loeffler, 49, calls the charges preposterous, particularly for someone schooled in insider trading laws. Her investments, like her husband’s, are handled by outside financial advisers, she has said, and those advisers alerted her about the transactions in question only well after they were made.
“These accounts are managed by third-party entities,” Ryan Mahoney, a spokesman for Ms. Loeffler’s campaign, said Wednesday. “She doesn’t have any oversight, she doesn’t have any discretion. These are simply attacks during a very difficult time in America and in Georgia.”“These accounts are managed by third-party entities,” Ryan Mahoney, a spokesman for Ms. Loeffler’s campaign, said Wednesday. “She doesn’t have any oversight, she doesn’t have any discretion. These are simply attacks during a very difficult time in America and in Georgia.”
The controversy stems from millions of dollars worth of trades made in the name of Ms. Loeffler and her husband in late January after she attended a private, senators-only briefing on the virus with top government health officials. At that time, as the disease was raging in China, few Americans realized its potential to become a pandemic.The controversy stems from millions of dollars worth of trades made in the name of Ms. Loeffler and her husband in late January after she attended a private, senators-only briefing on the virus with top government health officials. At that time, as the disease was raging in China, few Americans realized its potential to become a pandemic.
The stocks sold, including Exxon Mobil, Ross Stores and AutoZone, later lost a significant amount of value, prompting accusations of insider dealing by critics who argued that the timing of the transactions could not be a mere coincidence. But there is no evidence that senators received any significant nonpublic information in the briefing.The stocks sold, including Exxon Mobil, Ross Stores and AutoZone, later lost a significant amount of value, prompting accusations of insider dealing by critics who argued that the timing of the transactions could not be a mere coincidence. But there is no evidence that senators received any significant nonpublic information in the briefing.
New public disclosure forms filed with the Senate late Tuesday showed that stocks worth millions of dollars owned by Ms. Loeffler and her husband continued to be actively traded in February and early March, as the markets began to sharply decline. In some cases, the couple saved money they might have otherwise lost by selling, but in aggregate the trades do not appear to have made a substantial impact on their net worth, which exceeds $500 million.New public disclosure forms filed with the Senate late Tuesday showed that stocks worth millions of dollars owned by Ms. Loeffler and her husband continued to be actively traded in February and early March, as the markets began to sharply decline. In some cases, the couple saved money they might have otherwise lost by selling, but in aggregate the trades do not appear to have made a substantial impact on their net worth, which exceeds $500 million.
Ms. Loeffler is married to Jeffrey Sprecher, the founder and chief executive of Intercontinental Exchange, or ICE, a publicly traded company whose crown jewel is the New York Stock Exchange. Ms. Loeffler was the chief executive of Bakkt, an ICE subsidiary, before accepting the Senate post. She is also the co-owner of Atlanta’s W.N.B.A. team, the Dream.Ms. Loeffler is married to Jeffrey Sprecher, the founder and chief executive of Intercontinental Exchange, or ICE, a publicly traded company whose crown jewel is the New York Stock Exchange. Ms. Loeffler was the chief executive of Bakkt, an ICE subsidiary, before accepting the Senate post. She is also the co-owner of Atlanta’s W.N.B.A. team, the Dream.
The legal risk to Ms. Loeffler is probably low, and there is not yet any evidence that she is under federal scrutiny like Mr. Burr. The Stock Act makes it illegal for members of Congress to trade on nonpublic information they encounter in their work. But no one has ever been prosecuted under the law, and if it is as Ms. Loeffler describes, her financial arrangement would insulate her from charges, experts said.The legal risk to Ms. Loeffler is probably low, and there is not yet any evidence that she is under federal scrutiny like Mr. Burr. The Stock Act makes it illegal for members of Congress to trade on nonpublic information they encounter in their work. But no one has ever been prosecuted under the law, and if it is as Ms. Loeffler describes, her financial arrangement would insulate her from charges, experts said.
Still, questions about her investments could do lasting political harm to Ms. Loeffler at a time when many Americans are on edge and concerned about the devastating financial toll the crisis has taken on them.Still, questions about her investments could do lasting political harm to Ms. Loeffler at a time when many Americans are on edge and concerned about the devastating financial toll the crisis has taken on them.
“She may not have any kind of legal problems, but it does indicate she comes from a very different world than 99.99 percent of Georgians,” said Charles S. Bullock III, a political-science professor at the University of Georgia.“She may not have any kind of legal problems, but it does indicate she comes from a very different world than 99.99 percent of Georgians,” said Charles S. Bullock III, a political-science professor at the University of Georgia.
Mr. Bullock said the stock trades — particularly if they become an explicit target of a federal investigation — could “plant the seed of doubt in some voters’ mind: Can a person who is this wealthy represent your concerns, as, say, a family that has lost its job because of this pandemic?”Mr. Bullock said the stock trades — particularly if they become an explicit target of a federal investigation — could “plant the seed of doubt in some voters’ mind: Can a person who is this wealthy represent your concerns, as, say, a family that has lost its job because of this pandemic?”
Even before the virus began ravaging the United States, Mr. Collins had been trying to use Ms. Loeffler’s wealth against her, putting together hard-edge digital ads making light of her expensive clothing and private plane to paint her as out of touch with ordinary people.Even before the virus began ravaging the United States, Mr. Collins had been trying to use Ms. Loeffler’s wealth against her, putting together hard-edge digital ads making light of her expensive clothing and private plane to paint her as out of touch with ordinary people.
Updated June 2, 2020 Updated June 5, 2020
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
“From the public perspective, people require us, rightly or wrongly, to look after their interest, not our own,” Mr. Collins said on Wednesday.“From the public perspective, people require us, rightly or wrongly, to look after their interest, not our own,” Mr. Collins said on Wednesday.
Democrats, who see the seat as a potential pickup opportunity at a time when their party is making gains in the state, have made an aggressive push to capitalize on the sales, as well. American Bridge, a liberal super PAC, cut a digital ad tagging Ms. Loeffler as “Crooked Kelly.”Democrats, who see the seat as a potential pickup opportunity at a time when their party is making gains in the state, have made an aggressive push to capitalize on the sales, as well. American Bridge, a liberal super PAC, cut a digital ad tagging Ms. Loeffler as “Crooked Kelly.”
“Georgia hospitals are at their breaking point and Georgians are losing their jobs, their businesses and their retirement savings, yet apparently all Senator Loeffler could think about was her stock portfolio,” said Helen Kalla, a spokeswoman for Senate Democrats’ campaign arm.“Georgia hospitals are at their breaking point and Georgians are losing their jobs, their businesses and their retirement savings, yet apparently all Senator Loeffler could think about was her stock portfolio,” said Helen Kalla, a spokeswoman for Senate Democrats’ campaign arm.
Polling commissioned by Mr. Collins’s campaign shows a sharp uptick in those viewing Ms. Loeffler unfavorably in the days after initial reports in March about her January stock sales, though there have not been public surveys that confirm the findings.Polling commissioned by Mr. Collins’s campaign shows a sharp uptick in those viewing Ms. Loeffler unfavorably in the days after initial reports in March about her January stock sales, though there have not been public surveys that confirm the findings.
Republicans involved in the race played down the long-term political risk to Ms. Loeffler. They pointed out that Republican voters had eagerly embraced Mr. Trump’s wealth, despite the complications it had created, and argued that as long as Ms. Loeffler continued to explain her unusual financial arrangements, they would not punish her either.Republicans involved in the race played down the long-term political risk to Ms. Loeffler. They pointed out that Republican voters had eagerly embraced Mr. Trump’s wealth, despite the complications it had created, and argued that as long as Ms. Loeffler continued to explain her unusual financial arrangements, they would not punish her either.
Ms. Loeffler’s allies have tried to turn the attacks on her against her rivals. Jesse Hunt, a spokesman for Senate Republicans’ campaign arm, said on Wednesday that Democrats were spreading “false attacks” based on shoddy journalism. He took aim at Mr. Collins, as well.Ms. Loeffler’s allies have tried to turn the attacks on her against her rivals. Jesse Hunt, a spokesman for Senate Republicans’ campaign arm, said on Wednesday that Democrats were spreading “false attacks” based on shoddy journalism. He took aim at Mr. Collins, as well.
“What’s shocking is there’s a so-called Republican perpetuating liberal lies against another Republican during a global pandemic because his feelings are permanently hurt,” he said.“What’s shocking is there’s a so-called Republican perpetuating liberal lies against another Republican during a global pandemic because his feelings are permanently hurt,” he said.
Katie Benner contributed reporting.Katie Benner contributed reporting.