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Under Fire for Trades, Kelly Loeffler Says She Will Divest From Individual Stocks Under Fire for Trades, Kelly Loeffler Says She Will Divest From Individual Stocks
(2 months later)
WASHINGTON — Seeking to move past allegations that she has tried to profit from the coronavirus crisis, Senator Kelly Loeffler, Republican of Georgia, announced on Wednesday that she and her husband would divest from all individual stocks and move their money into mutual and exchange-traded funds.WASHINGTON — Seeking to move past allegations that she has tried to profit from the coronavirus crisis, Senator Kelly Loeffler, Republican of Georgia, announced on Wednesday that she and her husband would divest from all individual stocks and move their money into mutual and exchange-traded funds.
Ms. Loeffler, a freshman senator who was already in a competitive race to keep her seat, has faced weeks of attacks from her rivals in both parties and scrutiny from the news media over millions of dollars’ worth of stock trades her portfolio made just before the coronavirus pandemic roiled the financial markets. Her critics questioned whether Ms. Loeffler — and a handful of other lawmakers who actively traded stocks during the same period — had used nonpublic information they received from their jobs as senators to make money or avoid financial losses suffered by other investors as the pandemic spread.Ms. Loeffler, a freshman senator who was already in a competitive race to keep her seat, has faced weeks of attacks from her rivals in both parties and scrutiny from the news media over millions of dollars’ worth of stock trades her portfolio made just before the coronavirus pandemic roiled the financial markets. Her critics questioned whether Ms. Loeffler — and a handful of other lawmakers who actively traded stocks during the same period — had used nonpublic information they received from their jobs as senators to make money or avoid financial losses suffered by other investors as the pandemic spread.
Ms. Loeffler adamantly denied that again on Wednesday, insisting that she had done nothing wrong, legally or ethically. The stock trades were all made by outside financial advisers at Morgan Stanley, Goldman Sachs, Sepio Capital and Wells Fargo, who independently manage her investments “without our input, direction or knowledge,” she said. Ms. Loeffler added that she was not privy to any meaningful nonpublic information about the virus because of her job in the Senate.Ms. Loeffler adamantly denied that again on Wednesday, insisting that she had done nothing wrong, legally or ethically. The stock trades were all made by outside financial advisers at Morgan Stanley, Goldman Sachs, Sepio Capital and Wells Fargo, who independently manage her investments “without our input, direction or knowledge,” she said. Ms. Loeffler added that she was not privy to any meaningful nonpublic information about the virus because of her job in the Senate.
Still, the decision underscored how Ms. Loeffler’s vast wealth, once thought to be an asset for her campaign, had become a political distraction and a potential liability as she seeks to hold her Senate seat this fall against Democratic and Republican challengers. A former businesswoman with no political experience, Ms. Loeffler was appointed to fill Georgia’s vacant Senate seat late last year and pledged to put at least $20 million into her own campaign.Still, the decision underscored how Ms. Loeffler’s vast wealth, once thought to be an asset for her campaign, had become a political distraction and a potential liability as she seeks to hold her Senate seat this fall against Democratic and Republican challengers. A former businesswoman with no political experience, Ms. Loeffler was appointed to fill Georgia’s vacant Senate seat late last year and pledged to put at least $20 million into her own campaign.
“I’m doing this because this transparency is being abused for political gain, and the steps I’ve taken to distance myself from these accounts are being ignored,” she said. “I left the private sector to serve the people of Georgia, not make a profit.”“I’m doing this because this transparency is being abused for political gain, and the steps I’ve taken to distance myself from these accounts are being ignored,” she said. “I left the private sector to serve the people of Georgia, not make a profit.”
Unlike stocks, which represent ownership slices of individual companies, mutual funds and exchange-traded funds are buckets of individual assets — filled up with stocks or bonds — that gain or lose value based on the aggregate value of what is in the bucket. By moving money from stocks to such investments, Ms. Loeffler can insulate herself more easily from the appearance that she may be buying and selling individual stocks based on information about specific businesses or the environment in which they operate.Unlike stocks, which represent ownership slices of individual companies, mutual funds and exchange-traded funds are buckets of individual assets — filled up with stocks or bonds — that gain or lose value based on the aggregate value of what is in the bucket. By moving money from stocks to such investments, Ms. Loeffler can insulate herself more easily from the appearance that she may be buying and selling individual stocks based on information about specific businesses or the environment in which they operate.
Though they have drawn the bulk of public attention, individual stocks represent only about 5 percent of Ms. Loeffler’s vast wealth, according to people familiar with her finances, even though her husband, Jeffrey Sprecher, founded the firm that owns the New York Stock Exchange. The pair is estimated to be worth more than $500 million.Though they have drawn the bulk of public attention, individual stocks represent only about 5 percent of Ms. Loeffler’s vast wealth, according to people familiar with her finances, even though her husband, Jeffrey Sprecher, founded the firm that owns the New York Stock Exchange. The pair is estimated to be worth more than $500 million.
Ms. Loeffler said the same outside financial firms would handle the stock sales and fund purchases. The sales are expected to be completed by the end of the week, Ms. Loeffler said, and she plans to report the transactions in Senate filings this month.Ms. Loeffler said the same outside financial firms would handle the stock sales and fund purchases. The sales are expected to be completed by the end of the week, Ms. Loeffler said, and she plans to report the transactions in Senate filings this month.
Ms. Loeffler is not the only senator whose financial transactions in January and February have drawn scrutiny. The Securities and Exchange Commission and the Justice Department are reviewing sales made in February by another Republican, Senator Richard M. Burr of North Carolina, who is the chairman of the Intelligence Committee, and could expand the inquiry to other lawmakers. Unlike other senators, Mr. Burr has not denied that he sold off a large portion of his holdings out of fears of the coronavirus, but he insists that he did so legally, based only on public information.Ms. Loeffler is not the only senator whose financial transactions in January and February have drawn scrutiny. The Securities and Exchange Commission and the Justice Department are reviewing sales made in February by another Republican, Senator Richard M. Burr of North Carolina, who is the chairman of the Intelligence Committee, and could expand the inquiry to other lawmakers. Unlike other senators, Mr. Burr has not denied that he sold off a large portion of his holdings out of fears of the coronavirus, but he insists that he did so legally, based only on public information.
Under the Stock Act, it is illegal for lawmakers or their staff aides to make investment decisions based on nonpublic information they receive in the course of their work. Trades based on publicly available information are considered fine.Under the Stock Act, it is illegal for lawmakers or their staff aides to make investment decisions based on nonpublic information they receive in the course of their work. Trades based on publicly available information are considered fine.
Experts say Ms. Loeffler’s problems are probably more political than legal given the state of her race to maintain the Senate seat this fall.Experts say Ms. Loeffler’s problems are probably more political than legal given the state of her race to maintain the Senate seat this fall.
Polling commissioned by Representative Doug Collins, a fellow Republican challenging Ms. Loeffler, indicated that weeks of headlines over the stock trades had rapidly worn away at her public image. The most recent survey, conducted last week, showed Ms. Loeffler in third place, behind Mr. Collins and a leading Democratic candidate, the Rev. Dr. Raphael G. Warnock. There have not been recent public surveys to confirm the findings.Polling commissioned by Representative Doug Collins, a fellow Republican challenging Ms. Loeffler, indicated that weeks of headlines over the stock trades had rapidly worn away at her public image. The most recent survey, conducted last week, showed Ms. Loeffler in third place, behind Mr. Collins and a leading Democratic candidate, the Rev. Dr. Raphael G. Warnock. There have not been recent public surveys to confirm the findings.
Despite Ms. Loeffler’s admonition, her opponents continued to pile on Wednesday, questioning why she would not put all of her assets into a blind trust to eliminate any doubt about the propriety of her family’s investments.Despite Ms. Loeffler’s admonition, her opponents continued to pile on Wednesday, questioning why she would not put all of her assets into a blind trust to eliminate any doubt about the propriety of her family’s investments.
Updated June 5, 2020
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
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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.
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.
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.)
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.
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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.
Dan McLagan, a spokesman for Mr. Collins, compared Ms. Loeffler’s decision to a guilty plea and said the senator was “less credible than the Chinese government,” which has been accused of hiding the full extent of the coronavirus’s impact on their country.Dan McLagan, a spokesman for Mr. Collins, compared Ms. Loeffler’s decision to a guilty plea and said the senator was “less credible than the Chinese government,” which has been accused of hiding the full extent of the coronavirus’s impact on their country.
“Same advisers, different funds and no blind trust?” he said. “We’re not buying it.”“Same advisers, different funds and no blind trust?” he said. “We’re not buying it.”
Helen Kalla, a spokeswoman for Senate Democrats’ campaign arm, said the damage had been done to public trust in Ms. Loeffler.Helen Kalla, a spokeswoman for Senate Democrats’ campaign arm, said the damage had been done to public trust in Ms. Loeffler.
“Senator Loeffler is an unelected political megadonor who was appointed through a corrupt process, and her short tenure raised ethical questions even before this stock scandal,” she said.“Senator Loeffler is an unelected political megadonor who was appointed through a corrupt process, and her short tenure raised ethical questions even before this stock scandal,” she said.