When Sen. Dianne Feinstein grilled Facebook CEO Mark Zuckerberg in April, she failed to disclose that her husband had just purchased nearly a quarter of a million dollars worth of Facebook stock. It’s very interesting that the gun-grabbing Democrat “forgot” to “disclose” a major investment her spouse made into the company she was supposed to be questioning at a congressional hearing. Now, it makes sense why she didn’t ask any tough questions.
According to Mercury News, Feinstein’s husband, Richard Blum, bought between $100,000 and $250,000 of the social network’s shares when his wife was questioning the company chief on abuses of user information and other potential violations.
A 2012 law also suggests Feinstein may have broken the law by not making such a disclosure, and there are serious questions about why she chose not to reveal her connection to the company.
On April 10, Zuckerberg appeared before Congress to discuss a variety of issues, ranging from Facebook spying on users to the company selling private information to third parties for profit.
The hearing, by all accounts, exposed many of the dark secrets of Facebook, which also had a big impact on the company’s bottom line, stocks, futures, and investments. The evidence is still being released.
In fact, three members of Congress disclosed before the hearing that either they or a member of their family had purchased stocks in the social media company.
Feinstein did not disclose that her husband had purchased up to $250,000 in stocks before the hearing, and something that may be a direct violation of the law based on when the stocks were purchased.
The Democrat’s office has since released a statement claiming the Senator never speaks about her husband’s financial transactions, which is a pathetic excuse and complete deflection.
Here’s Feinstein’s statement:
“The transaction was made by the senator’s spouse and was marked as such in the filing. It wasn’t made by the senator and she has no ownership or control over it. The senator doesn’t discuss any of her husband’s business or financial decisions with him, so it in no way affected the hearing. All of the senator’s assets are in a blind trust, which was put in place when she joined the Senate. The transaction should have been reported earlier in the year, and a report was filed once the mistake was discovered.”
Blum’s Facebook share ownership became public on May 22, nearly a month and a half after Zuckerberg’s testimony before the Senate.
Under the Stop Trading on Congressional Knowledge Act, all members of Congress are required to disclose their stock ownership of a company.
The law requires members of Congress to make stock disclosures within 45 days of the transaction.
Now, it would appear that Feinstein may have barely complied with the law, but it raises a host of new questions about what else she may not have disclosed and why she kept it a secret.
She didn’t ask Zuckerberg a single tough question, and now we know why. She should be forced to answer for why she failed to disclose such pertinent information.