Friday, January 13, 2017

Why Tom Price Shouldn't Be Confirmed

I think the best way to begin this is to quote the summary from the Daily Beast article on this issue:
Tom Price and another influential GOP congressman got a discounted deal on stock from an Australian firm seeking FDA approval for its new drug.
First of all, in most countries insider trading is illegal (although how long that will last under a President Trump is an interesting question).  But this isn't really insider trading.  Mr. Price and the other Representative, Chris Collins of New York, were approached by the Aussie company, and offered shares of their company (trading then as a penny stock), at a discounted price.

Does this smell like bribery to you?  It does to me, especially because the stock isn't public - it's traded privately to "sophisticated U.S. investors."

It smells even more like bribery when you consider that  the company, Innate Immuno, has a new multiple sclerosis drug that they want to market in the U.S. because they can charge a lot more for it here.  Messrs. Price and Collins both sit on key committees that regulate health, and Mr. Price is nominated to Secretary of Health and Human Services, which regulates the Food and Drug Administration.  The FDA will - or won't - approve the new drug for American sale.

Astoundingly, this investment isn't actually illegal for a Congresscritter (thank you, Jim Hightower).  Richard Painter, George W. Bush's ethics lawyer, notes that "“There is an appearance problem… to have members of Congress buying and selling stocks that are affected by the work of the committees they sit on."  The rules are "a lot stricter" in the Executive Branch, and Mr. Price has already agreed to divest all his stocks.  Which is nice for him, as his stake in Innate Immuno will probably yield him between half a million and a million dollars, on a basic stake between $50,000 and $100,000.

I've been working in the financial industry, and watching the market, for most of my adult working life.  As far as I'm concerned, the mere fact that we can discuss this issue means that Mr. Price is ethically disqualified to serve in Congress, much less to head Health and Human Services. You can make your own decision.  If you agree with me, call your senators.

Oh, and now we know why the Republicans' first act when they convened "in private" was to try to eliminate the Office of Congressional Ethics.

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