Conspiracy in Trumpworld? Market manipulation claims fly
The stock market soared and the president's opponents alleged an insider trading conspiracy as the billions of dollars in gains piled up for those who saw it coming.
Now, a former White House ethics expert has called on Trump's inner circle to be barred from buying and selling shares while the trade war rages on.
'Until this whole tariff thing is sorted out, anyone who is an appointee of the president should not be buying and selling stocks,' says Richard Painter, formerly George W Bush's chief ethics lawyer.
'Elon Musk, anyone who is an appointee of the president, should abstain from trading.'
In a pointed critique of Trump's tendency to rule by social media, Painter said he would have 'had a fit' if he were working for a president who talked so publicly about buying and selling stocks.
It comes after Trump wrote 'THIS IS A GREAT TIME TO BUY' on his Truth Social website just hours before his tariff climbdown led to the S&P 500 posting its biggest jump since 2008.
'I made it clear in the Bush White House that this kind of thing couldn't happen,' says Painter. 'We're not investment advisers.'
He has called on Trump to issue an executive order to block any of his aides from trading, while also stressing that there should be 'no more talking about the market'.
Although there is no evidence that anyone close to Trump has acted on inside information, anger is building.
Nasdaq call volumes spiked in the hour before Trump unveiled his turnaround, as traders bought the right to purchase shares at a certain price.
Unusual Whales, a research firm that tracks market data, said that some of the trades were what is known as 'zero DTEs', meaning zero days to expiration.
An analyst at the firm said: 'These options, as the name implies, expire the same day as purchase, making them much riskier than farther-dated options. The sharp increase in equities [last night] created exponential gains for those correctly positioned.'
And for every dollar gained, someone else lost out.
'Did anyone buy or sell stocks, and profit at the public's expense?' said Adam Schiff, a Democrat senator in California, on social media, as he called for an urgent investigation into potential insider trading.
Following Wednesday's swing in the markets, traders around the world said they had never seen anything like it.
Peter Hargreaves, the billionaire co-founder of Hargreaves Lansdown, said the recent turmoil caused by Trump's tariffs was 'in a different league' to what he had experienced before.
It was only a week ago that the world's 500 wealthiest people saw their combined riches plunge $208bn (£160bn) in just 24 hours after Trump's 'liberation day' tariffs blitz.
However, that same group gained a combined $304bn after the president announced a 90-day tariff pause on Wednesday.
It marked the largest one-day gain in the history of the Bloomberg Billionaires Index, with the biggest prizewinner being Elon Musk, who added $36bn to his fortune.
These are numbers the president is proud of.
Gesturing towards two businessmen in a video posted online in the aftermath of Wednesday night's stock market rally, Trump said: 'He made $2.5bn today, and he made $900m. That's not bad.'
Unsurprisingly, outraged Democrats have been quick to raise concerns.
'Any member of Congress who purchased stocks in the last 48 hours should probably disclose that now,' Alexandria Ocasio-Cortez, the Left-wing House representative, wrote on X, adding: 'It's time to ban insider trading.'
Schiff has also penned a letter to the White House to 'demand who knew in advance that the president was gonna once again flip flop on tariffs? And are people cashing in?'
The question now is to what extent will those inside Trumpworld face scrutiny?
Joe Gallina, a former lawyer who set up the Call to Activism campaign group to monitor the Trump administration, issued a warning to the president's loyal fan club.
'While a sitting president is largely shielded from insider trading laws, those around him are not,' he says. 'If anyone in Trump's circle used privileged information to profit from this swing, that could potentially violate securities laws.
'This isn't just about one suspicious trade – it's about a pattern where political power appears to intersect with financial opportunity.
'When policy decisions from someone like Trump can move markets by billions, and those decisions are reversed with no clear rationale, it opens the door to exploitation.
'The Securities and Exchange Commission and Department of Justice should be examining not just the trades themselves, but who knew what and when.
'The American people deserve confidence that our markets aren't being manipulated by those in the room where the decisions are made.'
The White House has denied any suggestion of insider trading.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
6 minutes ago
- New York Post
Journalist recounts harrowing broad-daylight sex assault in DC – says cops refused to include the attack in crime stats
A formerly DC-based journalist revealed Thursday that she was 'violently attacked and sexually assaulted' in the nation's capital – and that the city's police department refused to include the incident in their crime stats. Anna Giaritelli, a homeland security reporter with the Washington Examiner, detailed the heinous, broad-daylight assault against her, as well as the response from the Metropolitan Police Department and the court system, in a dramatic op-ed – which comes days after President Trump announced a sweeping crime crackdown in Washington, DC. 'On a Saturday morning in 2020, I walked out of my apartment on Capitol Hill to mail a package at a post office several blocks from the US Capitol. I put on my black sweatshirt and black sweatpants then headed out the door. I never made it to the post office,' Giaritelli wrote. 'Just one block from my apartment building's entrance, I was attacked by a large man well over six feet tall. He charged at me for a reason that I still do not understand. In broad daylight and on well-traveled 2nd Street NE next to Union Station, I fought to get away as he sexually assaulted me,' she continued. 'If it had not been for others in the vicinity, including a construction worker named Donny who heard my screaming and ran to my rescue, I don't know if I would be here today.' Trump has deployed the National Guard and hundreds of federal law enforcement officers to the streets of DC to address crime in the city. Giaritelli explained that the attack demonstrated to her, firsthand, how 'DC police and the courts fail the public.' Despite her attacker, described as a 'homeless man,' being apprehended 'months later' and sentenced to prison time, Giaritelli wrote: 'If you look for evidence that the attack happened in the city's crime statistics, you won't find it.' 'DC police covered up the unspeakable wrong that the stranger did to me,' the reporter said. The Metropolitan Police Department's online 'Crime Cards' statistics page – which purportedly tracks criminal offenses and pegs them to a map, showing where they occurred in the district – does not include Giaritelli's attack and sexual assault, she claims. 'When I asked MPD in 2020 why my incident was not on its crime map, an MPD spokesman said the city only includes 1st degree felonies under its crime stats,' the reporter explained. 'That would mean that for every person robbed, assaulted, or sexually abused in anything less than egregious ways, you have not been counted into the total tally.' 'The pain you suffered was not severe enough, according to MPD's standards.' The reporter said her attacker was arrested five times — and released from jail every time — as he awaited trial for his sex crimes. Giaritelli said she was then told by MPD, this week, that the crime map does include 'some sex abuse charges, but not all of them.' She noted that the crime against her is still not listed in the online database. Giaritelli praised DC law enforcement's immediate response to the attack, noting that they collected DNA evidence which they were able to match to a vagrant about two months later, leading to his arrest. Her attacker, however, was 'immediately released from jail' by the judge handling the case, leading Giaritelli to very reasonably fear that he was back 'living in a tunnel' just blocks from her apartment. The vagrant was 'arrested in five separate incidents' and allowed out of jail every single time, while he awaited trial for the sexual assault, Giaritelli said. MPD did not immediately respond to The Post's request for comment. Trump on Monday claimed that DC's crime statistics – showing violent offenses down about 26% compared to last year – were 'phony' and promised that Attorney General Pam Bondi will be 'looking into that.' The president further noted that a DC police commander was suspended last month for allegedly falsifying crime data to make trends appear more positive.
Boston Globe
6 minutes ago
- Boston Globe
Crime ‘hot spots' targeted, encampments cleared, as feds expand D.C. push
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up National Guard troops are trained in 'common sense, and they're very tough people,' Trump said. He later added that 'they're trained in not allowing people to burn down buildings and bomb buildings and shoot people and all the things.' Advertisement Homeland Security Investigations (HSI) officers walked on the National Mall on Thursday. Anna Moneymaker/Getty D.C. police data shows violent crime, after a historic spike in 2023, The 800 National Guard members mobilized to protect D.C. are not armed and will not be conducting law enforcement activities, Pentagon press secretary Kingsley Wilson told reporters Thursday. That is the case, even though under federal Title 32 orders, which is the authority Trump used to activate them, they could conduct law enforcement if asked. Advertisement 'They will not be arresting people,' Wilson said. The statements from Trump administration officials came amid a flurry of developments, including D.C. police Chief Pamela A. Smith issued an executive order allowing the city's officers to share information about people who are not in custody and to transport U.S. immigration authorities and the people they detain. That cooperation on a major Trump administration priority does not change the D.C. law that prohibits local law enforcement from providing information about people in D.C. custody to federal immigration enforcement. On homelessness, District officials were bracing for the potential on Thursday night for the federal government to expand efforts to clear homeless encampments. City officials spent the day continuing to press people living outside to swiftly enter shelters so they could avoid being caught up in federal cleanup campaigns. The Trump administration has threatened to fine or arrest any individuals who refuse to be removed or placed in shelters. Local advocacy groups asked city officials to prepare for a possible increase in those seeking shelter, including those who have long objected to the strictures that can come with the services provided in such places. Homeland Security Investigations officers spoke with a food truck vendor on the National Mall on Thursday. Anna Moneymaker/Getty The National Park Service has regularly cleared homeless encampments on federal land in the District in past years. Earlier this week, White House press secretary Karoline Leavitt told reporters that '70 homeless encampments have been removed by the U.S. Park police' since March. In the same briefing, Leavitt said only two encampments remained in National Park Service jurisdiction in D.C. 'The removal of those two remaining camps is scheduled for this week,' Leavitt said. Advertisement Members of D.C.'s Health and Human Services team began clearing an encampment Thursday morning on a grassy no-man's-land near the Kennedy Center after giving residents a day's notice to remove their belongings. By 8 a.m., three people had already packed their belongings and scattered. Six more were busy wiping down their tents and folding tarps to meet a 10 a.m. deadline set by the District. Several residents said they had been at the encampment for months. 'It's a longer walk than it looks across the bridge to Virginia,' said David Beatty, 67, who has lived in the camp for eight months. 'If I can get my stuff in storage, I'll do what I usually do. … I have a broom and a dustpan, and I walk around sweeping up.' The District usually posts notices for clearing 14 days in advance, and the site had not been on the District's list for clearings. Rebecca Dooley, a spokesperson for the deputy mayor for health and human services, said the encampment's proximity to the highway qualified it for expedited removal, which requires only 24 hours' notice. Dooley said the decision to clear the site was made Wednesday by the city's health and human services agency. When asked if the White House was involved in the decision, she referred questions to the mayor's communications team. A White House official said on background that they were 'unable to confirm specific locations or details on operational efforts in the interest of the safety and security of all involved.' A sign advocating support for homeless people is shown at a homeless encampment near the Lincoln Memorial on Thursday. Win McNamee/Getty About a half dozen outreach workers from nonprofits helped residents pack up. Dooley said they made offers of shelter to the people who were leaving the encampment, but she was unsure if anyone had taken them up on it. Advertisement 'We're following our own protocol,' she said, noting that there are no plans to arrest people who turn down shelter referrals. She said it is the only cleanup scheduled for Thursday. William Wilson, 66, dragged his cart of clothes and camping gear up the hill. 'I'd like to invite the president to spend some time here in a tent with us,' he said. 'We're nice people. We're a family here — we get along.' Among those facing federal enforcement, and the prospect of being forced off the streets, one key issue is storage, said Amber Harding, executive director of the Washington Legal Clinic for the Homeless. 'Shelters have a two-bag maximum, so people might not want to go to a shelter if they don't want to throw away their stuff that can't fit into two bags. So we have been trying to work with the city to make sure they have storage options,' Harding said. Location is another factor. 'Right now the shelter spaces the government has are not downtown,' Harding said. 'That means people will have to be transported there, which means moving away from where they are currently staying, from the people they know and the places where they are currently getting services.' D.C. Council member Brianne K. Nadeau (D-Ward 1) said she was deeply concerned about federal encampment clearings. 'When this kind of dramatic action is taken, it erodes the trust we have built with folks living outside and diminishes our ability to bring them into permanent housing and get them stabilized,' she said. Advertisement The National Park Service and Park Police did not immediately respond to requests for comment. The clearings come as the presence of federal law enforcement has become more visible in portions of the District. Trump declared an emergency in D.C. earlier this week and put the city's police department under federal control. A person geld a sign as Department of Homeland Security Investigations agents joined Washington Metropolitan Police Department officers as they conducted traffic checks at a checkpoint along 14th Street in northwest Washington, on Wednesday. Jose Luis Magana/Associated Press The actions have sparked mixed reactions among residents, with some outraged by Trump's decision and some offering varying levels of support. In Northwest Washington, a checkpoint with local and federal law enforcement officers on Wednesday evening On Thursday, a group of 17 former elected officials from the District circulated a joint statement warning that Trump's 'strongman tactics' were dangerous for the city and the nation. 'There is no emergency that warrants this action,' they wrote, adding that the president and Congress can further cut crime by appointing judges to fill critical vacancies. D.C. Mayor Muriel E. Bowser (D), who has decried Trump's actions as 'an authoritarian push,' has also sought to work constructively with federal authorities. The mayor said on social media that she was temporarily out of the District on Thursday to pick up her daughter from camp but had remained in constant contact with key officials. The federal presence has been aggressive at times, including with immigration enforcement. The National Guard, meanwhile, has had a somewhat relaxed posture. 'Their initial mission is to provide a visible presence in key public areas, serving as a visible crime deterrent,' the Army said on social media. 'While they will not conduct arrests, they have the authority to temporarily detain individuals to prevent imminent harm, ensuring that custody is promptly transferred to law enforcement authorities.' Advertisement The Pentagon's Wilson said the troops also will carry out 'area beautification' without offering elaboration. Area beautification is military parlance for trash collection, landscaping and other tidying up on military installations. Though they are not armed, the troops are wearing body armor. Some have been seen around the city wearing soft caps instead of helmets as they take selfies with passersby. Weapons are stored miles away at their armory, ready if needed, the Army said. On Wednesday, Trump said the administration intends to ask for an extension of the emergency declaration beyond 30 days. Such a move would require congressional approval. At the same time, some federal officials indicated that they continue to operate on a time frame of about a month. Members of the National Guard patrolled near Union Station on Thursday. Kevin Dietsch/Getty National Guard troops are on orders lasting for 30 days, a defense official told reporters on the condition of anonymity to provide details that have not yet been discussed publicly. Maegan Vazquez, Dylan Wells, Olivia George, Meagan Flynn, Brittany Shammas and Michael Birnbaum contributed to this report.
Business Insider
7 minutes ago
- Business Insider
'Big Short' investor Michael Burry reveals fresh bets on Meta, Alibaba, and UnitedHealth
Michael Burry bet big on stocks in the second quarter, swapping out bearish put options for bullish call options and adding several fresh holdings to his portfolio. The investor of "The Big Short" fame revealed in a quarterly filing on Thursday that he purchased calls on Alibaba, ASML, Estee Lauder, Lululemon, Meta, Regeneron, UnitedHealth, and VF last quarter. Burry's Scion Asset Management also built direct stakes in Bruker, Lululemon, Regeneron, UnitedHealth, and MercadoLibre, while cutting his direct wager on Estee Lauder from 200,000 shares to 150,000. The UnitedHealth wager is notable as Warren Buffett, one of Burry's key influences, also invested in the health insurer last quarter via his Berkshire Hathaway conglomerate. Call options give investors the right to buy a certain number of a company's shares at a fixed price within a set period, allowing them to lock in a purchase price that may be lower than the market price. Similarly, investors can use put options to lock in a selling price, allowing them to profit from if the stock price declines. Scion is known for making big changes to its portfolio between quarters, but this was a particularly striking overhaul. At the end of March, it owned puts on Alibaba, Baidu, Nvidia, PDD, and worth a notional $186 million, plus a roughly $13 million stake in Estee Lauder. Three months later, it held calls on nine stocks worth a notional $522 million, and a further six direct stakes valued at $56 million. It's worth underscoring that Burry may have rejigged his stock bets in recent weeks, and his disclosures may not paint a full picture of his investment strategy. Quarterly portfolio updates known as 13Fs only provide a snapshot of a firm's holdings with a six-week lag and exclude shares sold short as well as investments in private companies, foreign-listed assets, and non-stock assets such as bonds and real estate. Burry shot to fame after predicting and profiting from the collapse of the mid-2000s US housing bubble — a wager that was immortalized in "The Big Short" book and movie adaptation. He's also known for making grave predictions of market crashes and recessions, investing in GameStop before it became a meme stock, and betting against popular assets such as Tesla, Apple, Nvidia, and the entire S&P 500 index.
