(NewsNation) — Amid a downturn in the U.S. stock market, attention has been drawn to an unusual investor, Democratic Sen. Tom Carper of Delaware, a member of the Senate Finance Committee.
Carper recently made headlines for betting against America’s economy.
Reports emerged that Carper purchased thousands of dollars worth of a stock fund called ProShares Short QQQ ETF, which moves in the opposite direction of the market.
This means that if the market performs well, Carper would lose money, but if stocks decline, he stands to profit. The fund is leveraged, which means the greater the market decline, the more profit the senator could potentially make.
The incident highlights the ongoing debate over whether members of Congress should be allowed to own or trade stocks while in office.
Michael K. Farr, award-winning author and president and CEO of Far, Miller & Washington LLC, weighed in on Carper’s position during an appearance on Thursday’s “On Balance With Leland Vittert.”
“You know, maybe he can make a couple of bucks,” Farr said. “But boy, the optics stink.”
Given his position on the Senate Finance Committee, which plays a crucial role in shaping the nation’s economic policies, Carper’s stock trade raised eyebrows.
Critics argue that a senator, who has taken an oath to protect and defend the country’s interests, should not be betting against its economy for personal gain.
Adding to the complexity of the situation, Carper is a close friend of President Joe Biden, having served alongside him in the Senate for many years. In the past, he publicly expressed confidence in the American economy and its growth under Biden’s leadership.
However, some experts say it is not uncommon for members of Congress to have individual financial advisors who handle their investments independently.
“It’s been a real issue where members of Congress and Senate have owned stocks and have made a lot of money on them,” Farr said. “And clearly, they’ve got information that the rest of us don’t have.”
Farr emphasized that members of Congress should exercise extreme caution when making financial decisions, as they often have access to nonpublic information that the general public does not.
“Senator Carper, as a senator from Delaware, you know how many Delaware corporations there are,” Farr said. “Every trial that gets tried in corporate America is happening out of Georgetown, Delaware, because this is where the laws are favorable. This is a state that depends on corporate America and stock issuance and everything else. I mean, this is just really bad optics.”