Trump Pal Sold Millions in Steel-Related Stock Days Before Tariff News

[Zippyjuan]

http://nymag.com/daily/intelligence...el-related-stock-days-before-tariff-news.html

Carl Icahn, a billionaire financier and longtime pal of Donald Trump’s, sold more than $30 million of stock in a steel-dependent company days before new tariffs on steel imports were announced, Think Progress reports.

Icahn’s dumping of close to 1 million shares of Manitowoc Company Inc. was revealed in an SEC filing submitted on February 22, seven days before Trump said he would impose tariffs of 25 percent on steel and 10 percent on aluminum. After Trump’s announcement, shares in Manitowoc dropped by 6 percent, Reuters reported in a piece that describes the company as one of the country’s “major consumers of steel.”

As Think Progress notes, Icahn had not bought or sold shares in Manitowoc between January 2015 and February 2018, making the timing of the most recent sell-off look even more suspicious than it already did.

Icahn, who lasted around eight months as Trump’s special adviser for regulatory affairs, has previously been accused of profiting off of his relationship with the president. In November, it was reported that federal investigators are probing Icahn’s role advising Trump and regulatory changes he attempted to push through in order to benefit his energy company.

 

[acptulsa]

So?

Only presidents who actually serve the people--like Warren G. Harding--ever get prosecuted for their staff doing Teapot Dome-type stuff.

 

[specsaregood]

Icahn’s dumping of close to 1 million shares of Manitowoc Company Inc. was revealed in an SEC filing submitted on February 22, seven days before Trump said he would impose tariffs of 25 percent on steel and 10 percent on aluminum. After Trump’s announcement, shares in Manitowoc dropped by 6 percent, Reuters reported in a piece that describes the company as one of the country’s “major consumers of steel.”

Doesn't add up. It was announced publically Feb. 16 that the commerce department had decided to recommend to trump to impose the tariffs. And that was at least a few days after Trump had publically announced that he had asked the commerce department for their recommendation.

I bought my US steel related stocks Feb. 15th based on this same info I heard publically.

 

[enhanced_deficit]

Why single out POTUS friends? This kinda stuff unfortunately not uncommon in politics and other political figures/relatives have faced accusations too.


SEC dropped probe month after firm aided Kushner company

By Bob Fredericks
March 2, 2018

The revelation came a day after the New York Times reported that Apollo’s loan to the Kushner Cos. followed several meetings at the White House between the finance company’s execs and Kushner.

I suppose the best case for Kushner is that this looks absolutely terrible,” Rob Weissman, president of Public Citizen, told the AP. “Without presuming that there is any kind of quid pro quo … there are a lot of ways that the fact of Apollo’s engagement with Kushner and the Kushner businesses in a public and private context might cast a shadow over what the SEC is doing and influence consciously or unconsciously how the agency acted.”
Apollo said in its 2018 annual report that the SEC had halted its inquiry into how the firm reported the financial results of its private equity funds and other costs and personnel changes.
The firm had previously reported that the SEC under the Obama administration had subpoenaed it for information related to the issue.

https://nypost.com/2018/03/02/sec-dropped-probe-month-after-firm-aided-kushner-company/

 

[William R]

Zippy. Steel stocks went up after Trump announced the tariffs on imports.

 

[specsaregood]

Zippy. Steel stocks went up after Trump announced the tariffs on imports.

Its talking about stocks in companies that use steel, not make it.

 

[Zippyjuan]

Zippy. Steel stocks went up after Trump announced the tariffs on imports.

From the OP:

describes the company as one of the country’s “major consumers of steel.”

 

[oyarde]

When I ran an automotive exhaust stainless steel plant we used no imported steel . You could be a major user of steel and import fees will have no effect .

 

[Zippyjuan]

When I ran an automotive exhaust stainless steel plant we used no imported steel . You could be a major user of steel and import fees will have no effect .

Raising the price of imports allows domestic producers to sell their wares at higher prices. It costs you more even if you aren't using imports.

 

[r3volution 3.0]

When I ran an automotive exhaust stainless steel plant we used no imported steel . You could be a major user of steel and import fees will have no effect .

Tariffs make the protected domestic industries less efficient (think about the stereotypically lazy Teamster for a labor market analogue).

In the long term, domestic steel prices will rise as well, or at least drop less than they otherwise would have (failure to adopt innovations, etc).

 

[oyarde]

Raising the price of imports allows domestic producers to sell their wares at higher prices. It costs you more even if you aren't using imports.

It would have had no effect because we were owned by domestic steel co and a very large consumer . We could basically establish what we would like to pay and let people meet it .

 

[oyarde]

Tariffs make the protected domestic industries less efficient (think about the stereotypically lazy Teamster for a labor market analogue).

In the long term, domestic steel prices will rise as well, or at least drop less than they otherwise would have (failure to adopt innovations, etc).

Domestic steel prices are only high because of legacy costs of retirement pensions and health ins and american safety requirements that the foreign competition does not have . Foreign competition though has inferior products , so profit margins should have been huge up to now for them .

 

[Swordsmyth]

Tariffs make the protected domestic industries less efficient (think about the stereotypically lazy Teamster for a labor market analogue).

In the long term, domestic steel prices will rise as well, or at least drop less than they otherwise would have (failure to adopt innovations, etc).

"If we allow your neighbor to steal from you it will motivate you to work harder" is not a convincing argument.

 

[r3volution 3.0]

Icahn’s dumping of close to 1 million shares of Manitowoc Company Inc. was revealed in an SEC filing submitted on February 22

Doesn't add up. It was announced publically Feb. 16 that the commerce department had decided to recommend to trump to impose the tariffs. And that was at least a few days after Trump had publically announced that he had asked the commerce department for their recommendation.

I bought my US steel related stocks Feb. 15th based on this same info I heard publically.

The SEC filing that mentioned Icahn's sale was submitted on Feb. 22.

The actual sale was on Feb. 12.

Icahn unloaded his shares of the crane company on Feb.12, days before the Commerce Department released a report recommending the tariffs that Trump later championed.

http://www.latimes.com/business/la-fi-carl-icahn-trump-tariffs-20180302-story.html

When did Trump first mention the tariffs? The first mention AFAIK was the statement from Commerce.

 

[oyarde]

Govt is already responsible for the high cost of doing real business in the US .

 

[r3volution 3.0]

Domestic steel prices are only high because of legacy costs of retirement pensions and health ins and american safety requirements that the foreign competition does not have . Foreign competition though has inferior products , so profit margins should have been huge up to now for them .

Yep, and curing that rot should have been the focus, rather than protectionism.

 

[Krugminator2]

When did Trump first mention the tariffs? The first mention AFAIK was the statement from Commerce.

First alluded to them in December actually. It is bizarre I knew about this and no one in the press seems to remember the news from just a few weeks ago.
https://www.reuters.com/article/us-...r-steel-aluminum-curbs-official-idUSKBN1ED2VW

This is a nothing burger. I watched an interview with Icahn before this news came out. When they asked him about Trump, he said that he hasn't spoken to Trump in five months.

Icahn is basically the most visible market participant on the planet, next to Buffett. There is absolutely no chance whatsoever he made such a visible decision on insider information. This is a witch hunt by morons. I hope I never face a jury in this country. I would not want my fate in the hands of the average person.

 

[dannno]

I bought my US steel related stocks Feb. 15th based on this same info I heard publically.

Reported (to the NYT, expect a feature story)

 

[r3volution 3.0]

First alluded to them in December actually.
https://www.reuters.com/article/us-...r-steel-aluminum-curbs-official-idUSKBN1ED2VW

This is a nothing burger. I watched an interview with Icahn before this news came out. When they asked him about Trump, he said that he hasn't spoken to Trump in five months.

Icahn is basically the most visible market participant on the planet, next to Buffett. There is absolutely no chance whatsoever he made such a visible decision on insider. This is a witch hunt by morons. I hope I never face a jury in this country. I would not want my fate in the hands of the average person.

Vague talk of tariffs is one thing.

Talk of specific rates to be implemented in the very near future is another (and, AFAIK, the latter came along only after Icahn's sale).

Anyway, you're right that Icahn isn't dumb enough to do something for which he could be prosecuted.

However, that doesn't mean he didn't have inside information (e.g. that the details were soon going to be made public).

 

[specsaregood]

When did Trump first mention the tariffs? The first mention AFAIK was the statement from Commerce.

I'm not sure but it was before the 16th, he held a meeting announcing that he was asking the commerce department to research the issue, then some time later on the 16th the commerce department announced their recommendations. It might have been an infrastructure meeting.