Monday, September 26, 2005
Senate Republican Leader Bill Frist Facing Two Investigations Into His Recent Stock Sale
Senate Republican Leader Bill Frist's family founded and runs HCA, Inc., which owns a chain of hospitals. Frist himself owned a bunch of it in what was supposed to be a blind trust. Just before the stock tanked, dropping on concerns it would not meet earnings expectations, Frist sold all of it.
First, Frist's spokesperson said he sold it to avoid the appearance of a conflict of interest. But that didn't wash, because he had fought selling it for years, and even got the Senate Select Committee on Ethics to say it was alright for him to keep it, even though he was routinely dealing with legislation to benefit the company, such as limiting patients ability to sue for malpractice.
Now Frist expects us to believe that after resisting criticism for years, and after seeking Ethics Committee approval to keep it, out of the blue he decided to sell the stock -- and it had nothing to do with the pending release of information that the company would not meet its earnings projections.
The U.S. Attorney for the Southern District of New York, which investigates lots of stock market fraud cases, and the U.S. Securities and Exchange Commission, are both investigating Frist's sale of his stock.
People inside the beltway and out have been talking more and more about the arrogance of power -- how the Republicans, who control all branches of government, just do whatever they want and expect to get away with it. Frist is yet another example.
First, Frist's spokesperson said he sold it to avoid the appearance of a conflict of interest. But that didn't wash, because he had fought selling it for years, and even got the Senate Select Committee on Ethics to say it was alright for him to keep it, even though he was routinely dealing with legislation to benefit the company, such as limiting patients ability to sue for malpractice.
Now Frist expects us to believe that after resisting criticism for years, and after seeking Ethics Committee approval to keep it, out of the blue he decided to sell the stock -- and it had nothing to do with the pending release of information that the company would not meet its earnings projections.
The U.S. Attorney for the Southern District of New York, which investigates lots of stock market fraud cases, and the U.S. Securities and Exchange Commission, are both investigating Frist's sale of his stock.
People inside the beltway and out have been talking more and more about the arrogance of power -- how the Republicans, who control all branches of government, just do whatever they want and expect to get away with it. Frist is yet another example.
