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Former White House Chief of Staff Rahm Emanuel is the latest lawmaker to get caught up in allegations of insider trading while a member of Congress.Then-Rep. Emanuel reportedly sold up to $250,000 in Freddie Mac stock on February 21, 2003 days before it dropped by 10 per cent — and weeks before it was publicly revealed that the entity was under criminal investigation for inflating earnings. The allegations are revealed in Peter Schwiezer’s new book “Throw Them All Out,” which will hit bookshelves tomorrow.
Emanuel served on the board of the Government-backed lender before his election to Congress in 2003, and later held a seat on the House Financial Services’ Committee’s Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises — the very committee charged with regulating the Freddie Mac.
While by no means illegal; lawmakers are exempted from the insider trading laws they impose on private traders. But the timing of the trades is certainly suspect, especially given Emanuel’s service on the board during the time period for with the federal government was investigating the actions of Freddie Mac executives.
Emanue’s office did not return a request for comment on the allegations.
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