Market Commentary

Former Congressman Initiates Ethics Complaints Against Colleagues

Laiba Bilqees
5 Dec 2023 · 2 minutes read

Former Representative George Santos, ousted from office, vowed to file ethics complaints against ex-colleagues. Santos targeted Reps. Nicole Malliotakis, Mike Lawler, Nick LaLota, and Rob Menendez for alleged campaign finance violations and ethical breaches.

Santos plans to file complaints on Monday, singling out Malliotakis for stock trading activities since joining the Ways and Means committee, insinuating potential insider trading. He accused Rep. Lawler of funneling campaign expenses through his company, hinting at money laundering. Questions arose about LaLota's job attendance while studying law and its impact on taxpayer funds.

Demanding an Ethics Committee probe into Menendez's ties to his father's bribery charges, Santos stopped short of direct accusations but urged scrutiny into Menendez's knowledge.

This follows Santos' previous clash with Rep. Max Miller, where Santos labeled Miller a "woman-beater" in response to being called a "crook." The Ethics Committee's investigation led to Santos' expulsion despite earlier opposing votes.

Santos' ethics complaint against Malliotakis focuses on the ethical concerns related to insider trading. During the banking crisis, Malliotakis purchased stock in New York Community Bank (NYCB:US) coinciding with the sudden collapse of regional banks like Silicon Valley Bank, Signature Bank (SBNY:US), and First Republic Bank (FRC:US). Shortly thereafter, $NYCB acquired multiple branches from Signature Bank, leading to a substantial 112% increase in the stock value over the subsequent months.

In these banks, 13 trades and 6 filings involving politicians, including representatives Ro Khanna, Daniel S. Goldman, & John Curtis, were identified between March 1 and May 31. Concurrently, 639 trades and 51 filings within the broader financial sector have raised inquiries about significant financial activities during this turbulent period.

As this political saga unfolds, ethical and financial inquiries may reshape politics, casting scrutiny and potential consequences on involved parties.