Shortly before Tariffs Ex-Trump Adviser Icahn Dumped Steel-Dependent Manitowoc Stock

LewisBraham

Icahn as an adviser was also permitted not to divest in the first place when he was an adviser:
https://washingtonpost.com/news/business/wp/2018/03/02/shortly-before-trump-announced-tariffs-his-former-adviser-dumped-millions-in-steel-related-stocks/?utm_term=.2587376a6b99
Manitowoc, a crane manufacturer, is down 17% this week. From the article:

Icahn’s role was novel. He would be an adviser with a formal title, but he would not receive a salary, and he would not be required to divest himself of any of his holdings, or to make any disclosures about potential conflicts of interest. “Carl Icahn will be advising the President in his individual capacity,” Trump’s transition team asserted.

In the months after the election, the stock price of CVR, Icahn’s refiner, nearly doubled — a surge that is difficult to explain without acknowledging the appointment of the company’s lead shareholder to a White House position.

larryB

Hey LB,,,, what is the implications here?+1

LewisBraham

Well, I would think under a normal regulatory environment any foreknowledge of impending tariffs would qualify as insider information and a major conflict of interest for a former adviser with securities affected by those tariffs. I doubt anyone will prosecute Icahn for insider trading, but it does smell like it.

larryB

Agree but I gotta be careful around here