ELIZABETH: LOOK WHO IS HERE,
"WALL STREET JOURNAL"
INVESTIGATOR REPORTER BRODIE
MULLINS AND JOHN WEST.
YOU DID A TERRIFIC JOB.
THANKS SO MUCH FOR JOINING US
TONIGHT, THE INVESTIGATIVE
REPORTING YOU DID ABOUT
THOUSANDS OF TOP GOVERNMENT
OFFICIALS TRADING STOCK, DOING
OPTIONS TRADING, EVEN SHORT
SELLING IN THE COMPANIES THEY
REGULATE AND ENFORCE.
BRODIE, FIRST TO YOU, WHAT
SURPRISED YOU WHEN YOU GUYS DUG
DEEP INTO THE STORY.
WHAT HIT YOU HARD ABOUT THIS
STORY?
>> REALLY WHAT DIDN’T SURPRISE
US.
AMAZING HOW MUCH STOCK TRADING
WE FOUND.
WE LOOKED AT 50 DIFFERENT
FEDERAL AGENCIES.
WE LOOKED AT THOUSANDS AND
THOUSANDS OF FEDERAL EMPLOYEES
AND STOCK TRADING REPORTS OVER
FIVE YEARS.
WE FOUND TONS OF PEOPLE,
THOUSANDS OF PEOPLE, TRADING
STOCKS IN COMPANIES THAT OVERSAW
IN THEIR JOBS.
ELIZABETH: WHAT DO YOU SAY,
JOHN, WHAT BRODIE IS SAYING, ONE
OUT OF FOUR TOP FTC OFFICIALS
OWN AND TRADE STOCKS IN THE SAME
TECH GIANTS THAT THEY REGULATE?
>> THAT’S RIGHT.
ACTUALLY IT GOES A LITTLE DEEPER
THAN THAT, YOU LOOK AT THE FTC,
FOR EXAMPLE, ONE IN THREE
ACTUALLY WERE TRADING OR OWNING STOCKS THAT OF IN COMPANIES THAT
STOCKS THAT OF IN COMPANIES THAT
HAD BUSINESS BEFORE BEVACQUA THE
FTC WHETHER A MERGER OR CASE.
IT IS STUNNING.
TO ECHO SOMETHING BRODIE SAID,
FINANCIAL FILINGS, 31,000
FINANCIALS FILINGS FROM 30,000
SENIOR GOVERNMENT EMPLOYEES, WE
FOUND ONE IN FIVE PEOPLE WERE
TRADING STOCKS IN COMPANIES THAT
WERE ACTIVELY LOBBYING THEIR
AGENCIES.
ELIZABETH: WHILE THOSE SAME
COMPANIES, JOHN, SAID, WHILE
THEY’RE LOBBYING FOR LUCRATIVE
GOVERNMENT CONTRACTS OR
FAVORABLE REGULATION, I MEAN
YOUR DEEP DIVE, YOU GUYS DID
STERLING WORK HERE.
HOW IS THIS POSSIBLE THEY’RE
ALLOWED TO BE DOING TRADING OR
SHORT SELLING OR EVEN OPTIONS
TRADING?
>> WELL THAT IS A GREAT
QUESTION.
CONGRESS CREATED SEVERAL DECADES
AGO VERY, STRONG RULES SAID
YOU’RE NOT ALLOWED TO OWN STOCK
IN COMPANIES THAT YOU REGULATE
BUT THOSE RULES UNFORTUNATELY
HAVE TONS OF LOOPHOLES,
EXEMPTIONS, ONE OF THEM
GOVERNMENT ONLY CONSIDERS A
CONFLICT IF YOU OWN MORE THAN
$15,000 OF A COMPANY.
IF YOU OWN $14,000 IN APPLE, FOR
EXAMPLE, YOU’RE ALLOWED TO WRITE
LAWS OR DEAL WITH POLICY
REGARDING APPLE.
THERE IS PLENTY OF OTHER
EXEMPTIONS.
SO ALMOST ALL THE EXAMPLES WE
FOUND, THERE WERE THOUSANDS OF
PEOPLE, THE VAST MAJORITY MR. IN
COMPLIANCE WITH THE LAW.
ELIZABETH: SO WHAT BRODIE IS
SAYING.
BRINGS UP LUCRATIVE STOCKS
TRADES BY HE WILL NANCY PELOSI’S
HUSBAND.
BLOCKING THE BIPARTISAN BILL TO
STOP TRADING IN CONGRESS.
WHAT IT FEELS LIKE,
"THE BOSTON GLOBE," MOVIE,
SPOTLIGHT, THEY DID SHOE LEATHER
JOURNALISM, DOVE INTO THE
DOCUMENTS TO FIND OUT WHAT IS
GOING ON.
THAT IS THE STERLING WORK YOU
GUYS DID THIS IS INVESTIGATIVE
JOURNALISM.
HOMELAND SECURITY WORKERS AND
THE IRS STEALING MILLIONS OF
DOLLARS IN PANDEMIC RELIEF
MONEY.
WHEN YOU SAT BACK, JOHN, WHAT
SENIOR OFFICIALS, TOP AGENCIES,
WHAT AGENCIES ARE YOU TALKING
ABOUT?
>> WE LOOKED AT 50 TOTAL
AGENCIES OVER A SIX-YEAR TIME
SPAN.
THOSE AGENCIES INCLUDING THE FTC
AS WE TALKED ABOUT BEFORE,
INCLUDED D.O.T., DEPARTMENT OF
TRANSPORTATION, INCLUDED
JUSTICE, VIRTUALLY, NOT
VIRTUALLY EVERY MAJORRAGE SY BUT
A LOT OF MAJOR AGENCIES.
WE DIDN’T RECEIVE AT TIME
PUBLICATION DHS THAT WERE NOT
INCLUDED IN THE ANALYSIS AS WE
POINT OUT IN THE STORY.
WE GOT FILINGS FROM 50 FEDERAL
AGENCIES.
I WILL SAY TO YOUR POINT ABOUT
"SPOTLIGHT."
THERE WAS A WHOLE TEAM AT THE
JOURNAL WE WERE DOING A LOT OF
WORK TO SCRUB THROUGH 31,000
DOCUMENTS.
A MILLION IN ASSETS.
WE USED COMPUTER SOFTWARE TO
HELP US.
THAT WAS AN IMPORTANT PART OF
THIS PROJECT, WE HAD TO MANUALLY
SPOT-CHECK AND VERIFY ALL THE
DATA COMING THROUGH.
ELIZABETH: IT IS REALLY, I’M NOT
KIDDING HEROIC STUFF.
"SPOTLIGHT" WAS THE MOVIE ABOUT
THE CATHOLIC CHURCH SEX ABUSE
SCANDALS.
BRODIE, WHAT CONCERNS DO YOU
HAVE YOU FOUND?
>> TOP LINE NUMBERS AT
ENVIRONMENTAL PROTECTION AGENCY.
PEOPLE OWNING OIL AND GAS STOCKS
AND EXXON AND THE FOOD AND DRUG
ADMINISTRATION PEOPLE OWNING
FOOD AND DRUG STOCKS.
AT THE DEPARTMENT OF DEFENSE
SOMEONE WAS BUYING DEFENSE
CONTRACTORS BEFORE THE DEFENSE
DEPARTMENT WAS GIVING THEM A BIG
CONTRACT.
THE LIST WENT ON AND ON.
ELIZABETH: WHAT DO YOU SAY,
JOHN, WHAT DO YOU FIND MOST
CONCERNING AND DISTURBING.
>> EVERYTHING BRODIE SAID IS
ABSOLUTELY CORRECT.
I WOULD ADD THE BROAD SWEEP OF
THE THING, ONE IN FIVE, SENIOR
GOVERNMENT EMPLOYEES HOLDING
STOCK, TRADING STOCK IN
COMPANIES THEY OVERSEE.
ELIZABETH: HOW HIGH UP THE
EMPLOYEES IN THE FOOD CHAIN?
>> EVERYTHING FROM THE SES
SERVICE, SELECT CAREER STAFF ALL
THE WAY UP TO PEOPLE WHO ARE
POLITICAL APPOINTEES AS BELL AS
YOU KNOW, PEOPLE WHO FILE
REPORTS WITH THE OFFICE OF
GOVERNMENTAL ASSETS.
ELIZABETH: WAIT A MINUTE,
TALKING ABOUT PEOPLE IN THE
OFFICES OF THE SECRETARY OF
DIFFERENT AGENCIES OR RUNNING
THE AGENCIES DOING THIS?
>> SORRY.
SENIOR CAREER GOVERNMENT
EMPLOYEES AS WELL AS
PRESIDENTIAL EMPLOYEES TO THESE
AGENCIES.
ELIZABETH: ALL RIGHT.
GO AHEAD, FINISH YOUR THOUGHT.
>> WE’RE LOOKING AT 12,000 OF
THE MOST SENIOR PEOPLE IN THE
GOVERNMENT.
PEOPLE WHOSE NAMES YOU DON’T
KNOW, TITLES YOU DON’T KNOW,
PEOPLE RUNNING THE GUTS OF THE
EXECUTIVE BRANCH.
ELIZABETH: WHAT A STORY,
INCREDIBLE STUFF, BRODIE
MULLINS, JOHN WEST, CONGRAT