The dpa is finally being utilized. They got entrusted with such an important task. Frankly, it is a joke. Knowing the circumstances around , the options granted, the early leak of the announcement, there is potential here for unlawful insidertrading. I would go beyond that. In terms of potential violations. I think there is potential that the sec could find a range of violations. Regarding individuals involved in manipulation. We do not know. We go back to insidertrading enforcement. There is also a broad range of federal statutes that can apply. In the scope of the investigation, it is real. The questions that were posed by the internal investigation, they are very narrowly framed. Committee, there is still plenty to look at. There is the potential for the commission to find and recommended forstmann actions. Thank you. I appreciate that response. Can you discuss where the harm and causes shareholders Capital Markets and taxpayers . The core issue is credibility. We have to go back to the language of the 33 act. This everything done on the bipartisan level is directed toward enhancing disclosures. The core issues are transparency and competence. We are on the cusp of many questions that we need to get answers to. We are home to so Many Life Sciences companies. They have decades of experience and success. Now is not the time to plus bets on them during a Public Health crisis. I look forward to our continued oversight. Thank you. I now recognize the gentleman who rings a lot of experience to this committee. You are recognized for five minutes. I apologize, i did not recognize that i had all of that experience. Capital markets are not moral or immoral. Amoral. A moral they allocate capital to places where we would think there will be future capital. Market a vaccine to early is very dangerous. It has not been tested on populations. That risks to certain future of those vaccines. Operation warp speed has distributed 9 million to developers of vaccines. Those are facts. , the question becomes to assume thatl a company receiving cash from operation warp speed, and the president saying there will be a vaccine by election, is it rational for an investor to assume that company may have increase in nearterm cash flows . I think it is perfectly rational. In the greater context of this , one could also argue that it is rational for an insider to exploit insider information. I am not trying to ask you a gotcha question. Im glad you agree with the first part. Is it not also rational to assume that if a company saw a surge in cash flows and equity the vaccine was subsequently proven to be dangerous, that that Company Might face longerterm liabilities . Legal or otherwise. Is it not rational for an informed insider looking at that information to say it is in my interest to participate in those markets . And cash out quickly . I can see a logic to that. That is more cynical than we would hope the companies we are relying on to develop vaccines for all of us. We assume good faith development. Comments inean my any way to question the morality of the companies. They are not moral. They are just making judgments. The publicerns about health risks of rushing a vaccine to market. When we have Insider Trading on this information, should the chickens come home to roost, what concerns do you have about what that those two trust in our Capital Market . I think it is very dangerous. The concerns of spring loading and those kinds of issues. Thank you. Back in the days when i was the ceo of a company, i had a professor in grad school who said the most dangerous type of leadership is leadership based on knowledge. Preservation of power is based on limiting information. Wall street is a place where information is power. I think we need to keep our vigilance up. Thank you and i yield back. Representative because you cortez is recognized for ive minutes. Ocasiocortez so much of what we are discussing today has to do with insidertrading. My question for you is, when compensatedos are with stock packages where an enormous amount of money is being compensated, how does that potentially influence toisionmaking when it comes the longterm health of a company . Or pharmaceuticals . That is an interesting question. We are seeing instances where this intends shortterm encourages ways for companies to look for companies to quickly raise the stock price. In pursuit of a shortterm gain. There are reforms that Even Companies have self enacted. Even scandals where companies were backdating their pay. The stock would go up so they would shift the date of the award backward and times. Companies now take a suitor. That is a positive development. They are saving the good news for after the date. Every individual instance of this may have a very plausible explanation for why they have these announcements and the timings of the options. They pay an above average amount in Stock Options. It is a circumstance that invites shenanigans. Can i weigh in on that . Sorry to interrupt. You identified concerns about shortterm trading opportunities. I think the academic literature shows bigger problems. If you have Stock Options, your price can balloon. That is an extra caution we have to worry about. Is it faircortez to say that having these kind of Stock Options can incentivize riskier behavior when it comes to pharmaceuticals . Absolutely. I think where we see particular concern is in some of these companies. The potential upside is enormous. Rep. Ocasiocortez i have one last question. You have been a prosecutor. And activities that appear like it are not exclusive to the private sector. We have seen some questionable opportunities activities right here in congress. In your thoughts on the 2012 stock act. Of the concerns in engaging inongress behaviors that can be seen as insidertrading . I will ask you to answer just a couple of seconds because the time has expired. The easy way to answer that is to look to the sec and department of justice. There is always going to be a perception that the law is not effective. We have to defer to the investigation and see if they result in enforcement actions. We are talking about the level of component to enforcement of such laws. Thank you very much. I see no other members that have not been recognized. All members have been able to ask questions. I am trying to get your attention so i can submit an article or the record. The gentleman is recognized. It fits perfectly with what my colleague from new york was talking about. As well as others. November of 2019 article. It is about enforcement activity. It is at its secondhighest level ever. Explaincle goes on to what the sec has been doing on enforcement. I would like to submit that for the record. No objection. It will be made part of the record. Seeing no members who have not been recognized, i would like to thank our witnesses for their testimony. You can submit additional written questions to the chair and they will be forwarded to the witnesses for response. The witnesses to respond promptly. Today we have learned that we need to make sure that insiders do not deal on airily with the investing public and do not profit from not yet disclosed material information. I look forward to working with my colleagues to achieve those objectives. Hopefully the sec will continue the enforcement efforts and will look at some of the issues brought up by this hearing. Without objection, you will have five more days to submit extraneous materials. This hearing is adjourned. President trump will be briefing reporters later today. , now setave that life for 2 00 p. M. Eastern. The president goes to minnesota for a rally this evening. You can watch that life starting at 7 00 p. M. Eastern. Sunday, a live discussion with bob woodward on his new book. It looks that president Trumps National inform policy decisions. Watch book tv on cspan2. President donald trump and former Vice President joe biden are set to debate tuesday, september 9. Biden supports Cutting Police funding and he has pledged to and cash bail. Accepted the approval of the portland district attorney. He lied to the american people. He knowingly and willingly lied about the threat it posed to the country for months. He had the information, he knew how dangerous it was. While this deadly disease rips through ordination, he failed to do his job on purpose. It is a lifeanddeath betrayal of the american people. Watch live coverage of the first debate tuesday, september 29, at 9 00 p. M. Eastern. And watch all of our debate coverage live or ondemand. Quickly find all past president ial and Vice President ial debates from our video library. There is also a link to our campaign 2020 website with videos, information, and result. Live on the free cspan radio app. Your unfiltered view of politics. ,us the founder of Republican Voters against trump. When did you found the group and were you ever a republican voter for trump . Guest was never a republican voter for drop for trump, but we founded the group about six months ago. It is part of a broader effort. Wasr to its founding, i with tim miller and a few other folks like murphy, we had had a group that was republicans for the rule of law. We have been this group of former republicans or current republicans, people who wanted a pushback against donald trump within the party. Beenhe organization has around for a few years and we did a lot of work around impeachment and the mueller investigation. Really what i