A company owned by Senator Richard Blumenthal's wife purchased securities in a hedge fund that was bundling shares of the stock trading platform Robinhood before the IPO. That happened the same day the senator was calling for the company to be investigated.
“I own no individual stock nor had knowledge or control over any transaction involving Robinhood stock,” Blumenthal said.
Blumenthal reported the trades under the STOCK Act, which requires him to report any transactions made by him or his family.
“It belongs to a family fund. My wife has no knowledge or control over anything happening in that fund,” Blumenthal said.
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“I am supporting measures that would combat corruption, including a ban on any member of Congress owning individual stock," he added.
Robinhood has been in the crosshairs of federal authorities since day traders used it to drive up the price of stocks like Gamestop, AMC and Blackberry.
“He was tweeting Congress needs to investigate this,” said Geneieve Quinn, a political science professor at Quinnipiac University.
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“The timing couldn’t be any worse,” she said.
Blumenthal is up for reelection in November.
“Connecticut's a blue state, he’s probably pretty safe,” Quinn said.
Quinn said it’s late in the game for a primary challenge, but it’s a possibility.
“He’s definitely in a predicament I think,” Quinn said.
As far as legislation to further regulate stock trades by members of Congress or their families, “the pressure is on for members of Congress to sort of start taking this legislation seriously, whether or not it advances is another story,” Quinn said.
Blumenthal said he supports the legislation.
“I am supporting measures that would combat corruption, including a ban on any member of Congress owning individual stock,” Blumenthal said.
