THE WEBLOG OF KEVIN C. MURPHY: CONJURING POLITICAL, CINEMATIC, AND CULTURAL ARCANA SINCE 1999

Recently in Frist's Stock Deal Category

Blind...but not stupid.

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"'I think really for our viewers it should be understood that I put this into a blind trust,' Frist replied [in January 2003.] 'So as far as I know, I own no HCA stock.'...Two weeks before that interview, M. Kirk Scobey Jr., a Frist trustee, informed the senator in writing that one of his trusts had received HCA stock valued at between $15,000 and $50,000." Fifteen trustee letters obtained by the Post, describing sales and purchases of HCA stock, indicate Frist's been lying about his "blind" trust for years. Poor Catkiller...I bet Iowa suddenly seems a million miles away...

Frist makes a killing.

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The Frist SEC probe moves along, with a subpoena forcing the Senate Majority Leader to turn over documents related to his HCA holdings. In addition, it now appears Catkiller made tens of thousands of dollars from HCA stock outside of his "blind" trust, through a partnership controlled by his brother. So much for avoiding a conflict of interest.

Empire Falls.

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(Ring-)Breaking news: As with two of his Texas cronies, John Colyandro and Jim Ellis, Boss DeLay has been indicted on criminal conspiracy charges this morning, in connection with the grand jury probe into money laundering at TRMPAC. (TRMPAC itself was indicted a few weeks ago.) As a result, DeLay will be forced to step down as Majority Leader, to be replaced by (corrected, after a possible last-minute switcheroo) Roy Blunt of Missouri. (Of course, even if he beats this indictment, Boss DeLay is also being investigated by federal authorities for his role in the Casino Jack story.)

In 1994, the Republican Contract with America stated that the GOP would "restore accountability to Congress [and] end its cycle of scandal and disgrace." Today, with the Republicans controlling both sides of Congress and the Oval Office, their leader in the House has been indicted as a criminal, their leader in the Senate is under dual investigations for insider trading, and the top moneyman in the White House was arrested only last week for lying and obstruction. (And that's not even counting the inquiries into footsoldiers like Casino Jack Abramoff and Randy "Duke" Cunningham, or the continued investigation into Karl Rove's role in Plamegate.) Simply put, the GOP leadership have broken their promise and embarrassed the nation with their rampant cronyism and illegality. It is time for them to go.

Update: While a vituperative Boss DeLay calls the charges "one of the weakest, most baseless indictments in American history," (now that's a bold statement), the GOP look to Roy Blunt of Missouri (who will share power with Dreier) as their new leader.

Cox (and) Communications.

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Sorry, Catkiller, no help there. New SEC Chairman Christopher Cox recuses himself from the probe into Bill Frist's suspicious stock dump, leaving four commissioners -- two Dems and two GOP -- to head the inquiry. Update: A blind trust? Not hardly. "Documents on file with the Senate show the trustees for Frist and his immediate family wrote the senator nearly two dozen times between 2001 and July 2005. The documents list assets going into the account and assets sold. Some assets have a dollar range of the investment's value and some list the number of shares."

Catkiller goes Gekko.

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By way of Looka, did Catkiller Frist pull a Martha? "Senate Majority Leader Bill Frist, a potential presidential candidate in 2008, sold all his stock in his family's hospital corporation about two weeks before it issued a disappointing earnings report and the price fell nearly 15 percent...To keep the trust blind, Frist was not allowed to know how much HCA stock he owned...but he was allowed to ask for all of it to be sold." Update: The Post has more: "The notion that you have a blind trust but you can tell your trustee when to sell stock in it just doesn't make any sense. It means you have a seeing eye trust and not a blind trust. It's ridiculous." Update 2: The SEC steps in, and subpoenas start flying.

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This page is a archive of recent entries in the Frist's Stock Deal category.

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