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First on CNN Business: Elizabeth Warren demands investigation into elite investors accessing Trump briefings

October 15, 2020. Summarized by summa-bot.

Senator Elizabeth Warren is calling on US financial regulators to investigate whether insider trading laws were violated when elite investors reportedly got wind of private concerns voiced by Trump officials about the pandemic in late February.

New York (CNN Business)Senator Elizabeth Warren is calling on US financial regulators to investigate whether insider trading laws were violated when elite investors reportedly got wind of private concerns voiced by Trump officials about the pandemic in late February.

"Numerous investors may have used this early and insider information about the looming, tragic economic and public health consequences of the pandemic to extract profits for themselves," Warren wrote in the letter obtained first by CNN Business.

The request follows a report by The New York Times alleging that senior members of President Donald Trump's economic team privately detailed concerns in late February about the looming pandemic.

At the time, Trump was telling the public that the health crisis was "very much under control. " The president even said in a tweet that the stock market was "starting to look very good to me!"

Word of those private concerns held by top US officials reportedly spread to elite investors through a hedge fund consultant, allowing these traders to make bets that stocks would drop.

"Short everything" was the reaction of one major investor briefed on the memo from the hedge fund consultant, the Times said.

Warren urged the SEC and CFTC to review the material nonpublic information provided to investors and any trading that occurred as a result.

Specifically, Warren asked the regulators to determine which Trump administration officials provided the information, how that information differed from the public comments by the administration, who received the information and whether those individuals made trades of securities, futures, swaps or commodities.

"If this report is accurate, it represents an appalling abdication of duty by President Trump and top officials in his administration," Warren wrote.

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