Real estate entrepreneur Grant Cardone has reignited the contentious debate over insider trading by lawmakers in Washington with his recent remarks. In an interview on VladTV, a popular platform for celebrity interviews and urban news, Cardone passionately argued for an immediate ban on congressional stock trading if he were President of the United States.
“If you’re in Congress or the Senate, you don’t get paid more than the median wage… and you cannot insider trade,” Cardone declared, outlining the stringent rules he would implement as the Head of the Oval Office. “In fact, you cannot f—ing trade at all, because you’re too close to the action.”
These comments were made in response to a query about the substantial wealth amassed by former House Speaker Nancy Pelosi (D-CA) while serving in Congress. Cardone expressed disbelief at how Pelosi could accumulate such a fortune on a congressional salary, prompting him to share his thoughts on the matter.
‘Can’t do the math’ on Pelosi’s wealth
Cardone, 66, pointed to Pelosi’s reported $120 million net worth, questioning how she could achieve this with an annual congressional salary of $179,000, supplemented by approximately $70,000 during her tenure as Speaker of the House.
“You can’t do the math on it,” he said on VladTV, humorously adding, “she would have to be 33,000 years old or something.”
While the hyperbole underscored his point, Cardone emphasized a valid concern: Pelosi’s substantial wealth appears incongruous with her official earnings. The real estate mogul even performed on-the-spot calculations using his phone, highlighting the significant tax obligations Pelosi would likely face. Assuming she and her venture capitalist husband, Paul Pelosi, fall into the highest federal tax bracket of 37%, and factoring in an additional 10% for California state income tax, Cardone estimated that Pelosi’s effective tax rate would be around 50%.
This calculation would leave Pelosi with approximately $89,000 annually after taxes. Cardone then quipped that, by his math, Pelosi would need to be nearly 1,500 years old to amass her current net worth, assuming she never spent any money and worked every day at her congressional salary.
Insider trading on the Hill
Pelosi, aged 84, has grown her wealth significantly through investments made alongside her husband Paul. Their strategic trades in prominent stocks like Nvidia (NVDA), Google (GOOGL), Salesforce (CRM), Roblox (RBLX), and Disney (DIS) have resulted in substantial profits. Despite these trades adhering to the letter of the law, Pelosi has faced allegations of leveraging her political connections and insider information to gain an edge in the market.
This scrutiny has positioned Pelosi as a central figure in the ongoing debate over insider trading within Congress. Several legislative proposals have aimed to prohibit lawmakers from trading stocks, including the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act, explicitly referencing the former House Speaker.
When introducing the PELOSI Act in January 2023, Senator Josh Hawley stated, “While Wall Street and Big Tech work hand-in-hand with elected officials to enrich each other, hard-working Americans pay the price. The solution is clear: we must immediately and permanently ban all members of Congress from trading stocks.”
Despite the introduction of such bills, they have struggled to gain traction in Congress. Nevertheless, there is a growing consensus in Washington that potential corruption must be addressed.
Widespread issue among lawmakers
Cardone clarified on VladTV that his critique of Pelosi was not isolated, acknowledging that many lawmakers, both Republicans and Democrats, have benefited significantly from stock trading. “I’m just picking on Nancy,” he reiterated, pointing out that to accumulate such wealth, Pelosi would have needed to invest every dollar she earned. He further highlighted that numerous members of Congress have similarly profited from their positions, suggesting a broader issue of financial gains tied to legislative influence.
Cardone’s remarks contribute to the ongoing discourse about the ethics and potential conflicts of interest inherent in lawmakers’ financial activities. The debate continues as to whether stricter regulations are necessary to prevent perceived abuses of power and ensure that public officials prioritize their constituents’ interests over personal financial gain.
