A leading member of President Joe Biden's Cabinet faces criticism and a potential investigation over not disclosing holdings of publicly traded companies. The news could put pressure on the current administration’s push for electric vehicles.
What Happened: Republicans are calling for an investigation into Energy Secretary Jennifer Granholm in relation to her family’s stock holdings. The investigation comes as Granholm has been a leading figure in the current administration’s focus on electric vehicles.
Sen. John Barrasso (R-WY), a member of the Senate Energy panel, has called for an investigation over “multiple instances of questionable ethical conduct since the start of her tenure,” the AP reported.
Granholm became the Energy Secretary in 2021, appointed by President Joe Biden.
A new letter from Granholm revealed she owned stocks in May 2023, which would go against her testimony the previous month. Among the holdings in question is Ford Motor Co F, which has been involved in working with the Biden administration on auto initiatives.
"Secretary Granholm lied to the committee about her family’s stock holdings," Barrasso said. "This comes after her failure to follow basic ethics and disclosure rules. This is a troubling pattern. It is unacceptable."
Granholm testified in an April 20, 2023 budget hearing that she did not own individual stocks and only held mutual funds. Granholm has admitted the error in the recent letter.
“I should have said I did not own any conflicting stocks,” Granholm said in the letter.
The letter reveals that she owned stock in six companies that were “non-conflicted assets.” The companies were not named and Granholm said that she has sold them since. A financial disclosure should reveal the companies when it is reported later in June.
Granholm said her husband owned Ford stock, which was later sold on May 15, 2023, for under $2,500.
“As I was not previously aware of the asset, I did not report my spouse’s financial interest on my two prior Public Financial Disclosure Reports, nor was it included in the other paperwork associated with my nomination,” Granholm said. “As a public servant, I take very seriously the commitment to hold myself to the highest ethical standards, and I regret the accidental omission of my spouse’s interest in Ford.”
Sen. Josh Hawley (R-MO) announced he wants an investigation into Granholm’s finances, which could include a complete list of stock transactions over the last 10 years that could be conflicts of interest.
Related Link: Oil Hits 18-Week Highs After US Inflation Data Print, Granholm Open To SPR Refills
Why It’s Important: Trading by members of Congress has come under pressure due to reported conflicts of interest and insider information leading to profitable trades throughout the year.
As a member of Biden’s cabinet, Granholm may have insights into key happenings and initiatives, including those related the automotive industry.
Granholm previously faced criticism over holding stock in Proterra Inc PTRA, while she was Energy Secretary. Granholm was previously on the company’s board of directors, but resigned from the position after becoming the Energy Secretary.
Granholm sold the holdings in May 2021 after facing pressure, netting a gain of $1.6 million.
In April 2021, Biden virtually visited a Proterra manufacturing site in South Carolina, which happened while Granholm was still a shareholder.
Granholm was found guilty of violating the STOCK Act and Hatch Act previously relating to her holdings in Proterrra.
The Energy Secretary has faced pressure from Congress previously over the push for electric vehicles. In April, Sen. Joe Manchin (D-WV) accused Granholm of breaking the law over the Inflation Reduction Act and its mandate over electric vehicles needing domestically produced parts for tax credits.
Granholm was also previously on the board of directors of ChargePoint Holdings Inc CHPT, a position she stepped down from when she became Energy Secretary.
The related queries into Granholm and questionable conflicts of interest with stock in Ford and Prottera could put pressure on the administration to choose to partner and work with certain companies and government tax breaks.
The financial disclosure from Granholm later this month or a potential list of stock transactions over the last 10 years will be closely monitored in Congress.
Read Next: 10 Best Stock Traders In Congress In 2022
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