Warren presses Trump SEC pick to investigate Carl Icahn for insider trading

At Thursday’s confirmation hearing for Jay Clayton to be chairman of the Securities and Exchange Commission, the Massachusetts Democrat raised concerns that Icahn is taking positions in companies at the same time that he is influencing regulations affecting those businesses as an outside adviser to Trump.

“That creates a conflict of interest that is just beyond what we are even talking about everywhere else,” Warren told Clayton. “We’re gonna have to count on you… I want to hear that you are clear that this is not right — that this will be investigated.”

Clayton did not commit to investigating Icahn, saying that insider trading investigations are “a very facts and circumstances analysis.”

“I think we’re assuming a lot,” he said of Warren’s line of questioning about Icahn’s investments.

“I don’t think we’re assuming a lot,” the Democratic senator shot back.

Warren specifically referred to Icahn’s post-election purchase of a stake in drugmaker Bristol-Myers Squibb, whose value likely would be affected by Trump administration decisions regarding the Food and Drug Administration, patents, and Medicare and Medicaid.

Icahn invested in the company in February, after Trump’s election and after he had been named as an outside adviser.

Icahn’s position as an outside, unsalaried adviser drew skeptical comment from some ethics experts. Typically, executive branch members are expected to divest themselves of outside assets before advising the president.

Warren also sought to get Clayton to commit to not meeting with Icahn, noting that the SEC is probing another company in which he has a large stake, Herbalife. Clayton answered that it was important to meet with investors and all other market participants, but noted that it might not be advisable to have private conversations with individuals whose companies are under investigation.