Frist Puts Personal Gain and Corporate Lobbyists Ahead of the American People

Washington, DC – Earlier this week, the Associated Press reported that Senate Republican Leader Bill Frist dumped millions of dollars in HCA stock, from his supposed “blind trust.” Days after Frist’s sell-off, HCA, a family company still run by Frist’s brother, reported disappointing earnings and the stock dropped 15 percent. [AP, 9/21/05] Today, it was learned that the Justice Department subpoenaed records relating to the controversial multi-million dollar stock transaction initiated by Frist. In addition, the Securities and Exchange Commission (SEC) has launched an investigation of the stock trades. [Bloomberg, 9/23/05; New York Times, 9/23/05; CNN/Money, 9/23/05]

Bloomberg also reports today that Frist delayed a vote on repealing the estate tax in the aftermath of Hurricane Katrina only after hearing from corporate lobbyists. The article notes that, “since George W. Bush became President in January 2001, it hasn’t been unusual for top-ranking U.S. lawmakers and 59-year-old Bush himself to turn to trade group lobbyists for advice in making legislative decisions.” [Bloomberg, 9/23/05]

“These developments show that Bill Frist spends most of his time looking out for his own financial interests and for Republican big business cronies, not for the interests of the American people he’s supposed to represent in the Senate,” said Democratic National Committee Chairman Howard Dean. “Now that they control the White House and the Congress, Republicans in Washington have made their culture of corruption the norm, and no longer put the interests of Americans first. The Bush Administration and their SEC and Justice Department officials must fully and vigorously investigate Frist's suspicious stock trade and fulfill their role as financial watchdog for the American people.”