Senators' Stock Sales After Virus Briefings Spark Advisor Debate

She added: "As confirmed in the periodic transaction report to Senate Ethics, I was informed of these purchases and sales on Feb. 16, 2020 — three weeks after they were made." 

That approach makes sense to Kyle Moore, CFP: "She claims she has advisors with discretion and neither she nor her husband are involved in those decisions. Doesn't that seem plausible? That was my initial thought when I read it and she confirmed that."

Attorneys also suggest that unless there's proof that she directed an investment professional to make certain transactions, the stock moves could be fully legal. 

"It's far too soon to rush to judgement," said Brian Carlis, an attorney with Stark & Stark. "There could be a plausible explanation, especially if the assets were placed in a blind trust," he said.

Disclosures made by Feinstein include those tied to a blind trust, while those of the other senators — including Loeffler and Burr — do not. (The Senate's disclosure website includes blind trust and other documents.)

"And if a discretionary money manager is involved, it's entirely possible and even likely that the individual had no knowledge of the transactions before they took place," Carlis said. "The mere fact that transactions occurred is not enough for anyone to pass judgement on for possible wrongdoing, but I appreciate that people are suspicious and/or skeptical."

Future Reforms

In light of the fact that several senators appear to have avoided stock losses that other investors did not, some advisors are suggesting it's time for changes to stock trading rules for politicians.

"Why are these elected ppl not held to the simple rule of indexes only while in office? No direct investments due to conflict of interest is so obvious and already in place for the CNBC hosts. They are public servants, indexing is just fine," said advisor Jeff Kirk on Twitter.

Patrick Ortman, a financial planner, urged a wider perspective on the matter. 

"I don't care that they cashed out," he tweeted. "I do care that they didn't do more to prepare the public. But then again, if the briefing made it obvious a catastrophe was around the corner, why did no other attendee scream from the rooftops?"

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