Sen. James Inhofe invested in defense stock days after encouraging increase in defense spending

By Grace Segers

/ CBS News

Senate Armed Services Committee Chairman James Inhofe, R-Okla., rushed to divest himself from defense stocks after reports revealed that he invested over $50,000 in Raytheon stock just days after urging President Trump to dramatically increase defense spending.

On Sunday, Mr. Trump told Defense Secretary Jim Mattis to submit a $750 billion budget proposal for the next fiscal year, a record number for defense spending, after meeting with Mattis, Inhofe and the chairman of the House Armed Services Committee. The president had previously said in October that he was willing to cut down on defense spending. The Daily Beast first reported that Inhofe's financial advisor invested between $50,000 and $100,000 in Raytheon, a defense contractor, on Tuesday.

Inhofe's office said that he had requested his financial adviser to cancel the transaction, and told him to avoid defense-related purchases in the future.

Inhofe spoke briefly to reporters on Thursday. He handed out small card bearing a brief statement after he spoke. The card said that a third-party adviser manages all of his stocks, and that he is "not consulted or involved in any stock transactions."

"When this came to my attention yesterday, I took immediate action to reverse the trade," the statement continued. "I have directed my adviser not to trade on defense or aerospace stocks going forward."

First published on December 13, 2018

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Grace Segers

Grace Segers is a politics reporter for CBS News Digital.

Original Article