Sen. Warren & Pete Hegseth Go Into Fiery Clash Over Insider Trading, Corruption in Iran War — AC1G

[0:00] Senator Warren. Thank you, Mr. Chairman. So Americans are paying a high price for Donald [0:05] Trump's war with Iran. We've got 14 service members who are dead, over 400 more who are [0:11] wounded. Prices are rising for nearly every American family. But someone is profiting off [0:19] Trump's war. Insiders who know what's going on and who place bets on that inside information. [0:27] On March 23rd, just 14 minutes before Trump unexpectedly posted about, quote, very good [0:35] conversations on ending the war, traders suddenly bet $500 million on the price of oil, which [0:44] once Trump made his announcement, immediately dropped. It happened again on April 7th and [0:51] then again on April 21st, a surge in oil bets, then a Trump post, and then a huge shift in [0:59] oil prices in just the space of minutes. It looks like insiders have been making out like [1:07] bandits using secret information about the war. Now, one U.S. soldier has been charged, but [1:13] that was for betting on capturing Maduro months ago. Not a single person has been charged in [1:21] the many, many, many trades over the Middle East war. So Secretary Hegseth, do you have [1:28] any explanation for these perfectly timed spikes in trading activity other than insider trading? [1:40] Senator, all I can tell you is that everything we've done in our department, everything we've [1:44] done with information in working with the White House and across the interagency has been [1:48] completely above board. [1:49] Well, so what does it mean? Do you have any other explanation other than insider trading? [1:56] Do you have a story for why just minutes before there's an announcement, there's a surge in [2:03] trading activity? [2:05] Senator, I'm more than focused on doing my job and ensuring we execute properly, which thankfully [2:10] under this administration, our troops have done incredible things in all these missions. [2:14] My job in all of those moments is to make sure we're prepared. And that's part of the reason [2:19] why we've been so successful in these raids, in these efforts is that this joint force is prepared. [2:24] You're saying you're not paying any attention to this insider trading. Is that what you're [2:27] telling me? That you've paid no attention to this? You haven't noticed it? You haven't done [2:31] anything about it? [2:31] What I'm saying is we're focused on our mission of executing for the American people and what [2:36] happens in markets is not, in betting markets is not something we're involved in. [2:41] What happens in betting markets doesn't matter to you, even if the information may be coming [2:47] from insiders in your office? [2:49] Senator, it's not something we're involved in at all. And of course, we take operational [2:53] security at every level very seriously. In fact, no one's taken operational security more [2:58] seriously than us. If you look at what it required to keep secret Midnight Hammer and Operation Maduro, [3:05] the absolute resolve with Maduro and the steps we've taken, no one's been tighter about ensuring [3:12] that operational security is insured. Have you taken any steps to deal with insider trading [3:16] out of your office? We would ensure at every level that inside information is properly safeguarded. [3:25] All right. Well, obviously you're not. I'm also concerned about recent reporting on your own [3:31] financial dealings with regard to profiting from the war in Iran. The Financial Times reported that [3:37] your broker tried to buy hundreds of shares in a BlackRock fund invested in defense companies just [3:43] before the war began. The law clearly prohibits the secretary. That entire story is false, [3:49] has been from the beginning and was made up out of whole cloth. And anybody that looks at it, [3:53] sees how it was worded from the beginning to make it look like I was involved in something I had [3:58] nothing to do and never have. So any insinuation that I've ever profited, [4:02] other than serving this nation, what I give, what you give, what others give, [4:06] I'm not looking for money. I don't do it for money. I don't do it for profit. I don't do it for stocks. [4:10] And that's part of the reason why I'm able to be effective in this job. Because no one owns me. [4:14] No one owns this department. No one owns this president. And we can execute for the American [4:18] people and we do. The law clearly prohibits the secretary of defense from owning stock [4:25] in the 10 biggest defense contractors. Other senators and I sent you a letter with detailed [4:31] questions about this. And you have not given us a response. So I'd like to hear you say, [4:37] did you through your broker at Morgan Stanley or otherwise seek to invest in any defense related [4:44] funds right before Trump started the Iran war? I'll give it to you as a big fat negative. Then let [4:53] me ask you a second question. Is your broker getting your personal sign off on any investment [5:00] in individual stocks? Bigger, fatter, negative. He's not getting your sign off before he makes [5:06] investments in defense stocks? Can I refer you to? I'm not making investments, Senator. I am asking, [5:13] does he know that he has to get your sign off before he does that? Of course. I don't know what you're [5:18] looking for, but you can find it. Thank you. Thank you, Senator. I would like to enter into the record, [5:25] the ethics agreement that the secretary of defense has signed, that he will sign off personally before [5:32] his broker makes any attempt to buy defense stocks. Is there objection? Thank you. Without objection, [5:39] it will be admitted. Senator Banks. Thank you, Mr. Chairman. Secretary Heckson, [5:45] you're doing a great job. I've been in Washington for 10 years, several secretaries of defense, [5:53] now secretary of war. You're the best that we've had since I've been in Washington. What you've done [5:58] to restore readiness, restore military recruitment, get the Pentagon focused on war fighting is second [6:04] to none. And I appreciate what you and President Trump and General Cain are doing very much.