Thursday, November 24, 2005

Yet another "coincidence"

Investing - The Tamiflu Tug of War - FORTUNE - Page: "Among the beneficiaries of the run on Tamiflu is Secretary of Defense Donald Rumsfeld, who was chairman of Gilead from 1997 to 2001 and owns at least $5 million of the stock, which has jumped from $35 in April to $47. Former Secretary of State George Shultz, who is on Gilead's board, has sold more than $7 million worth of Gilead in 2005. As the bird-flu issue heated up earlier this year, according to a senior Pentagon official, Rumsfeld considered unloading his entire Gilead stake to avoid any perceived conflict of interest. He sought the advice of the Department of Justice, the Securities and Exchange Commission, and the federal Office of Government Ethics. When those agencies didn't offer an opinion, Rumsfeld consulted a private securities lawyer, who advised him to hold on to the stock and be vocal about his earlier recusal from all matters involving Gilead, rather than sell and run the risk of being accused of insider trading. Holding on has paid off; it's made the Pentagon chief, already one of the wealthiest members of the Bush cabinet, at least $1 million richer."

Well, well. Another obscure company gets rich, which makes a current government member rich and this is all just sheer happenstance. The simple fact that Bird Flu is scarcely more than a fairy story similar to that of Saddam's weapons is neither here nor there, of course.