FBI Director Kash Patel was asked about two stocks he bought earlier this year by a member of Congress on Wednesday and gave a surprising answer. The transactions come as members of Congress are working on legislation to ban lawmakers and cabinet members from buying and selling stocks.
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Kash Patel's Two New 2025 Stocks
Patel had previously traded stocks and served on the board of directors for Trump Media & Technology Group (NASDAQ:DJT) before becoming the head of the FBI.
Since taking the role, Patel has mostly sold off his stock and ETF holdings to make sure there are no conflicts of interest in his role.
On Wednesday, Patel was asked by Rep. Joe Neguse (D-Colo.) about two stock transactions made earlier this year, as shared by Quiver Quantitative.
Neguse asked Patel about a financial disclosure that showed he bought $15,001 to $50,000 in Krispy Kreme Inc (NASDAQ:DNUT) stock on May 9 and bought $50,001 to $100,000 in ON Semiconductor Corp (NASDAQ:ON) shares on May 12.
"I submit proposals under DOJ guidance," Patel testified.
Patel said he works with the DOJ (Department of Justice) and FBI on which stocks he would like to trade and they run a review before telling him yes or no and then he makes the trades.
Neguse asked Patel what it was specifically about these two companies that drew him to invest, when his financial disclosure showed that he sold off many stock positions.
"I just follow certain industries. I thought they would be a good investment."
Patel said when it came to his divesting earlier this year, this was done due to potential conflicts of interest and to avoid the appearance of impropriety.
"They make the call," Patel added.
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold With Our Easy-to-Use Tool
Patel's 2025 Transactions
A disclosure filed by Patel with the Office of Government Ethics highlights the stock purchases by Patel, as shared by NOTUS. The disclosure also shows that Patel sold over 40 positions in stocks and ETFs.
Among the largest transactions were the following:
- NVIDIA Corp (NASDAQ:NVDA): Sold $100,001 to $250,000 in shares
- Palantir Technologies (NASDAQ:PLTR): Sold $50,001 to $100,000 in shares
- Eli Lilly & Co (NYSE:LLY): Sold $50,001 to $100,000 in shares
Patel also sold stock in Apple, Meta Platforms, Rumble, Intel and sold between $50,000 and $100,000 in shares of the Grayscale Bitcoin Trust (NYSE:GBTC), one of the top Bitcoin (CRYPTO: BTC) ETFs.
The purchases of Krispy Kreme and ON Semiconductor shares are listed with "no current conflict exists" in the disclosure.
Along with the stock purchases, Patel also made several ETF purchases according to the disclosure:
- SPDR S&P 500 ETF Trust (NYSE:SPY): bought $500,001 to $1 million in shares on May 12
- SPDR S&P 500 ETF Trust: bought $50,001 to $100,000 in shares on May 20
- Invesco QQQ Trust (NASDAQ:QQQ): bought $100,001 to $250,000 in shares on July 12
Why It's Important
Neguse's questions on the transactions and selling stocks due to potential conflicts of interest come as bipartisan efforts to ban members of Congress and Cabinet members have gained momentum among lawmakers.
Neguse said that divesting stocks entirely and not purchasing individual stocks could be in the best interest of Patel.
"You can understand your role," Neguse told Patel.
Amid the calls for potentially stopping buying and selling stocks, Patel offered his response to Neguse.
"Thank you, I'll work with you on it," Patel told Neguse.
Krispy Kreme Shares Soar After Patel's Comments
Shares of Krispy Kreme soared around the time of Patel's comments on Wednesday, hitting an intraday high of $3.48, up 11.5%. Shares closed the day up 0.96% to $3.15 on Wednesday.
Earlier this year, Krispy Kreme gained attention on social media from retail traders and with reports of high short interest, prompting a potential meme stock rally in the donut company.
Shares surged to over $4 in July, but have since fallen.
Krispy Kreme stock has traded between $2.50 and $12.67 over the last 52 weeks with shares down 67% year-to-date.
On the day of Patel's purchase, Krispy Kreme stock traded between $2.58 and $3.30, meaning he could be up on the trade or down, while it is unknown exactly how much he paid or how many shares he owns.
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