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Monday, June 28, 2010

NotionsCapital: Judge Sold Exxon Stock 5 Hours Before Lifting Drilling Ban

June 27, 2010 by Mike Licht


Federal Judge Martin Leach-Cross Feldman engaged in an oil spill cleanup of his own last week.

Five hours before he rendered his decision blocking the six-month moratorium on deep-water Gulf oil drilling, Judge Feldman sold his personal holdings of Exxon Mobil stock.

Exxon was not a party to the case under consideration but will directly benefit from the Judge’s action.

Judge Feldman may have lost a few dollars on the sale; he definitely lost much more in credibility. ”The judicial canons require that judges be aware of their investments,” wrote Steven Mufson and Joe Stephens in the Washington Post:

“Judicial ethicists said that, had he been aware of his holdings, Feldman should have disclosed the ownership or recused himself at the case’s outset if he thought it posed a conflict or raised questions about his impartiality.

The court docket indicates that Feldman signed several orders before the sale.

“‘I’ve never heard of a situation like this,’ said Jeffrey M. Shaman, a judicial ethics specialist and law professor at DePaul University.

“The judge may have thought the stock did not create a substantial conflict, legal analysts said, but the fact that he apparently felt compelled to sell the stock and disclose it could be seen as indicating otherwise.

source: http://notionscapital.wordpress.com/2010/06/27/judge-sells-exxon-stock-5-hours-before-lifting-drilling-ban/#more-30824

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