WASHINGTON — Colorado lawmakers probably winced if they looked at their stock holdings after the House failed to pass a market stabilization plan.
The nearly 778-point plunge of the Dow Jones industrial average Monday was just the latest in a series of recent Wall Street drops that have affected lawmakers along with many other Americans.
Democratic Rep. Mark Udall’s investments and those of his wife are down for the year as much as 46 percent, costing him potentially $150,000 or more on paper. Rep. Diana DeGette lost as much as $5,100 in one of her funds.
Udall voted against the bill, while DeGette voted for it.
“To legislate to one day on the market, especially when we have to fix this the right way, isn’t what Coloradans want me to do,” Udall said, adding that he hadn’t had time to consult his own portfolio. “What I was voting for in the end was all of our self-interest, which is to fix this right. If it means that in the short term there is turmoil, OK, but we’re going to get this right.”
Better explanation needed
DeGette has money in the stock market, a mortgage, a child in college and “like most Americans, she’s worried about the economy as well,” said her spokesman, Kristofer Eisenla.
Returning to Denver after the House recessed, DeGette on Tuesday called on congressional leaders to sell the package differently, telling voters it will help them by staving off economic disaster.
“I’m not sure politicians have adequately explained the seriousness of the issue and the consequences for average Americans,” she said.
Udall has one of the broader stock and bond portfolios of lawmakers in Colorado’s congressional delegation, with many of the holdings in his wife’s name. DeGette’s husband also has separate investments.
Six of the 13 investments analyzed have lost as much as $52,410 combined this year.
It’s impossible to know exactly how much each has lost on paper because disclosure rules permit members of Congress to report their holdings in broad ranges, like $50,000 to $100,000. In addition, in five cases for Udall, the name of the fund is not fully listed, so the losses for those funds could not be checked. Udall’s aides could not immediately provide more information.
Losses were determined for the calendar year as of the closing price Monday, before the market rebounded Tuesday.
Stock holdings
Other members of the delegation also have stock holdings. Rep. Doug Lamborn, a Colorado Springs Republican who voted against the bill, has lost 21 percent so far this year on the stock fund he has between $1,001 and $15,000 invested in.
Rep. Ed Perlmutter, a Golden Democrat, holds a combined total between $200,000 and $500,000 in two funds that are each down 22 percent. He voted for the bill.
Rep. Marilyn Musgrave, a Fort Morgan Republican who voted against the bill, has between $15,000 and $50,000 in an IRA fund she doesn’t control. Her husband has $100,000 to $250,000 in a similar IRA.
Rep. Tom Tancredo, a Littleton Republican who voted for the bill, with his spouse has a combined total of between $500,000 and $1 million in a group of funds but did not itemize them on his report.
Members of Congress also become eligible for a retirement plan after five years. It’s mostly funded by taxpayers, with lawmakers putting in 1.3 percent of their pay. It pays based on years of work and the highest three years of pay.
The average amount received at retirement in 2006 was $35,952 annually, according to a 2007 report by the Congressional Research Service. Udall said if he does not win the Senate race he’s in and leaves Congress this year, he’ll get about $25,000 a year starting at age 62.
Members of Congress also pay into and receive Social Security benefits.
Staff writers Michael Riley and John Ingold contributed to this report.
