Treasury Secretary Paul O’Neill has come under fire by Democrats because he continues to hold onto stock in Alcoa Inc., a major aluminum manufacturer, despite his position as a chief economic adviser in the Bush administration.
“Unlike the rest of George W. Bush’s senior economic team — and in contrast to President Clinton’s Treasury Secretary Robert Rubin — Bush-appointed Treasury Secretary Paul O’Neill has decided not to divest himself of his significant holdings in Alcoa,” a Democratic National Committee statement said yesterday.
The party said O’Neill’s holdings were currently worth about $100 million — a figure that rises every time the value of Alcoa stock increases.
Yesterday, Alcoa stock finished up $1.10 per share, to close at $37.50.
As of mid-March, and according to Alcoa’s most recent SEC filings, O’Neill had 2.37 million shares at the end of 2000 and 3.77 million stock options worth around $100 million. O’Neill made more than $50 million in pay and stock options from Alcoa last year.
By the end of March — and after the DNC made an issue of it — O’Neill announced he would divest himself of his Alcoa stock to avoid the appearance of impropriety.
But on Friday, the Washington Post reported that O’Neill had yet to sell his stock. A day earlier, Alcoa announced a 16 percent increase in profits, which boosted its stock price by $1.95 per share.
“That means O’Neill has made close to $5 million by holding onto the stock and options,” said a statement issued by the DNC.
“Sounds like Secretary O’Neill changed his ‘sell’ order to a ‘hold,'” DNC chairman Terry McAuliffe said.
“If there is consensus that O’Neill’s massive stock holdings are a conflict of interest, why is there this delay in clearing up that conflict?” McAuliffe said. “His portfolio may be expanding, but Americans’ faith in Bush’s promise to run an ethical administration is shrinking every day.”
In January, shortly after taking office, Bush pledged that his administration would adhere to a stricter ethical standard than perceived in the Clinton administration.
“I expect every member of this administration to stay well within the boundaries that define legal and ethical conduct. This means avoiding even the appearance of problems,” Bush said Jan. 22.
White House officials contacted by WorldNetDaily promised a response to the charges, but none was forthcoming at press time.
O’Neill was chairman and CEO of Alcoa from 1987 to 1999 and retired as chairman at the end of 2000. Prior to joining Alcoa, O’Neill was president of International Paper Company from 1985 to 1987, where he was vice president from 1977 to 1985.
His economic strategies have been studied by the Harvard Business School, as well as other institutions across the nation.
Previously, O’Neill was with the Office of Management and Budget. He joined OMB in 1967 and was deputy director of OMB from 1974 to 1977.
He began his public service as a computer systems analyst with the U.S. Veterans Administration, where he served from 1961 to 1966, according to information posted at the Treasury Department’s website.
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