Downturn hits House assets and income

Congressional leaders lost millions of dollars in last year’s economic downturn.

New financial disclosure reports reveal, however, that while House members suffered losses, senators defied the odds and saw their profit margins rise.

{mosads}Speaker Nancy Pelosi’s (D-Calif.) husband, the San Francisco financier Paul Pelosi, lost between $880,000 and $7.4 million in various investments. As a result, the Pelosis earned only several hundred thousand dollars of income from their assets, which range between $29 million and $133 million, according to public reports.

House Democratic Caucus Chairman Rahm Emanuel’s (Ill.) good fortune as chairman of the Democratic Congressional Campaign Committee in 2006 did not extend to his stock portfolio in 2007.

His and his wife’s reported assets dropped to between $4 million and $20 million. Their biggest drop came in a qualified blind trust that was valued at $5 million-$25 million in 2006 but only $1 million-$5 million at the end of last year.

It is difficult to know precisely how much money lawmakers make or lose through their investments because they report assets in broad ranges. But annual financial disclosure forms provide an accurate if broad sketch of their finances.

The two highest-ranking Senate leaders defied economic trends. Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) added hundreds of thousands to their holdings between 2006 and 2007. Reid expanded his assets by at least $600,000, a 29 percent jump by his portfolio at a time when many stock and real estate investors suffered losses.

Reid’s assets may have increased as much as $1.2 million. He has invested his wealth in an array of public and non-public assets, such as a Dow Jones Energy Index Fund and a healthcare sector index fund. His other assets include several mining claims and properties.

McConnell’s publicly traded investments grew by at least $600,000, or 40 percent. He reported public assets worth $1.5 million-$3.5 million in 2006. Those swelled to between $2.1 million and $7.8 million in 2007. He also reported a Washington property worth between $1 million and $5 million that stayed at the same value.

Despite their rising financial fortunes, Senate leaders say they still appreciate the economic struggles of the middle class. “American families are earning less today than five years ago and paying more for everyday necessities like a gallon of gas, heat for the home, and, of course, groceries,” Reid said on the Senate floor Monday. “And they’re paying more than ever for long-term needs like the goals of healthcare, college and retirement.

“Most Americans are too busy figuring how to pay the bills and make ends meet to pay close attention to Congress. If working families see one thing from Congress, it’s this: Democrats get it.”

Many ordinary investors, however, saw their public investments plummet while Reid’s fortunes rose.

The Dow Jones Industrial Average, which measures the stock performance of 30 of the largest American public companies, started 2007 just under 12,500. It rose to a high over 14,000 in October before plunging to around 11,500 in January this year.

House Majority Leader Steny Hoyer’s (D-Md.) relatively modest portfolio performed like most Americans’: It dropped.

Hoyer reported assets worth between $348,000 and $795,000 in 2006. These dropped to $334,000-$760,000 at the end of last year.

House Majority Whip James Clyburn’s (D-S.C.) investments floated through the market turmoil without much change. He reported holdings between $198,000 and $545,000 in 2006. They were estimated at between $212,000 and $580,000 in 2007. Clyburn’s biggest holding was a $100,000-to-$250,000 stake in Investment Entrepreneurs of Conway, S.C.

The two most senior House Republican leaders reported flat returns on their investments.

House Republican Leader John Boehner (Ohio) reported assets worth between $2.2 million and $7.9 million, almost exactly what he reported for 2006.

House Minority Whip Roy Blunt (R-Mo.) reported investments ranging between $702,000 and $1.66 million. His assets dropped by a few thousand compared to 2006.

Of the top Democratic and Republican leaders in Congress, Pelosi is the wealthiest. She and her husband own a stake worth between $5 million and $25 million in a vineyard in St. Helena, Calif.

They also own a townhouse valued between $1 million and $5 million in Norden, Calif.

Paul Pelosi lost money in a variety of investments. For example, he lost between $100,000 and $1 million in a venture with Access Technology Partners LLC, according to a public report.

He also lost between $100,000 and $1 million on a golf development partnership. The total number of Americans who play golf has dropped from 30 million to 26 million since 2000, according to the National Golf Foundation.