Most US High Court Justices Didn't Alter Investments In 2008
June 05 2009 - 4:24PM
Dow Jones News
Only one of the U.S. Supreme Court justices significantly pared
his stock holdings during last year's financial market turbulence,
according to annual financial disclosures released Friday, as the
other justices hung onto their portfolios.
Chief Justice John J. Roberts, Jr. and Justices Samuel Alito and
Stephen Breyer hold the most public stock on the court, prompting
occasional recusals due to financial conflicts. Breyer unloaded 15
stock investments in 2008, allowing him to participate in some
cases that he would have otherwise sat out.
Last fall Breyer confirmed the sale of stock in BP PLC (BP),
Exelon Corp. (EXC) and United Technologies Corp. (UTX). But he also
sold investments in several financial services and consumer
products companies, including stakes worth more than $50,000 each
in PepsiCo Inc. (PEP) and Colgate-Palmolive Co. (CL) and smaller
holdings in Bank of America Corp. (BAC), National City Corp. (NCC),
Wells-Fargo & Co. (WFC), Heinz Co. (HNZ) and Proctor &
Gamble Co.
Breyer's portfolio continues to hold a number of stakes in
companies that could have business before the court. Stakes he
hadn't sold as of the end of 2008 include Wal-Mart Stores Inc.
(WMT), Lowe's Cos. Inc. (LOW), International Business Machines
Corp. (IBM), Cisco Systems Inc. (CSCO), Teva Pharmaceutical
Industries Ltd. (TEVA) and EMC Corp. (EMC).
Supreme Court justices must file annual disclosure reports
detailing their financial activities, public speeches and outside
income over the past calendar year. A majority of the justices are
millionaires, but most don't invest in individual stocks.
Justices can take advantage of a special tax break to spread out
the cost of selling their investments. Chief Justice Roberts has in
the past pared his stock holdings.
But neither Roberts nor Alito made any significant changes to
their portfolios over the 2008 calendar year, though Roberts
rebalanced a part of mutual fund portfolio into more conservative
investments. Alito continues to own between $50,000 and $100,000
worth of stock in Exxon Mobil Corp. (XOM), despite the fact that
the company regularly appears before the court.
The most sweeping changes occurred in retiring Justice David
Souter's portfolio. Souter, who steps down from the high court in
June, cashed out his stock in the Chittenden Corp. in January 2008,
when the bank was acquired by a unit of People's United Financial,
Inc. (PBCT). The justice transferred his funds, between $10 million
and $25 million, first into Treasury bills and later into
certificates of deposit in a savings account.
The court also may no longer hold country club memberships,
after Congress passed new ethics laws last year that the judicial
branch interpreted as restricting them. Roberts, Alito and Justices
Antonin Scalia, Ruth Bader Ginsburg and Anthony Kennedy resigned
their honorary memberships at Washington golf, tennis and social
clubs, and Alito noted that he never used the club's
facilities.
Ginsburg retained her membership in New York's Lotos Club, but
as a regular dues-paying member. Justice John Paul Stevens listed
memberships in four clubs, but his form didn't disclose whether he
resigned.
Several of the justices also padded their incomes as authors.
Clarence Thomas earned the most, making $333,334 in royalties off
his autobiography, "My Grandfather's Son."
Scalia declared earning $98,716 in an advance and royalties from
his book, "Making Your Case: The Art of Persuading Judges," while
Breyer earned $54,822 in royalties for "Active Liberty:
Interpreting Our Democratic Constitution."
President Barack Obama's nominee to replace the retiring Souter
on the Supreme Court, Sonia Sotomayor, also disclosed her finances,
noting she won $8,283 in "jackpot game winning" on Nov. 23,
2008.
-By Kristina Peterson, Dow Jones Newswires; 202-862-6619;
kristina.peterson@dowjones.com; and Mark H. Anderson, Dow Jones
Newswires; 202-862-9254; mark.anderson@dowjones.com