Sen. Kelly Loeffler Has Sold Nearly All Her Stock. Here’s What She Still Owns

As a state senator, Kelly Loeffler makes her living selling the state of Texas for big bucks, traveling the country and meeting with big money donors.

Her efforts have won her money, prestige and deals on multiple contracts, but one of Loeffler’s biggest assets has been her expensive, ownership stake in Bank of America. During the past 5 years she was worth over $11 million, including the value of her Bank of America shares, according to disclosures filed with the Texas Ethics Commission.

I met Loeffler this afternoon to ask her about her investment and how she could be so secure in such a precarious industry. She gave a couple details about how her shares in Bank of America were obtained and a long list of companies she has held stock in. However, she denied that her CEO’s of those companies give any special rights to her.

Here is a short explanation of how she acquired her shares, described as “S” shares, which are considered common stock and do not have voting rights:

“We were a mutual fund. When you get access to stock and you get access to mutual funds that have a S indexing structure, you don’t have to put money in any individual stock. What happens is that when you put your money in a mutual fund, that mutual fund is allocated to own a certain percentage of every stock in that fund. Once that gets adjusted, it is determined the percentage of each stock, like say American, that has an S indexing structure, you have no obligation to buy any of the individual stocks in that mutual fund.”

In other words, the stock is bought and sold through mutual funds, not directly from any individual company.

“We never touched any individual stock in the system. People get in mutual funds and they put money in those mutual funds, and that money gets allocated on the basis of how much mutual fund is there, how much money they have in that mutual fund. So any [share of Bank of America] is part of the S index, 100 percent. We never touched any individual stock in the system.”

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