Feinstein-Blum Allegations: Allogene Trades, Blind Trusts & Ethics in Senate

The case centers on Richard Blum’s sale of stock in Allogene Therapeutics, a biotech firm focused on cancer therapies, during a period leading up to the market crash caused by COVID-19. According to various reporting, Blum sold shares on January 31, 2020, at around $21 per share, and again on February 18, 2020, at about $24 per share—prices which are widely described as being near the low point for Allogene that year. [2][6][7]

Feinstein and her aides assert that all her assets, including the shares held by her husband, are in a blind trust over which she has no control, in keeping with Senate rules. She further stated she did not attend a key briefing on coronavirus on January 24, nor did she have input into her husband’s financial decisions. [3][4] The trust must report her husband’s transactions under Senate rules, which they did. [2][6]

Despite scrutiny, through public records and reporting by organizations like The New York Times, ProPublica, and others, no evidence has emerged that Feinstein acted improperly or used her position to inform the trade. In fact, the Justice Department dropped its investigation into Feinstein’s trades in May 2020.[5] In consequence, this case, unlike that of Sen. Richard Burr or others, did not result in charges, suggesting the evidence was deemed insufficient or exculpatory. [5][9]

Strategic implications revolve around perception, policy, and regulatory risks. Although she was cleared, the controversy contributes to ongoing public concern over whether sitting lawmakers or their family members benefit from early knowledge of crises. This has spurred calls for stricter regulation of blind trusts, real-time transparency, and limits on trading by officials or their immediate families. For investment banking and governance analysts, the incident serves as a case study in managing reputational risk and the importance of structural safeguards.

Open questions remain, including: when exactly did Feinstein relinquish control of those assets; whether her blind trust mechanism has been audited or verified; what internal processes ensured she was unaware of her husband’s decision; and how “low point in 2020” is defined—is it relative to Allogene’s trading, the biotech sector, or broader markets.