Posted on 05/28/2011 2:39:24 PM PDT by The Magical Mischief Tour
I wasn't aware of this, but apparently the damn hypocrite members of Congress are exempt from insider trading laws, when they vote on legislation that will impact their portfolio and as a result of knowledge they gain from their Congressional activities. Nice that the bastards have exempted themselves.
Valerie Richardson at the Washington Times reports: Strict laws ban corporate executives from trading on their insider knowledge, but no restrictions exist for members of Congress. Lawmakers are permitted to keep their holdings and trade shares on the market, as well as vote on legislation that could affect their portfolio values. Not surprisingly, the data suggest that Congressmen are using this insider edge to profit. Here's Richardson again: It’s no secret that members of Congress qualify as political insiders, but a new report strongly suggests that they also may be insiders when it comes to trading stocks.
An extensive study released Wednesday in the journal Business and Politics found that the investments of members of the House of Representatives outperformed those of the average investor by 55 basis points per month, or 6 percent annually, suggesting that lawmakers are taking advantage of inside information to fatten their stock portfolios.
“We find strong evidence that members of the House have some type of non-public information which they use for personal gain,” according to four academics who authored the study, “Abnormal Returns From the Common Stock Investments of Members of the U.S. House of Representatives.”
To the frustration of open-government advocates, lawmakers and their staff members largely have immunity from laws barring trading on insider knowledge that have sent many a private corporate chieftain to prison. It should be noted that this study only took into account trading that has been disclosed. I suspect that the more egregious trading is done in a manner which is not reported.
In general, there is nothing wrong with insider trading, but when it comes to Congressmen personally benefiting as a result of legislation they shape and vote on, there is a clear conflict of interest. Thus, while insider trading laws should be eliminated for the general public, it is a pretty good idea to shackle Congressmen with insider trading regulations, so that the conflicts they face are eliminated, and also on the general principle that Congressmen should be tied up in bureaucratic red tape as much as possible, so that they have less time to harass the rest of us with new legislation.
One bill prohibiting insider trading by members of Congress has been written. Richardson reports: ...concerns about members of Congress enriching themselves based on inside information has prompted at least one House bill, the Stop Trading on Congressional Knowledge (STOCK) Act, which would limit the ability of lawmakers to buy and sell stock shares.
First introduced in 2006, the bill has yet to reach the House floor. Its sponsors, Reps. Louise McIntosh Slaughter, New York Democrat, and Timothy J. Walz, Minnesota Democrat, reintroduced the bill in March. Slaughter and Walz are two of the most aggressive interventionists in Congress, it's good to see them baring their fangs inward against their fellow congressmen. I fully support the Stop Trading on Congressional Knowledge Bill.
Is it time yet?
It’s time to start stringing up the media since they are more like Pravda than the press.
Perts to augment their low pay schedule.
If they only make 6% on inside info they can’t be very smart. No surprise.
“America is at that awkward stage. It’s far to late to change the system but too early to start shooting the bastards.” Claire Wolfe
I’ve pointed this out many times over the past ten years.
This is yet another way to bribe your congressman. Give him advance notice of your corporate returns.
Tick, tock, tick, tock, ............
IMO, it should be common knowledge where our city, state and federal officials live. Yes, the county bureaucrats, the local, state and federal police officers, every single one of them. Let’s remove the cloak of anonymity from these public officials! They work for us, remember?
It is not difficult to make someone live in fear for their lives as many of you already know. Making our elected local, county, state or federal officials acutely aware of that feeling is not a popular idea but I assure you after once having that taste in your mouth, it is not one quickly forgotten. Why should we be the ones who fear them if we are not criminals?
Of course they’re exempt. Who do you thinks makes the laws? You surely didn’t think they would pass laws to hurt themselves, did you? Just like obamacare - they are exempt.
Members of Congress Are Exempt from ObamaCare.
We need to make all citizens Members of Congress. Damn Hypocrites isn’t what I would call them to their face. I’d use much stronger language. Something like Damn Traitors.
I am so sick of hearing that “I could make more in the “private sector ‘from men of average intelligence with party ties.. these men would be lucky to make 100k in the “private sector’ but they go to Washington for a few years and come home filthy rich ....95 % are crooks in suits and I am sick of them all
I want a part time congress that has to come home and earn a living in their own district most of the year..THAT would be real public service
No one ever suspected that they spend all that money getting elected for that piddlin salary they get did they>
There are a lot more ways to make a buck out of Congress too.
No, it is well past time.
They are up 55 basis points a month above and beyond the Benchmark Averages. That is an annual return of 6.6% greater than the S& P 500 for example.
That is substantial, using the rule "of 72's"depending on the Benchmark, they are doubling their money faster than us mere mortals.
Even those of us seeped in Portfolio Theory, Asset Allocation and maybe currently or were Investment Professionals, can't obtain those numbers....
Given that as a background, IMHO something stinks in Demark...
Unbelievable!
If the people don’t rise up and remove the whole bunch....oh, well, it’s not gonna’ happen. Most people don’t care as long as they can watch reality T.V. Maybe more will start to pay attention now that Oprah is gone.
I’ve decided I will never vote for an incumbent. I don’t care anymore. They’re all the same. ALL OF THEM.
You can also buy advanced copies of their next “biography”.
You are so right. I trade futures for a living and if I had their inside info I would be richy rich. Dumb lieing politicians.
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