Thursday, December 29, 2011
Insider Trading -- In Congress?
Click here for referenced story (Washington Times)
Caught in the act of using their insider information on new regulatory legislation and investigations to trade stocks, Congress has created a new smokescreen by creating still another Bill which would theoretically outlaw the practice which has made Congresspersons, their staffers, and their lobbyists quite wealthy.
The proposed "STOCK ACT" officially bans insider trading, but creates lots of loopholes so they can wiggle free if their new insider trading is revealed. For example, the Bill would merely prohibit insider trading on "pending legislation" -- but would exclude exploitable information obtained through closed hearings, special reports, expert testimony, etc.
Strange as it may seem, this legislation has been under development for more than six years -- but only now has it gained some inertia following the CBS 60 Minutes expose based on the Hoover Institution's report.
This loophole thus eliminates the existing restrictions which could be interpreted as "illegal" under the Securities and Exchange regulations, and opens a loophole large enough to drive a Brinks Armored Truck through -- to deliver the ill-gotten capital gains to our dedicated Congresspersons.
Lest we blame a single political Party for these transgressions, we are pleased to identify both Democrats AND Republicans, and at least one Independent; think of it as Equal Opportunity Corruption.
Since long-term Congresspersons have been enriching themselves for many terms, I suspect that the Tea Party folks are the only "clean" politicians on Capitol Hill -- so we hope they'll be able to push this legislation through before it loses all its teeth.
at 2:03 PM