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Advisor

Rules are for the ruled, not the rulers

Congress Refuses to Outlaw Insider Trading For Lawmakers

Posted May 05, 2010 01:04pm EDT by Peter Gorenstein in Investing, Banking, Politics

 

Even a cynic can find Washington's hypocrisy shocking at times. The Wall Street Journal reports today a House bill that would force lawmakers to make greater disclosures on financial transactions and disallow them from trading on nonpublic information is going nowhere fast.

 

That's right. Members of Congress are currently allowed to profit on insider trading!

 

The bill, which has been languishing in the House for four years, would require elected officials "to make their financial transactions public within 90 days of a purchase or sale" and "prohibit lawmakers from trading in financial markets based on nonpublic information they learn on the job," the WSJ reports. It seems they're above the transparency they've been calling for on Wall Street. This comes a day after the same newspaper reported several lawmakers profited by betting against the housing and stock market in 2008. And some did it using derivatives they've recently been railing against. As our colleague Henry Blodget wrote Tuesday, "If you're going to complain about how awful short-selling is and how evil and venal people are for doing it, you should probably abstain from the practice yourself."

 

http://finance.yahoo.com/tech-ticker/congress-refuses-to-outlaw-insider-trading-for-lawmakers-478701...

 

H.R.682
Title: Stop Trading on Congressional Knowledge Act
Sponsor: Rep Baird, Brian [WA-3] (introduced 1/26/2009) Cosponsors (7)
Latest Major Action: 6/12/2009 Referred to House subcommittee. Status: Referred to the Subcommittee on the Constitution, Civil Rights, and Civil Liberties.

http://www.govtrack.us/congress/bill.xpd?bill=h111-682

7 Replies
Advisor

Re: Rules are for the ruled, not the rulers

Thanks. Lots of hypocrites out there.

 

And, everybody should take a look at and into who those co-sponsers are:

 

 

http://www.govtrack.us/congress/bill.xpd?bill=h111-682

 

 

Welcome, Samnospam, to the Congressional Progressive Caucus. Please note that my Congressman is one of the 7...be glad to share him with you. I see  that there is one closer to you on the list. Are you going to send him an email thanking him? And maybe a check? I am to Tim.

 

Senior Contributor

Re: Rules are for the ruled, not the rulers

This is one bill that I would like to see Obama using his soap box to help promote.  Does not look good for Repubs as there is not one of them listed as co-sponsors.  Maybe if Obama drew attention to this on national TV he could entice or embarrass more Dems and some Repubs to get on board on this issue.  With out it I fear this will continue to linger in Congressional purgatory and never see the light of day.

Advisor

Re: Rules are for the ruled, not the rulers

No reason to think something good can't come from the mostly bad, but anyone who voted for the health care fascism is someone I wish to see removed from office.   Regardless of whatever else they do.  

Senior Advisor

Re: Rules are for the ruled, not the rulers

The bill has been in committee for 11 months. Why don't they bring it to a vote?

Advisor

Re: Rules are for the ruled, not the rulers

Did you notice that there are only 7 people signed on? Call your Congressman. Help us out here.

 

7 people couldn't generate a hearing on a bill that called for calling 12 PM noon.

Senior Advisor

Re: Rules are for the ruled, not the rulers

I will call them Bruce, What I want to know is why don't them fat cat hating dems don't bring this thing to a vote and embarrass the repubs....like they did with health care.

Contributor

Re: Rules are for the ruled, not the rulers

Most of those"fat cat hating dems" are fat cats themselves. The non-millionaire congressman from either party is a rarity.