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Gerry Clinchy
11-26-2011, 09:48 AM
http://www.securitiesdocket.com/2009/03/11/closing-the-congressional-insider-trading-loophole/

Notice that this is dated March 2009 ... and nothing has been done about this.

When a friend told me this on Thursday, I could hardly believe it was true ... but it is.



In short, a loophole currently allows members of Congress and their “tippees” to engage in legal insider trading based on what they learn from their elected positions. The only way to close this loophole is for the very people that benefit from the loophole to close it themselves.




It’s hard to come up with any compelling reason why trading based on Congressional knowledge should remain legal, and quite easy to build the case against it. Still, despite a situation that cries out for legislation to end this loophole, recent efforts to pass a bill that would do just that have gone nowhere. In January, U.S. Reps. Louise Slaughter and Brian Baird introduced—for the third time—legislation intended to stop insider trading on Capitol Hill called the “Stop Trading on Congressional Knowledge Act” (the STOCK Act). Slaughter and Baird also introduced similar bills in 2006 and 2007, without success.




Indeed, members of Congress and their staff currently do not owe any “duty of confidentiality” to Congress and can’t be held liable for insider trading based on congressional knowledge under the current laws. Nor is there anything at this time that would prohibit Congressional staffers and executive branch employees from sharing inside information obtained from Congress with their friends—potentially allowing the recipients of such information to use it to make huge trading profits or prevent big losses. That means trading on inside knowledge of upcoming Congressional action is today one of the few forms of legal, repeatable insider trading (see my December 2008 column for a list of the others).




An academic study released in 2004, as well as some other more recent developments, indicates that this Congressional loophole to the insider trading laws isn’t just theoretical. Georgia State University professor Alan Ziobrowski released a study showing that during the 1990s, senators’ stock picks (which must be publicly disclosed periodically) beat the market by 12 percentage points a year on average. By comparison, corporate insiders only beat the market by about 6 percentage points a year, and U.S. households underperformed the market by 1.4 percentage points.

mjh345
11-26-2011, 11:16 AM
http://www.securitiesdocket.com/2009/03/11/closing-the-congressional-insider-trading-loophole/

Notice that this is dated March 2009 ... and nothing has been done about this.

When a friend told me this on Thursday, I could hardly believe it was true ... but it is.

60 minutes recently did a piece on this. Caught Pelosi Boehner and others flat footed and tongue tied with the deer in the headlights look.
We the citizens are the only solution to the problem that is Washington DC. We are going to have to invoke the ratification processes to pass some Constitutional Amendments to control these idiots. Or use the ballot to vote ALL {even your homeboy who gets lots of freebies for your district} incumbents out if they wont vote to reform themselves

The idiots are running the asylum

BonMallari
11-26-2011, 11:21 AM
60 minutes recently did a piece on this. Caught Pelosi Boehner and others flat footed and tongue tied with the deer in the headlights look.
We the citizens are the only solution to the problem that is Washington DC. We are going to have to invoke the ratification processes to pass some Constitutional Amendments to control these idiots. Or use the ballot to vote ALL {even your homeboy who gets lots of freebies for your district} incumbents out if they wont vote to reform themselves

The idiots are running the asylum

thats the bottom line truth right there...end of story

charly_t
11-26-2011, 11:25 AM
You know it is really sad that we have elected people who don't have enough ethics to do what is right. It's like the crooks operating inside the prisons now days. Thats what we have elected ............ a bunch of crooks ( of course you all knew that already but I just had to say it ).

BonMallari
11-26-2011, 01:33 PM
You know it is really sad that we have elected people who don't have enough ethics to do what is right. It's like the crooks operating inside the prisons now days. Thats what we have elected ............ a bunch of crooks ( of course you all knew that already but I just had to say it ).

it needs to be said repeatedly and louder, unfortunately it is so hard to unseat the incumbent and even harder to find an honest one at that, I would like to think that there are still some out there, but when was the last time you saw an ex politician leave office broke or destitute, they all seem to leave richer than when they came into office and into even bigger boardrooms or executive positions

charly_t
11-26-2011, 01:59 PM
it needs to be said repeatedly and louder, unfortunately it is so hard to unseat the incumbent and even harder to find an honest one at that, I would like to think that there are still some out there, but when was the last time you saw an ex politician leave office broke or destitute, they all seem to leave richer than when they came into office and into even bigger boardrooms or executive positions

You got that right ! I wish we could make them all take lie detecter tests before they could run..........but then they would probably find a crook who
did lie detecter testing and pay him.

Gerry Clinchy
11-26-2011, 08:47 PM
The point is that anybody else using insider trading to enrich themselves could go to jail ... Martha Stewart comes to mind. Yet, it is perfectly legal for Congressmen/women to do this? It's those inmates running the asylum again!

That this proposed bill to ban this has failed twice is even more reprehensible. We now know, for sure, the reason that these guys & gals are willing to spend millions for jobs that are not considered high-tier income. And their staffs are also exempt. Tell me again how govt jobs don't pay as much as the private sector!

Eric Johnson
11-26-2011, 09:16 PM
Just to set the record straight....

Martha Stewart did not go to prison after being convicted of insider trading. She was convicted of lying to investigators.

Eric

M&K's Retrievers
11-26-2011, 09:41 PM
Just to set the record straight....

Martha Stewart did not go to prison after being convicted of insider trading. She was convicted of lying to investigators.

Eric

And your point is? Sounds to me as this only makes her qualified to serve in Congress.

"It's a good thing" regards,

road kill
11-27-2011, 06:20 AM
TERM LIMITS!!!!!!!!!!!!

nuff said..........

RK

Gerry Clinchy
11-27-2011, 09:38 AM
Just to set the record straight....

Martha Stewart did not go to prison after being convicted of insider trading. She was convicted of lying to investigators.

Eric

No problem with the correction, Eric. However, if in Congress, her activity would not have been investigated. And if she had been in Congress, I doubt she would have spent any time in jail for the latter offense. Examples too numerous to mention :-)

Eric Johnson
11-27-2011, 01:49 PM
I just thought that the Martha Stewart "example" wasn't valid. I'm not speaking of the validity of insider trading. There's no earthly reason why the same limitations shouldn't apply whether one is or is not a member of Congress.

Eric

cotts135
11-27-2011, 02:46 PM
It's sad but this is Just one of many instances of a two tiered legal system prevalent in this country. If you are going to break the law just make sure you are either rich or powerful.

Bayou Magic
11-27-2011, 07:55 PM
60 minutes recently did a piece on this. Caught Pelosi Boehner and others flat footed and tongue tied with the deer in the headlights look.
We the citizens are the only solution to the problem that is Washington DC. We are going to have to invoke the ratification processes to pass some Constitutional Amendments to control these idiots. Or use the ballot to vote ALL {even your homeboy who gets lots of freebies for your district} incumbents out if they wont vote to reform themselves

The idiots are running the asylum


TERM LIMITS!!!!!!!!!!!!

nuff said..........

RK

Exactly!!!! Don't RE-elect ANYBODY...EVER!!!

Gerry Clinchy
11-28-2011, 07:11 AM
Just make sure that ALL laws apply equally to all residents, including those that serve in Congress. Would be easy to add that to ALL laws verbiage.

I don't think our founding fathers ever intended that our representatives should be a privileged class. They were very careful about that. The integrity of George Washington was a role model. He could have been "king" or served for life, but he made it a point to limit his service to two terms. That served as the model and custom until FDR broke the tradition ... and then we saw the danger of not limiting the POTUS terms.

Why did we never see the same danger for Congress? Probably because the founding fathers never imagined that the legislators would make service a "career". I do believe that in the House, where terms are only 2 years, that three or four terms could be the limit. With the size of Congress now, there is a learning curve to the committees and processes. Basically, we should be looking at around 10 or 12 years MAX for anyone to serve.

None of them should be able to retire on full salary! No average citizen can do that. During their time in Congress, they could participate in any retirement plan available to the rest of the populace; no special deals.

With all the perks of being a legislator, why is it a surprise to us that these people have no clue what the "real world" is like?

BonMallari
11-28-2011, 11:26 AM
They know what the real world is like,that is why the will lie,cheat and steal to beat the system they helped create,when the toughest sanction they will face is to be censured by their fellow Congresspersons, they remain in office until we as a whole have the backbone to vote or recall them from office