Insider Trading on Capitol Hill
http://thedianerehmshow.org/shows/2011-12-21/insider-trading-capitol-hill
The facade of the New York Stock Exchange is shown in this Jan. 9, 2007 file photo.
(AP Photo/Mark Lennihan, file)
Insider trading is illegal. Members of Congress and their staff are not immune, but some say the law, as it applies to Capitol Hill, needs serious strengthening. In a new book, author Peter Schweizer charges that many members of Congress use information gleaned from behind closed doors to make well-timed stock trades, a practice he claims is legal under current insider trading laws. In addition he and others say Wall Street firms regularly profit from public policy insights picked up from many of these same sources. Join us to discuss insider tips from Washington: what’s illegal, what’s unethical, and what we should do about it.
Guests
Robert L Walker
Of Counsel, Wiley Rein,LLP and former chief counsel and staff director of both the Senate and House ethics committees
Brody Mullins
reporter, The Wall Street Journal
Donna Nagy
professor of law, Indiana University Maurer School of Law
Peter Schweizer
William J. Casey Research Fellow,the Hoover Institution and
author of "Throw Them All Out: How Politicians and Their Friends Get Rich off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison"
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Steve Kroft reports that members of Congress can legally trade stock based on non-public information from Capitol Hill:
Comments
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What I find most interesting is how few knew this was going on, myself included. Experts in political analysis and government watchers were caught with their pants down. Something I always suspected is government is too complex too convoluted and unexamined to completely understand. People on the inside are more than willing to take advantage of the idiots who vote for them. Nancy Pelosi epitomizes the scum that spreads fear and loathing for personal gain and then goes home and plots investment schemes with her husband to enrich themselves and laugh all the way to the bank. Thank goodness for old age and the ultimate term limit!
It's called CLASSISM, and it permeates out culture, no surprise.
I was stunned when I first heard of this. Is there a way to roll back the status of Congress in realtion to all the special rules they have made in their favor in regards to legal insider trading, tax treatments, health care options, retirement benefilts, on and on ad nauseum? Could referendums be used and would they have to be state by state? Is there a possibility that what they have created for themselves could be struck down as un-Constitutional? It would be impossible for me to believe that the Founding Fathers would ever have had this in mind.
When the same individuals who make the laws are the ones who profit from the legislation they pass and then on top of it block appointing Cordray from taking a position which would provide consumer protection.....It is amazing that polls show that the Americans faith in congress went from 9% to 11%. Going to repeat that....Americans who have any faith in congress went from 9% to 11%.
How low can those numbers go?
Funny how Congress plays by a different set of rules than their constituents...if the public were caught following their example, we'd all be in jail!
And the main stream media still questions OWS?
Can you say Fascism?
How about Revolution?
As a resident of New Hampshire, I wonder if there is a way to uncover information about specific senators. I suspect that former Senator Judd Gregg profited greatly from his position in the Senate as he was very involved in the bailouts. The circumstantial evidence include: 1) his not running for the Senate, 2) accepting a position as President Obama's Secretary of Commerce, and then 3) abruptly withdrawing his name. What was he hiding? Did he now want his financial history investigated?
Thanks.
What is mystifying is why voters continue to reelect incumbents to Congress who are so clearly unethical. My congressional representative has been shown time and again to have engaged in unethical and illegal transactions, yet continues to get reelected. Of course, blatant gerrymandering of the district has occurred during every reapportionment to protect her seat. No incumbent in Congress today deserves reelection.
Gee, someone from the Hoover Institution is calling for MORE REGULATION? Isn't that anti-capitalist?
How do you create a hard wall? As an federal employee of a regulatory agency, people are not allowed to purchase investments in the industry that they regulate. If they change agencies, I would be required to divest investments that the new agency regulates. Isn't this why the President is not allowed to actively trade on his portfolio while in offce?
Dona Nagy's response to your question just prior to the break is the very reason why so many people are frustrated with politicians, lawyers and the political/legal system. By the time she finished, I was hard pressed to remember what the question was but I was a bit dizzy from all the circuitous legal speak. Are we saying that just because there is not a specifically worded law telling, in this case politicians, that insider trading for profit is WRONG, then technically, they're not doing anything wrong if they profit from information not available to the rest to us using methods and connections that are directly related to their political office? Please, spare us. No wonder Americans are disillusioned.
I was outraged to learn this several weeks ago, upon watching the 60 Minutes segment and reading a follow-up article in Newsweek later that week. I lost my new job 3 months out of business school in October 2008, but was fortunate that I recovered quickly and received a very generous severance package that enabled me and my family to return to North Carolina where we had been living and where our previous employers were in a position to take us back. It could've been far, far worse.
The thought that our legislators have access to MATERIAL, NONPUBLIC INFORMATION and are then able to trade on that information is repugnant, amoral, offensive, and disgraceful. (Never mind that it's currently "legal.") My blood boils at the thought of Dennis Hastert--to take just one example-- enriching himself while serving in Congress to the tune of a net worth that grew from $300k when he entered the chamber in 1986(?) and leaving a few years ago with a net worth north of $11 million.
I thought investment bankers, hedge fund managers, and predatory mortgage lenders were our greatest threats to a sound financial system. I had no idea that it was our very legislators who deserve our most bitter condemnation.
It never ceases to amaze me how many people are alarmed, upset and horrified by the prospect that capitalism leads to corruption. Really....
The two terms are synonymous.....
Please, these Scum in Washington don't spend millions on election campaign without a Guaranteed ROI...
My questions is - how legislative language can be translated and interpreted so DIFFERENTLY for Congress vs.us, the ordinary individuals. They would not hesitate to send the IRS after us, while they create the TAX CODE.
There's something more than fishy in Denmark.
That story about Dennis Hastart is outrageous. Buys land and then pushes for a highway that goes right near the land and sells for millions and that is not illegal...this is absolutely sickening...Amazing that Americans faith in our congress went up 2% over the last month. From 9% to 11%
How in the hell will the American people's faith in our congress ever ever improve with more exposure on just how corrupt the situation is
Urban you nailed it
Well for God's sake Diane, don't mention OWS !
Do your guest think the American public can get any more depressed than they all ready are about congressional members and the state of our country?
I was amazed that a recent poll reported that 11% of the American public have faith in our Reps. Last month there was a poll that reported that 9% of Americans have faith in our Reps. Gone up by 2% in a month...not sure why.
I just wish Diane would but Main Stream Media will never bite the hand that feeds it...
Teece Bowman wrote:
"It never ceases to amaze me how many people are alarmed, upset and horrified by the prospect that capitalism leads to corruption. "
A comment born of complete ignorance. Capitalism has NOTHING to do with what Congress is doing. In fact, just the opposite. Ask someone who lived in Soviet Russia about the difference in privelege between the ruling class and the proletariat.
Whatever happened to the idea of Campaign Finance Reform?
Taking away the cost of running a campaign by making running for Congressional Offices a taxpayer cost may result in an alteration of the focus on gaining money. I would add this to the legislation being discussed.
The big picture
What's missing is the fact that thousands of staffers and assistants who create and disseminate information and who have access to pre-published information can share pre-published information with their friends and families, or can be approached or sell information without any restrictions.
Peter S. could not have chosen a better name for his book!
Anyone who comes into congress with little money and exit as millionaires needs to be investigated.
1- 47% are millionaires -
http://abcnews.go.com/blogs/politics/2011/11/47-of-congress-members-mill...
2- how can the public change this - now.
thanks
bill savage
Good Morning Diane,
This is only one way in which our broken and corrupt system of government is allowing, even encouraging, our nominal "representatives" to steal the money that should be available for the benefit of the people. Unless we are able to take the money out of our system of electing our representatives (one part of which is the repeal of the Citizens United case) we will not be able to avoid this kind of dishonesty and outright theft. I am not encouraged that that will occur.
"If we want to get our democracy back we've got to get big money out of politics." -Richard Reich
Richard Reich summed up our issues with govt and big money...
http://www.huffingtonpost.com/robert-reich/the-defining-issue-not-go_b_1...
Diane hope you and the Rehm team do a show focused on how many of our Reps are millionaires and how much they make each year from capital gains. Capital gains taxes went down from 28% to 20% under Clinton and then from 20% to 15%. Please do a show on this
By the way, have any of the current pres. candidates indulged in this insider trading?
Diane, your show should be mandatory listening for all voters! Thank you!
I think we can draw a direct link between the topic of todays show and "occupy wallstreet". I believe THIS is the main point of contention, ie money and our political leaders.
Nancy from Raleigh NC
What is different about congress using inside info and Martha Stewart's "crime"? thanks