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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Related Video
Steve Kroft reports that members of Congress can legally trade stock based on non-public information from Capitol Hill:
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This caps the list of corrupt or unfair practices that Congress continues to benefit from. LIfetime pensions, Government subsidised healthcare, (which they won't allow us to have) and protection from the laws that we as ordinarty ctizens are subject to. I AND EVERYONE I KNOW BELIEVES THERE
SHOULD BE TERM LIMITS FOR CONGRESS!
odchere
Go to Dylan Ratigans site
GET MONEY OUT
Is it really amazing to find that the American publics’ faith in congress has gone up 2% over the past month when you consider that more Americans find Big Government more a problem than Big Business? Wake up people…. under Capitalism they are one and the same! There is a seamless fabric between the two entities and they want it that way. Just as long as none of us notices.
There appears to be a bunch of squawking at the hen house door, all the while the foxes have the door wide open and are cleaning out the eggs!
I love how the commentator explained away leaving congress as a multi millionaire...based on their salary!!! Bwahahahaha
Right! you really should have come to the show with a better falsehood!!
Really. $160,000 a year is really not enough for the kind of work they do and the kind of influence they wield, particularly compared to salaries in the private sector. We should double the annual salary of all congress, senate and the President, and quit trying to govern on the cheap.
I think a populist congressional candidate could set a high bar by taking a public servant pledge, to be implemented upon election and before taking office. On the topic of personal investments, I would have that pledge include a commitment to hold:
1. No more than 10% precious metals, as an example to the public and to restrain incentives for destroying the currency;
2. No less than 40% currency, such as cash, demand deposits, CDs, and non-inflation indexed Treasury debt, to provide some incentive to preserve the currency;
3. Up to 60% in a very broad stock portfolio, such as the Russell 2000, to provide some incentive to represent the range of businesses that employ citizens.
4. No individual stocks.
5. The foregoing investment mix for at least 5 years after leaving Congress.
Supporting legislation could allow new members of Congress to convert their portfolios to the above mix without immediate tax consequences. If they liquidate this portfolio after leaving Congress, the basis for capital gains purposes is the basis of their original investments, before their election.
There is a misperception about wealth in Washington - which needs clarification:
There is a lumping together of federal legislators (Congress) and the federal employees who staff such agencies as NIH, FDA, etc.
This is to the detriment of the American people b/c the country will eventually lose the skills of these highly trained professionals to private industry.
So angry Americans better watch what they pray for!
___________
Many/most Washingtonians are 2-income families, often 2-income professional families.
Note, for example, that Montgomery County, MD, one of the wealthiest counties in the country, has the highest percentage of residents over 25 in the country who hold post-graduate degrees (29.2%). Many work in high tech and IT and in scientific innovation.
If they work for the federal government, they are not particularly highly paid relative to the private sector, where their degrees could fetch much higher incomes.
NOTE!! These are dedicated public servants who are not involved in insider trading or profiting from the type of knowledge that federal legislators and aides have on Capitol Hill.
So the misperception about the Washington area really needs to be straightened out with actual details.
Otherwise, there is the ridiculous result that highly skilled federal employees are being scapegoated with 1-2-potentially 3-year caps on raises.
Such action will suck the lifeblood out of the federal government as these folks leave for private industry where their skills will be appreciated. They can go to private industry without leaving home - since the Washington area is loaded with industry that calls for highly trained folks!
Any profits made from information received from parties or corporations should be illegal. In fact they should not be allowed to be invest directly or indirectly on any bill or earmark that they are involved in and vote on. They are in a position as an elected official to take advantage of any information past and present to benefit themselves or their families! If caught JAIL THEM and take away profits and pensions! THEY AND THE COURTS MAKE AND UPHOLD THE LAWS! What a conflict of interest! It's only because they say so that it's legal! I would think that they would hold themselves to the highest standard! But on the other hand in their minds "they are"?
Congressional Reform Amendment
How can Congress be reformed to meet the needs of the people? How can the paralyzing politics be removed? How can corporate, big money influence be removed? Here are some suggestions-
1) All elections shall be publicly funded. No donations allowed.
2) Members of Congress must not profit in any way from their job or influence.
3) Congress participates in all social benefits that are applied to the people. No special benefits. e.g. S.S., Health care, retirement, etc
4) Congress can pass no laws that do not apply to themselves.
5) Congress shall serve concurrent terms with the president.
6) Congress shall receive no benefits from service after their service has ended.
7) Corporations are not individuals
Are you saying that because this is America and and with the freedom to do what we want it's OK? This isn't Russia thank heavens!
jdt7385 wrote:
"(one part of which is the repeal of the Citizens United case) "
Would love to have this discussion with you jdt. Let's start with How and Why CU v FEC should have been decided differently?
Teece Bowman wrote:
"Is it really amazing to find that the American publics’ faith in congress has gone up 2% over the past month when you consider that more Americans find Big Government more a problem than Big Business? Wake up people…. under Capitalism they are one and the same! There is a seamless fabric between the two entities and they want it that way. "
capitalism: an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market
NOW do you understand that what you speak of is NOT capitalism???!!!
Why does the SEC not enforce the law? I realize that there are Constitutional issues since it's part of the Executive Branch. But such oversight of Congress would be just another one of the checks and balances.
Use of non-public information (at least at the time of its use) to purchase or sell publically traded stocks is Insider Trading, no matter who does it or their reasons.
Imagine a corporation or a union telling the SEC to stay away, we have our own rules to police our membership and prevent Insider Trading. Why should Congress, or the Supreme Court, or any other organization in this country be treated any differently? A Congressman can be arrested for drunk driving, rape, or any other infraction. His oath of office does not automatically make him immune to the laws everyone else has to obey.
Suggestions to require Congress to agree to immediate electronic disclosure of stock transactions is a wasted effort. The SEC already has all of the investigative tools it needs to uncover Insider Trading. All it lacks is the will to use its authority.
I think most of these comments are too Kind. This is glaringly criminal and should be punished swiftly and accordingly. All guilty politicians should at the very least should have to give the money back as well as loose their seat and golden benefits.
This should be retroactive for at least 20 years. If they can not pay it back then a mandatory jail sentence should be enforced. This is no less than what a private citizen would face.
Plus Politicians should also be banned from becoming lobbyists. And while the SEC is investigating Politicians, they should also look at the wall street participants.
jlaufenberg - You mean 'Hastert, fat-----? Nope, I'm not going there except to say that it *was* $14 million at one point, but he ate $3million worth of ham sandwiches and sausages before lost his (big) seat....
There are several on this board that are simply unable to understand the corrupting nature of Capitalism. They are beyond reach intellectually and are not worth the bother.
But I think that there are enough others who understand that money is corrupting our political process just as it rots everything within its reach. Wealth and the influence that it can purchase it the root of everything that is wrong in this country. When we figure out how to get rid of its influence we will be able to change things....until then, nothing is possible.
We know how to fix it Teece, but we dare not say: Cap wealth and income for all American citizens, and if some who object wish to leave after surrendering unearned wealth, then so be it, good riddance!
"monte wrote:
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!
December 20, 2011 - 9:38 pm"
Had I thought my call would have been taken, I would have said the following,"Good Morning, Diane, thanks for taking my call.
As I understand, the Pelosi purchase was not Insider Trading, but a (somewhat) IPO in which the Pelosi's Broker was offered some Shares to sell, some of which the Broker offered to the Pelosis.
Is it possible that CBS, the Right Wing Dirtbag Spokespigs for the Kabal who dumped their last honorable Journalist, and the Hoover Institute, enough said, had an axe to gore an Ox to grind?
Certainly the Republican dog excreta had a field day with the choice."
Monte Haun mchaun@hotmail.com
Agreed Pancake! There we/you said it!
Teece Bowman wrote:
"There are several on this board that are simply unable to understand the corrupting nature of Capitalism. "
Simply repeating that "capitalism is corrupt" does not make an argument. You have to show HOW it is corrupt, which you cannot do. There is nothing wrong with free market capitalism. It's just never been actually tried in this country. The corrupting influence is government trying to make markets do what it thinks they should. That is what is not only dangerous to the freedoms we all enjoy, but is bringing the countr to its economic knees.
Teece:
Well, I think it's human nature. There has been a lot of corruption (or inethical behaviour) under capitalism, but you can't tell me this hasn't happened under communism, or ANY other system for that matter. I don't think any one system is the answer. It is something deeper.
Pancake Rankin wrote:
"We know how to fix it Teece, but we dare not say: Cap wealth and income for all American citizens,"
Uhh ... that's already been tried, Pancake - from 1922 to 1991 just a little bit north of the Mongolian and Chinese boarders. Didn't work out so well. The definition of insanity would be trying the same thing again, and expecting a different result.
Congress members should be in Social Security instead of the posh pension plan they gave themselves; in a health plan comparable to Medicare instead of the posh health plan they gave themselves; and subject to all laws to which the rest of us are subject!! They have created their own cushy world and THAT is why they've lost touch with the rest of us. What can be done about this---is there a legal process that could bring about these changes if a citizen movement rallied for them?
In order to promote a much needed wholesale change in Congressional representation in Washington, we need our elected Congressional representatives to limit their term in the U.S. House and Senate. You can help by asking your Congressional representatives to sign the Term Limit Pledge sponsored by the U.S. Term Limits (USTL) organization (www.termlimits.org) that limits three (3) House terms and two (2) Senate terms and no longer?
Ask your Congressional representative to support, and help bring to a vote, Senator Jim DeMint (R-SC) amendment for U.S. Term Limits Constitutional Amendment that has been introduced in both the U.S. Senate by Senator Jim DeMint (R-SC) and the House of Representatives by Representative David Schweikert (R-AZ).
Congressman Tim Griffin has sponsored pension reform in Congress via the The End Pensions in Congress Act (EPIC). Obviously EPIC didn't get any support from Congressman Griffin's peers in Congress. If you agree that Congress should not have a golden parachute pension plan you can sign the petition on Congressman Griffin's website at www.griffin.house.gov/pension-system .
These endless anti capitalism posts on every political topic brought up here must be some kind of joke, how could anyone be that stupid.
In essence, the powers that be, both in government as well as in the business and financial worlds have simply followed self interest over the greater good. This has been bad for us in the short run, but, in the long run, I believe it will ultimately prove to be their undoing as well. Every day this country looks more and more like a South American style dictatorship; the diametric opposite of what the Founding Fathers meant it to be.