Members of Congress trade in companies while making laws that affect those same firms

[Huey P. Long]

Source: Washington Post

Members of Congress trade in companies while making laws that affect those same firms
By Dan Keating, David S. Fallis, Kimberly Kindy and Scott Higham, Published: June 23
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One-hundred-thirty members of Congress or their families have traded stocks collectively worth hundreds of millions of dollars in companies lobbying on bills that came before their committees, a practice that is permitted under current ethics rules, a Washington Post analysis has found.

The lawmakers bought and sold a total of between $85 million and $218 million in 323 companies registered to lobby on legislation that appeared before them, according to an examination of all 45,000 individual congressional stock transactions contained in computerized financial disclosure data from 2007 to 2010. Almost one in every eight trades — 5,531 — intersected with legislation. The 130 lawmakers traded stocks or bonds in companies as bills passed through their committees or while Congress was still considering the legislation. The party affiliation of the lawmakers was almost evenly split between Democrats and Republicans, 68 to 62.

Sen. Tom Coburn (R-Okla.) reported buying $25,000 in bonds in a genetic-technology company around the time that he released a hold on legislation the firm supported. Rep. Ed Whitfield (R-Ky.) sold between $50,000 and $100,000 in General Electric stock shortly before a Republican filibuster killed legislation sought by the company. The family of Rep. Michael McCaul (R-Tex.) bought between $286,000 and $690,000 in a high-tech company interested in a bill under his committee’s jurisdiction.

The trades were uncovered as part of an ongoing examination by The Post of the intersection between the personal finances of lawmakers and their professional duties. Earlier this year, Congress responded to criticism of potential conflicts of interest by passing the Stock Act, which bars lawmakers, their staffs and top executive branch officials from trading on inside information acquired on Capitol Hill.
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Read more: http://www.washingtonpost.com/politics/members-of-congress-trade-in-companies-while-making-laws-that-affect-those-same-firms/2012/06/23/gJQAlXwVyV_story.html

[progressoid]

1. Golly gee. It's almost like...oh...what's that word...?

Corruption?

Who wudda thunk it.

[Duer 157099]

18. Two words

Insider trading

[Savannahmann]

2. I can't believe that they manage to keep getting elected

Anyone who did that should be thrown out of Congress.

[AnotherMcIntosh]

3. What are the odds that any of the Supreme Court Justices have bought or shorted stock in

health insurance companies?

They wouldn't do that would they?

[Huey P. Long]

19. 34 Lawmakers Changed Their Investments after Receiving Private Briefings About 2008 Economic Crisis

34 Lawmakers Changed Their Investments after Receiving Private Briefings About 2008 Economic Crisis

Last November, 60 Minutes aired a report showing that House Financial Services Chairman Spencer Bachus (R-AL) made tens of thousands of dollars trading stock as he was receiving private economic briefings during the height of the 2008 financial crisis. Due to weak insider trading rules, Bachus was cleared of any legal wrong doing by the Congressional Ethics Committee, but the case still motivated Congress to pass the Stop Trading on Congressional Knowledge (STOCK) Act, which supposedly prevents lawmakers from profiting off information they receive in private briefings with top economic officials.

However, the problem may go far beyond just Bachus. As the Washington Post reported on Monday, 34 lawmakers — including Speaker of the House John Boehner (R-OH) — shuffled their investment portfolios during the financial crisis, after speaking to high-ranking economic officials:


Pat Garofalo, News Analysis: After speaking with Paulson, Boehner shifted $50,000 to $100,000 out of a risky mutual fund, and spent tens of thousands of dollars more on a less-risky fund. Other lawmakers who were making investment decisions after receiving private information at the time included Sen. Kent Conrad (D-ND), Senate Minority Leader Mitch McConnell (R-KY), and Sen. Ben Nelson (D-NE). The lawmakers contend that their investments are overseen by outside advisers and that the private information had no bearing on their portfolio moves.

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http://www.nationofchange.org/34-lawmakers-changed-their-investments-after-receiving-private-briefings-about-2008-economic-crisis-

[BadtotheboneBob]

4. I'm shocked!

Shocked, I say! What's up with that?

[jtuck004]

5. The Real News - "No One Seems All That Worked Up About It."

I'm wonder if it is a side effect from drinking of the ever popular highpopalorum or lopopahirum all these years...there is a big difference, you know.

[clang1]

6. It is called Insider Trading

Obama signs STOCK Act to ban "congressional insider trading"

http://www.cbsnews.com/8301-503544_162-57409314-503544/obama-signs-stock-act-to-ban-congressional-insider-trading/

President Obama on Wednesday signed the STOCK Act into law, a bipartisan bill designed to stop so-called "congressional insider trading."

All part of the racket. Guess no more easy money via this route now.

[2banon]

10. Yep.. However, Congress Critters are not subject to criminal law if they ignore the Stock Act

Unless the original language has been re-inserted since last Sunday, law makers will be able to continue as they have without facing Felony consequences. The provision clause as of last week essentially allows for them to simply ignore the Legal intention and Ethical spirit of the "Stock Act"...

[FreakinDJ]

7. Let's face it - "It's perfectly legal for the 1% to do that"

[clang1]

9. EVERYTHING is bought and paid for n/t

[The Wielding Truth]

8. Major investigation needed. I wish we could clean house.

[Enrique]

11. 8% approval rating

look who's running the house, the guy that passed out tobacco checks on the house floor.

[clang1]

12. It's the best Democracy money can buy. What's to complain about? n/t

[Major Nikon]

13. What's interesting is that congress specifically prohibits other federal employees from doing this

The golden rule is those with the gold make the rules.

[clang1]

14. ...Can't share the wealth now... lol. n/t

[wordpix]

15. These congressmen should be indicted on insider trading laws

Nuff said. If it's illegal on Wall St., it's illegal in Congress ---or should be.

[clang1]

16. Those who make the laws can also break the laws

One-hundred-thirty members of Congress

Good luck...I don't think most people quite get the depth of all this (across the board). But hey, that's just me. I understand corruption when I see it and I see a huge rot. It's overwhelming.

[L0oniX]

17. Scum!