Bill Seeks to Ban Insider Trading By Lawmakers and Their Aides (WSJ pg 1)

[swag]

also by subscription at:

http://online.wsj.com/article/SB114351554851509761.html?mod=hpp_us_pageone

Two Democrat lawmakers plan to introduce today a bill that would block trading on such inside information. Current securities law and congressional ethics rules don't prohibit lawmakers or their staff members from buying and selling securities based on information learned in the halls of Congress.

It isn't clear yet what kind of support the bill will garner from Republicans. But its prospects are enhanced by the current charged environment in Congress; lawmakers from both parties in both houses have placed a high priority on passing ethics and lobbying-reform legislation. Such legislation would provide a vehicle to which proponents could attach a measure on stock trades.

In addition to banning trading on inside information, the proposal would require that lawmakers and their top aides disclose within 30 days any stock trades. Congressional rules now require lawmakers to disclose their trades once a year. The bill also would require that companies register with Congress if they sell information about congressional activity to Wall Street investors.

. . .

The two Democrats who wrote the bill say they were motivated by the trading activity of a former top aide to Rep. Tom DeLay, the onetime Republican majority leader in the House. The aide, Tony Rudy, bought and sold hundreds of stocks from his computer in the U.S. Capitol in 1999 and 2000, according to financial-disclosure forms and other DeLay aides.

[Nickster]

1. Frist's folks were trading from his office as well.

[swag]

4. Right, I recall Louise Slaughter speaking to that.

Also, it's difficult to believe that their isn't a prohibition against this activity already, regardless of whether Congress had explicitly banned it on the Hill. Hello, SEC?

[paul_fromatlanta]

2. Thats what I get for believing everything on West Wing - I thought it was

Thats what I get for believing everything on West Wing - I thought it was already illegal - remember when Toby disclosed his assets and he had bought a stock the day before he had a professor testify and the stock went up?

[unblock]

3. how is this not already illegal? if it's "material non-public information"

then it's illegal.

the only way around this would be is that once it's published in the congressional record or broadcast on c-span, it's public information, even though not many investors may immediately notice it or appreciate its impact.

but hallway conversations, even in a public building like the congress, is clearly non-public information.

[swag]

5. Right. Where is the SEC?

[justabob]

6. that is my question too

This kind of thing makes me so angry I can't see straight.

[paul_fromatlanta]

10. The only thing I can think of is maybe there is congressional immunity.

[unblock]

11. no such thing.

the actual member of congress cannot be arrested going to or from a session of congress, but that doesn't mean they can't be arrested when they're at home or on a junket. in any event, that just protects them against arrest, not against indictment or conviction.

and it certainly does not extend to staffers.

[paul_fromatlanta]

14. Then, any idea why we would need this new law?

[napi21]

7. I disagreee with those who say this is not ALREADY illegal!

Read the law! There are NO exemptions for congress! It is ILLEGAL to trade on any information that is not readily available to the public! PERIOD!

I guess these Dongressmen are trying to put an emphasis on the fact that Congressmen are not exempt, but it is NOT necessary!

[swag]

9. A page at the SEC with informative links that supports your case:

http://www.sec.gov/answers/insider.htm

[Turbineguy]

8. No more Rupublicans in office

This will have a devastating effect on those whose join the Government in order to make some money in the Markets.

Where will they find republicans to run for office with that kind of rule in place?

[patdem]

13. Your correct, then congress will look more like the teaching profession

they are SMART enough to be in executive positions but CHOOSE to teach instead! And they cannot figure our why there are not more reight wing conservatives in the teaching profession...because it is a VOCATION and not an OCCUPATION!

[OKthatsIT]

12. STOP CAMPAIGN FINANCE!!

Stop it! Stop it! Stop it!

[angryxyouth]

15. It is not going to happen. Along with campaign finance and lobbing reform

It would be great if it would. Too many bastards making too much money. There would be no more incentive for war. Co mon that is just plain Un-republican.
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