Insider-Trading by a Top DeLay Staffer in Congress?

[kpete]

Insider-Trading by a Top DeLay Staffer in Congress?
by Rep Louise Slaughter
Tue Mar 28, 2006 at 09:19:12 AM PDT

Hi folks. I wanted to come here and follow-up on the story of possible insider-trading in Congress. Remember a few weeks ago I mentioned that I was hearing stories about possible insider trading by Tom DeLay's top leadership aide in Congress? Well today I am going to introduce legislation with my colleague Rep. Brian Baird of Washington that will block Members of Congress and their aides from engaging in insider trading. We can't let Members and their staffers making profits through day-trading using non public, sensitive information they become privy to because of their special access.


The Wall Street Journal has a major story this morning on their front page. It's subscription based so here are excerpts on our legislative effort to curb insider trading in Congress:

Amid broad congressional concern about ethics scandals, some lawmakers are poised to expand the battle for reform: They want to enact legislation that would prohibit members of Congress and their aides from trading stocks based on nonpublic information gathered on Capitol Hill.

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.
http://online.wsj.com/public/us

Again just why did we introduce this legislation?:

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.

It is difficult to tell how much Mr. Rudy profited on particular trades. House financial statements require disclosure of stock trades only in broad ranges. Mr. Rudy bought each of his stocks for between $1,001 and $15,000 and sold them in the same ranges.

But Mr. Rudy's net worth grew from 1999 to 2000. Mr. Rudy and his wife were at least $49,000 in debt at the end of 1999, according to his disclosure form. They owned no more than $1,000 in stock and reported a student-loan debt between $50,001 and $100,000.

At the end of 2000, Mr. Rudy and his wife reported assets between $6,007 and $91,000. Their student-loan debt was between $30,002 and $100,000.
Text

more at:
http://www.dailykos.com/storyonly/2006/3/28/111912/415

[KoKo]

1. She is asking for help from Experienced Day Traders in getting info on

Rudy! I wonder if there are any DayTraders here who could help her. Here's the snip:

This is why we are introducing this bill today, which will bring those standards in line and give the SEC the power to enforce insider trading in Congress. It will also require reporting by members and staff on the trades they make, infusing some accountability into the process. Rep. Baird and I are going to file this legislation today. I will come on here and share the text of the legislation after we have filed it in the House. I sure hope my colleagues from the other side of isle will join this effort to end insider trading in the People's House.

Also, if there are any of you in this community who are expert day-traders or know a lot about this kind of market activity, we would be really interested to hear your thoughts and feedback on this. What other avenues can we pursue to get more information on Mr. Rudy's day-trading activities on the Hill?

Thank you again for making me a part of this wonderful community.