Congress: Trading stock on inside information?

  • Posted by a hidden member.
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    Nov 14, 2011 8:21 AM GMT
    It would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    http://www.cbsnews.com/8301-18560_162-57323527/congress-trading-stock-on-inside-information/

    Washington, D.C. is a town that runs on inside information - but should our elected officials be able to use that information to pad their own pockets? As Steve Kroft reports, members of Congress and their aides have regular access to powerful political intelligence, and many have made well-timed stock market trades in the very industries they regulate. For now, the practice is perfectly legal, but some say it's time for the law to change.

    [...] Kroft: So congressman get a pass on insider trading?

    Schweizer: They do. The fact is, if you sit on a healthcare committee and you know that Medicare, for example, is-- is considering not reimbursing for a certain drug that's market moving information. And if you can trade stock on-- off of that information and do so legally, that's a great profit making opportunity. And that sort of behavior goes on.

    Kroft: Why does Congress get a pass on this?

    Schweizer: It's really the way the rules have been defined. And the people who make the rules are the political class in Washington. And they've conveniently written them in such a way that they don't apply to themselves.

    The buying and selling of stock by corporate insiders who have access to non-public information that could affect the stock price can be a criminal offense, just ask hedge fund manager Raj Rajaratnam who recently got 11 years in prison for doing it. But, congressional lawmakers have no corporate responsibilities and have long been considered exempt from insider trading laws, even though they have daily access to non-public information and plenty of opportunities to trade on it.


    An egregious example of Nancy Pelosi -

    http://www.conservativecommune.com/2011/11/insider-trading-the-congressional-loophole/

    Despite Pelosi’s consistent railing against credit card companies, on March 18, 2008, the Pelosis bought between $1 million and $5 million (politicians do not have to report the exact amounts, only ranges) worth of Visa stock at the IPO price of $44 per share. Two days later, the stock price rocketed to $65 per share, yielding a 50% profit. The Pelosis then bought Visa twice more. By their third purchase on June 4, 2008, Visa was worth $85 per share.

    How did Nancy Pelosi snag one of the most coveted initial public offerings in history? The facts are still emerging. Yet according to Schweizer, corporations that wish to build congressional allies will sometimes hand-pick members of Congress to receive IPOs. Pelosi received her Visa IPO almost two weeks after a potentially damaging piece of legislation for Visa, the Credit Card Fair Fee Act, had been introduced in the House. If passed, the bill would have cut into Visa’s profits substantially by lowering so-called “interchange fees,” the 1% to 3% charge retailers pay Visa when customers use Visa cards for purchases. Interchange fees are a critical source of revenue for the four credit card companies–$48 billion in 2008, to be exact.

    If the Credit Card Fair Fee Act had been passed into effect, it would have amended antitrust laws to require credit card companies to enter negotiations with merchants over interchange fees, and it would have given the Justice Department and the Federal Trade Commission the power to arbitrate if the two sides failed to come to an agreement. For that reason, Visa and the other credit card companies strongly opposed the bill.
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    Nov 14, 2011 2:17 PM GMT
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    WHAT? Yer full of shit.. Its YOU advocating for trading stock, it YOU advocating the OWS folks are morons, Its you advocate to make that money in any way you can..


    This is you kinda shit.. fells all cozy and warm doesnt it?

    What are you bitching about? icon_rolleyes.gificon_rolleyes.gificon_rolleyes.gif
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    Nov 14, 2011 3:21 PM GMT
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    http://www.cbsnews.com/8301-18560_162-57323527/congress-trading-stock-on-inside-information/

    Washington, D.C. is a town that runs on inside information - but should our elected officials be able to use that information to pad their own pockets? As Steve Kroft reports, members of Congress and their aides have regular access to powerful political intelligence, and many have made well-timed stock market trades in the very industries they regulate. For now, the practice is perfectly legal, but some say it's time for the law to change.

    [...] Kroft: So congressman get a pass on insider trading?

    Schweizer: They do. The fact is, if you sit on a healthcare committee and you know that Medicare, for example, is-- is considering not reimbursing for a certain drug that's market moving information. And if you can trade stock on-- off of that information and do so legally, that's a great profit making opportunity. And that sort of behavior goes on.

    Kroft: Why does Congress get a pass on this?

    Schweizer: It's really the way the rules have been defined. And the people who make the rules are the political class in Washington. And they've conveniently written them in such a way that they don't apply to themselves.

    The buying and selling of stock by corporate insiders who have access to non-public information that could affect the stock price can be a criminal offense, just ask hedge fund manager Raj Rajaratnam who recently got 11 years in prison for doing it. But, congressional lawmakers have no corporate responsibilities and have long been considered exempt from insider trading laws, even though they have daily access to non-public information and plenty of opportunities to trade on it.


    An egregious example of Nancy Pelosi -

    http://www.conservativecommune.com/2011/11/insider-trading-the-congressional-loophole/

    Despite Pelosi’s consistent railing against credit card companies, on March 18, 2008, the Pelosis bought between $1 million and $5 million (politicians do not have to report the exact amounts, only ranges) worth of Visa stock at the IPO price of $44 per share. Two days later, the stock price rocketed to $65 per share, yielding a 50% profit. The Pelosis then bought Visa twice more. By their third purchase on June 4, 2008, Visa was worth $85 per share.

    How did Nancy Pelosi snag one of the most coveted initial public offerings in history? The facts are still emerging. Yet according to Schweizer, corporations that wish to build congressional allies will sometimes hand-pick members of Congress to receive IPOs. Pelosi received her Visa IPO almost two weeks after a potentially damaging piece of legislation for Visa, the Credit Card Fair Fee Act, had been introduced in the House. If passed, the bill would have cut into Visa’s profits substantially by lowering so-called “interchange fees,” the 1% to 3% charge retailers pay Visa when customers use Visa cards for purchases. Interchange fees are a critical source of revenue for the four credit card companies–$48 billion in 2008, to be exact.

    If the Credit Card Fair Fee Act had been passed into effect, it would have amended antitrust laws to require credit card companies to enter negotiations with merchants over interchange fees, and it would have given the Justice Department and the Federal Trade Commission the power to arbitrate if the two sides failed to come to an agreement. For that reason, Visa and the other credit card companies strongly opposed the bill.

    It has been raised and CBS to its credit is investigating.
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    Nov 14, 2011 5:02 PM GMT
    socalfitness said
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    http://www.cbsnews.com/8301-18560_162-57323527/congress-trading-stock-on-inside-information/

    Washington, D.C. is a town that runs on inside information - but should our elected officials be able to use that information to pad their own pockets? As Steve Kroft reports, members of Congress and their aides have regular access to powerful political intelligence, and many have made well-timed stock market trades in the very industries they regulate. For now, the practice is perfectly legal, but some say it's time for the law to change.

    [...] Kroft: So congressman get a pass on insider trading?

    Schweizer: They do. The fact is, if you sit on a healthcare committee and you know that Medicare, for example, is-- is considering not reimbursing for a certain drug that's market moving information. And if you can trade stock on-- off of that information and do so legally, that's a great profit making opportunity. And that sort of behavior goes on.

    Kroft: Why does Congress get a pass on this?

    Schweizer: It's really the way the rules have been defined. And the people who make the rules are the political class in Washington. And they've conveniently written them in such a way that they don't apply to themselves.

    The buying and selling of stock by corporate insiders who have access to non-public information that could affect the stock price can be a criminal offense, just ask hedge fund manager Raj Rajaratnam who recently got 11 years in prison for doing it. But, congressional lawmakers have no corporate responsibilities and have long been considered exempt from insider trading laws, even though they have daily access to non-public information and plenty of opportunities to trade on it.


    An egregious example of Nancy Pelosi -

    http://www.conservativecommune.com/2011/11/insider-trading-the-congressional-loophole/

    Despite Pelosi’s consistent railing against credit card companies, on March 18, 2008, the Pelosis bought between $1 million and $5 million (politicians do not have to report the exact amounts, only ranges) worth of Visa stock at the IPO price of $44 per share. Two days later, the stock price rocketed to $65 per share, yielding a 50% profit. The Pelosis then bought Visa twice more. By their third purchase on June 4, 2008, Visa was worth $85 per share.

    How did Nancy Pelosi snag one of the most coveted initial public offerings in history? The facts are still emerging. Yet according to Schweizer, corporations that wish to build congressional allies will sometimes hand-pick members of Congress to receive IPOs. Pelosi received her Visa IPO almost two weeks after a potentially damaging piece of legislation for Visa, the Credit Card Fair Fee Act, had been introduced in the House. If passed, the bill would have cut into Visa’s profits substantially by lowering so-called “interchange fees,” the 1% to 3% charge retailers pay Visa when customers use Visa cards for purchases. Interchange fees are a critical source of revenue for the four credit card companies–$48 billion in 2008, to be exact.

    If the Credit Card Fair Fee Act had been passed into effect, it would have amended antitrust laws to require credit card companies to enter negotiations with merchants over interchange fees, and it would have given the Justice Department and the Federal Trade Commission the power to arbitrate if the two sides failed to come to an agreement. For that reason, Visa and the other credit card companies strongly opposed the bill.

    It has been raised and CBS to its credit is investigating.


    Pelosi is like an evil snake. She's enough to make anyone cringe.

  • conservativej...

    Posts: 2465

    Nov 15, 2011 1:03 AM GMT
    If that "busts your chops" -- and for most Americans I think it will, guess what else is possible?

    If a Congressman/woman passes to me that information, I may also trade without committing a felony.
  • Suetonius

    Posts: 1842

    Nov 15, 2011 1:32 AM GMT
    CHRISTOPHER34 said
    socalfitness said
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.



    Pelosi is like an evil snake. She's enough to make anyone cringe.


    Just about all in congress are crooks - the republicans trade on inside information as much as the democrats. Of course, since congress wrote the laws, they made sure they do not apply to themselves. What ought to be illegal is not, because the politicians don't want it to be illegal. They can make as much money off their positions as they are able, just as long as they don't take a bribe for a specific vote. The so-called "ethics committees" in congress are are joke. Every year a bill is introduced to make illegal some of the egregious stock trading, but it never gets more than a handful of sponsors, and is course never brought up for a vote. Things haven't changed much since the days of Harding's TeaPot Dome scandals.
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    Nov 15, 2011 1:37 AM GMT
    jpBITCHva saidThis is hilarious. The very day that Spencer Bachus was caught insider trading and riddler posts about Nancy Pelosi.

    A-fucking-mazing.


    I wondered what brought this to the fore. I thought maybe someone had said riddler's name three times.
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    Nov 15, 2011 5:03 AM GMT
    jpBITCHva saidThis is hilarious. The very day that Spencer Bachus was caught insider trading and riddler posts about Nancy Pelosi.

    A-fucking-mazing.
    Its not amazing.. its Modus Operandi for riddler.
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    Nov 15, 2011 5:30 AM GMT
    TropicalMark said
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    WHAT? Yer full of shit.. Its YOU advocating for trading stock, it YOU advocating the OWS folks are morons, Its you advocate to make that money in any way you can..


    This is you kinda shit.. fells all cozy and warm doesnt it?

    What are you bitching about? icon_rolleyes.gificon_rolleyes.gificon_rolleyes.gif


    Is English not your first language? I mean I see the words...
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    Nov 15, 2011 5:38 AM GMT
    riddler78 said
    TropicalMark said
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    WHAT? Yer full of shit.. Its YOU advocating for trading stock, it YOU advocating the OWS folks are morons, Its you advocate to make that money in any way you can..


    This is you kinda shit.. fells all cozy and warm doesnt it?

    What are you bitching about? icon_rolleyes.gificon_rolleyes.gificon_rolleyes.gif


    Is English not your first language? I mean I see the words...
    But without comprehension you'll never 'understand' them.. Maybe you should learn English.. It might help you.
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    Nov 15, 2011 6:01 AM GMT
    TropicalMark said
    riddler78 said
    TropicalMark said
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    WHAT? Yer full of shit.. Its YOU advocating for trading stock, it YOU advocating the OWS folks are morons, Its you advocate to make that money in any way you can..


    This is you kinda shit.. fells all cozy and warm doesnt it?

    What are you bitching about? icon_rolleyes.gificon_rolleyes.gificon_rolleyes.gif


    Is English not your first language? I mean I see the words...
    But without comprehension you'll never 'understand' them.. Maybe you should learn English.. It might help you.


    If you had an inkling of comprehension you would notice that what I have been saying is entirely consistent with my disgust at the fact Congress gets a pass when it comes to insider trading.
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    Nov 15, 2011 7:26 AM GMT
    Christian73 said
    jpBITCHva saidThis is hilarious. The very day that Spencer Bachus was caught insider trading and riddler posts about Nancy Pelosi.

    A-fucking-mazing.


    I wondered what brought this to the fore. I thought maybe someone had said riddler's name three times.


    I can't say I'm surprised how intellectually dishonest you are.
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    Nov 15, 2011 9:25 AM GMT
    riddler78 said
    Christian73 said
    jpBITCHva saidThis is hilarious. The very day that Spencer Bachus was caught insider trading and riddler posts about Nancy Pelosi.

    A-fucking-mazing.


    I wondered what brought this to the fore. I thought maybe someone had said riddler's name three times.


    I can't say I'm surprised how intellectually dishonest you are.


    How so, dear?
  • Posted by a hidden member.
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    Nov 15, 2011 2:16 PM GMT
    riddler78 said
    Christian73 said
    jpBITCHva saidThis is hilarious. The very day that Spencer Bachus was caught insider trading and riddler posts about Nancy Pelosi.

    A-fucking-mazing.


    I wondered what brought this to the fore. I thought maybe someone had said riddler's name three times.


    I can't say I'm surprised how intellectually dishonest you are.
    Quit using my descriptor of you on others.. your 'intellectual dishonesty' is showing again.
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    Nov 15, 2011 2:19 PM GMT
    riddler78 said
    TropicalMark said
    riddler78 said
    TropicalMark said
    riddler78 saidIt would seem it's a bipartisan affair that's absolutely disgusting and rife with conflicts of interest.

    WHAT? Yer full of shit.. Its YOU advocating for trading stock, it YOU advocating the OWS folks are morons, Its you advocate to make that money in any way you can..


    This is you kinda shit.. fells all cozy and warm doesnt it?

    What are you bitching about? icon_rolleyes.gificon_rolleyes.gificon_rolleyes.gif


    Is English not your first language? I mean I see the words...
    But without comprehension you'll never 'understand' them.. Maybe you should learn English.. It might help you.


    If you had an inkling of comprehension you would notice that what I have been saying is entirely consistent with my disgust at the fact Congress gets a pass when it comes to insider trading.

    riddler - not worth responding to some. There are a few here who just want to toss out phrases, but clearly they don't understand the topic. No responses will give them a clue, and the rest of us can clearly see how clueless they are.
  • Posted by a hidden member.
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    Nov 19, 2011 6:04 AM GMT
    This would be an interesting topic to discuss of you guys would stop bitching at each other.

    Congress is not exempt from insider trading laws. That is a weird misconception. Whether the SEC or Justice Department has the balls to enforce it is a different question.

    Getting an IPO allocation because of one's position as a member is not insider trading. Smelly, but not insider trading.

    Signed, a securities lawyer.
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    Nov 19, 2011 7:20 AM GMT
    If "regulations = bad", why shouldn't everyone (even members of Congress) be encouraged to profit in any way they can, even if it is by access to information that nobody else has?