Ever wonder why our Federal government does little, or nothing, when it comes to finance reform, or investment reform? Maybe it’s because they’re getting rich from insider trading. And it’s legal for them, but not for us.
It is against the law to buy and sell stocks based on information that the general public is not privy too, unless you are a member of Congress, or a Congressional Staff member. Can you say legalized corruption? The Wall Street Journal recently reported that congressional staff members are making stock trades that are directly related to their jobs. What a deal! Your job is to create laws and policies, that regulate the investment industry, and as a result you to know all kinds of details that the public would never know and allows you to make trades based on that info! And, you make it illegal for anyone else to do the same!
A staffer, Karen Brown, working for Idaho’s Senator Mike Crapo (R), is reported to have made several trade deals with Bank of America (a leading home fore-closer bank), making her an investment gain of 43%. When asked by the Wall Street Journal about it, Senator Crapo said the trades were made by Mrs. Brown’s husband, and that she would be amending her disclosure forms to show that. The problem with that answer is that, as of October 23rd, Karen Brown’s latest disclosure forms shows her making additional Bank of America stock purchases.
This year, Represenative Brian Baird (D), of Washington, tried to get Congress to pass a bill that would make it illegal for them to do insider trading. In the House of Representatives only 9 members endorsed the bill. In the Senate no one endorsed it. That should tell you that they all need to be fired!