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'60 Minutes' Congress: Trading Stock On Insider Info?
Old 11-14-2011, 06:39 AM   #1
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'60 Minutes' Congress: Trading Stock On Insider Info?

Did anyone catch last night's episode?

Basically to recap, some researchers @ a Stanford think tank have performed a lot of research and have found what they believe to be stock market trades congressmen have done prior to valuable info becoming public.

Apparently, the actions are not illegal and insider trade laws are not applicable to congressmen - just maybe frowned upon. Of course all of the ones captured on camera denied involvement (Pelosi is pretty funny) and I'm sure it would be very hard to prove one of doing so (same as most insider trading cases) but it just smells real bad.

I found it pretty interesting (not that most of us don't already know DC is full of corruption):

http://www.cbsnews.com/8301-18560_162-57323527/congress-trading-stock-on-inside-information/?tag=contentMain;cbsCarousel
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Old 11-14-2011, 06:49 AM   #2
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From the piece it was clear to me that using insider information for personal gain is one of the few areas where members of both political parties are in agreement - while loudly denying they do it.

Here's a follow-up story: Congress reacts to'60 Minutes' report on 'soft corruption' - CNN.com
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Old 11-14-2011, 06:52 AM   #3
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It should be against the law. Their investment assets should be in a blind trusts.

As bad as that was... the part about people gaining access to Public Policy Decisions (Inside Information) that affects the markets being up for sale was even more unfair! Apparently a new industry has been created where people (former political insiders.. like a lobbyist) with access to the political figures get the information for, or sell it to, certain investors (e.g., hedge funds, investment banks, private equity, etc).
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Old 11-14-2011, 06:53 AM   #4
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I saw the show. Not only does it give them the freedom to make trades using 'insider' information, it could influence their vote. Bad business.
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Old 11-14-2011, 07:03 AM   #5
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A thread about congress really should be in the politics forum so I moved it.
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Old 11-14-2011, 07:49 AM   #6
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Only place in US that both economy and wages are growing is in D.C. If you follow the money, you'll find the power. When you find the power, you'll find corruption.

I don't know which is more of oxymoron Jumbo Shrimp or Honest Politicians?
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Old 11-14-2011, 07:55 AM   #7
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Did I also hear correctly that they can't take money, but it was OK to take IPO shares?
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Old 11-14-2011, 08:25 AM   #8
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Originally Posted by Dawg52 View Post
I saw the show. Not only does it give them the freedom to make trades using 'insider' information, it could influence their vote. Bad business.

They are the 0.00017% (535/312,607,162).

The 'Occupy' people are on the wrong streets.


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Old 11-14-2011, 09:02 AM   #9
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Another interesting tidbit I thought I heard (would probably have to see the segment again to make sure) was the piece about political intelligence groups searching through the hearings for info that could influence stock prices and selling it to hedge funds. Maybe someone recalls hearing the same thing?
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Old 11-14-2011, 09:35 AM   #10
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I am not a fan of Pelosi, but the hostility shown when she responded to Steve Kroft was pretty telling (IMO).
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Old 11-14-2011, 09:47 AM   #11
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Getting $$$ information ahead of the US public is wrong.

You do not have to be republican or democratic, liberal or conservative or progressive or anarchist to know this.
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Old 11-14-2011, 10:05 AM   #12
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I read about the piece before I saw it last night. Just makes my blood boil and wonder why there isn't an Occupy Congress Movement, requiring all congress members to have to live with the legislation they pass for others, social security, medicare, etc. not to mention not being able to work as a lobbyist after their terms. When people speak of other governments being corrupt, kind of rings hollow in respect to our own corrupted system. Throw all the bums out this election cycle.
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Old 11-14-2011, 10:07 AM   #13
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Originally Posted by Bimmerbill View Post
I am not a fan of Pelosi, but the hostility shown when she responded to Steve Kroft was pretty telling (IMO).
Boehner looked a little peeved as well.

Kind of reminds me of the cliche, how do you tell when a politician is lying ?
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Old 11-14-2011, 10:48 AM   #14
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A thread about congress really should be in the politics forum.
Uh, U R a moderator.

Can't you simply change it?

Just wondering....
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Old 11-14-2011, 10:54 AM   #15
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Uh, U R a moderator.

Can't you simply change it?

Just wondering....
Uh, he did--didn't you notice where you read it?
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Old 11-14-2011, 11:04 AM   #16
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Originally Posted by chinaco View Post
It should be against the law. Their investment assets should be in a blind trusts.

As bad as that was... the part about people gaining access to Public Policy Decisions (Inside Information) that affects the markets being up for sale was even more unfair! Apparently a new industry has been created where people (former political insiders.. like a lobbyist) with access to the political figures get the information for, or sell it to, certain investors (e.g., hedge funds, investment banks, private equity, etc).
Agree. I saw the segment. No wonder they leave congress multi-millionnaires.
Blind trust. Wonder how many bet against "housing" before it went bust. They said...many had gone to the sidelines.

Interestingly enough...it was during this period the Clintons had said they had moved all their stuff to Treasuries It was just another piece of information on top of other data...that made me cash out before the worst of the crisis.

We should somehow demand...a website...where every member of congress, any one connected to making or controlling the outcome of legislation...has to immediately publicly disclose their transactions and financial movements.

This really infuriated me as I watched the segment.
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Old 11-14-2011, 11:07 AM   #17
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I am not a fan of Pelosi, but the hostility shown when she responded to Steve Kroft was pretty telling (IMO).
Yes. She was lying. She needs to go...along with all the others. Or ...special taxes specifically for Congressmen who get so very wealthy. This is not public service. It is "self-service".
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Old 11-14-2011, 11:08 AM   #18
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Did I also hear correctly that they can't take money, but it was OK to take IPO shares?
Yes you did. And they do.
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Old 11-14-2011, 11:18 AM   #19
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Uh, he did--didn't you notice where you read it?
Thank you. To avoid further confusion I clarified my earlier statement.
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Old 11-14-2011, 11:24 AM   #20
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Now if we could get the OWS movement to focus its efforts on these crooks, it might be productive.
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