I found out only a very short time ago that insider trading is legal for those in Congress. Congressmen (and women) are the only people on earth allowed to legally trade U.S. stocks with insider knowledge without facing legal consequences. I couldn’t believe it!
Let’s say you work for a company and you are involved in negotiating a buyout of another company at a price far above the current selling price of their stock. For you to buy their stock knowing it will be rising due to the buyout is completely illegal. O.K., now you are a congressman who sits on a regulatory committee that is to rule on regulations regarding fracking of natural gas wells. You know the regulations will be minimal and the EPA will rule there is no danger to drinking water aquifers. The companies involved in fracking activities will enjoy a big bump in their stock price when the decision is announced. You, as a congressman, can buy stock in those companies and enjoy the gains and it is perfectly legal. Talk about no level playing field.
The way I found out about this was from an article indicating a whistle blower had made this known to the public so there was to be a vote making insider trading illegal for congressmen as well. No surprise….the House Financial Services Committee just cancelled the vote saying more study was needed.
Is there no shame or accountability at all in our government?
Ken Dillenburg