We’ve all wondered – how do people get elected and, within a few years, become millionaires? Joe Biden built a fortune with a bagman handling the “family business.” Others in Congress seem to do it the old fashion way: Insider trading.
Congress members have been able to make a lot of money by using insider information. Their trades on insider information would have put any private citizen in prison. But before 2012 STOCK ActIt was also well known that Congress members used information to buy, trade and sell stock. They also made a lot of money.
It STOCK ActSpecific statutory language was added to stop insider trading.
It stated that members of Congress are “not exempt from the insider trading prohibitions arising under the securities laws…” (§4(a)). It modified the Securities Exchange Act of 1934So that family members and staff can enjoy the benefits of this program. [would owe] “a duty” when in possession of “material, nonpublic information” obtained as a result of their public office (§4(b)(2)).
Did that “do” what the legislation intended? Maybe. However, before you do. STOCK ActEven though it was approved, the SEC’s head enforcement officer thought that the legislation was unconstitutional. Securities and Exchange Act of 1934It was applicable to people who have passed the law.
The following are the main points. STOCK ActIt was meant to stop all immorality, breach of public trust and trading on confidential information. In one respect, it did staunch the ethical bleeding but Congress members still don’t fully comply. Following StockCongressmen were supposed to disclose stock trades but this minor contrition was still a violation.
At least 65 of the members failed to report trades recently. Despite the fact that most of them are Democrats, Republicans also have problems reporting trades. Are they concerned? They don’t care, but they should. They are just slaps on your wrist. A $200 penalty, if it is enforced. However, this is rarely the case. Itre are members of Congress who want to ban stock trading by members and family while members are “serving.” There is proposed legislation presently tabled that would prevent stock trading by members.
The STOCK Act is supposed to cover spouses of members of Congress too, but it seems that Nancy Pelosi’s husband has had his hand, not only in the liquor cabinet, but potentially gathering information while pillow talking with someone named Nancy.
Paul bought $5 million in stock options (20,000) in Nvidia – a computer-chip company that makes chips used in advanced computer gaming. It was just in time for a vote in Congress next week that would provide $52billion in subsidy to the domestic semiconductor industry. Paul may be able to reap the benefits of this trade. After all, Mediterranean vacations at private villas don’t pay for themselves. Paul purchased the vehicle three days prior to crashing his Porsche into another truck. He was then charged with DUI. Maybe Paul was out celebrating his upcoming big payday with his female mystery “passenger.” I have insider information that she was not named Nancy.
There are rules for you, but no rules for me.