Is the Insider Trading Bill Being Sold Short By Washington Insiders?

by lewwaters

By Pete The Banker

A week or so ago, KPAM 860 Victoria Taft’s blog carried a story here, about Senator Gillibrand of New York who was attempting to amend the Insider Trading Bill proposed by Senator Scott Brown of Massachusetts to reinforce ability of your elected representatives to trade upon privileged information with impunity.

“The Democratic senator from New York has proposed a new version of a bill to outlaw insider trading by members of Congress that would, in effect, make it completely legal for members of Congress to engage in insider trading. In other words, it does the opposite of what it the bill intended to do,” stated CNBC

Now in the Republican controlled Congress, Republican Majority Leader Eric Cantor is attempting to delay the Congressional version of this reform proposal here. “Cantor reportedly said he blocked the bill to give Congress more time to examine the issue.” Some suggest this is merely a delay due to back room politics since Bachus did not check with Cantor before modifying the original legislation. Others feel the delay will effectively kill the bill.

From Politico, “Cantor (R-Va.) ripped into Bachus, explaining in no uncertain terms that it was unacceptable for Bachus to mark up the bill without having run it by GOP leaders and other chairmen with jurisdiction over its provisions. …

Bachus, clearly anxious to create a good-government portfolio in the wake of a “60 Minutes” piece on his stock trades — some of which netted five-figure gains in a single day — put the STOCK Act on the fast track. … Cantor delivered the cease-and-desist order on behalf of GOP leaders, other chairmen and rank-and-file lawmakers on both sides of the aisle who were concerned that Bachus could help give the bill life by having the committee approve it. .. .”

This is latest delay of badly needed Washington DC reform. If Cantor’s delay is truly to make the legislation stronger and provide greater enforcement for violators, then a brief delay is acceptable. If this latest delay is simply another attempt to prevent passage of a bill with hopes that the electorate will forget, then the move is totally unacceptable.

The Wall Street Journal suggests, “Congress really wants is to keep making the big bucks that come from trading on inside information but to trick those outside of the Beltway into believing they are doing something about this corruption. The WSJ further suggested that any action out of Congress, “If enacted, the law of insider trading will remain one of many where one reality applies to Congress and an uncomfortable and insecure reality applies to everybody else. Just as Congress is protected from the vicissitudes of ObamaCare, Congress will remain safe from the vagaries of insider trading law. The rest of us will still be vulnerable.”

Those in the private sector who trade on such insider information are generally subject to prosecution with substantial penalties. Why should members of the Administration and Congress be treated any differently? Why should Washington insiders be held to a separate exclusive set of standards, being allowed to trade stocks and derivatives on privileged information without consequence? When are elected officials going to be held to the same standards and laws as other Americans? What Constitutional provision or statute explicitly promotes establishment of an elite class of citizens who are basically exempt from the rules established for all other citizens?

4 Comments to “Is the Insider Trading Bill Being Sold Short By Washington Insiders?”

  1. The actions of the United States Congress will only change if we vote every incumbent out of office. It is time we the people establish term limits. One term and out until they subject themselves to all the same laws we the people are required to obey else they become dictators.

    Recently I read where private citizens were given jail time for lying to the Feds. Yet Member of Congress and every City, County and State legislative body lie to we the people every day with complete impunity.

    The time has come for every member of every legislative body in the USA to be subjected to and required to abide by every law that is enacted by them. No if’s and or but’s.

  2. Mr. Patella, it’s not going to happen as those that make the rules feel they are above them and the rules only pertain to the common man that has no clue as to the rule makers agendas. They feel they were elected to do your business, but stay out of theirs! A common complaint from a citizen about how one does business isn’t going to stop the wheeling and dealing. Shouldn’t all laws be enforced to all citizens equally, politicians or not? This is only lip service due to a 60 Minute report.

  3. I am certain of one incumbent that has to go… ours.

  4. Remember folks, the next time you vote: “Dollars & sense. Dollars & Sense!” Please pass it along.

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