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View Diary: Who yelled "NOOO!" when Obama denounced Congressional insider trading? (180 comments)

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  •  Congress impacts all businesses (8+ / 0-)

    You know, if you are in management of a public company, you are subject to "blackout" periods, where you may not trade the companies stock.  It's been a couple years since I was in that situation (thanks for that, GWB), but I think it was for 30 days prior to quarterly earnings statement release, and for a few days after. A blackout could also be declared when other announcements were pending.

    Exercise of options also needed to be scheduled for some time in the future, to prevent the appearance of acting based on insider information.

    Congress should follow similar rules, for any and all stock transactions. Any transactions should be scheduled some time in the future, and should be made public.

    •  The worst offenses (9+ / 0-)

      ...are those of Congressmen who sit on particular industry-oriented committees and sub-committees.  And both know the details of an industry but what their proposed legislation will do to that industry's prospects.  Things that affect business in general, like overall tax rates, are harder to track as insider trading because the public has knowledge of these, especially individual investors, as soon as the legislation hits committee.  Legislation affecting particular industries is generally the little tweaks in the law that fly below the radar.

      50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

      by TarheelDem on Thu Jan 26, 2012 at 05:12:04 AM PST

      [ Parent ]

      •  It's not just stock, land too. Many have made (0+ / 0-)

        a fortune by knowing what sites are being considered for various projects before it is publicly known.  Some times it takes years and the member may also have significant influence on site location.

        Another example, Issa has profited by steering earmarks for road projects in front of buildings he owns.

        Congressional elections have consequences!

        by Cordyc on Thu Jan 26, 2012 at 10:42:06 PM PST

        [ Parent ]

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