Congress: We can't be investigated for insider trading

Discussion in 'Congress' started by kiwiman127, May 9, 2015.

  1. kiwiman127
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    kiwiman127 Comfortably Moderate Supporting Member

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    Back in 2012, the US Congress passed legislation called the STOCK Act, that made it illegal for members and staff of Congress and the Executive Branch and staff member to be involved in insider trading. Now that was a great ethical move, right?

    Then last summer, the SEC launched a major investigation into political insider trading. Congresses reaction? Block the investigation. Congresses reasoning, the investigation violated the "separation of powers between the legislative and the executive branch".


    "But as the Securities and Exchange Commission made news with the first major investigation of political insider trading, Congress moved to block the inquiry. The SEC investigation focused on how Brian Sutter, then a staffer for the House Ways and Means Committee, allegedly passed along information about an upcoming Medicare decision to a lobbyist, who then shared the tip with other firms. Leading hedge funds used the insider tip to trade on health insurance stocks that were affected by the soon-to-be announced Medicare decision."
    Calling the SEC’s inquiry a “remarkable fishing expedition for congressional records,” Kircher and his team claimed that the SEC had no business issuing a subpoena to Sutter. “Communications with lobbyists, of course, are a normal and routine part of Committee information-gathering,” the brief continued, arguing that there “is no room for the SEC to inquire into the Committee’s or Mr. Sutter’s purpose or motives.”
    Wall Street investors routinely hire specialized “political intelligence” lobbyists in Washington to get insider knowledge of major government decisions so that they may make trades using the information. But little is known about the mechanics of political intelligence lobbying, which falls outside the scope of traditional lobbying law, and therefore does not show up in mandatory lobbying disclosure reports. There are occasional hints, though. Personal finance forms reveal that from July of 2011 through May of 2013, David Berteau served as a consultant to Height Analytics, the political intelligence firm at the center of the SEC’s current probe. At the time of his work for Height Analytics, Berteau simultaneously worked as a vice president at the Center for Strategic and International Studies, a prominent think tank in Washington. Berteau is now the Assistant Secretary of Defense for Logistics and Materiel Readiness.
    Congressional travel forms show that on December 12, 2012, Emily Porter, at the time an employee of Boehner’s office, traveled to New York on a sponsored trip to meet with JNK Securities for a group lunch with business clients. According to the Wall Street Journal, JNK “has emerged as one of the most aggressive” political intelligence firms on Capitol Hill.
    Congress Tells Court That Congress Can t Be Investigated for Insider Trading - The Intercept

    So there we have it. Laws that all common US citizens must obey, do not apply to members of congress. This is pure corruption and abuse of power.
     
  2. kiwiman127
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    kiwiman127 Comfortably Moderate Supporting Member

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    I'm going to bump my own thread because the subject matter is quite disgusting, well at least to anyone who is sick an tired of the corruption in Washington.
    I suppose it is boring to some because it's a non-partisan issue, so posters can't point fingers. People only seem to have concerns about government corruption when it's the other side who's doing it.:cry:
     
  3. Darkwind
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    Darkwind Gold Member

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    You made mention of the Stock Act. That began when inquiries into Harry Reids sudden wealth was first brought on the scene by a reporter asking how he became one of the richest Senators in Congress.

    What is not mentioned is the fact that Congress quietly rescinded the Stock Act to allow them to legally continue to use insider trading and information we citizens are not privy to or would go to jail for using.
     
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  4. peach174
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    peach174 Gold Member Gold Supporting Member Supporting Member

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    The vast majority on both sides are there for the money, not for the people or what is best for the Nation.
     
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  5. kiwiman127
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    kiwiman127 Comfortably Moderate Supporting Member

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    This thing isn't being covered hardly at all my the media. I actually came across this on of all places Facebook. Intercept-First look media, WND and NewsMax are about the only ones reporting this so far.
    It figures.
    I wish people would start "throwing the bums out", instead re-electing these bums. The American voter has only themselves to blame, well maybe we can point a finger at the media too, considering the lack of coverage.
     
  6. kiwiman127
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    kiwiman127 Comfortably Moderate Supporting Member

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    I think what Congress did a year or two ago was make the public records of the activity of Congress tougher to see.
    How Congress Quietly Overhauled Its Insider-Trading Law It s All Politics NPR
     
  7. Mad Scientist
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    Mad Scientist Feels Good!

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    If I understand this correctly, Congress CAN be sued Civily for Insider Trading.

    So they'd pay a huge fine but not get jail time (it's not Criminal, it's Civil). What other recourse is there beyond getting the Law repealed?
     
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  8. natstew
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    natstew Gold Member

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  9. natstew
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    natstew Gold Member

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    March on Washington, hang them all from branches of the Cherry trees on Capital lawn.
     

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