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Posted: 1/2/2012 10:58:20 AM EDT
Question:

Are Congressman Exempt From Insider Trading Regulation/Laws?
Link Posted: 1/2/2012 11:00:04 AM EDT
[Last Edit: 1/2/2012 11:00:30 AM EDT by fxntime]
They are Congressmen and women, what do you think, that they would write laws that included THEM?
Link Posted: 1/2/2012 11:00:09 AM EDT
Yes.
Link Posted: 1/2/2012 11:00:12 AM EDT
yes
Link Posted: 1/2/2012 11:00:24 AM EDT
Some animals are more equal than others.
Link Posted: 1/2/2012 11:03:29 AM EDT
nazi pelosi's personal wealth went up by tens of millions during her time in govt 'service'. she is a fucking lying sack of shit crook. Do you think crooks like her would make laws exempting her from insider trading?
Link Posted: 1/2/2012 11:09:55 AM EDT
Sort of. Nothing prevents them from acting on information gained as a result of congressional position. I think that if they did the same thing Martha Stewart did, they would be liable to the same charges.
Link Posted: 1/2/2012 11:10:57 AM EDT

Originally Posted By GlockSlap:
Question:

Are Congressman Exempt From Insider Trading Regulation/Laws?

Yes. Flat out, they are exempt.
Link Posted: 1/2/2012 11:16:25 AM EDT
Link Posted: 1/2/2012 11:17:20 AM EDT
Yup and they make a bundle because of it.
Link Posted: 1/2/2012 11:18:09 AM EDT
Link Posted: 1/2/2012 11:19:21 AM EDT
Yes, that is why you run for congressional office, to get rich(er)
Link Posted: 1/2/2012 11:20:26 AM EDT
As already mentioned several times, YES. And this is how many retire as MILLIONAIRES after a few years on the hill.

About to pass legislation that affects one of your holdings? Dump it.

About to pass legislation that would benefit a company/industry? Buy it early.

Dirty dirty dirty secret about some of the dirtiest scumbags in the world.
Link Posted: 1/2/2012 11:23:08 AM EDT
Shit , they are exempt from prostitution, drunk driving, graft, treason and perjury.
Link Posted: 1/2/2012 11:30:07 AM EDT
Originally Posted By MustardTiger:

Originally Posted By GlockSlap:
Question:

Are Congressman Exempt From Insider Trading Regulation/Laws?

Yes. Flat out, they are exempt.


This.

Here is a piece 60 minutes did about it. Click

BTW: Do NOT watch unless you're prepared to be pissed off.

Also, two people were directly asked about it, John Boehner, and Nancy Pelosi. When Boehner was asked, he gave a decent answer. He said "I don't control that". Apparently he has a broker that handles all day to day trading of his assets. (If true, that's commendable).

Pelosi practically blew a gasket when she was asked.
Link Posted: 1/2/2012 11:35:44 AM EDT
No they are not.

Most people in that position have a money manager, and their money in a blind trust and don't even know what they own in the portfolio.
Link Posted: 1/2/2012 11:41:33 AM EDT
Link Posted: 1/2/2012 11:45:53 AM EDT
what other profession can you think of that has a salary of ~ $120,000 a year and after 4 years they are multi millionaires?
Link Posted: 1/2/2012 12:13:31 PM EDT
Originally Posted By sigp226:
Sort of. Nothing prevents them from acting on information gained as a result of congressional position. I think that if they did the same thing Martha Stewart did, they would be liable to the same charges.




I think you are hinting on this but most folks don't know Martha Stewart didn't much get into trouble for the insider trading itself . I believe most or all of her sentience was for lying about the whole thing when it was being investigated
Link Posted: 1/2/2012 12:25:32 PM EDT
Yes. They can act on information that would get the rest of us sent to jail.
Link Posted: 1/2/2012 12:30:04 PM EDT
Don't they also not pay into SSI?
Link Posted: 1/2/2012 12:33:47 PM EDT
They can prove that their inside information provided a benefit to someone else other than them; and that IS YOU if you live in the same district.
Link Posted: 1/2/2012 12:34:31 PM EDT
Link Posted: 1/2/2012 12:40:18 PM EDT
[Last Edit: 1/2/2012 12:45:20 PM EDT by callgood]
Originally Posted By reelserious:
No they are not.

Most people in that position have a money manager, and their money in a blind trust and don't even know what they own in the portfolio.


re: Spencer Bachus

.........Representative Spencer Bachus, now chair of the House Financial Services Committee, for an obvious case of using inside knowledge on the stock market. Bachus was in a closed-door meeting in 2008 with Treasury Secretary Hank Paulson and Federal Reserve chairman Ben Bernanke—this is the infamous meeting where the duo told Congressional leaders there could be a second Great Depression.

The next day, September 19, Congressman Bachus bought contract options on Proshares Ultra-Short QQQ, an index fund that seeks results that are 200% of the inverse of the Nasdaq 100 index. In other words, he was shorting the market. It was an inexpensive way to bet that the market would fall. He bought options for $7,846 on a day when the Dow Jones Industrial Average opened at 8,604. A few days later, on September 23, after the market had indeed fallen, he sold the options for over $13,000 and nearly doubled his money.


I'm sure this has been investigated by the SEC and found to be perfectly legal.
Link Posted: 1/2/2012 2:13:19 PM EDT
Originally Posted By krpind:
Originally Posted By reelserious:
No they are not.

Most people in that position have a money manager, and their money in a blind trust and don't even know what they own in the portfolio.


That is what they do to show a plausible deny-ability when they make $2M off of a stock because they bought it before anyone knew that company was going to get $600M in government loans.

Trust us. It happens and as noted earlier in this thread 60 Minutes recently exposed it.




Does any one remember when Hilary Clinton made 100,000 from a 1000 investment in commodities when her shit wad husband was president? True story.

Link Posted: 1/2/2012 2:17:44 PM EDT
Link Posted: 1/2/2012 2:32:10 PM EDT
Originally Posted By reelserious:
Originally Posted By krpind:
Originally Posted By reelserious:
No they are not.

Most people in that position have a money manager, and their money in a blind trust and don't even know what they own in the portfolio.


That is what they do to show a plausible deny-ability when they make $2M off of a stock because they bought it before anyone knew that company was going to get $600M in government loans.

Trust us. It happens and as noted earlier in this thread 60 Minutes recently exposed it.




Does any one remember when Hilary Clinton made 100,000 from a 1000 investment in commodities when her shit wad husband was president? True story.



IIRC, the shitwad was Governor of Arkansas at the time.

Link Posted: 1/4/2012 2:52:49 PM EDT
Here's another article about this: Click
Link Posted: 1/4/2012 3:19:40 PM EDT
Originally Posted By fxntime:
They are Congressmen and women, what do you think, that they would write laws that included THEM?


FPNI again.
Link Posted: 1/4/2012 3:32:41 PM EDT
Originally Posted By GlockSlap:
Question:

Are Congressman Exempt From Insider Trading Regulation/Laws?


According to article 1 section 6 of the USC they shall in all cases except Treason,Fenoly and Breach of the peace be privileged from arrest durinng their Attendance and in going to and returning from the same
Link Posted: 1/4/2012 3:35:51 PM EDT
There are currently no laws requiring them to avoid using their insider knowledge from congress, and there is strong evidence that they use that knowledge and influence.
They are still, in theory, bound by laws that apply to their spouses, as many of their spouses have deep insider access as well.
Link Posted: 1/4/2012 3:38:36 PM EDT
"Quis custodiet ipsos custodes?"

- The Roman Poet Juvenal.

Link Posted: 1/4/2012 3:48:05 PM EDT
It's along the same lines as this little story...

Corruption of America

The Ethos of 'Getting Yours'

Americans know, in their bones, that something terrible is happening. Maybe you can't articulate it. Maybe you don't have the statistics to understand exactly what's going on. But my bet is, you think about it a lot.

For me, a poignant moment of recognition came this month.

Bloomberg news published an article based on confidential sources about how Henry Paulson, the former CEO of Goldman Sachs and the Republican U.S. Treasury secretary during the financial crisis, held a secret meeting with the top 20 hedge-fund managers in New York City in late July 2008. This was about two weeks after he testified to Congress that Fannie Mae and Freddie Mac were "well-capitalized."

I knew for a fact that what Paulson told Congress wasn't true. I wrote my entire June 2008 newsletter detailing exactly why Fannie and Freddie certainly had billions in losses that they had not yet revealed to investors – $500 billion in losses, at least. There was no question in my mind, both companies were insolvent – "zeros," as I explained.

And yet, in front of Congress, the U.S. Treasury secretary was saying exactly the opposite. Either I was a liar... or he was.

Then... only a few days later... what did Paulson tell those hedge-fund managers?

He told them the same thing I had written in my newsletter. He told them the opposite of what he'd said publicly to Congress. He told these billionaire investors that Fannie and Freddie were a disaster... They would require an enormous, multibillion-dollar bailout... The U.S. government would have to take them over... And their shareholders would be completely wiped out.

Here you had a high-government official, explicitly lying to Congress (and by extension, the general public), while giving the real facts to a group of people who represented the financial interests of the world's wealthiest folks. The story didn't come to the public's attention for two years.

This was the most outrageous example of graft and corruption I have ever seen. Certainly it involves more billions of dollars in misappropriated value than any other similar story I can recall. These managers had the risk-free ability to make tens of billions of dollars, if not hundreds of billions, by using derivatives to capitalize on what they knew was the imminent collapse of the world's largest mortgage bank. Who picked up the tab? You know perfectly well. It was you and me, the taxpayers.

(One of the investment managers present at this meeting was Steve Rattner, who by that point was already deeply involved in another bit of graft, his efforts to bribe New York state pension-fund managers for large investments into his hedge fund, from which he earned perhaps as much as $100 million. He later settled the charges for a mere $10 million shortly after Andrew Cuomo was elected governor of New York.)

The Bloomberg story... about a crooked Treasury secretary handing a room full of crooked billionaires inside information worth billions of dollars... hardly caused a ripple. As far as I know, no actions are being planned against Henry Paulson or any of the hedge-fund managers involved. No other major media outlet picked up the story. I saw nothing about it from the Department of Justice or the Securities and Exchange Commission.

What does that say about our country when even the most egregious kind of corruption – involving hundreds of billions of dollars – is simply ignored?
Link Posted: 1/4/2012 4:15:45 PM EDT
Yes.
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