Congressional Staffers Doing "Insider Trades"

I think most people believe that the people in government in Washington use their position of power to fill their own bank accounts.   They pass laws that enrich themselves and their families, find lucrative lobbyist positions after retiring from Congress, and even though it's against the law, many accept gifts and money from lobbyists and funnel campaign funds into their personal accounts.   It is the rare congressman that leaves Washington no richer than when he/she first arrived there.

And it is not just the elected officials who abuse their position to enrich themselves.   The Wall Street Journal has discovered that at least 72 congressional staffers have used the confidential information that Congress has to engage in a little "insider trading".   At least that's what it would be called if an ordinary citizen like you or me did it, and we'd wind up in jail because it's against the law.

Congress is privy to a lot of confidential information.   They also know what they are likely to do (or not do) because of that information.   Taken together, those two facts provide an opportunity for congressional insiders to make a lot of money on the stock market, and it looks like some of them take advantage of that opportunity (probably even many more than the 72 uncovered by the Wall Street Journal).

Now some of you may be thinking we should arrest and convict these congressional scoundrels who use inside information to make some easy money, especially since that's what would happen to anyone else trading on "inside information".   There's just one problem.   It's not against the law for congressmen or their staffers to do a little insider trading.   It seems that when they passed the law against insider trading, they conveniently exempted themselves from that law.

And I'm not just talking about Republicans in this mess.   Staffers from both parties are among the 72 uncovered so far (and these are just for the years of 2008 and 2009).

Back in 2006, a few congressmen proposed a new law to stop this kind of questionable activity.   It is called the STOCK Act (Stop Trading On Congressional Knowledge Act).   It has languished in Congress for over four years now.   A spokesman for Rep. Louise Slaughter (D-New York), one of the bill's supporters, says,   "Congressional staff are often privy to inside information, and an unscrupulous person could profit off that knowledge.   The public should be outraged there is no law specifically banning this."

Well, I am outraged, and you should be too.   This is a despicable and underhanded abuse of  the position they have been trusted to hold.   They should be ashamed -- whatever party they serve.

But I'm not going to hold my breath waiting for Congress to pass the STOCK Act.   There's just too much easy money to be made -- by congressmen and their staffs.