Swampyville's - "Insider Trading/Investing by Congress"
by Swamptown
 Swampyville's - You're the Poet!
Dec 06, 2011 | 1491 views | 0 0 comments | 30 30 recommendations | email to a friend | print | permalink
Ask the Politically Correct!

(Reading between the lines)


What is Insider Trading/Investing and does Congress take

advantage of their legalized "Insider Information"?

Politically Correct Resolution:

Insider trading/investment is the trading/investment of a

"corporation's" stock or other securities by individuals with

potential access to non-public information about the "company".

In most cases, trading/investment by "corporate insiders" such

as officers, key employees, directors, and large contributors

(Special Interests) may be legal, if this trading/investment is

done in a way that does not take advantage of non-public information

(information not intended for the eyes of the general public). However,

the term is frequently used to refer to a practice in which an insider

or a related party invests based on material of non-public information

obtained during the performance of the insider's duties at the

"corporation", or otherwise in breach of a fiduciary or other

relationship of trust and confidence or where the non-public

information was "misappropriated" from the "company".

Members of the U.S. Congress are not exempt from the laws that

ban insider trading/investment, however, they generally

do not have a confidential or fiduciary relationship

with the source of the information they receive and

accordingly, do not meet the definition of an "insider".

(Legislators have protected themselves from the laws that they

have passed with a "Safe Harbor" provision).

Congress's safe harbor provision.

A safe harbor is a provision of a statute or a regulation

that reduces or eliminates a party's liability under the

law, on the condition that the party performed its actions

in good faith? or in compliance with defined standards?.

Legislators include safe-harbor provisions to protect

legitimate? or excusable? violations, or to exercise the

adoption of desirable practices (such as using insider

information on future laws for their personal gain).

(Information from Wikipedia used in part for the above)

About 57 members of Congress are part of the 1% of the

richest Americans. About 11% of Congress have a net worth

of approximately 9 million dollars, according to a

USA TODAY analysis of 2010. That's enough to place them

in the top 1% of wealth. Congress has 250 millionaires.

Nine times the typical household. The richest is

John Kerry (married wealth)! All members of Congress have

"Blind Trust Funds" in their family member's names of which

they can invest in the areas that they glean from "Insider

Information" or cause to effect a law that will benefit

them personally! Thus the asinine statement, "We have

to pass the law before we can find out what's in it"!

What Congress is actually saying, "We have to pass this

law before the general public finds out what's really

in it"!


(A wrong doer should not be enabled by law to take

advantage of their actions)
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