In the discussion thread: Paul Ryan traded on insider information to avoid 2008 crash [View all]
Response to woodsprite (Reply #1)
Mon Aug 13, 2012, 02:38 PM
Octafish (37,048 posts)
2. Paul Ryan's buddy, Eric CANTOR, worked to make Inside Trading LEGAL for Congressional spouses...
STOCK Act Has Loophole That Could Allow Insider Trading By Congressional Spouses
By: David Dayen Friday July 20, 2012 12:55 pm
CNN managed to do some news reporting outside of reading viewer Twitter feeds today, and they came up with a loophole in the STOCK Act that would render it fairly meaningless. If you remember, the STOCK Act was the bill that rocketed to passage after allegations of insider trading among members of Congress, using at times non-public information to profit off of companies over which they held oversight responsibilities. The bill, which languished for years, was quickly taken up and passed with overwhelming majorities. But it turns out that thereís a potentially gaping hole in the legislation:
The STOCK Act requires that any trades of $1,000 or more made on or after July 3 have to be reported to the House and Senate within 45 days. But the House and Senate have two completely different interpretations of that rule.
So in the House, currently led by Republicans, you could just advise your husband or wife of the non-public information gleaned from your position as a Congresscritter, have them trade on it with family resources, and nobody would be the wiser. The Senate didnít add a loophole this craven in the interpretation of the law. So now you have two versions of one bill that was signed into law, which could get chaotic when applied in practice.
'Those of us who had worked for the Kennedy election were tolerated in the government for that reason and had a say, but foreign policy was still with the Council on Foreign Relations people.' -- J.K. Galbraith
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