Move To Ban Alleged (Congressional) Insider Trading Faces Pitfalls - MSNBC

[WillyT]

Move to ban alleged insider trading faces pitfalls
By Tom Curry, msnbc.com National Affairs Writer
November 23, 2011

<snip>

Spurred by a CBS “60 Minutes” report and a new book by Peter Schweizer, a fellow at the conservative Hoover Institution, on alleged insider trading by members of Congress, there’s growing momentum for an effort to ban members and congressional staff from trading stocks or commodities based on confidential information they have on pending bills.

Yet despite the attention given to the “60 Minutes” report, such a ban is a long way from becoming law, partly because it would be difficult to enforce and might create significant unintended consequences.

“Many constituents saw the report and will be asking their lawmakers, ‘So what are you doing to fix that problem?’ Politically, they need some kind of an answer,” said congressional scholar John Pitney, who teaches political science at Claremont McKenna College in Claremont, Calif.

One answer is a House bill called the “Stop Trading on Congressional Knowledge Act,” or STOCK Act. The bill, sponsored by Rep. Tim Walz, D- Minn., and Rep. Louise Slaughter, D- N.Y., would ban buying or selling stocks or commodities by a member of Congress or staffer who has “material nonpublic information” regarding legislative action that relates to a specific company or commodity.

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Much More: http://nbcpolitics.msnbc.msn.com/_news/2011/11/23/8976218-move-to-ban-alleged-insider-trading-faces-pitfalls

:kick:

Oh boy... neither side likes this...

Republican targeted in insider trading piece fires back: http://firstread.msnbc.msn.com/_news/2011/11/16/8847161-repubican-targeted-in-insider-trading-piece-fires-back

Pelosi fires back at report on 'insider trading': http://www.msnbc.msn.com/id/45287592/ns/politics-more_politics/t/pelosi-fires-back-report-insider-trading/

:shrug:

[cherokeeprogressive]

1. I'm guessing the number of pitfalls it faces adds up to exactly 537.

Fox, meet henhouse.

[Jamastiene]

2. You are right.

Who would ever expect them to make a law to stop themselves from something they obviously enjoy doing? Foxes in charge of the hen house is a perfect analogy in this case.

[JDPriestly]

3. Right. And we have a number of members of the House and Senate

who are Democrats and who have suspiciously enriched themselves during their service in Congress. And that's just the Democrats. The Republicans -- Wow! What a bunch!

[cherokeeprogressive]

4. You have more faith than I in those who represent us.

I'd call them ALL criminals in the sense that they enrich themselves in ways and using means not available to common citizens.

ALL of them do. ALL 537 of them. It doesn't matter which party they belong to.

Name ONE Congressman/Woman, ONE Senator, or ONE President/Vice President IN THE HISTORY OF THIS COUNTRY who was worth less upon their exit from office than when they entered, other than those who died IN office. I'd even be willing to bet that those who died IN office were well on their way to being more well off than when they were elected. Prove me wrong.

They are all criminals.

[JDPriestly]

5. Thomas Jefferson