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Congress & Stock Trading - discussion about expectations of Public servant's finances

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    Congress & Stock Trading - discussion about expectations of Public servant's finances

    Hey Gang,

    I saw heard about this article on independent media, and had to read into it as it fascinated me.

    Article Information:
    https://unusualwhales.com/i_am_the_senate/full <---- From the site "unusual Whales" that tracks, "unusual" investing both in timing, quantity traded, disclosures (or lack of) , and essentially anything that seems odd in the investing world.

    I believe this is getting attention, based on the recent changes to the FED , and their ability to openly trade , given their inseparably close relationship to the money supply. Plus the condescending and out of touch responses, when high importance legislators are confronted w/ this article and disclosure information.

    Thankfully, this is NOT a party issue, as it's pretty 50/50 on those either on the "suspect" or "direct violation list".

    My Spin :
    I am in the camp, that public service is supposed to be a sacrifice to serve your community. (My def of Sacrifice here = You can get paid for your efforts, as they hold value. But you should NOT be accepting, stargazing, open to, or conspiring to profit additionally & individually, as a response to your choices in office).

    It seems these legislators are "far too close to the stove" to not burn their hands here. As they're making regulatory and subsidy choices that directly impact how much support * profit protection (and/or Direct regulatory harm/fines) these companies will receive.

    It seems is these public servants care about the trust of community they serve, this would be an excellent step in the right direction. But I'm so curious as to WHY the highest ranking of these legislators, are heavily deflecting and at least visually trying to tamp down this line of questioning.

    Request:
    Merely share your opinion. There are various "ideas" at how to limit trading as to reduce the harm to public. Feel free to explore them and emphasize what you think's best & why (going forward).

    *Note - Current Stock Act that governs insider trading/corruption for congress. Weighs the harsh punishment of a $200 fine, (which may/may not be over-ruled by the congressman who judge the accusation). (in essence.... It's toothless. As CEO's / Executives can face up to 20 years in criminal court + $5 - 25 million dollar fine ceiling, pending on the type of company format)

    ***Placement of this thread. I know Admins here have strict rules, so place this where you see fit. I just thought it was imperative to share this article to people who's responses I respect. Tried to keep it away from any political party, as their too hot button to discuss. Plus it's totally in our wheel house as investors who are NOT privy (on avg) to this type of advance information.

    #2
    None of them should be allowed to trade in individual stocks....or any of their family member's either. My wife works for the FDA and we're not allowing to have any individual stocks in any bio/pharma related things.

    I thought it was cute how Nancy said that they should be allowed to trade in a free market. Makes sense considering she is incredibly wealthy due to these shady practices of insider knowledge. Not to mention, arent they passing bills/laws that directly impact such companies?

    Comment


      #3
      They should be forced to use blind trust not run by their families. Sorry Donald trump, Sorry Kelly Loeffler - she egregiously sold stock in Februrary 2020 after her meeting to preserve her wealth. Her husband owns the nasdaq
      LivingAlmostLarge Blog

      Comment


        #4
        relieved to hear this from you guys.... I was hoping people would not rush to defend them....

        Corporate press media is being tamped down on this it seems (hopefully not for long). But thank goodness the new mainstream media (independent media ) jumped ALL over this. (no corporate sponsors to tell them no no)

        I'm very glad it was brought to my attention. I think this is very low hanging fruit towards improving our trust/transparency for gov't. I can't see any sound argument that these law makers can have to defend the moral hazards all over this.

        Comment


          #5
          Nobody making the rules governing companies should be allowed to trade in those company stocks or directly profit from activity they are involved in. That said, I realize it's a nearly impossible ideal to enforce. Insider trading and profiteering isn't new. It's been going on forever and will likely continue to go on. I'd love to see it stop but I have no realistic expectation that it ever will.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

          Comment


            #6
            I would add that the politicians should be banned from buying cryptos.

            Comment


              #7
              Originally posted by QuarterMillionMan View Post
              I would add that the politicians should be banned from buying cryptos.
              I don't care if the mayor of some small town in Nebraska buys bitcoin but members of Congress who are working on regulating the industry shouldn't be allowed to.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


                #8
                Thank you disneysteve, that's what I was referring to.

                Comment


                  #9
                  Originally posted by disneysteve View Post
                  Nobody making the rules governing companies should be allowed to trade in those company stocks or directly profit from activity they are involved in. That said, I realize it's a nearly impossible ideal to enforce. Insider trading and profiteering isn't new. It's been going on forever and will likely continue to go on. I'd love to see it stop but I have no realistic expectation that it ever will.
                  I thought congress had stricter controls. Some government jobs prevent you from owning certain individual stocks, for example. If you are high enough on the flag pole you have to fill out an annual disclosure statement.

                  Folks that work in the financial world also have pretty strict rules,too. All their trades are monitored. I was under the impression that some jobs would only permit them to own index mutual funds. (Well, I see this come up from time to time on Bogleheads when Vanguard wants everyone on the brokerage platform, but these folks are not allowed to)

                  Comment


                    #10
                    Originally posted by Like2Plan View Post

                    I thought congress had stricter controls.
                    Whether there are rules in place and whether they are followed and enforced are two different things, as we saw repeatedly in recent years.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #11
                      I'm a proponent as well for mandatory blind trusts upon becoming a lawmaker. You ARE the crystal ball, with the power to tip the scales in whatever direction you please, or at least possessing the foreknowledge to make highly lucrative trades on the regular. It's morally corrupt, and illegal to boot.... But rarely enforced.
                      "Praestantia per minutus" ... "Acta non verba"

                      Comment


                        #12
                        Fixing this along with term and age limits is long past overdue.
                        Anybody in the private sector that made stock deals like this would get thrown in jail. Heck, I sit on the board of a traded company and we have rather firm rules and regs about purchasing or selling stock, leaking information, etc.

                        Comment


                          #13
                          Originally posted by Fishindude77 View Post
                          Anybody in the private sector that made stock deals like this would get thrown in jail.
                          Exactly. Politicians don't get held to the same standard or laws as the rest of us. Their standards should be even higher, given the power they wield, but unfortunately it's far lower.
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment

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