Swampyville's - "Insider Trading/Investing by Congress"
December 6, 2011
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"!
"COMMODUM EX INIURIA SUA NEMO HABERE DEBET" (A wrong doer should not be enabled by law to take advantage of their actions)