 |
Thursday, March 30, 2006
Inside Trading: Congress for sale
Here's a little history to consider.
Congress enacted the Securities Act of 1933, which required registration of publicly traded companies -- making more information open and available to the public. A year later, Congress added more protections for investors. One of those provisions made it illegal to trade stock by corporate insiders who were privy to special information that could help or hurt a stock.
After this generation's corporate scandals, Congress passed Sarbanes-Oxley in 2002 to improve corporate governance and audit independence. But one of the measures added reporting requirements and tougher standards for insider trading.
Unfortunately, Congress forgot itself. It remains perfectly legal for a member of Congress to buy and sell stocks based on information that's not available to the public. Last year it was reported that a "political intelligence" firm tipped off its clients to an undelivered speech by Senate Majority Leader Bill Frist on asbestos liability. The information was profitable to those in the know.
"This is simply wrong that members of Congress can exchange information ... and get rich on it," says Rep. Brian Baird, D-Wash., who is co-sponsor of a bill to prohibit insider trading by members of Congress and their staffs.
Baird will report to a congressional committee today on the proposal -- and is optimistic. "When people hear about it, on both sides of the aisle, they think this is something that ought to be fixed."
We think Baird's right. Even if a congressional insider trading ban comes seven decades too late.
Tell us what's on your mind.
My web site
My Yahoo!
Google
· Police accountability: Improving trust
· Climate change: U.S. not interested
· War powers: A place to start
· Barack Obama shifts positions with reckless abandon
· No light at end of tunnel for Gitmo prisoner
· We need a viable alternative to driving
· Why Canada is the best haven from effects of global warming
· Listening to compromise: FISA law considers compromise
· Healthcare overhaul would be risky for a President Obama
· McCain must move to the center
· Obama, Hillary had no advantage
· Bush travels while economy burns
more
101 Elliott Ave. W.
Seattle, WA 98119
(206) 448-8000
Home Delivery: (206) 464-2121 or (800) 542-0820
seattlepi.com serves about 1.7 million unique visitors
and 30 million page views each month.
Send comments to newmedia@seattlepi.com
Send investigative tips to iteam@seattlepi.com
©1996-2008 Seattle Post-Intelligencer
Terms of Use/Privacy Policy
