Live Hearing On Whether Insider Trading By Congress Should Be Illegal

Tyler Durden's picture

Only in a banana republic would Congress be "forced" to hold hearings on whether to ban itself from illegal (for everyone else) insider trading. Which explains why below readers can watch precisely that, live from the house Committee on Financial Services.The legislation in question relates to bill H.R. 1148, the "Stop Trading on Congressional Knowledge Act." We wonder how long until Congress manages to scuttle this latest effort to keep the playing field between the muppets and everyone else. After all, someone has to leak critical rating agency information (such as the FT's break of a key S&P leak yesterday, or Nancy Pelosi knowing weeks in advance that Moody's would not downgrade the US) to the media and/or trading entities.

From C-Span:

The House Financial Services Committee holds a hearing on congressional
insider trading.  The committee will look into allegations Members have
enriched themselves through legal stock trades based on non-public

Today's hearing will look at a bill that aims to prevent lawmakers from
using information they obtain through work to trade stocks.  A form of
the legislation was originally introduced in the House in 2006.  The
current bill is H.R. 1148, the "Stop Trading on Congressional Knowledge

The House Ethics Committee sent a memo stating that members of Congress
may be liable as insider traders, whether they obtain nonpublic
information as part of their official duties or outside them.

A recent "60 Minutes" segment focused on financial transactions
involving House Speaker John Boehner (R-OH), Democratic leader Nancy
Pelosi (D-CA) and Rep. Spencer Bachus (R-AL). All three have denied



Panel I

Panel II

  • Mr. Robert Khuzami, Director, Division of Enforcement, U.S. Securities and Exchange Commission (SEC)

Panel III

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camaro68ss's picture

Just a show for the sheep, nothing more

CPL's picture

Kangaroo court for the win!!!


I hope that Congress finds Congress innocent of all wrong doing regarding insider trading. 


Maybe we'll see Senators reviewing senator term limits next time to discover that they should do a study and examination on term limits.

He_Who Carried The Sun's picture

The funny thing is that they still succeed in making each and everyone believe that this is a democracy... Ridiculous! This is a clear-cut Oligarchy much like Russia! Its actually disturbing how much Russia and the US have in common these days...

macholatte's picture


Both McCain and Levin, who indicated moments before that they would agree to passage of the measure by unanimous consent, voted against it in that roll-call vote. 

Paul calls Senate’s bluff, kills terrorist detainee amendment




SilverIsKing's picture

I might have no problem with Congress trading on inside information with the caveat that they are required to make public the details of each and every trade.

MillionDollarBonus_'s picture

This is just shocking. Who would have thought that esteemed politicians would be involved in this atrocious conduct? The ONLY way to solve this is for Obama to put his foot down and say that ENOUGH IS ENOUGH. We need to create an ANTI-CORRUPTION department, full of smart regulators, to oversee the rest of the government and ensure that there is NO corruption whatsoever.

strannick's picture

Nancy Pelosi. Wife of the millionaire who trades off her inside info. Then Pelosi gets to put on her best face of indignation when caught red handed by 60 minutes

Seasmoke's picture

i still wouldnt fuck nancy pelosi for all the inside information in the world !!!!!!

MrBoompi's picture

Because you're too busy blowing Newt?

Bansters-in-my- feces's picture


You owe her one,She fucked you up the ass,the least you could do is offer to return the favor.

Do her till you sea smoke.

SheepleLOVEcheddarbaybiscuits's picture

anti-corruption? corruption by definition is government intrusion into free anti-corruption dept would inherently be corrupt

WhiteNight123129's picture

MDB, I think that at this point focusing on this is just an attempt to discredit the political class which is working over time to save the problems of the US. This is the work of anarchists, hacks and lunatics to focus on these little things. In the meantime, some dangerous people are accumulating Gold in an attempt to destroy the US dollar, those are the real criminals and they should be prosecuted for their actions. Those people take advantage of the misery of the honest citizens putting their faith in the dollar the Fed and the Government, those people are a threat to national security and for their action, their Gold should be confiscated, as per the people in the Congress, the inflation plight which affecting the country could not have been forseen and those people are just trying like everyone else trying to make ends meet, who could blame them for that? The Gold owners are the real threat, who do they think they are to try accumulate power and money at the expense of others, the central bank?

Ceteris paribus's picture

You should be tried for treason.

A Lunatic's picture

I'd like to see a retraction of the disparaging remarks regarding lunatics.

Bansters-in-my- feces's picture


Fuck you you piece of moldy shit.

Get off your fucking knees.

CPL's picture

...sigh...look, as an NSA employee you should understand that next year they won't need you.  They won't need any of your spook friends.


The squid has other plans for "patriots" for yourselves.  At least you and I and everyone here should be properly destitute by the end of next summer.


Good luck "patriot".

MillionDollarBonus_'s picture

Quite right. It's just that I hate to see corruption in government, however insignificant. But I know that the vast majority of politicians are caring and honest people, or they never would have been elected in the first place. 

StychoKiller's picture

Oooh!  Now, even the trolls are getting trolled! :>D

Ceteris paribus's picture

Thats called the CFTC we have one dunb ass troll.

Badabing's picture

When backed into a corner just change the rules!

rosiescenario's picture

True, but the Russian news media does far less white washing than our own....CNBC has far out done what Pravda used to foist off as 'news' during the "cold war".

bernorange's picture

Congress needs a working moral compass for Christmas.

Widowmaker's picture

It's called a shovel, and only works when placed on the head.

tarsubil's picture

It also works if you attempt to cram it into their mouth.

Normalcy Bias's picture

Well, this isn't a 'Blue-Ribbon Panel,' so you know that this is just for show, and we're SOL.

jaffa's picture

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jaffa's picture

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jaffa's picture

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whatsinaname's picture

And the room was packed full ?

DaveyJones's picture

Is this an Onion headline?

blu's picture

It's official, see how they got it called the STOCK Act?

There is a department in Congress just for naming shit correctly.

Grinder74's picture

So, as a consultant to IAs, I have to freeze all activity in my brokerage accounts and/or get approval for all activity according to the IA's own compliance rules--otherwise I can consider myself fired. 

Why can't the same rule apply to Congress?

vast-dom's picture

akin to bedoun whore doing "background checks" on prospective "relationships" all while claiming not to be interested in $$$. 


Some get what they deserve.....and some get free.......

vegas's picture

There has to be a "hearing" to get rid of this shit. WTF.

Shizzmoney's picture

And people wonder why gun sales are going up.

The very fact we must "debate" this shit is unreal!

DosZap's picture

Just having the temerity to EVEN consider if this should be allowed tells anyone with half a cerebral cortex that Dorothy and Toto are still in Oz.

WHY, on God's green earth, should you or I go to jail, for this same thing?.

But, for them it's HOKAY?.

No wonder we are melted down  like Fukishima.

Outside of this  blatantly illegal practice for the Serf's, do they not have FAR more important things to be doing?,like zeroing their scopes?.

They need to, as I told my Rep, the barbarians are preparing to storm your gates,wake up!.

jm's picture

Banana republic it is.

CPL's picture

Putting on my Banana hammock as a show of solidarity.

jm's picture

I wish that these losers could look past their delusions of grandeur and see how voters see them.

Seppuku on the spot.

TrulyBelieving's picture

The voters for years now have asked their politicians to steal from one who has earned and give it to you that hasn't earned. And now those thieving politicians are stealing and giving it to themselves comes as a surprise?  You socialist could never see this coming, blinded by your own sick desires, which are the same as those you vote for.

jm's picture

If it makes you feel better to think that my 12-14 hour days somehow are worthless, then have at it.  The market thinks otherwise. 

I've never taken food stamps or any of the other fine handouts, nor have I ever received a bailout of any kind. I'm net postive in the earning as opposed to taking category.

TrulyBelieving's picture

Not intending anything negative toward you, nothing you posted suggested your view on this matter, but was merely expanding on your point about how voters will look at these corrupt politicians.  

Don Birnam's picture

The very fact that this is even a question speaks to how far gone this nation and its corrupt governance has become.

In a state where corruption abounds, laws must be very numerous.

- Publius Cornelius Tacitus



Freddie's picture

Run by a muslim too.